Monday, February 23, 2009

MEET THE CANDIDATE

Is There More Than One?

I’ve taken three stabs at recapping the “Meet the Candidates Forum” held at City Hall last Wednesday night. Rarely am I ever rocked into speechlessness—but that is indeed the case here.

A special thank-you to the IRBeHEARD reader who posted the following anonymous comment and at least provided a place to start:

“I came...I saw...I threw up. I cannot believe that Terry Wollin bold faced lied throughout the entire presentation. She has more balls than the Rays.”

If one had to pick a clear-cut winner of last Wednesday night’s debate among the three candidates for two seats on our City Commission—Terry Wollin, Phil Hanna and Don House—incumbent commissioner Terry Wollin gets the trophy hands-down.

Those of us who attend commission meetings regularly were stunned. Shell-shocked…I believe is the word. It was like someone swooped in and snatched the woman we’ve all watched bumble, fumble and mumble over the last two years and replaced her with this incredibly knowledgeable, well-prepared, super competent public official with a booming authoritative voice--by far and away the best choice to sit on our City Commission. That’s at least until you start dissecting her “performance” against the record.

The million dollar loan, which she claimed isn’t a loan yet called it one throughout her remarks, must be repaid. What are we repaying if it wasn’t a loan?

She pegged the last sewer and solid waste rate increase, prior to the big kahuna, as happening in 2003. What about the "Enterprise Fund Analysis" timeline prepared by consultant Rob Garner reflecting a 7.5% increase in October 2004 (3-2 vote) and the 10% solid waste rate increase approved with a 5-0 vote in November 2005?

She has not made up her mind how she stands on the charter amendment to make the City Treasurer report directly to the City Manager, no longer serving at the pleasure of the City Commission. Wollin herself was the chief instigator of getting this issue on the ballot and now she doesn’t know what her position is? Give me a break. She has every confidence that our voters can make the decision when even she, who is on the “inside,” hasn’t been able to do so herself? Once no one stepped up to present the “pro” side of the argument last Wednesday, Bert Valery, in what some have characterized as a direct violation of election law, did the dirty work. The irony is that this amendment may very well pass because so many voters feel that our City Commission is not capable of managing the CFO--or anyone else for that matter--and would rather see the City Manager call the shots.

One accomplishment Wollin touted was the firing of the former City Treasurer. Does she not realize that if “her” charter amendment had been in effect, she wouldn’t have been able to do that?

Interesting, too, is that she cited the need for the amendment stemmed from Schless’s refusal to attend a commission meeting when mandated by the city manager. Since the City Commission was his “boss,” why didn’t THEY order him to attend? Could it be because the majority of the commissioners realized that Schless had been publicly abused enough by one former commissioner in particular, and it would have been cruel and unusual punishment to allow this to continue?

Wollin was candid about not understanding the budget last year—this year, she’s the expert. All those consultants must have really paid off. And wasn’t that an interesting comment she made about Action 2000 somehow being part of our city’s planning efforts? What’s that all about, I thought A2K was a beautification group?

I could go on and on here—but I won’t. The sadder, and potentially better news, is that all but about 60 folks, who likely had already voted, missed Commissioner Wollin’s Academy Award performance. Attendance for the event was as miserable as I’ve ever seen it. Is it apathy? Is it that our residents don’t feel their voices count? Was it fear of selective code enforcement for supporting the “wrong” candidates? Was something better on TV? Nothing with finer acting…that’s for sure.

I hope Wollin is right about one thing at least—our voters are smart enough to make the right choice.

Nancy Obarski
Beach Trail/IRB

Saturday, February 21, 2009

COUNTY CUTS

County Asking Residents What's Important

IRBeHEARD received the following e-mail from Pinellas County. Looks like the county commissioners see the “Financial Perfect Storm” brewing and are already forecasting a 20% budget cut for the next fiscal year. And, they are actually asking residents what is most important to them. I wonder if they, like IRB, only take suggestions from non-yowlers who rarely at show up at commission meetings?

