‘SOS'
Save Our Sunny Isles Beach Services
By Bari Auerbach

Imagine what it would be like if there weren’t enough funds in the Sunny Isles Beach city budget for beautification projects, infrastructure improvements, parks and recreation programs, or salaries for qualified city employees and police officers...Many of the services and amenities residents currently appreciate could be “here today and gone tomorrow” if the Florida Legislature passes property tax revisions leaving cities with less money to operate efficiently.

“Managers within Miami-Dade County have been meeting for reason of assessing the financial and level of service impacts to municipal operations based on the restrictions contained in the Property Tax Reform Proposal advanced by the Florida House of Representatives,” explained Sunny Isles Beach City Manager John Szerlag. “All impacts are negative - in fact, severely negative.

“When a city loses its revenue stream, its level of service is also reduced. When the municipal level of service is reduced, the quality of life for residents, including public safety issues, are also reduced. What happens next is that capital projects are placed on hold or eliminated. Add all this together and what you have is a city-wide angle of repose to blight...And in a very short time frame.”

City staff has estimated that if the tax reform legislation passes, it could equate to a net loss in property tax revenue of $8.1 million for the City of Sunny Isles Beach, based on a rolled back millage rate of 1.280, which would “negatively affect the quality, quantity and types of all essential city services provided” (i.e. police, parks, recreation, communications, ocean rescue, transportation, administration, proposed city-wide wireless Internet access, etc.).

‘Resolution for Better Solution’

At the March 15 Sunny Isles Beach City Commission meeting, a resolution was passed opposing proposed property tax revisions that could roll back local property taxes utilizing a formula based on the 2001 tax rate (adding increases for inflation); and increase state sales tax by as much as 2.5 cents per dollar.

The Sunny Isles Beach resolution expresses support for alternative property tax reform proposed by Governor Charlie Crist, doubling the current $25,000 homestead exemption to $50,000. Crist’s plan calls for a tiered approach to the payment of property taxes, whereby the first $25,000 of property value is taxable, the next $50,000 is not taxable and the remainder of value over $75,000 is taxable.

In regards to determining assessed property values, the city is also recommending a market value approach instead of a “highest and best use” valuation approach; and that a long-term solution be devised to address property valuation inequities.

Many reasons cited for supporting the Sunny Isles Beach resolution include...

“This is an issue of local control...Local communities incorporate so as to determine the level of service that its residents want. ‘One size does not fit all.’ The tax reform proposal effectively eliminates Home Rule with the concept that lawmakers in Tallahassee understand how to address local needs better than local elected officials.”

“Sales tax is not a stable funding source compared to property taxes as they are more susceptible to economic cycles...sales tax will hurt the tourist industry by increasing this tax by 40%.”

“The severity of the spending cuts is such that it could severely impact municipalities’ ability to respond to any disaster scenarios.”

“Without adequate funding, virtually all municipalities will become blighted.”

‘Commission Comments’

Mayor Norman S. Edelcup

“We’re proposing that we pass this resolution to tell the Florida Legislature that before we act hastily and spend years trying to correct problems - that some deep study be put into this...I think we all agree tax reform needs to be made and there have been some inequities in the system...We all recognize that those inequities have grown throughout the years. But I don’t believe imposing a sales tax is the answer to trying to fix a problem that can be handled by just adjusting how property taxes are more fairly distributed amongst people.”

”We’re asking the Florida Legislature to slow down the process and create a blue ribbon panel if they need to...And think through the problems and ramifications that may be caused by trying to implement [property tax reforms].”

“If a sales tax would be collected at the state level, no one has figured out how the sales tax [dollars] would find their way down to the cities...So much would be siphoned off we wouldn’t see a fair replacement of the dollars that we have [relinquished] by giving up property taxes.”

“If the sales tax is implemented, [an $8.1 million] reduction in our general fund could equate to having to lay off over 100 employees...[We’d have] half the staff - and those left would be looking for jobs elsewhere [because they wouldn’t be] adequately compensated...[We’d be] faced [with the prospect of] hiring people with lesser skills and [having] fewer [city employees] to deliver the services we all chose to have when we became our own city.”

“The reason we became a city was [because] our residents wanted to seek a higher quality of life and chose not to be put under the standard of ‘one size fits all’ that we had with county government.”

“Particularly offensive is the accusation that local governments [have been] ‘wasting’ tax payers money over these past years...Anyone looking around Sunny Isles Beach today would be hard pressed to say we’re ‘wasting’ tax payer money when we’ve built five new parks and created free shuttle bus service for our residents.”

