An analysis shows public spending by Hernando, Citrus and Pasco counties is rising sharply - but not necessarily out of line with their growth.
By WILL VAN SANT
Published October 31, 2004
County Commission candidates this political season have bashed the current board for outrageous tax-and-spend policies, with Republicans being the loudest critics and Democrats more muted.
While candidates - and residents, for that matter - may disagree on whether a particular expenditure is justified, a look at the numbers makes one thing clear: Hernando's spending is on the rise, but it's hardly out of control when compared to neighboring counties.
Between 1999 and 2003, the last year for which actual spending figures are available, Hernando County's government spending per resident grew 23 percent, from $624 to $767. In Pasco, the figure jumped 19 percent to $702. In Citrus, spending per resident rose 9 percent, to $761.
The figures, like all in this story, were taken from annual financial reports reviewed by independent auditors. They have been adjusted for inflation.
What few realize is that much of Hernando's spending is driven by forces beyond the county's control, said Office of Management and Budget director George Zoettlein.
The cost of liability insurance, for instance, has gone up between 20 and 25 percent annually over the last five years, Zoettlein said, and the county has suffered, as residents have, from higher gas prices.
Further fueling the increases, he said, is growth.
Construction has been hot in Hernando, making it necessary to pave and widen roads, expand jails and build emergency operations centers to ensure the community's safety and welfare, he said.
"I wish the candidates could tell me where our spending is out of control," Zoettlein said. "I wish they could come in and show me."
In Hernando, government spending rose 36 percent from 1999 to 2003, going from $80.6-million to $110-million. During the same period, government spending in Pasco County grew 37 percent to $263.3-million. In Citrus County, the figure went up 19 percent to $95.7-million.
Hernando, Pasco and Citrus, like most counties, distinguish between government spending, which is detailed in this story, and what auditors refer to as proprietary spending.
Government spending is derived from tax revenue and encompasses all general fund, special tax district and debt service expenditures a county makes.
Enterprise funds, such as Hernando's Development Services Department and the Utilities Department, are responsible for proprietary spending. Such enterprise funds are fed by fees residents pay for certain services.
The two types of spending are different animals, according to auditors. Only people who want a building permit will pay a fee to Development Services, for example, but everybody pays taxes for the upkeep of parks, even though they may never visit them.
Despite the distinction, the two types of spending tend to track one another. As government spending rises due to growth, proprietary spending increases to serve that growth.
It's true that both kinds of spending have risen significantly in Hernando, but the county is not approaching a fiscal meltdown, as some candidates have warned.
Unlike the federal government, Florida counties must balance their budgets every year. And when debt climbs too high, the state intervenes to prevent a taxpayer bailout.
What's undoubtedly true about much of the county's recent spending, whether one views it as largely wasteful or largely necessary, is that it's driven by a property value boom.
While the general fund property tax rate has not risen in five years, property values - and thus tax bills - have grown. In 2004, total taxable property in Hernando rose to $6.3-billion, up $653-million over 2003. That translates into an extra $4.6-million in the county coffer.
Thanks to homestead exemption limits, many residents have seen only modest jumps in their tax bills. But for owners of commercial properties or those with second homes, the surge in property values has meant much higher tax bills.
Ana Trinque, chairwoman of the county Republican Executive Committee and a real estate agent, knows that property value increases are market driven and beyond the County Commission's control. What the board can and should do, however, is restrain its "outrageous" urge to spend every new dollar coming in, she said.
"How about saving some for a rainy day?" Trinque asked. "Or giving some back to us?"
According to Zoettlein, the budget director, the county is putting money aside for a rainy day, but it cannot do that while giving money back in the form of a tax cut.
The increase in property tax revenue, Zoettlein said, has allowed him to begin shoring up the county's general fund reserves, which he wishes were more robust. Such reserves are critical for dealing with unexpected costs, such as cleaning up from the recent hurricane season, without raiding other pots of money.
If present trends continue, Zoettlein said, reserves could reach a more comfortable level in five to seven years. Once they do, one could responsibly consider a tax reduction, he said. But now is not the time.
Out on the stump, some candidates have pointed to the 2005 budget, which reaches just upward of $300-million - including government and proprietary spending, as well as federal and state grants - and said the figure is ridiculously high and that numbers don't lie.
