ernesto - the galt mile community association · october 2006 galt mile news page 20 ... ernesto...

October 2006 � Galt Mile News � Page 20

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October 2006

After breaking the 74 MPH wind speed criteriarequired for status as a Category 1 Hurricane,Ernesto quickly deteriorated into a Tropical Stormfollowing its Cuban landfall. As it skimmed overthe island, its average wind speed dropped to45 MPH. Experts at the National HurricaneCenter repeatedly explained that as the stormproceeded on its northwesterly course towardsFlorida, the warm Caribbean waters wouldagain power it into a Hurricane. Instead, Ernestohit Florida carrying the same 45 MPH windswith which it left Cuba. As if offering a meteoro-logical apology for the damage perpetrated byKatrina exactly one year earlier, a disorganizedTropical Storm Ernesto dribbled across SouthFlorida. Some of the bands aside, the windswere little more than refreshing. According tooperations director Bob Howard of the SouthFlorida Water Management District, the 1.5inches of rain that doused the Broward areawas a far cry from the 10 inches predicted by Hurricane Center weather gurus.

Director Max Mayfield of the NationalHurricane Center in Miami-Dade Countyexplained, “The simple truth is there are someprocesses in hurricanes that we don’t understandyet, particularly storm intensity. I want people to understand: This is the state of the science.”Mayfield was hopeful that some of the newerexperimental forecast models would yield more

reliable results. Intimating that significant improve-ments were at least 10 to 15 years off, Mayfieldadmonished, “We’re headed in the right direc-tion, but I’m not expecting miracles.”

Hurricane experts predicted that after deflatingover Cuba, Ernesto would intensify again as itpassed over the warm Florida Straits on its wayto the Florida Keys. Radar evidence showed thatthe storm was reorganizing, supporting theNational Hurricane Center’s expectation that theErnesto would recover Hurricane status by thetime it accosted South Florida. After hearingabout Ernesto’s potentially aggressive nature –businesses, government offices, hospitals, airportsand schools instituted emergency disaster proce-dures – putting a new tape in the answeringmachine and closing up. Broward County Transit,Schools, Parks as well as Broward County courtsand courthouse offices closed. Toll collection onFlorida’s expressways was suspended. Despitethe closure of all Fort Lauderdale DepartmentalOffices, a skeleton staff of “essential employees”manned their posts. Since the county incineratorwas closed, garbage collection was also sus-pended. Businesses and homeowners boardedup windows and doors, formed the familiar pre-storm gas lines, drained Home Depot and Lowesof emergency supplies and stripped bottled andcanned goods from supermarket shelves.

Continued on page 5

ERNESTO FLOPSERNESTO FLOPSGalt Mile EOPs Pass Test

By Eric Berkowitz Ernesto passes over Galt Mile Beach

October 2006 � Galt Mile News � Page 18 October 2006 � Galt Mile News � Page 3

www.galtmile.com

The Galt Mile News is the official newsletterof the Galt Mile Community. Published 12 times a year, this publication is designed to educate the Galt residents of neighborhood-oriented current events andissues, and to offer residents Galt-specific discounts from various local merchants.

Allison Weingard Muss [email protected]

Art Director: Gio CastiglioneDistribution: Michael LoomisAd Sales: Allison W. MussEditor: Eric Peter Berkowitz

publisher

The publisher accepts no liability for the

accuracy of statements made by association

members, outside contributors, third party

articles, or advertisers.

board of directorsPresident DirectorRobert Rozema Rose Guttman(954) 563-6353 (954) 563-6679Chairman, Presidents Council DirectorPio Ieraci James Gill(954) 561-9795 (954) 565-0770Treasurer DirectorLeah Glickfield Charles Rossi(954) 563-1001 (954) 564-6328SecretaryEric Peter Berkowitz(954) 564-4427

advisory boardLorraine Alfano Charles BaldwinDott Nicholson-Brown Francis Casier Dr. Jim ComisDr. Robert DrewsKathleen Freismuth Richard Gabrielle Ralph HamakerKevin SongerHuey Vanek

Ed Harwood Warren HurleyMarlene KatkinHerbert KwartDr. Alex LeedsDr. Gwilyn LodwickGeorge MayerFern McBrideSam Montross

