IN YOUR CORNER

In the last 10 years the population of Martin County has increased from approximately 110,000 to around 140,000 today. This is about 28% growth in 10 years, a number to make most happy with the controlled growth policies in effect during this period. Expenditures are another matter. In 1993 the County spent less than $115 million, for an expenditure of about $1,075 per person. By 2002 the cost of County government was up to $276.7 million, or over $2,100 per person, a 140% increase. Worse yet, spending is accelerating, with nearly another 30% increase occurring in the last 2 years.

The trends of government spending versus population growth are also dramatic within the City of Stuart. Total population growth during the period 2000 to 2004 was 7.8%. In the same period, property taxes in the City nearly doubled from $3M to $6M and the General Fund budget increased from $13.3M to 17.8M, or 34%. In other words, the costs of government in Stuart have increased over four times faster than population growth in the past five years. Also, with passage of the 2004 referendum for a new police station, Stuart’s property owners will see another $800,000 increase in 2005.

Assessed property values throughout the County have increased by over 80 percent, gasoline taxes are up 4 cents per gallon and impact fees are up 83 percent in the last five years. Even though Martin County suffered from last year’s hurricanes, property values are expected to be up another 20 % over 2004. These increases have allowed our elected officials to tolerate inefficiencies, dole out unwarranted pay increases and expand services beyond reasonable expectations.

How does all of this occur with relatively little complaint from residents? With the rapid increase in assessed value, millage rates have only had to grow around 15% per cent, allowing our elected officials to annually take great credit for holding down “taxes”. Since homestead laws restrict assessed property value increases to 3% per year, most of the cost of this increased government has fallen to businesses, landlords and new residents. Business owners and landlords are a minority, and a large percentage of the new residents come from areas where property taxes still exceed those in Martin County.

In short, Martin County is generating the income from those who do not notice, or are able to pass it on to their customers or renters. The problem is that this process cannot be sustained. There are large maintenance and personnel costs brought on by the increased levels of service. Huge increases in pay and benefits negotiated for Emergency Services Employees over the last few years have raised the expectations of all County employees, who already have a generous pay and benefit program. Unfunded/under funded entitlements will continue to grow, and can only get worse as salary increases and generous overtime are added to retirement calculations.

These are exactly the circumstances that have caused huge property and sales taxes to evolve in many northeastern areas. Only an electorate aware of the problem can keep that type of situation from occurring here. We are currently evaluating Martin County’s projected 2006 budgets that have just been released, and will bring you our assessment in the next few weeks. Last year we delved at length into the City of Stuart’s financial problems for the first time. We will also continue to monitor and report on their upcoming budget.

Our citizens must demand leaders who are committed to efficiency, a sustainable level of expenditures and an open, understandable budget process.