Thursday, August 18, 2011

Stanton's Shell Sticks Like Glue- The Budget and Lake Worth Taxes

Comment Up

Realizing that our property values fell again under 4%, we have to raise money to maintain the level of services that we need or cut back on spending and waste. My problem is, however, the superfluous--the travel, the conferences, the memberships, the free lunch that they all want on taxpayer dimes. It is all the unnecessary spending--the contract change-orders, the no bid deals, the bad contracts and all the rest that gets us into so much trouble. Has anyone counted up the amount of money that we pay Mock Roos on a yearly basis? It is staggering.

Before the budget meeting began, Ed Fry, Director of OMB asked me how I was. I told him okay but I could be better. "How so," he asked. I said, "Don't raise taxes." He said that could happen. So I took the bait and asked, "How so?" His reply, close the library and cut all recreation in half. This is the game--threaten to take away something everyone wants. The other part of the game is to "prove" and to tell us over and over and over again that they will literally go down the tubes if we don't cough up another $10 million dollars or so. Actually they never tell you the figure.

We know that the sub-regional sewer cities are not paying. We have to make up that. We know that fire/rescue retirement is costing us $1.72 in pension costs for every $1 in salary. We know that we have to make up over $50 million in pension costs. We know that we have big problems that we the citizens never caused. But we are the only piggy-bank they have. They can't print money like the Feds. And they have the damn nerve to threaten closing the library if we don't cough it up.

They don't have to spend all the unnecessary capital improvements for 2012. Why not wait until real property values have turned around? Everyone in the world waits until you have the money before they spend UNLESS it is a government. They have that piggy bank from which to draw. We have 25,923,439 budgeted. This is bull.

There was no back-up for this meeting. I was told that the Budget itself was the back-up. Ed Fry had power point slides explaining last night's agendaed points. Although I was only there for one hour and only one of two from the public, I am sure that there were plenty of residents at home who would have liked to have had back-up. Having no back-up for the public, the people who pay these taxes, is unacceptable. And why weren't there more there from the public? We have given up. We know that this Budget will stick like glue just the way it is.

This is the Stanton deal. No one on the dais asked how much money the city manager is raising from all of this money or even how much she needs. She had already told them that she needs ALL of it.
  • Keep the PB County MSTU. Negotiate to eliminate the supplement. Lock into a 10 year contract with the County with a $5 million cancellation fee (the County trusts us not to break contracts) that would start to diminish after the 5th year. There are no guarantees that the MSTU rate will not go up or go up immediately just like it did two years ago when we entered the contract. The CM is still working on this "deal" and should know next week. "They are close," she said.
  • Taxes for this year--7% over the roll-back rate or 5.4945. “Rollback rate” means the previous year’s millage rate minus the millage equivalent of the total net assessed value added by reassessments of existing real property. I did not hear this well so I can't explain it and--THERE IS NO BACK-UP.
Items that have been mentioned before:
  • Lien & Building Permit Search Fees -- $70 increase per permit
  • Commercial Demand Rates -- $100 Cost of Service Fee every month
  • Water Rate Increase -- 5.25% per month
  • Regional Sewer Rate Increase -- 30%
  • Local Sewer Rate Increase -- 13% from the current 9%
  • Refuse Rate Increase (Residential) -- $42/year
  • Refuse Rate Increase (Commercial) -- 10% monthly
Special Assessments:
  • Fire Rescue $60 per household. The assessment has been tested in the Courts, per Ed Fry. Commercial establishments will be taxed at 13 cents per s.f. Industrial at 2 cents per s.f. Institutional properties at 9 cents per s.f. This tax covers Fire Pensions and Ancillary Costs (not identified) of approximately $1.4 mil. The County said that funding the entire MSTU was unacceptable. So that huge pension that is 172% of payroll, will be funded by all the residents here in Lake Worth. The CM does not want to hear any objections. This is a regressive tax no matter the amount, a tax that takes a larger percentage from low-income people than from high-income people. Makes you feel warm and fuzzy, doesn't it? Actually it is paying for our budget shortfall. Thank God property values only went down a small amount this year otherwise they might have to give up that free lunch.
  • Street Lights--$30 per household. This is an estimate. It could be higher.
  • Other--Undetermined at this time as I only stayed for one hour. However, other fees were discussed such as parking pay stations down town. Stanton wants this and she will probably get it even though we have already said "no." That word is not in the CM's dictionary. Now that red-light cameras have been judged legal, look for that to pop up again.
The internal auditor was discussed and I still don't understand why this cost is so much. Waterman said perhaps the level of service will be different. The only level of service that will be different will be because he will now be an employee, a conflict with our Charter--an employee reports to the CM whereas the Internal Auditor is supposed to report to the Commission. We, the public, should get LESS transparency.

