For the last 6 months or so there has been a crescendo of news indicating a slowing of the local realty market and, by implication, the local tax base. Many were therefore surprised by the news released on July 1 st that Martin County’s Tax Roll had jumped a record 20.6% for the coming tax year. There were several unique reasons given for the record growth during 2005 that will not be repeated. These included the return to the tax rolls of hurricane damaged property and expansion of FP&L’s Indiantown Power Plant which by them selves added nearly 650 million of the 4 billion dollar increase.

Unfortunately, we agree with the Property Appraiser’s comments:” it won’t continue”. We agree that the end of the run up of local real estate prices probably ended in 2005. In short, the tax roll increases cannot continue to rise at these staggering rates, and could potentially even decrease if another major hurricane hits the area or a national recession occurs.

We have pleaded with our local governments for sometime to reduce spending increases and lower the budget in anticipation of a coming slow down. Most of these warnings have gone unheeded. This year the County has proposed an essentially unchanged tax rate for 2007 and that budget called for 40 new hires BEFORE the size of the windfall became known. At this proposed tax rate there will now be an additional $6 million in Ad Valorum tax revenues available in 2007. This does NOT include the proposed increase in impact fees, increases in taxes for schools or the proposed ½ cent sales tax increase.

The essential questions become; how much government does this small county need? How much can it afford? And, how much can it sustain for the foreseeable future? For a number of years the size of local government has grown many times faster than the population has increased. Our average population growth rate of 2-3%, which has been steady for years, cannot continue to support a 10-20% growth in local government spending.

We are again asking for the Sheriff and the County Commission (and School Board) to look at every means possible to reduce further growth in spending. This is especially true in the category of personnel costs. We know that virtually every new hire will create a position that will become enshrined in the ranks of “critical services”. Under present policies these new personnel will move up the salary ladder and eventually join the ranks of retired employees that must still be funded for the rest of their lives BY OUR TAXES. Let’s be clear here, we are NOT begrudging our local government employees their earned wages or a reasonable retirement. However, adding personnel in times of short-term largess creates a long-term commitment on the shoulders of taxpayers. The alternatives? Offer incentives for increased productivity. Incorporate technology. Improvise. Privatize where appropriate. Think about new ways to do more with less.

So what to do with this newfound potential revenue? Ideas put forward by County leaders include: “more sheriff’s deputies” “more roofing inspectors” “more parks” “increase the reserves” “give the taxpayers a break”

Do we really need more beach patrols? Should we be talking about hiring new inspectors with property taxes? Couldn’t the building department be self sufficient, funded by those using its services? Where do we locate new parks? To address what requirement?

We recommend the last two alternatives. Increase the budget for reserves from the currently proposed $1.75 million to $4 million. Return the rest to the taxpayers in the form of a tax rate decrease. This would return nearly $4 million to property owners still reeling from the hurricanes and increased insurance rates while still giving the County a 4.6% budget increase for 2007. Let’s use this opportunity to take a small step toward making Martin County’s government more sustainable and give the folks a meaningful tax cut.