The following e-mail was received on Friday, 2/20/09 from Lennard Ciecieznski:

The Pinellas County Board of County Commissioners plans to cut 20 percent from its overall general fund for the next fiscal year, which begins Oct. 1. This is necessary to meet the current challenges resulting from the national economic downturn and to plan for the continuation of reduced revenues in the county.

As they consider the reduction or elimination of public services and programs, commissioners will host three public budget meetings in March to solicit feedback from residents.

Tuesday, March 3: Palm Harbor University High School, 1900 Omaha St., Palm Harbor
Monday, March 23: Osceola High School, 9751 98th St. N., Seminole
Thursday, March 26: Gibbs High School, 850 34th St. S., St. Petersburg

All of the meetings will be held from 5:30 to 8 p.m.

The sharp decrease in county revenue reflects the national economic crisis, local reductions in real estate values and property tax caps. Commissioners are currently involved in the process of setting priorities on the county services and programs. Knowing that it cannot continue to provide the current level of service, the commission wants to know the community’s priorities.

The feedback provided at the public meetings and through other public outreach efforts will be used in the decision making process as the budget is resized. The goal is to offer core services, which will be delivered in a consistent, predictable and reliable manner.

For more information, call (727) 464-3000 or go to
www.pinellascounty.org/budget.

Nancy Obarski
Beach Trail/IRB

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Wednesday, February 18, 2009

YUCKING IT UP

____________________________________________

Reminder:
"MEET THE CANDIDATES" TONIGHT!
WEDNESDAY, FEB 18 at 7 PM
CITY HALL AUDITORIUM

Please turn out, visit with others who care about IRB, and show your support for the three commissioner candidates who have been brave enough to throw their hats into the ring: Terry Hamilton-Wollin, Phil Hanna and Don House. Questions, answers and a chance to enjoy living in such a wonderful little community. Another great event sponsored by the IRB Homeowners Association!

Tuesday, February 17, 2009

BITING THE HAND

That Feeds the Ballot Box

Noteworthy lately is the commission’s reluctance to address crucial issues prior to our municipal election on March 10. Instead of discussing pressing financial concerns, this commission debates whether or not it’s possible to buy a golf cart with windshield wipers. Commissioner Torres, wise well beyond his years and often the voice of logic and reason, dared to point out that most folks don’t ride golf carts in the rain. A consultant is being hired, even as we speak, to do some further research on that subject, and they are looking for a community group, like A2K, to help fund part of the Golf Cart Windshield Wiper Study. (Please laugh here because I’m kidding!)

After all, facing fiscal reality by comparing budget projections to actual expenditures might force serious cutbacks—RIGHT THIS MINUTE. The commission might well have a bead on exactly where IRB stands financially, but if so, they certainly aren’t sharing that info with the general public. Would broadcasting this data at this juncture make budget cuts imperative—BEFORE MARCH 10?

What…are you crazy…cut the librarian right before election time? Wouldn’t that be akin to political suicide since these folks appear to turn out in droves at the polls to support whatever candidate or candidates have two feet squarely in their camp?

What…are you crazy? Put a halt to the USF Study and jeopardize the voter support of those who partially funded it, namely Action 2000? Many of you posted comments to a previous IRBeHEARD article, pointing out that Commissioner Wollin uttered not one peep at the last USF Study presentation on February 10. (I missed it so I’ll have to take your word on that.) Odd behavior, don’t you think, for someone who was one of the biggest proponents of the city financially supporting the study?

What…are you crazy? Suggest that residents not be forced to repay unauthorized loans and provide some relief from sewer and garbage rates that have so many in a stranglehold? Suggesting something so necessary might bring the ax down rather swiftly on a few non-essential items that represent political suicide.

Since facing crucial issues might make the difference between winning a seat on the commission and losing one, the best interests of the community will just have to wait until after March 10 and that’s all there is to it.

