Thursday, July 23, 2020

Millage Rate & Budget Workshop

Dear Mayor & Commissioners, 

I seriously hope the Commission will consider lowering the millage rate this year.  Our property values had one of the county's highest increases last year and despite the Corona Virus we shouldn't have a major loss in revenue.  Our residents on the other hand have had a much harder time.  I realize there's an argument for increasing the reserves but we have a healthy reserve now.   

If you look at the crude chart I've attached, you can see what we look like compared to the rest of the county.  We have to start lowering our taxes.  Even if we brought the millage down three or four tenths we would still be much higher than other areas but residents deserve some financial relief and the perception that the Village is making an effort.  
 

The housing market projection, in our new reality, is very strong for single family homes.  People are leaving condos and buying houses.  You would be making our Village more competitive by lowering the rate also.   

Our budget needs trimming.  Every year I speak at budget workshops about the escalating Parks and Recreation budget.  Parks & Rec., 260K, is almost half of our Public Works budget!  It has a 7% increase in its budget.  Almost all of the few programs we have are outsourced.  We've been living in a "shut down" state and probably will continue for a long time and yet the part-time salaries are projected to increase 26% in 2021!  The possible lease of a van is absurd.  I'm not going to bring up every line item but you have a responsibility to take a critical look at a department that may have a budget of 260K.

Reducing Parks & Rec. and increasing Code & Public Works would be a much better investment and improve the quality of life for residents.  Few people use the recreation center but everyday we see an escalation in code issues that could be addressed by better education and community awareness.  Public Works needs another qualified manager with experience relevant to our community.  
 
One of our biggest and most valuable assets in our Village is our urban forest.  We should be improving our medians by nurturing and maintaining them and for that you need to have someone on staff that has the experience to do this.  We have a Public Works staff that basically works on Village maintenance.  We need someone who can work on our trees.  It will be money well spent. 

Just a few comments about the Interim Manager contract - it hasn't been provided so I'm just commenting on what was or wasn't discussed.  You said part-time but there was no discussion of how many hours a week will be provided for $2K weekly.  Since he's already our Finance Manager and things like CITT, FEMA, etc. are already being addressed by him are we paying to have him oversee himself?  He mentioned the RFP for waste management being done by a professional.  That's something our Village Manager has always done.  Are we now going to have to pay extra because he can't do it? 

No one brought hiring and firing.  I don't think he should be doing this.  It wasn't clear exactly what he was going to be doing as Interim Manager.  If duties aren't listed in a contract then he's not responsible.  $2K seems like a lot for really overseeing something he's already paid to do.  Is he going to be providing extra clerical help or using our staff?  There were a lot of unanswered questions.  You need to clarify some of these issues. 

Thanks for listening, 

Barbara
 

21 comments:

  1. Hi Barbara,

    Thanks for sharing and you bring up many good points. One thing I want to comment on (but will need to look up for accuracy) is how many years it has now been since we've seriously even looked at reducing the millage rate. When looking back over the years, the tax millage was adjusted, sometimes only slightly, every year. However, since we hit the 9.7 mark, it has become static.

    Another point to make is since we've been seemingly stuck @ 9.7, our property values have increased more than most other cities in South Florida. (top 2-3 if I remember correctly) So, taxes have actually increased... even without increasing the millage.

    Every department head should be tasked with coming in with an approx. 5-10% budget reduction and find ways to operate more efficiently. We need to stop the financial leakage- starting with the continuing excessive legal fees.

    A good example of how this can be done correctly would be our police department. Under Chief Cabrera's guidance, he has increased the number of officers and services by a wide margin, yet is still operating within the budget he inherited. This is the model ALL other departments should follow.

    A reduction of the tax millage wouldn't have much effect on those of us who have been here a long time. But, it would make a difference for those owners who have bought here more recently. I find just rolling over the budget lazy and misguided. Perhaps a better word would be disconnected with reality. A 9.7 tax rate is no badge of honor. It is moreover a sign of systemic fiscal dysfunction.

    The commission needs to be good fiscal stewards and focus to reduce wasteful spending.

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  2. Like everything else around here we seem to do things backwards. Without a set budget how is it we are talking about millage rate, talk about putting the horse before the cart! I am all for lowering our taxes but I also think that we are not seriously looking at ways of cutting expenses. The only good thing I heard last night is that we can always lower the millage rate after it was set but I wont hold me breath. We always seem to look for the easiest way to do things, the path of least resistance and no one has the chutzpah to make difficult decisions. This becomes a popularity contest and which faction or group you are affiliated with LOL. I feel sometimes I am back in high school, Im with the popular group, im with the jocks, im with the pot heads and if your in one group you cant mingle with the other group. We all need to grow up high school is over!

