Guest Column: Please comment on proposed county budget

Guest Column: Please comment on proposed county budget

Bill McClure, Vice Chairman
St Johns County Board of Commissioners

I would like to express my thoughts to you on the upcoming 2013 – 2014 budget, in hopes that you will share yours. The county commissioners will not raise the property taxes and this decision has already been made. However, how and where we spend those dollars is up for debate.

As such, I am asking for your comments via email at my county email address: bccd3@sjcfl.us.

Because I am newly elected, I had no vote concerning last years’ budget but was very vocal in my concerns. During my campaign, I voiced three major issues: 1.) Less Government equals a more efficient government which can direct growth, with no new taxes 2.) Promote a business friendly environment, and 3.) Ensure accountability with government spending.

With that, to avoid a tax increase, I am proposing a shift in the use of funds we do receive. You see, most of your tax dollars, a whopping 81%, is used to fund the schools and safety (sheriff, fire, etc.), and I agree with that. That’s working! Our schools are #1 and we have a low crime and fire rate, and employ the best Teachers, Deputies, and Fire Fighters! The remainder of money collected gets put into a County wide fund to be used for county expenses. Current County administration has proposed no change from last year as to where we allocate the funds. However, there is a huge annual shortage of funding for roads and I would like to see increased funding for roads and road improvements (yes, sidewalks too). It’s important to note that over the past 5 years, transportation funding has been decreased over $10,000,000.00. That’s 10 million deferred from road improvements while increasing our reserves to $47,000,000.00 over the same period.
But, in order for me to propose additional funding for transportation using the same dollars, I must be able to look at decreasing funding in other areas. So, in an effort to get your opinions, I am giving you the following facts and opinions about those areas and welcome yours. After all, it is your money!

1.) Fore the people? Are you willing to continue to subsidize a county golf course or is it time to sell or lease the entire facility. Let’s review:
I play golf. No, I love to play golf! (Although that little white ball evades me at times!) I admit I have never played at the county owned golf course, and, in fact, I never even knew the county owned a golf course until diving deep into the 2012 budget.
The county, using your tax dollars, purchased the golf course and improvements that totals $8,764,640.00 as of today. That’s 8.7 million dollars. Records reflect that the development was in trouble, and it was your bailout plan, much like the federal government did with some banks, insurance and automobile companies…except that the federal government actually made money on the loans and stocks they purchased. (Please note that Ford did not take any bailout money and returned to profitability without the loans. Yes, I drive a Ford Truck!)
In addition to the 8.7 million, the golf course lost another $832,234.00 over the past five years through an operational deficit each year. The good news is, it’s expected the golf course will only lose $150,000.00 on operations this year, which amounts to the lowest deficit of the past five years. If you add in the subsidies from the General fund over those five years of over $600,000.00, the total bill for the golf course is just north of $10,000,000.00 to date.
This upcoming year, Administration recommends another $250,000.00 be spent on golf carts. Hmmm…It might be time to weigh the benefits versus the costs.
The Net Book Value of the course is $6.5 million. What someone will pay for it is another thing. You have spent $10 million and growing. You owe $1.2 million in debt from 2005 Revenue bonds.
Sell? A guaranteed lease to a professional company which can guarantee we will have no loss and perhaps gain revenue? Does it value all of the people who either reside or shop here? Are you willing to continue to subsidize this business?
There are no wrong answers here. Every opinion counts, whether you have played golf there or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

2.) A horse is a horse, of course? Are you willing to continue to pay for a county equestrian center? Do you use it?
The Equestrian Center in Hastings was purchased through a court ordered county seizure for failure to pay fines, and you spent $1.4 million dollars building a ring and stalls through sales tax bonds. In addition, the center lost $132,000.00 in operating deficit over the last five years, and continues the steady loses at about $26,000.00 per year. The annual deficit equals the amount of the debt service so the monthly maintenance costs are covered. Should we pay off the debt making it a net zero budget effect? Sell to recoup our investment? Lease to a professional company which can guarantee we will have no loss and perhaps gain revenue? Does it value all of the people who either reside or shop here? Are you willing to continue to subsidize this business?
There are no wrong answers here. Every opinion counts, whether you have a horse or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

3.) Amp’d for the Amphitheatre?
Although the Amphitheatre is operating at a loss, it is my belief that it is a vital part of our community bringing in many overnight tourist and even more beer and gas sales. In fact, many locals have attended concerts at the Amphitheatre while never having been to the Jacksonville Memorial Coliseum for a concert. But your opinion is what counts here. The Center is losing money, although it is expected to have its lowest operational deficit at only $80,000.00 for 2013. That’s a far cry from the $544,000.00 in 2009, and continual efficiencies show the losses at $338K in 2010, $367K in 2011, and $181K in 2012. Add that to the fact that the TDC has agreed to pay the debt service of up to $260,000 annually is a good thing since the debt service is at almost $210,000. (They do this because it puts heads in beds, which generates income for the TDC.) If that agreement goes away, you are in the hole for about $290k instead of the $80k. I attend MANY concerts at the Amphitheatre. I take my kids to the Winter Wonderland every year. I think this business venture has made the most improvement in the right direction, and, if the debt were retired, I might be convinced this venture will be profitable by 2015 and will become a steady new source of revenue for us into the future! We cannot sell it, because we are just leasing the land from the State of Florida, but perhaps a guaranteed lease to a professional company which can guarantee we will have no loss and perhaps gain revenue? Does it value all of the people who either reside or shop here? Are you willing to continue to subsidize this business?
There are no wrong answers here. Every opinion counts, whether you have been there or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