Nancy Obarski
Beach Trail/IRB

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Sunday, February 15, 2009

ANOTHER WRINKLE

In the Teflon Suit

This commission, unlike their predecessors, opted out of filing and approving quarterly financials as part of the commission meeting “Consent Agenda.” As a result, quarterly financials have not formally been approved by the commission since August 2007. More distressing is that this policy was not reversed even after the million-dollar loan debacle and after multiple requests from citizens to do so.

Now, the commission voted to ask our residents to approve a change so that our Finance Director reports to the revolving-door City Manager instead of serving at the pleasure of the City Commission. If the charter amendment passes on March 10, IRB’s CFO will cease reporting directly to our elected representatives and will become answerable to an individual who doesn't represent us.

At a time when finances deserve the most focus, why is our commission taking steps to back away from the responsibility? Is this commission more worried about insulating themselves from liability for incorrect financials, obviously flawed accounting practices and poor decision-making than in looking out for our collective butts?

When the subject of this charter amendment was addressed at the commission meeting, most in attendance (labeled the “yowlers” when in disagreement) opposed putting this issue on the ballot. Commissioner Wollin went so far as to state that the Finance Director hasn’t always been a charter officer position. That appears to be incorrect info from the individual who seemed to be the driving force behind making this change. Former Mayor-Commissioner Ed Piniero pointed out that the Finance Director has been a charter officer position from Day 1 of IRB’s incorporation and making this change poses a serious threat to a much-needed system of checks and balances.

Realizing that the commission was hell-bent on this issue gracing the March ballot, I focused my three minutes of public comment on suggesting changes to the wording of the amendment. I saw it as pretty much of a done-deal that it would be put before our residents for a vote, so we might as well at least give citizens a fighting chance of understanding what they are voting on. My suggested changes were adopted.

Last I heard, there has been no luck in finding someone to speak on the “pro” position for this charter amendment at Candidate’s Night this Wednesday. By contrast, there is a line out the door of City Hall and around the block all the way to the Red Lion of individuals who want to speak in opposition. Is this a change that only a few commissioners are in favor of? Who are these commissioners representing up there--us or themselves?

Nancy Obarski
Beach Trail/IRB

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Saturday, February 14, 2009

TEFLON SUITS AROUND

Insulating the Commission

At the January 28th meeting, Commissioner Wollin differed with IRB resident Kelly Cisarik. During “Citizen Comments” at the beginning of the meeting, Cisarik requested that the commission reinstate its policy of receiving and filing quarterly financials, pointing out that they had previously voted not to continue doing so.

Wollin "lectured" Kelly about getting financials being a charter requirement taking issue with Cisarik's statement.

Well mama-pin-a-rose-on-daddy…guess what? Kelly Cisarik, again under “Citizen Comments” at the most recent commission meeting on February 10, came back to the microphone citing the following from the minutes of the August 14, 2007 City Commission meeting:

Motion made by Commissioner Wollin, seconded by Commissioner Valery to approve Resolution No. 2007-88, amending Resolution No. 2007-35, Rules of Procedures for the City Commission of the City of Indian Rocks Beach, Florida; by deleting from the Consent Agenda the requirement that check registers and quarterly financial reports be received and filed by the City Commission. Motion carried with Mayor-Commissioner Ockunzzi objecting.”

It was actually Commissioner Wollin--herself--who made the motion that this requirement be removed from the Consent Agenda, which is a portion of the meeting specifically reserved for formal commission approval of items like meeting minutes, etc.

So, in view of the new info, once again Kelly Cisarik requested this policy be rescinded by the commission; once again she was ignored. Is being ignored preferable to being told you're wrong?

This doesn’t necessarily mean that the commission isn’t SEEING the financials, but it does mean they are not formally finalizing and approving the information--and have not being doing so for the last 18 months.