It was announced that there will be the first Public Hearing on Tuesday on this matter to adopt the final millage rate of 5.4945. I am assuming that the County charge for MSTU will be noticed as it was not mentioned last night, not once, not at all. Look for that to go up another mil and we will be right at 10 mils.


8 comments:

Anonymous said...

Do you have a drawing of Hell, A Hand Basket and the CM and Commission to place them in the Hand Basket with the Taxpayers falling from the sky following them down the path?

This is where this city is headed and every move that this CM and Commission seem to make sinks us further into the depth regions of Hell. The big question would be how the "H. E. double hockey sticks" do we get out of all these messes?

Hopefully we can have some debate on this from reasonable economists and number crunchers and legitimate legal advisors to turn this "basket" around and save us from the pit.

Anonymous said...

Do they all not understand that we are working hard to stay afloat right now and can't afford to pay any more, or do they just not effin care?
They are going to drive away the residents that can afford to sell their houses and the downward spiral will continue to get worse.
A serious question: how can they be stopped?

Lynn Anderson said...

Nothing will stop them this year. Taxes will be raised as high as possible plus some. Stanton is doing her darndest to get reserves built up again and this is admirable. Unfortunately it is off the skin of the backs of our residents who are just trying to hold on too. It is a deplorable situation. We should never have fired the internal auditor and we need a forensic audit of the utility, something talked about now for years and not allowed to happen. This is where the money is and where the money is wasted.

And I'm not moving to Belle Glade, Susan!

Anonymous said...

A Charter change would have to be voted on, wouldn't it? What was Stanton's explanation to having the internal auditor be an employee?

Matt said...

Stanton could care less if taxes are raised, she rents and doesn't pay any of this, she only cares about herself and her high salary. They should make all employees int this city who make over $100k take a huge pay cut, these salaries are excessive for what they do in this small city. Stanton is a ruthless, unapproachable, hard-shelled, wacko who could careless about us the citizens, she never has, she is such a fake and does nothing about all the problem in this city, it is still as blighted as when she came. When do you ever see her out int he city doing something and making a real difference?

Lynn Anderson said...

Come on now, Matt. Susan Stanton DOES care about the city. Thatris why she is taking these hard core approaches to get it healthy. No one likes taxes and fees to go up unless, of course, they are totally nuts. I just think there are ways not being explored to keep from going to this extreme.

She is working long hours. There is no necessity for her to go out and about in this city. She will not make a difference there. It is the Commission's job to go out among the citizens.

We need a tough administrator. But when is being tough too tough?

Anonymous said...

When will the McNamara 's bottled Lake Worth pure spring water be manufactured????It will generate $5,000,000 $ to $6,000,000,- anually profit,revenue, eliminate the deficit result of mismanagement!
We have the property for bottling(Old Beer bottling facility none of the new Commission members, knew existed).
The Commission is NOT elected to create
taxes to cover their careless mismanagement of our financial resources,To promote illegal aliens to further bring down the value of our properties as honest people will admit.
They are elected to create new sources of revenue, 5 of which are ignored. New ones are busy with dogparks, small community parks,spending our money while our taxes have gone through the roof.Sitting arrogantly in our Commission seats is not its' purpose.Not to turn our new elegant, Lake Worth Casino into a slum building.
Check Travel Advisory for reviews before allowing restaurants in.
It is time for a Mayoral Candidate,
loyal and respectful to Lake Worth and who knows and will implement the Laws, Fedeal,State and Local!
The new ones are promoting illegal Guatemalans, violating Federal Laws,to further bring down our property values, that is not their job.

Anonymous said...

The present administration was voted into our Offices and employees hired without background checks and oversight, control, by 10% of the voters!!!!

Bravo 90%-non -voters, you helped yourselves, the 90% get into the handbasket by not voting for a known, honorable, well-bred, moral Candidate longtime resident, falsely accused of being racist, by the Anarchists and their gang which non voters allow to take controll and make Lake Wortha 3rd World slum, as they respect nothing and nobody least of all themselves(with good reason).

Enjoy the ride non-voters you helped fuel the basket now steered by a U.F.O.(Unidentified Flying Object( fired into place by 10% of Lake Worth voters!