Wednesday, August 25, 2010

We have used this space several times recently to draw attention to a fact we believe well worth repeating: With declining property values, a rollback millage rate means property taxes will increase for most homesteaded homeowners.

Last week The Citizen ran a story about two public utilities, the Florida Keys Aqueduct Authority and Keys Energy Services, which are not supported by ad valorem taxes. The boards of those utilities instructed staff to bring back budgets that represent no increase in rates to customers. Both public utilities accomplished the budget cuts without cutting necessary capital projects, and still managed to give their employees modest raises.

The cuts came from reductions in staff and serious examinations of ongoing projects and contracts -- eliminating some and postponing funding for others. To their credit, they were able to accomplish the goal of no rate increase.

In contrast, local governments and agencies that derive revenue from property taxes have failed to reduce their spending. Another recent Citizen story warned of hefty property tax hikes for most homeowners due to the proposed budgets of Keys municipalities, Monroe County government, the Florida Keys Mosquito Control District, the Monroe County School Board and the county's constitutional offices.

While these agencies have not yet finalized their budgets, we do not expect much will change unless significant public pressure is brought to bear on public officials at budget hearings.

As with communities across the country, many Keys businesses and residents are suffering the effects of an economic storm. Key West has the highest unemployment rate since the Navy reduced its presence in the 1970s. When local governments continue to spend at the same -- or greater -- levels as during the boom times of soaring property values, it adds to the already burdensome cost of doing business and living here. And, combined with foreclosures and upside-down loans, it fuels the exodus that is leaving homes and storefronts vacant.

The city of Key West does face union negotiations in this budget cycle, and of course payments stemming from court judgments. Nonetheless, reductions in spending are possible -- even if they do go against the grain of the character of government.

Monroe County's budget also can be onerous because it encompasses multiple agencies. The Sheriff's Office, for instance, has already signaled that it intends to increase salaries. That might be more palatable if it was simultaneously reducing its head count and expanding staff responsibilities.

The Mosquito Control District is the poster child for unrestrained spending. This agency has been so far out of control for so long that taxpayers would be best served if the agency were absorbed into county government. At least the county is holding its spending to the good-times level rather than seeking a 40 percent increase, as the district is proposing.

The bottom line is that the citizens of Monroe County are hurting economically, and the elected officials managing their money are not showing much compassion. Residents should take note of how those officials vote on next year's budgets. Those notes may come in handy when it's your turn to vote.

-- The Citizen