Is the fear of liability for certifying financial info that is flawed the reason the commission opted to discontinue approving this info as a Consent Agenda item? Is the commission’s desire for “separation of commission and finances” also what’s driving the charter amendment to make the City Treasurer reportable to the City Manager instead of serving at the pleasure of the City Commission? More on this later.

Nancy Obarski
Beach Trail/IRB

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Thursday, February 12, 2009

MAKING AN ISSUE OF IT

Trading Warm & Fuzzy for Nitty-Gritty

Two years ago our community bought into the idea of “congeniality” on the commission. The majority opted to install candidates who promised us “no more chaos.”

With all due respect, the two candidates who won the two open seats in March ’07, Commissioners Valery and Wollin, have certainly lived up to that promise. The current five commissioners all play very well together. But how much has that camaraderie cost us and did it truly contribute to better operation of the city?

In retrospect, would you have opted for congeniality if you were told that you were also signing up for:

-A substantial increase in your millage rate?
-A 60% hike in your sewer and garbage rates?
-The repayment of an unauthorized million-dollar loan?
-Footing the bill for a consultant to teach at least one of these candidates to read a budget?
-Mistake upon mistake costing our taxpayers thousands?

If those were the choices, I say pass out the boxing gloves, let the commissioners go to their corners and, when the bell rings (ding-ding), come out swinging.

In the upcoming election on March 10, IRB voters need to get beyond the campaign rhetoric. Trade “warm and fuzzy” for “nitty-gritty” and focus on the serious issues the coming years are certain to bring. It is more important than ever that our voters make their decisions based on each commissioner candidate’s qualifications for the job, past track record in serving the city and how they stand on and approach crucial issues.

And, above all, make sure that you and your neighbors attend "Meet the Candidates" Night next Wednesday, February 18th, 7 p.m. in the City Hall Auditorium. The turnout for this event, sponsored by the IRB Homeowners Association, always makes one feel fortunate to live in IRB where so many folks are actually interested in the future of the community. Given the significant challenges IRB faces, financial and otherwise, I am certain that our residents will walk through the auditorium doors with an open mind and really LISTEN to what each candidate brings to the table before casting their ballot.

Nancy Obarski
Beach Trail/IRB

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Wednesday, February 11, 2009

PUBLIX

Lives to See Another Day

As recently as three months ago, a developer-oriented publication advertised 8,146 sq. ft. of retail space for lease in the Village @ Indian Rocks, between 25th and 26th Avenues in IRB. The ad makes specific reference to the development having a "28,875 sq. ft. Publix anchor”…so maybe this issue isn’t dead after all?

Could this be driving some of the proposed amendments to IRB’s Comprehensive Plan, which is the blueprint for future development in our community? Some changes being proposed do open the door wider for the Publix, or another grocery store, to finally become a reality…like allowing parking lots in residential neighborhoods on First Street. And don’t forget that the results of the USF Study (partially funded by Action 2000) are referenced in the proposed Comp Plan changes, too, so that data could also come into play when deciding this issue.

If at first you can’t get voter support, why not come in through the back door in the form of Comprehensive Plan changes instead? The Publix issue went down flaming with IRB voters by an overwhelming percentage a few years back. Has the sentiment in IRB changed with regard to this issue?

Nancy Obarski
Beach Trail/IRB

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Tuesday, February 10, 2009

afterMATH

Giveth Then Taketh Away

Keep in mind, when reading this posting, that I was a music major in college. I can play an F# minor scale on a clarinet like nobody’s business and run my little corporation with at least a modicum of fiscal responsibility. Math, however, was never my strong suit. So, the following is more a search for answers than a dissemination of useful information.

The economic stimulus package is on its way to a final vote and probable narrow-margin passage in the Senate later today. The price tag according to the New York Times yesterday is $827 billion. Let’s see…that’s $827,000,000,000—is that enough zeros?

An astute IRB resident recently posed the question: How much is that per person? I love a good challenge, so I set out to calculate it.