WITH A BLACK & WHITE AD & START SEEING MORE GREEN

ADVERTISE!CALL ALLISON MUSS AT 954.292.6553

Ernesto..Continued

On Monday, August 28th, Playa del Mar Manager KeithTannenbaum contacted Regency Tower to put the plan into action.Regency Tower Security Chief Carlos Pereira and Eric Berkowitzvisited Playa del Mar where they were escorted to the roof. Fromthat vantage point, it took less than five minutes to identify everybalcony on the north side of Regency Tower that was still notcleared. In turn, Playa del Mar Assistant Manager Caren Francisand Security Supervisor John Lombardi performed a similar inspec-tion of Playa del Mar’s south side from the Regency Tower roof.Eric and Carlos then visited the Galt Ocean Club roof from whichthey inspected the south side of Regency Tower for uncleared bal-conies. Caren and John likewise checked the north side balconiesof Playa del Mar from the Ocean Summit roof. Ocean SummitManager Lee Lowenthal also used this technique to help clear hisassociation’s balconies. Manager Herb Santiago from Ocean Cluband Galt Ocean Club’s Israel Ruiz were invited to participate aswell.

The process worked. Ocean Summit, Playa del Mar and RegencyTower all had accurate information reflecting the state of their bal-conies within 20 minutes instead of hours. During HurricaneWilma, over 20 balconies on the south side of Playa del Marwere still loaded with furniture upon the storm’s arrival and it tookalmost an entire day for Regency Tower to effectively clear its bal-conies. In contrast – prior to the arrival of Ernesto – only four Playadel Mar balconies and one Regency Tower balcony remaineduncleared two hours subsequent to their mutual review.

Following Hurricane Wilma, debris from unsecured items litteredthe entire Galt Mile. In addition to eviscerated roofing material andbroken building elements such as windows, shutters and chunks ofconcrete; the block was covered by construction materials, buildingsigns, video & electrical equipment, ladders, traffic cones, poolequipment, beach furnishings and hundreds of chairs, tables,plants, lamps and chaise lounges torn from balconies. A carefulreview of the Playa del Mar and Regency Tower premises onTuesday afternoon confirmed that aside from a few balconies,everything was fully secured. Playa del Mar had concrete rehabili-tation contractor SPS strap down or remove a wide assortment ofconstruction equipment and materials. Association building person-nel did likewise with any remaining items. Regency Tower removedtwo swing stages and every rooftop vent turbine to their garage.Pool, beach and deck equipment were secured or removed, andevery balcony save one was cleared. Ocean Summit and OceanClub also succeeded in surpassing all previous efforts to precludeunnecessary internal and external debris damage.

If this centrally located section of the Galt Mile neighborhoodbecomes representative of the balance of the community, future hurricane repair costs will be a fraction of those incurred during the past two years. Insurance premiums for every Association arebeing increased primarily to offset the carrier’s anticipated increasein claims costs. Abating the prospective damage will lower bothrepair expenses and the accompanying claims costs. Aside frominstituting the storm mitigation upgrades demanded by the carrier’sreinsurer – as exemplified by QBE insisting on window protectionand stable roofing – nothing will exert as much downward pres-sure on premiums as reining in these repair costs. Cooperativeefforts that cost nothing and produce results are a giant step in theright direction.•


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A look aheadNovember 4 & 5 Las Olas Home & Garden Show Las Olas Blvd., Info.: 954-563-0714November 11& 12 Ramble-A Garden Festival Fairchild Tropical Garden, Info.: 305-667-1651November 13 Panthers vs WSH Bank Atlantic Center, 7:30, Tix.: ticketmaster.comNovember 16-26 Broward County Fair Fort Lauderdale Stadium Festival Site, Info.: 954-922-2224November 19 The Temptations & The Four Tops Broward Center, Info.: 954-462-0222

Ft. Lauderdale CityCommmission

MeetingCity Hall 6 p.m.

Ft. Lauderdale CityCommmission

MeetingCity Hall 6 p.m.

GMCA Advisory Board MeetingPa DeGennaro’s

11 a.m.

Vice Mayor TeelPre-Agenda Meeting

Beach Community Center6 p.m.

Info: 954-828-5033

Vice Mayor TeelPre-Agenda Meeting

Beach Community Center6 p.m.