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    1. Hi Art,

      I hope you're keeping well. The topic of reducing the millage came up as it has remained static for years now with no serious discussion- which deviates from how it was managed historically. And it was for people like you I was thinking about in my comment, etc. Are you suggesting that others are not free to discuss their displeasure with how our taxes are being spent?

      As for the rest....you'll remember I wrote something about our factions here before. So, I get it and agree with you.

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  3. I dont know about others but I do know that if you like your group you may not want to take a different stance on a specific topic because you may get kicked out of the popular group LOL. Another thing that was discussed last night was that for every fraction dropped in millage it costs the Village 25k in tax revenue. What I would like to know is how much more revenue is being collected as property values continue to rise and new folks, like myself move in. I know my taxes were 12K in 2019 the previous owner was at 8K, there is 4K right there. Our other home in the park the taxes this year were $12,315, previous owner was $8,618 that is a combined gain of almost 8K in just 2 homes. How much increase has there been across the Park? Conclusion, if we gained 100K in taxes and give up 25K we are still up 75K. Am i missing something here?

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    Replies
    1. Nope Art....you aren't missing anything. Stay safe.

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  4. At the meeting last night Rox was very against lowering the millage to 9.4 because we would bring in 75K less in taxes. Very true. Is her point that she's never going to talk about lowering taxes because that will always mean less money for the Village? Art you're right that property values have been going up which does bring in more taxes. Commissioners are there to represent residents and keep an eye on the Village business. It seemed like Mac & Rox were completely against the idea. I think they should look at our budget and see where we can cut expenses, look at the gains we've made in property values and think about residents paying eight to twelve thousand dollars a year in taxes.

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  5. I agree that politics can ruin everything and thats why I intend on running in November so we can minimize that ruin! I have only one reason to run and that is I want to make BP a better place to live. My wife is not happy with this decision but I know how to deal with that after 30 years of marriage :)

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  6. Morning Art,

    I'll be interested to hear how you plan to "minimize that ruin." I also find the phrase of "making BP a better place to live" totally subjective. "Better" for whom?

    Another point of interest would be how you plan to handle "if you like your group you may not want to take a different stance on a specific topic because you may get kicked out of the popular group LOL" when it comes down to doing the right thing for other residents outside of your group...LOL.

    We'll talk later-

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  7. Morning Milt happy to share some thoughts on the matter.

    You know very well that politics in and of itself is divisive. The only way I know how to minimize that "ruin" is the same way I deal with this issue in my business environment and that is to be all inclusive and listen to all view points not just those I like or agree with. I intend on going into this with an open mind. After listening to all sides on a specific topic I will make a decision and that decision will be mine and mine alone. I know their is no way to make everyone happy and I am ok with that.

    A better place to live was not a planned statement it just came out as I wrote my statement about my intent to run. I guess what I was trying to get at is that I would like to make it a better place for all. To your point some may feel its better for them and others may not and thats a fair assumption.

    Lastly, as far as being a part of any group, I have never had the need to follow any specific group. I remember back in high school I navigated easily from group to group, the jocks, the kool kids and yes even the pot heads :)

    Listen I am not naive about how politics work, I have always been intrigued with politics and politicians. I knew and personally worked with some of the biggest names in politics. Folks like Tip O'Neill, Howard baker, Bob Strauss, Bob and Elizabeth Dole among others. One thing I learned from these giants in American politics is that we can all work together even when we disagree. I know the world has changed and politics with it but I still think these things are possible even today.

    Thanks for the questions, I know their will be more and I look forward to them.

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  8. One more thing I would like to add and that is I will never run or hide from anyone. I will always reply to any questions or concerns that arise from anyone. They may or may not like what I have to say but they can always expect me to be open and direct.

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  9. Morning Art,

    Thanks for stopping by on this soggy morning and for sharing your thoughts. The idea of "we can all work together even when we disagree" sounds great on paper, but in truth hasn't proven true here and for as long as I can remember....with brief periods of stability mixed in. My experience is that we have little to no ability to compromise, find middle ground or do much other than struggle from topic to topic. Battle lines get drawn and both sides get bloodied.

    It seems that the minority members of the commission(s) are normally infighting with the majority for power and control and as such, wasting time, money and other resources. It is the very definition of dysfunction. The vast majority of residents remain apathetic to the local politics and the Entitled 1/2 of 1% now act more like a mob inciting "cancel culture" when they can't build a consensus or get their way.

    So, you've got your work cut out for you. That said, your temperament will be an asset in my opinion and your voice is always welcome here. I'm anxious to hear more about your plans and platform.

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  10. Thank you Milt. I will lean on you for help and guidance and your opinion and voice will always be welcome here as well, stay well and dry my friend.

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  11. Morning Milt.

    I have officially declared my candidacy and submitted all the paperwork for one of the open commission seats on November 3, 2020

    Looking forward to this new adventure.