Let’s see…the U.S. Census Bureau’s population estimate for 2008 is 304,059,724.

My crusty, trusty handheld calculator from the Stone Age didn’t get it done. Not enough zeros. So I was finally forced to figure out how to use the calculator on my computer…which was somewhat beneficial.

The current $827 billion economic stimulus package, when spread evenly between every man, woman and child in the U.S. comes to $2,719 per person. Is that correct? Will we be permitted to apply our $1,000 tax credit check to this amount, so that we only need to come out of pocket a little over $1,700?

Take comfort in the fact that the $700 billion bank bailout plan didn't quite double your tab--it added only another $2,300 per person...a real steal (no pun intended.)

Realizing that stimulus money should do just that—stimulate the economy—I’m assuming that it will put an influx of enough cash back into the kitty to bring each person’s share of the rescue down to something doable? But what if it doesn’t?

When is an IRB bailout plan in the offing? How much will each of our 5,167 residents be responsible for when the rubber meets the road, spending hasn’t been cut and our tax revenues are down significantly? (And again, nothing on tonight's commission meeting agenda dealing with that subject.) While it’s not as many zeros to manage, the principle (not to be confused with “principal”) is the same.

Nancy Obarski
Beach Trail/IRB

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Friday, February 6, 2009

CHARTER CHATTER

Selective Enforcement

When Commissioner Wollin admitted her confusion over the budgeting process, many, including me, applauded her candor. I’ll admit it…I couldn’t follow the process myself, and even watched an M.I.T. grad struggle to make heads or tails of it.

Even so, Wollin’s recent reference to the IRB City Charter requirement that the commission receive monthly financials was interesting. Even when the commission was getting regular monthly reports in keeping with the charter, the data was misleading…so what good was it anyway?

And, just where was Wollin’s “allegiance” to the charter when she and others voted to force our residents to repay nearly $1 million in loans, apparently made without the commission approval—or anyone else’s for that matter? These loans are the force behind the recent sewer and garbage rate increases that many residents, especially those with multi-family units, are outraged over.

Even now that the commission is painfully aware of the existence of these loans, they have failed—even refused—to take a vote to sanction them as required by the City Charter, yet they had no problem voting to make us repay them:

City Charter-Section 10.5 (c)
Authorization for loans: If the city commission should deem it wise and appropriate, they may authorize the city manager to effect a loan or loans from any source under such terms and provisions as the city commission may authorize, pledging the credit of the city for such purpose or purposes.

When this subject comes up, the commission generally prefers to refer to these unauthorized “transfers” as “due to’s/due from’s” insisting that they aren’t loans. IF THEY AREN’T LOANS, THEN WHY ARE WE REPAYING THEM?

It’s interesting how the city charter is selectively referenced--out of two sides of the mouth--and only when it best suits certain agendas. At other times, less convenient, the charter gets shoved in a dark and dusty corner at City Hall.

Nancy Obarski
Beach Trail/IRB

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Thursday, February 5, 2009

WOLLIN ON CISARIK

Free Lecture Series

At the last commission meeting, Kelly Cisarik conveyed much of the same troubling financial info posted recently on this blog. Commissioner Kennedy asked the new Finance Director for suggestions as to what capital projects could be cut from the budget. Commissioner Wollin, by contrast, used her time to politely “lecture” on Cisarik being incorrect in her statement that the commission had voted not to continue seeing monthly financials.

The few “regulars” in the audience knew exactly what documents Kelly was referring to. She was talking about the vote the commission took not to continue seeing monthly check registers--an equally irresponsible move.

Cisarik's point was that Wollin and three cohorts voted to see less financial information rather than more. Only former Mayor Bill Ockunzzi opposed this change of procedure but was summarily outvoted. This decision was even more perplexing having come on the heels of the now-infamous moving expense check cut in error to Al Grieshaber. That “small” slip-up continues to this very day to siphon off taxpayer dollars funding an ill-fated, grudge-based lawsuit against our former City Manager.