“This is an important decision and we need to send a strong message [to the Florida Legislature]. I would hope our sister cities throughout the state do likewise...If you don’t have your vote counted it will happen without your acquiescence and next thing you know, you’ll have inherited a situation you got by default by not speaking up.”

“I don’t know if [residents] in any community are going to want government to cut their services in half - but they need to be given the opportunity to voice their opinion....There are people in the Legislature who have said we have not heard from the constituents...We’re making our voice be heard by doing something here tonight [and passing this resolution].”

“I hope our City Manager and I can contact the Florida League of Cities and other [municipal] managers throughout the state to encourage them to follow similar suit in putting pressure on the Florida Legislature to do something that’s fair and equitable for all the taxpayers in the state.”

Commissioner Roslyn Brezin

“I don’t think the average citizen understands the depth of what would happen if we increase the sales tax and take away the property taxes.”

“Basically, the message [the City Commission] is trying to relate it might take away the pain of the heavy tax structure but what is it going to replace it with? It will take away funding for all of the crucial programs we have starting with our Parks and Recreation programs then going onto other things like our Police Department and many other amenities we currently have. So I think it’s the responsibility of all of us who really understand this to explain it to those who don’t that there really is no ‘free ride.’”

“Should [residents get tax relief]? Yes, of course - but it should not be at a cost so high that the ones who need it most [will see] their apartments depreciate in value...When you take away all the amenities we have in this city, [homes] would not be as valuable as they are currently.”

“I think Governor Charlie Crist’s program is an excellent one...increasing the homestead exemption by doubling it from $25,000 to $50,000...This would give a good bit of relief without us being so penalized by taking away all the wonderful amenities and beautiful things we have in our city.”

Commissioner Danny Iglesias

“One of the reasons we became a city is because needs are better met locally...look at how much we’ve done [in Sunny Isles Beach since incorporating].”

“Somewhere along the line, we have to do something because at the rate we’re going, Florida is going to become [a cost prohibitive place to live]. This [resolution] is a start but not the ultimate solution... The [current] system is not fair.”

‘Save Our Homes’

Issues of fairness have arisen due to the “Save Our Homes” constitutional amendment that allows local governments to assess a residence at market value when it’s sold – but after that, the assessed value of the home, for tax purposes, can only rise a maximum of 3 percent each year, even if the market value of a home rises much more. Local governments are allowed to reassess at full value again when a home is sold.

“The ‘Save Our Homes’ amendment is the root cause of the [inequity] problem,” Mayor Edelcup noted. “Since [I’ve lived in my home] since 1969, I’m protected under ‘Save Our Homes’ with the three percent cap...But [a neighbor] moves in and has to pay the current value and we both use the same amount of services.”

Commissioner Brezin observed, “If someone wants to get into something smaller – they’re [likely] to hold onto the bigger place because of the taxes involved - there’s no doubt that there’s something wrong with the system.”

‘Still Prosperous’

Despite concerns about how proposed property tax revisions may affect future Sunny Isles Beach operating budgets, the most recent audit report presented for the fiscal year ending Sept. 30, 2006 indicates the city is in “good financial condition,” with approximately $109 million total net assets.

The city is also in compliance with Florida statutes regarding investment of public funds and there were no findings indicating deteriorating financial conditions. Mayor Edelcup also pointed out, “Our fund balances are healthy, our [budget] surplus is just over $11 million and we are postured for a prosperous future.”

Other agenda items at the March 15 City Commission meeting included:

*“Nuisance” and “Noise” ordinances were adopted on first reading to better define prohibited noises including construction noise and establish guidelines regulating various types of public nuisances within the city’s jurisdiction as well as parameters for issuing citations.

*Preparations for celebrating the city’s 10th anniversary were on the Commission meeting agenda including providing catering services and purchasing promotional items as well as airline tickets for a dance troupe flying in from Sunny Isle Beach sister city Netanya, Israel

*The City Commission approved the purchase of playground swings as well as an interim portable restroom unit for Town Center Park due to delayed acquisition of permanent restroom facilities

*The City Commission approved the purchase of new software systems that will help improve the efficiency of the Building Department and Code Enforcement and Licensing Department. The systems will streamline inspection and permitting processes and improve customer service.

*The City Commission requested asked City Manager John Szerlag to help expedite beautification of a median area at the entry to Government Center.

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