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  12. Barbara, respectfully, I note from the Commission meeting the other night that 4 of the 5 Commissioners voted to maintain the millage at 9.7 as the maximum for the purposes of advertising the public meetings that will be held on the subject. Each one of those 4 understood that 9.7 mills is the ceiling for this assessment and they apparently felt that it was prudent to do so. They (all four) had the opportunity to reduce the assessment and they voted that motion down. They can now scrutinize the budget and cut something out if they chose and they should at least scrutinize the budget. You and I could sit down with that document and do the job for them if they wanted to let us, but the talent is there on the Commission too if they take the task seriously. I guess my point is that the fact that one commissioner pointed out one example of the affect of reduced revenue in terms of what the could be purchased or might need to be cut, should earn that commissioner an admonishment.

    In the end, if they tax me for something, I want the funds to be spent as intended and as efficiently as possible. I’m
    willing to pay for things that I don’t directly benifit from if they benifit the community as a whole.

    Taxing at a high rate now and accomplishing what the budget sets out to accomplish will assumedly increase property values, which in turn will put us in a position of applying any new tax rate in future years to a larger Village wide taxable value. This would in turn permit the lowering of the tax rate while taking in the same income.

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  13. Dan,

    You're missing your own point- "Taxing at a high rate now and accomplishing what the budget sets out to accomplish will assumedly increase property values, which in turn will put us in a position of applying any new tax rate in future years to a larger Village wide taxable value."

    All of this has already been happening during this stretch of our static 9.7 millage rate. Meaning, actual taxes have increased (due to rising property values) while the millage remains just under the top of the chart. So... when now will the time to consider lowering the millage as we've already achieved your example?

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  14. Milt, the Village must continue to achieve my example in order to remain viable. We must budget and spend efficiently to maximize property value.

    I’m fine with scrutinizing the budget and I said so above. That can be done at this point and the millage lowered to
    compensate for the lower expenditures. I’m ok with keeping the millage the same and maximizing community improvements though, because whenever a house is sold we have either maximized its value with our efforts, or we have let that possible value pass through our hands. The next opportunity only comes around when each house sells again.

    Had there been 20-30 years worth of we’ll spent dollars in our Village - only a few bright spots are evident, w would have had a much higher value community by now. Every existing resident would have benefitted by that.

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  15. Dan,

    As you know from your experience here our tax millage rate usually changed slightly every year or so. Sometimes slightly up...sometimes down. Also as previously mentioned, we've had rising property values for years now with this static tax rate. So I'm not sure how many more years this needs to remain static. I certainty hope you're not referring to 20-30 more years. Yikes!

    Look at El Portal which is very similar to us (size and budget) and their rate is over 1 point lower than ours. (I realize they have a small commercial area, but I doubt that is the only reason)

    We need to seriously cut out the fiscal leakage due to incompetence and mismanagement and reduce our escalating legal fees. There is absolutely no reason monthly meetings need to span 4-5 hours for a community of only homes. That's fiscal leakage. I'd like to see you working with those you communicate with on that end.

    Thanks for stopping by with your follow up. Take care-

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  16. Milt, we are not at odds re fiscal management, just in assuming we don’t need 9.7 mills to achieve correct fiscal
    Management. I don’t mind working with anyone and I have certainly been working with anyone and everyone to achieve quality improvements and otherwise overall good management, let alone the financial component of that.

    Good management requires a manager. I believe you supported not searching for a manager and the only thing that accomplished was us loosing the permanent Public Works manager. So, hopefully we will now get a manager who will have 6 months or more fewer months on the job to manage the Village into a lower millage rate situation If that ends up being possible or desirable. I was told, months back in time, by the people you are supporting (and advising?) - the Mayor and Dan Samaria (correct me if I am wrong) that they “just didn’t think we needed a new manager right now”. Well, of course we did. Hopefully those two and Will T. have learned something from the experience of procrastinating on important issues.

    I would like my Commissioners, all of them, to say what they need to say succinctly and with the knowledge of good research. This will include anything they have to say on the budget or millage. I don’t care how long it takes each one of them to do that as long as they are still speaking succinctly as they speak. We can’t afford not to hear from the informed speakers just to provide equal time and in the interest of some desire for literal fairness over substance. Sorry for being a little off subject here, but the issues are related.





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  17. Dan,

    I'll tell you again the same thing I did when you phoned me weeks ago trying to use me as some go between to gain influence or push your narrative with the other commissioners. And that was I have no vote on matters here and don't presume to suggest otherwise. The same can be said for your suggestion of me "advising." This is not the first time you've done this and I'll ask you now to drop it. You know full well this place is a rumor mill and the deliberate spread of disinformation is common.

    When the minority of the commission can’t build a consensus or the majority makes a decision that you or I don’t agree with, it does not automatically make it incorrect. It’s arrogant to think otherwise.

    The loss of our PW director was due to the foul treatment he received, and that treatment resulted in escalating his health issues. This and more will be discussed on an upcoming video... so stay tuned.

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