Fiscal Responsibility #2
Once again, I sat through the County Commission’s latest budget workshop. And once again, they chipped away at any savings originally proposed by County Administrator Gastesi, and offered no alternatives for additional cuts that could be realized in the next budget. Here are a few observations:
The County Commission is proposing a 9.95% increase in the millage rate, just shy of the margin they’d need for unanimous approval. This increase doesn’t replenish our reserves, and doesn’t account for potential additional expenses should voters choose to maintain Trauma Star for another six months. The Commission passed this decision to the voters and, if approved, there is no provision to pay for it.
Mr. Gastesi suggested that he will “find” more money in the budget, and I hope he does — but why doesn’t the Commission enter the budget process with full discovery - with full knowledge of a potential and accurate budget? Granted the Commission will have another opportunity to oppose increasing the millage rate — but why start at the highest target rather than what is the ultimate goal? I believe if you start out asking for more than you know you can afford, you never realize significant savings.
The County reserve fund has been depleted over the past two years to about half of what is fiscally prudent and capable of sustaining us for three months in the event of a catastrophe or hiccup in cash flow. Rather than work to restore it, the Commission voted unanimously to take out a $10 million line of credit. Now, this may have been the only option given our current state of affairs. However, County Mayor Mario Di Gennaro suggested that maybe the Commission should double that amount to $20 million and if they did, maybe the county wouldn’t need to worry about retaining reserves. I don’t know about you, but I don’t feel comfortable relying on credit to provide essential services. I don’t believe taxpayers should have to pay interest on money that’s been misspent, especially in this difficult financial climate. I consider going from a $20 million reserve to a $20 million deficit in a few short years - a $40 million swing - simply fiscally irresponsible.
As a way to raise revenue, the Mayor also proposed selling off some of the County’s assets — specifically the Gato Building and/or the Marathon Government Center. I believe it is a good idea to complete a review of the properties held by the County, and determine if any of those 90 or so parcels is expendable. But as is often the case with the current Commission, this suggestion blindsided most of its members, and was made without any comparisons, any plan or cost implications for relocating the staff and services that currently use these two buildings, any acknowledgement that we’re selling on the one hand and building and buying on the other. It did come without serious debate, and without any direction to staff on how to proceed to examine the upside and the downside of such a proposal. There was no real leadership, just the usual grandstanding.
Additionally, I believe the County doesn’t effectively utilize revenue sources. For example, I’ve mentioned the vending contracts that Mr. Gastesi brought to light in the past. Apparently vending machine contracts enable venders to utilize space on county property for profit - while the county doesn’t receive rent for this space. I’m thinking now about the Tourist Development Council (TDC), which as been much-maligned by this Commission. The Art in Public Places ordinance carved out 1% of construction cost for public artwork, and $211,000 was already committed in the budget for artwork at the new McCoy Airport. From discussions with some folks who know and from my reading of the state statues governing use of TDC funds for capital expenditures, I’m fairly confident that artwork in highly trafficked tourist spaces (like an airport) could legally be covered with TDC capital funds. The TDC District Advisory Council (DAC) 1 left $465,000 in its capital budget this year because they simply did not have enough applications for funding. What’s disappointing is that the County Commission didn’t even explore this option. Perhaps they could have saved the art at the Big Pine Fire Station, and maybe a much-needed staff position or two, if they had.
Observing this budgetary process has strengthened my resolve and commitment that , if elected, I will be fiscally responsible and watch every taxpayer dollar to make sure you receive maximum benefit from your hard earned money.
August 27th, 2008 at 3:33 pm
In the 1980’s, I worked at Coca-Cola headquarters, in Atlanta. They used a zero based budgeting method (pioneered by Jimmy Carter as Gov. of Ga.) It required you to start with a base budget of no more than 40% of the prior year and then justify “increments” of additional money AND staff for well defined and documented reasons. It was more involved than just that, including peer reviews of requests, but the result was trash did not carry over from year to year. Just because “we always did it” didn’t make it. This system certianly worked for Georgia and for Coca-Cola. It was NOT painless! But I thought it was very effective. It also made it much easier to decide where to cut, if the time came (and it often did.)
August 31st, 2008 at 2:05 am
selling off the Gato Building —
Might want to check the deed first, because I think it has a restriction that the bldg can not be sold.
Another reason this suggestion was way premature! Thanks, Sue. - Heather