That's true, but only in a narrow sense. Numbers don't lie, but they don't always represent reality either.
The $300-million amount does not reflect what will actually be spent, for instance. Nearly $55-million of the figure is tied up in reserve funds, and another $30-million represents transfers of money between funds, which for accounting purposes get counted twice.
Zoettlein said he wished that candidates, some of whom have reviewed copies of the budget, had come into his office to discuss county spending and what the numbers mean.
As of last Friday, four days before Tuesday's election, Zoettlein said no candidate had.
What follows is a breakdown of where the various County Commission contenders stand on the issue of county spending. Much of it will be familiar to voters who have heard the candidates make their pitches.
District 1
Democrat Bill Fagan applauds an effort under way by County Administrator Gary Adams meant to bring greater efficiency, and possibly savings, to taxpayers through a thorough evaluation of how county departments are operated.
Fagan said it's an idea he had two years ago. Such a review is needed, he said, because while county spending is not outrageous, it needs to be prioritized and trimmed where possible. While he does not support firing employees to cut costs, Fagan said Adams' review might turn up positions that could be eliminated through attrition.
By cutting fat where possible, Fagan said, the county should be able to maintain the level of service it provides, which he said is quite good, while offering a property tax reduction.
Republican Jeff Stabins feels that spending is increasing too quickly, but he opposes taking a machete to the budget.
The county must slow its spending, take a deep breath and place greater emphasis on saving money where possible. To achieve this cooling off, he proposes a moratorium on all new county building projects.
Only by taking such steps will the board regain voters' confidence, he said, and increase the chance of being able to offer a tax cut, which should be possible given the rise in property values.
District 3
Incumbent Democratic Commissioner Diane Rowden defends the county's spending decisions, arguing that the government must meet the needs of a growing community.
If it appears that a considerable amount of money is being thrown around by the current board, Rowden said, that's only because prior commissions had dragged their feet and failed to address basic public needs, such as the upkeep of roads.
Spending critics, Rowden said, simply do not educate themselves about the county's needs and how Hernando develops its budgets.
Republican challenger Mark Cattell argues that while spending may not be truly wild, the county has tried to take on too many expensive projects at one time, such as building a new emergency operations center and buying the Florida Water Services utility system in Spring Hill.
More caution is needed, Cattell said, as well as greater sensitivity to the fact that county spending is riding on an inflated housing market whose bubble may one day burst.
"We should tend to a conservative bias in spending because we don't know what the future may bring," he said.
No-party candidate Steven Ashmore is perhaps the sharpest critic of county spending on the ballot. He points out that the rate of spending increases vastly outstrips the rate of population growth and argues that money is being paid out for wants, not needs.
Why create a dog park in Spring Hill, he asks, while roads go unpaved?
If elected, Ashmore said, he would call for a 10 percent cut to the county budget, excluding police and fire services. Department heads would then have to begin their spending plans at zero and justify every dollar to the County Commission.
District 5
Democrat and former Commissioner Chris Kingsley argues that while greater thrift is always a virtue, county spending is meeting legitimate needs and being done in a responsible manner.
Those candidates who beat the wild-spending drum, Kingsley said, are usually looking for a sound bite that will resonate with voters and don't really know what they are talking about.
Republican contender Janey Baldwin is a strident critic of how Hernando doles out cash. Her litany of largesse is long. THE Bus, the county's public transportation network, is grandiose and little used, Baldwin says, and the emergency operations center planned for Brooksville is too ambitious.
Baldwin also criticizes the county Legal and Social Services departments for being overstaffed and underworked.
"They are not responsible stewards of the taxpayers' dollars," she said of the commission. "I want to be an advocate for the taxpayer."
Write-in candidate Richard Power also believes that county spending must be curbed. He supports freezing the property tax rate indefinitely and is opposed to waiving park fees for nonprofit groups, which the board commonly does.
Power also would end the practice of the county giving public money to nonprofit organizations for social services work.
"When that $100,000 went to the United Way," Power said, "I had a veritable cow."
This is the last in a series of stories on issues in Tuesday's races for the Hernando County Commission. This story focuses on county spending. Previous stories have examined growth management and county ordinances.
