The last meeting of the Board of County Commissioners in Key Largo was an interesting one — as they all seem to be. In the midst of a cloudy economic climate, there didn’t seem to be much discipline when it came to spending choices. For instance, County staff suggested postponing some aspects of construction of the Murray Nelson Government and Cultural Center. These elements — primarily to augment the theater space that will double as the new BOCC meeting room — could all be added back at a time in the future when money is not quite so scarce.
When originally proposed, the project was planned to cost around $8 million. After bids were received, it was budgeted at $10.8 million. Change orders approved in May of 2007 actually reduced the projected cost by $451,000 for a new total of about $10.4 million. (The Keynoter has reported that the actual cost may end up at around $12.9 million.) In the construction process, several unanticipated items emerged, resulting in a predicted new change order that will increase the cost by about $358,000, bringing close to the amount budgeted in 2006.
Certainly, anyone who has contracted to renovate or build from scratch expects, unfortunately, the actual cost to come in over the bid. Construction inevitably uncovers unforeseen obstacles or items that must be addressed before a project can reach completion. That’s why, in the business world, you budget internally to account for cost overruns, and/or you negotiate a contract that provides the builder with a financial incentive for coming in under budget and on time. You might even include in your original specs items that you know could be scaled back if necessary. (This project was expected to be substantially completed by May 31, 2008 according to the project status on the County’s website — which has not been updated since July 2007.)
Things are obviously a little different when you’re dealing with public money. Your budget has to be open — you can’t “hide” those extra dollars a business might set aside for overruns. You have to adhere to specific codes and regulations regarding public construction and financing. And you also should ensure that judicious, cost-effective use of public money is your priority.
County staff understood that several other items in the Government & Cultural Center might be able to be postponed in order to keep the ballooning budget under control by saving $262,000 to offset the anticipated $358,000 increase. All the items on that staff list were indeed promised to the community, are very important components of a meeting room and theater, and were part of the original plans. Arguably, if the BOCC had not dedicated capital money to other projects (Hickory House, Vandenberg), there might be additional dollars to cover these overruns now.
Since the initial budget approved in 2006 for this project, we’ve seen new restrictions on our ability to tax imposed by the state, declining tax revenues and a budget deficit. Yes, some of this may have been due to mismanagement in the past. But the job today is to face today’s reality. Isn’t this the time where we start looking at what we absolutely need versus what we really want, where we start considering other options for providing these things? For instance, have we given any thought to offering private donors naming privileges for the theater space in exchange for the $262,000 staff is looking to save? And where did that $451,000 saved a year ago end up — in a contingency fund for this project, or siphoned off to another project or general revenues? The BOCC chose to cut nothing, but never really addressed where additional money to cover the new overruns will come from.
Another example. The new park on Big Pine Key could open this August, and will cost $18,000 per month to operate (plus $22,000 in a one-time expenditure for equipment). Staff presented an option to delay opening for two months until the next budget has been finalized, but the BOCC decided to move ahead. I guess I would have asked for a more detailed accounting of why it will cost so much to run a park each month, and would have suggested waiting those two more months to open it until we had a clearer picture of the financial road ahead.
On wastewater. Former Mayor McCoy “pontificated” [his word] on the bonding efforts initiated under his leadership when he was on the Key West City Commission that led to the city’s completion of advanced wastewater treatment. To me, this begs the question: Where has his leadership on this issue been on the County Commission? Why are we two years from a deadline for completion without a plan to finance the outstanding balance?
Isn’t it time for a change? I think so. Restoring a sense of fiscal responsiblitiy to the BOCC is one of my goals in running for the Commission.
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