Wollin pointed out that getting monthly financial reports is a charter requirement and indicated that the commission expected to be getting them on a more regular basis with a new finance director now in place--more or less supporting Kelly Cisarik's concern that the commission may not currently be seeing accurate monthly financials.

Did Commissioner Wollin not realize to what reports Kelly Cisarik was referring when members of the audience did? Wouldn't it have been better to correct the record by acknowledging that it was the check registers the commission voted not to continue examining instead of ignoring that point? Or, was this just an opportunity to minimize the intelligence of Kelly’s information by pointing out a semantic error?

Could this be why 13,000 folks showed up to watch Punxsutawney Phil see his shadow, yet less than a dozen show up for commission meetings and even fewer have the courage to speak?

P.S. They expected 15,000 in Punxsutawney, PA for Groundhog Day…but the Steelers’ Super Bowl victory is believed to have hurt attendance.

Nancy Obarski
Beach Trail/IRB

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Wednesday, February 4, 2009

SMACKED IN THE HEAD

Perfect Storm Aftermath

IRB resident Kelly Cisarik does her homework. You already know that if you read her series of postings here on IRBeHEARD over the last several days or if you’ve attended a commission meeting where Kelly spoke.

Much of the community, already irate over exorbitant sewer and garbage rates,
could see the surge Kelly alluded to approaching. But, nothing like getting smacked in the head with the raw facts to make us pay attention to the Cat 5 storm warnings.

Cisarik unleashed much of the same information on the city commission during her “allotted three minutes” under “Public Comments” at the last commission meeting on January 27th. What was their reaction?

No meaningful conversation. (It probably wasn’t “allowed" unless it was something they wanted to talk about—like the decibel level of My Place’s music.) No consensus to put it on an upcoming meeting agenda. No mention of items to consider cutting. No request to know exactly where the city stands financially—today—right now—right this minute. No suggestion to revisit the repayment of the unauthorized loans to give citizens relief from rising costs of EVERYTHING IN IRB. No questions asked. In other words, business as usual.

As one former commissioner so aptly described it during the last budgeting process, it’s like this commission is operating in some parallel universe.

Once again, Commissioner Cookie Kennedy was the only member of the group who reacted proactively to Kelly Cisarik’s info. Kennedy requested that the new Finance Director, Sandy Sanders, make recommendations as to which planned capital projects he felt could be eliminated. Although it’s not quite certain if a guy who has barely warmed the CFO’s seat is the best judge of what IRB can forego, at least Kennedy focused on the most pressing issue of the day.

How did another commissioner react to Cisarik’s concerns? Check back tomorrow.

Nancy Obarski
Beach Trail/IRB

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Tuesday, February 3, 2009

HUNKERING DOWN

Citizen’s Reaction to IRB Financial Perfect Storm

[Community reaction to Kelly Cisarik’s postings on IRBeHEARD over the past few days has been overwhelming. The note below from IRB resident Victor Wood to Cisarik deserved a posting of its own as opposed to being relegated to an article comment.]

Kelly:

What a wonderful article. Does the Commission have any idea of the storm that will start with reduced revenues this year and continue to exacerbate in 2009? How foolish to be spending any time on revising the city charter this year. There is just too much to do this year with balancing this year’s revenues with expenditures, and with next year’s budgeting. Cost-cutting is the only answer!

So far we have no idea where IRB stands to date nor is there a forecast for the end of the year. Our new Finance Director should be able to tell us these facts…hopefully at the next commission meeting on February 10th. Neither handling the accounting of revenues vs. expenditures nor forecasting a year-end balance, does not take a brain surgeon’s talent.

The big question is what will the commission do with these facts? They seem to have no stomach for massive cost-cutting that prudent people call for. And raising taxes again after a 36% tax increase and a 60% utility increase this year would be absurd!

