Tuesday, September 6, 2011

Taxes - The Road of Disbelief

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Tonight's the night folks when you get screwed. I don't mean for the tax increases that they will pass for the upcoming year but for all the future assessments that have yet to be passed. Tonight, the Commission is allowing the City Manager to tax us beyond belief down the road. They are opening up a can of worms that will never be closed. Special assessments galore will appear, some of which you probably have never imagined. Tonight the City Commission will adopt the millage and the City Manager's Budget.

The most amazing things of all are the zillion hours of Budget reviews and not one major reduction in spending. The other was when the Finance Advisory Board approved of the Budget "as is" with no commentary and not one suggestion to reduce spending. Tax and spend is the theme of the day. Even Obama doesn't want to take from the poor. You don't think that the deck is stacked against you?

The City manager has made a statement as follows:

From a service delivery prospective, 3,180 residents in the City live in homes that actually have a market value greater than $25,000 (and therefore have the ability to pay for their city services) but pay no property tax for that service. This disparity is even greater for properties with market values less the $50,000 compared to their Taxable values shown in Table No. 2.

First of all, because someone's house is valued at over $25,000, does not permit you to assume that the owner has the ability to pay. Have you peeked at their bank account? The other thing, the mobile home parks as well as Lake Worth Towers will have to pass those costs on to those who live there, in some cases, the poorest of the poor. Those who own commercial properties will pass the cost on to their tenants, those struggling to make an income in this horrible economy. Those merchants will reflect these taxes in their prices.

The City Manager said, "These lucky property owners therefore pay no property taxes to the City for the services they use." We are paying what the State of Florida allows us to pay with legal exemptions. We pay what PB County allows us to pay with exemptions. Perhaps it's lucky to be poor, not sure about that, but Lake Worth is saying that, "Hey poor person, hey middle class, hey businesses, your luck just ran out, you get absolutely NO sympathy with us." I don't remember the City ever complaining when property values were escalating out of sight and they were making tons of money at all of the taxpayers' expense. That was just a few years ago. Where ever did the money go?

The proposed advalorem tax increase is 7% over the roll-back rate. The "rolled-back" rate (which is more aptly termed a "rolled-forward" rate due to the decline in property values) for FY 2012, after adjustment of annual payments to the CRA by the City and the County Fire MSTU proposed rate of 3.4581 mils is 5.135. The City manager is proposing that the City adopt a 5.4945 ( increasing the tax by .2595) property millage which totals 8.9526. This is exactly 1.0474 shy of the 10 mil cap. Close but this ain't horseshoes.

The proposed FY 2012 General Fund Budget includes $1,750,856 of special assessment revenue to pay for Fire pensions and street lights. When do we get the public notice on street lights of another $300,000? If we use the figures that the City used of 11,431 parcels, then we all will pay approximately $26.24 in an other assessment. The City already estimated this to be $30 per residence.

To make up for not taxing to the max but rather taxing over it through the back-end, the city manager not only is asking for a tax increase of 7% over roll-back rate but is upping Solid Waste by $42, assessing for Fire pensions of $60 and raising $1,450,856, increasing water, sewer and did I miss something? Oh yeah, the $34.50 cost of service that everyone will pay regardless of consumption for electric that will really be an increase and not a decrease in electric as we were told. That has not been settled to any satisfaction as yet or changed in the Budget. They are giving us pennies back on the monthly conservation charge and the cost of electricity but upped the Conservation Department's budget to make up the difference. Rate payers pay a little less; taxpayers pay a little more in millage. Parking at the beach went up 50% and many other fees for services have been increased.

On top of all of that, every resident in this City got a nasty threatening letter in the mail that if you didn't pay the assessment they would take your first born. All we hear now is that over 3,000 people don't pay their fair share of taxes because of low property values and double exemptions.

Taxing more and inventing creative ways to grab the cash during hard times is almost unprecedented. And not saying "no" to at least 60% of the capital expenditures is a mystery on the road of disbelief.

7 comments:

Anonymous said...

It was interesting to see your poll of taxes and assessments in Palm Beach County. In Broward, the assessment on my Pompano Beach duplex has gone down in the last three years, and the tax based on the lowered property values. Why is Palm Beach County not reassessing based on current market conditions?

Lynn Anderson said...

The Poll was actually a few who took it pertaining to Lake Worth, not the County. It had nothing to do with assessing market values but rather what your value is now and did your taxes go up or down on the proposed tax. It was about the fact that LW wants to increase a lot of taxes and fees.

We are told that the City has to have the money to operate and meet its Budget, always the reason when you want to tax. Not good enough.

John Rinaldi said...

There is only one thing we can do to end this madness and that is to vote out any commissioner who votes in favor of these taxes. We all know that no matter what the public says the City Manager will get everything she wants. Take this message to the polls in November and make a difference in Lake Worth.

Lynn Anderson said...

Well then, every candidate running should sign an affidavit to the effect that he will only increase taxes when absolutely necessary as a last resort and eliminate all special assessments.

Are they willing to step up to that plate so that we can hold them accountable?

Saying and doing are two different things and I am not happy with politicians in general.

kkss21 said...

These assessments were unnessary. There should have been other ways to make up this money in the budget. No one,except the city employees ,know where the money has been hidden in this mess . And of course,Stanton and the rest of the dept heads do not want an outside auditor to find out the truth.ANY Commissioner stupid,arrogant ,and uncaring of the public enough to vote for this backdoor tax is going to be kicked out of office.Stanton is out of control.Some people want a strong Commission to keep her muzzled and on a chain.I want a strong Commission to fire her.

John Rinaldi said...

Lynn they can sign and say anything. All we can do is judge them on their actions. Voting out Golden or any other candidate that fails to listen to the people is a way of sending a message that your time in office is limited to the will of the people. If you keep someone who votes the wrong way you send a wrong message.

Anonymous said...

Point to Point there are many arguments on this subject but just as Lynn typed above and many times....

Actions speak for themselves....Why are we spending CIP (Captial Improvement Project) funding when those projects can wait! This alone is proof that the CM is not watching the global financial picture of Lake Worth but only looking at how to make more money from our pockets...

Another Proof Positive is when they were swimming in the tax cash flows by properties being out of control high...Why were the side walks in Tropical Ridge and other interior neighborhoods not being fixed?

Where did the cash go people? Who moved the money around and buried it in general funds to later be spent on who knows what that was never on agenda's or discussed publicly.

Frankly when the cash was there they did not use it wisely and now that they are bleeding they have to reach out and cut our throats to bleed with them.....

Finance Board, Commission and especially you CM learn how to do the math and how to cut spending. At this pace we will all bleed until none of us have anything left.