In your corner

 

Changes to fiscal policy for Martin County and City of Stuart are now

being drafted.  The fiscal policies are the rules set by the two

Commissions that the County Administrator and City Manager must follow

in drafting their proposed budgets for 2004.  The MCTPA strongly

supports use of fiscal policies to guide local government staff in

their budget preparations.   We also would like to see the School Board

and Constitutional Officers adopt these important tools.

 

The most important decisions for local government budgets are made when

fiscal policy is set.  The public is probably unaware of this.  Most of

us assume our main opportunity to affect local government spending

occurs during the public hearings on the draft budgets and proposed tax

rates.

 

In fact, when draft budgets for next fiscal year are released this

summer, the major decisions have already been made.   This is one

reason budget hearings are boring for Commissioners, tedious for the

public, and why public input during those hearings frequently has

little or no effect.

 

This coming Tuesday, Martin County will consider changes to procurement

in its fiscal policy, to provide more Commission oversight of spending

for design and construction of capital projects.  We agree this is

needed, as investigations by a Commissioner  have revealed significant

cost overruns in design and construction of County capital projects.

 

Some of the additional expenses cited, such as for stormwater

improvement projects, are normal in the progression from overall basin

study, to identifying possible solutions, to designing and permitting

the selected solutions prior to construction.  Perhaps staff should

budget these projects differently, to account for expected contract

amendments as the studies progress.

 

More importantly, the Commission should set reasonable limits for staff

on the amounts of contracts and change orders (there are no limits at

present) allowed without Commission review.   We believe the staff’s

recommended approval limits of $200,000 for consultant contracts and

$2,000,000 for construction are too high, and should be reduced to

$50,000 for consultants and $250,000 for construction contracts.

 

That said, we also believe the Commissioners should read the

appropriate information and get their questions answered prior to

meetings, so that valuable public meeting time is not wasted on minor

details, or worse, that a useful oversight process devolves into

micromanagement.

 

Martin County fiscal policy does not address the percentage of the

total budget allocated to personnel expenses, City of Stuart policy

does.  We believe this important, as one of the easiest ways local

government expenses get out of balance with the local economy is by

letting payrolls expand while delaying capital investment in necessary

infrastructure.

 

County policy does not address cost of living increases for staff.  

There is no reason that cost of living increases should exceed the

annual federal rates used for Social Security, and the fiscal policy

should say so.

 

County policy also fails to address employee benefits as a part of

total compensation.  The County expects major increases in retirement

contributions (cost per employee to double) and health insurance costs.

  Prudent fiscal policy should address the total compensation package

for government employees and its equitable adjustment, not simply pass

all increases in benefits costs to taxpayers as though they are

separate and independent costs over which there is no control.

 

There is a vigorous debate between a City employee union and the

Commission over similar issues at this time, and City taxpayers are

fortunate to have sound fiscal policy on the issues and fiscally

prudent Commissioners on their side of the argument.  The County would

do well to follow the City’s example.

 

Both City and County policies include long-term revenue forecasting.  

This is essential for sound budgeting.  For example, the rising tide of

property values will not continue indefinitely, ad valorum revenues

will flatten or fall eventually.  Recognizing these trends in advance

is crucial to avoiding unanticipated tax increases.

 

There are many other important components to a good fiscal policy, and

MCTPA will continue to seek prudent budgeting guidelines more

completely described and adopted as policy by local government.

 

***

 

On March 20, the Guest Speaker at our Annual Dinner will be Mr.

Rawleigh Warner, Jr., a former Chairman and Chief Executive Officer of

the Mobil Corporation.  He also served on the Boards of the American

Express Co., American Telephone & Telegraph Co., Bristol-Myers Squibb

Co., Caterpillar, Inc., Chase Manhattan Bank, Honeywell, and Time, Inc.

 

Prior to joining Mobil in 1953, Mr. Warner had been an Assistant

Treasurer with Continental Oil Company in Houston, TX.

 

Mr. Warner has long been associated with Princeton University, from

which he graduated in 1943, cum laude, with an A.B. in Economics.  He

received an Honorary Doctor of Laws degree from Princeton in 1984 and

from Marietta College a year later.  Pace University conferred the

Honorary Doctor of Commercial Science degree upon him in 1976.

 

Following his graduation from Princeton in 1943, Mr. Warner entered the

Army of the USA, where he served in the Field Artillery with the 10th

Mountain Division and saw action in Italy.  He was awarded the Silver

Star, the Bronze Star and Purple Heart.  He left the Army as a Captain

in 1946.

 

A native of Chicago, Mr. Warner currently resides in Florida with his

family, and has graciously accepted our invitation to come to Stuart as

a Guest Speaker at our Annual Dinner.  Tickets can be obtained by