Stranger things have happened with this commission with regularity. The whole community needs to be notified of this perfect storm on the radar scope, approaching with ferocity. Then they need to make the commission listen to their thoughts.

Me, I am hunkering down and certainly cutting my personal spending a great deal. That is the only way I know to be sure I’m healthy and financially sound after the storm subsides. Will IRB react in the same manner?

Victor Wood
Harbor Drive N./IRB

P.S. What will the Commission do to enforce their new poorly conceived sign ordinance that business owners must comply with come July 1st? Is the veterinarian’s new electric, lighted sign with specials scrolling across in red LED going to be "la rigueur" for IRB?


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Monday, February 2, 2009

IRB’S FINANCIAL PERFECT STORM

Financial Perfect Storm Force #3:
CPI CAP ON HOMESTEADED PROPERTIES

[This is the third and final posting in a series of postings written by IRB resident Kelly Cisarik on the subject of impending financial challenges facing IRB.]

In addition to less “Penny for Pinellas” funds and declining home values, the third force in IRB’s “Financial Perfect Storm” is the Consumer Price Index (CPI) capping of tax rates on homesteaded properties.

Homesteaded properties in IRB are approximately 50% of the tax rolls. These properties will not see the normal 3% tax increase for the Save Our Homes Cap in 2009 unless the commission votes to raise the millage rate again. This is due to how the federal government calculates inflation. The homesteaded properties will instead be capped at a .1% increase, equal to the federal government’s CPI for 2008.

I thought this article, published in the January 24, 2009 edition of the St. Petersburg Times on homesteaded property tax calculations would be of interest to our citizens.


CLICK HERE to read "Save Our Homes Cap will bring property tax cheer to homeowners"

In the 2008/2009 budget our city still had an aggressive Capital Improvement Plan and aggressive schedule for vehicle replacements and road repaving. Now even with last year’s 36% millage rate increase we may not be able to finance these items without another tax increase.

Time is of the essence here. Our commission has not made any adjustments to its 5-year Capital Improvement Plan since they passed the budget last fall. We have a new city treasurer to advise the commission now, so there’s no reason for the commission to delay this further. It certainly should be on the agenda before the election but I suspect it will be neglected in favor of distractions like a new Golf Cart Ordinance.

I’d really like to hear the views of the three commission candidates on the City’s Capital Improvement Plans before casting my vote in March.

Kelly Cisarik
IRB

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Sunday, February 1, 2009

IRB'S FINANCIAL PERFECT STORM

Financial Perfect Storm Force #2:
DECLINING HOME VALUES

[This is the second in a series of three postings written by
IRB resident Kelly Cisarik on the subject of IRB's impending
"Financial Perfect Storm."]

Aside from the declining “Penny for Pinellas” revenues mentioned in yesterday’s posting, the second of the three forces fueling IRB’s “Financial Perfect Storm” are declining homes values hitting tax revenues from non-homesteaded properties.

On January 28, 2009, the Standard & Poor’s Case-Shiller Index for home prices came out for November 2008. This is the latest data available from the most-respected source in the industry.

The year-over-year declines were 21% for the Tampa market. This number gives us a real good indicator how much of a decline we have in the Pinellas County home values. In Indian Rocks we have a large percentage of condos held as second homes, so this decline in value could end up higher than 21% in our city. We’ll see what our new property appraiser comes up with.

This decline in values directly affects IRB’s tax revenue for non-homesteaded property as of the Jan. 1, 2009 tax roll. The lowered assessed values will show up in the August 2009 TRIM notices. At that point, the IRB City Commission will be forced to decide whether last year’s 36% tax increase was enough or whether they want to increase taxes again. A third option would be to make significant cuts to spending but, to date, the commission has not leaned in this direction.

CLICK HERE for S & P’s Case-Shiller Home Price Index

Kelly Cisarik
IRB

Tomorrow: IRB Financial Perfect Storm Force #3

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