Info: 954-828-5033

Ernesto...ContinuedTo everyone’s surprise and delight, the plug was pulled on Ernesto.The one-time Hurricane wannabe was infiltrated by dry air andbecame disorganized. We dodged a bullet. People waveredbetween feeling gratitude for the reprieve and anger for the threat…and the hassle.

On the bright side, it served as an excellent practice run forHurricane preparation aficionados in Federal, State, County andMunicipal disaster agencies. They all had new pre-storm and poststorm emergency plans created after Hurricane Wilma. As if to fulfillsome innate compulsion to demonstrate that they are at least consis-tent, Florida Power & Light somehow managed to zonk over20,000 South Florida customers for no apparent reason. Asidefrom FP&L’s pathetic service flop and two unfortunate traffic deaths,we escaped unscathed. The bulk of the $million plus preparationcosts (overtime, shelters, etc.) for this “Hurricane Drill” will beabsorbed by FEMA (Federal Emergency Management Agency).

In response to legislation passed last year, associations also formu-lated hurricane emergency operation plans (EOP) that saw their firsttest. Galt Mile Associations were able to evaluate the effectivenessof their individual EOPs free of the punishing price tag generallytriggered by planning failures. Most Galt Mile Associations initiatedstorm preparations immediately after the area was placed under adeclared Hurricane Watch on Monday. Several jumped early, bat-tening down the hatches on Sunday. Virtually every security andmaintenance department in the neighborhood held pre-storm meet-ings to review emergency procedures. Unlike the 2004 and 2005debacles, neither Association officials nor unit owners would beable to claim surprise or ignorance if again caught unprepared

During the past two years, we learned under fire what happens toflimsy windows and shutters, poorly maintained roofs, broken exteri-or doors secured with rusty hinges and untested back-up powersources. Unit owners and associations also learned that effectiveprotection must have individual and communal components. Wilmaleft us with dozens of cases wherein unit owners who installedimpact windows and/or shutters still suffered imploded wallsbecause some adjacent neighbor refused to do likewise. Unlessevery wind access is sufficiently protected against pressure anddebris, the threat to every unit persists.

In addition to paying for their own failure to adequately prepare,the 2005 storms forced Associations to reluctantly face paying fortheir neighbor’s lack of preparation. For example, many associationsnursed non-compliant “grandfathered” roofs legally installed prior tothe post-Andrew Building Code upgrades. Failing a subsequentupgrade or substantial security retrofit, some of these woefully inade-quate roofs that were ravished by Wilma required an expensive fullor majority replacement. Invariably, when hurricane force windsturned the shredded sections of these eviscerated roofs into unguid-ed missiles, they tore through the windows and fences of neighbor-ing buildings. Deck and balcony elements that were partially orwholly unsecured provided another source of contention betweenAssociations. Responsibly securing every scrap of potential debrison its premises didn’t protect an Association from an airborneassault by “overlooked” pieces of balcony furniture and/or acces-sories from adjacent buildings. Associations that failed to prepareoften cost their neighbors as much or more in storm-related repaircosts as they themselves were burdened with. It became apparentthat adequate preparation and protection would require everyone’sparticipation.

Continued on page 9

Urban Outdoor GourmetMarket

1201 E. Las Olas Blvd.9 a.m. to 3 p.m.

Jazz on the SquareThe Village Grille

Commercial Blvd. & A1A7 p.m.

Info.: 954-776-5092

Columbus Day



Info.: 954-776-5092



Info.: 954-776-5092



Info.: 954-776-5092



Info.: 954-776-5092

AnnieBroward Center

(Through 10/15)Tix.: 954-462-0222

Panthers vs TBLBank Atlantic Center

7:30 p.m. Tix.: ticketmaster.com

Family Soccer Fun DayCroissant Park

10 a.m. to 2 p.m. Info.: 954-468-1487

Ft. Lauderdale Film Fest

WinetastingFairchild Tropical Garden

8 to 11 p.m.Info.:

www.fairchildgarden.org

Fiesta Ft LauderdaleLas Olas Riverfront11 a.m. to 5 p.m.

