There has been a lot of speculation about the “real estate bubble” bursting and the resulting effects on the local economy. While some think Martin County is less vulnerable than much of the country, a cursory look at current MLS listings shows a significant decline in projected value and a slowing rate of sales. A reduction in the price of existing homes will lead to a flattening of our County’s taxable values. This follows many years of double digit increases in the County’s property tax base, which, unfortunately, was accompanied by an equal or greater increase in spending by local governments. Your Taxpayers Association has been cautioning for years that spending must be held to a sustainable level to prepare for just such a reduction in the tax base increases. These warnings have gone unheeded and Government spending in Martin County has grown three to four times faster than our population for at least a dozen years.

Fortunately the implications of this slowing of the rise in the tax base are becoming clearer to our elected officials. The result is County Administration, School Board and Constitutional Officers are all scrambling to find new sources of funding. The County Commission is discussing an increase in the Ad Valorum tax rate for the first time in years, large increases in impact fees and borrowing against future tax revenues for roads and other capital improvements. The School Board is already borrowing, taxing at the maximum rate allow by law and is counting on a large impact fee increase this year. In addition “voluntary” mutual benefit “donations” from developers are already being assumed to provide money, land and other infrastructure for developing areas. The Sheriff, who is somewhat insulated from the fund raising process, but one of the largest consumers of locally raised taxes, is forecasting another double-digit increase in his 2007 request to the County Commission.

Our Association members appreciate the excellent amenities available in Martin County. We have an outstanding school system, an excellent Sheriff and our EMS system provides great coverage for our citizens 24/7. All of this equates to an excellent lifestyle for most of our residents. The question becomes: How can we continue to afford this lifestyle and make it available to the vast majority of our citizens? Fortunately the excesses of the past years provide the answer: Improve the efficiency by removing the fat that has accumulated during the times of plenty. As the 2007 budgets are reviewed we will attempt to provide more specific recommendations. For the moment we suggest the following:

Reduce the use of consultants and other part time employees.

Schedule vacations and down time to avoid the need for part time supporting personnel.

Appoint a review board of local builders to assist in keeping the cost down on schools and other government facilities. Look at the way specifications are developed, bids are solicited and contracts structured.

Look at building/using underutilized airport property rather than purchasing land.

Appoint and/or hire outside professionals to conduct union negotiations. Personnel costs are the largest expenditure in the budget.

Let’s be careful as to how we become reliant on impact fees and donations,

While the County Commissioners have always proven to be an easy “blame” target, we realize that their operations are only a small percentage of our tax bills. Any move to reduce spending and therefore tax rates, depends on the support and cooperation of the Constitutional Officers. We look to all of those responsible for the taxes we pay to look diligently toward holding the line and reducing our burden.

There are many more ways to improve our operations and budget process than this article has room for. Most can be summarized as follows: Look at reducing spending and improving efficiency with the same zeal being shown looking for new sources of income. We would like to help.