4.) Animal Control?
You fund just shy of $1,000,000.00 each year for animal control. I love all animals. I have a dog. He eats my shoes and sometimes barks too much. Yes, I have met the large, jolly animal control officer and he was one of the nicest, caring I’ve ever met. I don’t know him and he doesn’t know me, but he’s a rock star in my book! If it costs us this much because we have so many stray or unwanted animals, then maybe a 2 year campaign to “Spay and Neuter your pet” in the hopes of spending a bit less in 2015? Can we get a Grant each year to offset these costs? I don’t even know if there any private companies who even provide this service, but there might be. Maybe the Humane Society? I don’t know? Does it value all of the people who either reside or shop here? Are you willing to continue to subsidize this business? Do we need a plan?
There are no wrong answers here. Every opinion counts, whether you have an animal or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

5.) County Ambulance Services?
There are private Emergency Services companies that operate in this county. Many of those make money. You are in this business too and you don’t make money. In fact, over the last five years, you have spent over a whopping $20,000,000.00 to subsidize this business. That’s 20 million. In fact, many of the people who use this service never pay their bill. Last year you were stuck with over $1.7 million in bad debt on revenues of $5.4 million, that’s 32 cents of every dollar you invoice that never gets collected. We need Ambulances and they need us. Our Fire Rescue and Sheriff Department do a great job! But, is it time to cut our losses in this particular business? Do we send an ambulance to every Fire call? Can we outsource this service to a local company for less? I don’t know? Does it value all of the people who either reside or shop here? Are you willing to continue to subsidize this business?
There are no wrong answers here. Every opinion counts, whether you have used the service or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

6.) Continued Government Building and Debt?
Do you own a credit card? Has anyone ever told you that sometimes when you pay off the debt you will have left over cash at the end of the month? That’s cash flow management. Sometimes it makes sense to pay off debt rather than continue to make payments. In fact, 2 projects mentioned above would be cash flow positive and not cost you any money if the debt was paid off.
With that, the new HHS Building will house mostly non county staff (that’s a fact), yet will cost you $12 million dollars, rather than pay down your debt. There was an opportunity to pay down the debt with the $8 million dollars received from Lowes and it didn’t happen. In fact, you borrowed another $million to build it and it will cost you $700K per year to maintain it. In addition to that, Administration has submitted a proposal to build a building for a new Veterans Affairs Clinic which competed with local builders who also submitted a bid and could cost another $5 million dollars. Don’t misunderstand me here. We need all of the services we provide in the HHS building, but, in the business world, new buildings are built for expansion. The County exited the mental health and primary care business and will save you over $600,000.00 a year by 2015. Flagler Hospital exited the primary care business. Our State Health Department has exited the children’s pediatric business. It seems everyone is reducing scope while private entities pick up the business, and they are happy about it. Would you rather fund crucial operational expenses or capital projects such as a new building that will house other businesses? If the premise behind reducing services was because we lost money, then why are you expanding? Will the new HHS building be of value to all of the people who either reside or shop here? You were willing to spend $12 million on a business that has cost over $25 million over the past five years, so do we need a plan?
There are no wrong answers here. Every opinion counts, whether you have used the services or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

7.) Sales Tax Increase?
Administration has pointed out that an increase in sales tax will generate an estimated 22 million dollars per year, which we can use to offset the $14 million deficit needed for roads each year. Advocates say tourist will pay most of it. Actually, the latest report I saw said locals will pay 55% of it, so that argument doesn’t fly with me. In addition, before I would endorse this tax hike, the county would need to change its economic development incentive programs to INCLUDE the businesses that actually attract tourism, which would pay the sales tax. Right now, there is no incentive so let’s not put the cart before the horse. But as always, I want to hear from you! There are no wrong answers here. Every opinion counts, whether you have used the services or not. Please e-mail me your thoughts: bccd3@sjcfl.us.

With a few small changes, I feel we can add another $8 million dollars to the annual transportation trust fund for roadway improvements. After all, I hear from many of you who complain about the traffic, condition of the roads, or street flooding issues! This will help us control urban sprawl and incentivize commercial projects where those are needed most and potentially divert a financial crisis in the future. For those of you who say “Government was never intended to make a profit”, let me remind you that taxation began in this country to pay for Roads, Safety, Post Office, and Schools. If a government ventures outside of those, then perhaps it should be qualified and quantified… to be justified. Let’s get back to the basics. I love this place!