Info.: 954-527-0627

Barbra StreisandBank Atlantic Center

7:30 p.m.Tix.: ticketmaster.com

Eric ClaptonAA Arena

Guns N RosesBank Atlantic Center


Ft. Lauderdale Boat Show(Through 10/30)

Barbra StreisandBank Atlantic Center


Spooky Halloween ClassicsParker Playhouse

Tix.: 954-462-0222

Nightmare in the ParkStranahan Park6 to 11 p.m.

Info.: 954-828-6686

Halloween

Election Day

Daylight Savings Time Ends

Columbus Day

Panthers vs TORBank Atlantic Center


Las Olas Home & Garden Show(Through 11/5)Las Olas Blvd.

Info.: 954-563-0714

Fort Lauderdale Antique &Collector Faire

(Through 11/12)War Memorial

Info.: 954-828-5380

Turkey ShootHoliday Park

10 a.m. to 1 p.m.Info.: 954-828-3789

Sunday Jazz Brunch Riverwalk, Downtown FL

11 a.m. to 2 p.m.Info.: 954-828-5985

Panthers vs NYRBank Atlantic Center


Thanksgiving is around the corner!


www.galtmile.com


GET THE WORDOUT ON THESTREET ANDGIVE YOURBUSINESS AFRESH VOICE!SAVE A SPACE IN THE GALT OCEAN MILE’SONLY TRUE NEWSLETTER. WHETHER FORA MONTH OR TWELVE, WE CAN HELP.

Budget...Continued

The new $308,916,150 General Fund composed by Mr.Gretsas represents a $40,304,697 increase over the current$268,611,453 operating budget. Of the $308.9 millionGeneral Fund, the $140,860,267 collected in Ad Valoremtaxes is comprised of two parts. The $133,430,712 thataddresses operations will be raised by dint of a 4.9566Millage Rate and $7,429,555 is treated as a separate debtlevy.

With the passage of the Save Our Homes ConstitutionalAmendment in 1992, Fort Lauderdale citizenry started separat-ing into two distinct factions based primarily on their assess-ment obligations. Half of Fort Lauderdale’s property ownersare full-time inhabitants occupying their primary residence.They enjoy a $25,000 deduction and an annual cap whichlimits increases in the assessed value of their property to thelesser of the percentage change in the CPI (Consumer PriceIndex) or 3 percent. The other half are taxed based on themarket value of their property. Since the assessed value estab-lished by the Property Appraiser’s Office generally lags behindthe market values, the difference in the two classes of tax billswas marginal from 1992 to 1995. With time the discrepan-cies grew geometrically. The tax bills for two identical proper-ties of equal market value purchased at the same time showwidely divergent assessed values. The statutory obligations forcommercial, rental, new and seasonal property owners weremany multiples of those shielded by homestead protection.

The Property Appraiser estimates that the market value of theaverage condominium in Fort Lauderdale is currently$280,781. As compared to FY 2006, the homesteadedowner of that condominium will pay $6.41 less in FY 2007.A non-homesteaded owner of the same unit will face anincreased tax bill of $221.13. The average single familyhome has an estimated market value of $406,365. A home-steaded homeowner would pay $11.49 less next year com-pared to $320.04 more without homestead.

This year, the two budget hearings ordinarily called after thebudget proposal to afford constituents an opportunity to makecomments and recommendations were scheduled forSeptember 6th and September 19th. At the September 6thmeeting, waves of non-homesteaded property owners com-plained bitterly to City Manager George Gretsas and the CityCommission about the disproportionate tax burden they areexpected to shoulder. While homesteaded property ownerswill see a slight reduction in their municipal assessment, theirnon-homesteaded neighbors will swallow the entire increase.Although expressing sympathy for their predicament, Mr.Gretsas disclaimed responsibility for the State tax structure thatfoments these huge assessment discrepancies. Caughtbetween the city’s fiscal realities and a large audience with asingular grievance, the commissioners agreed to prevail onMr. Gretsas to further trim his work product. Following a pro-cession of budget-cutting suggestions totaling $4 million,Commissioner Christine Teel admonished that it would be diffi-cult to make the right cuts without gouging too deeply, intimat-ing that Mr. Gretsas exercise caution and good judgmentwhen considering which items he would trim.

Continued on page 15


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Ernesto...Continued

Many Galt Mile residents that found a piece of their next doorneighbor’s building on their balcony under three broken windowsand a missing section of balcony railing swallowed hard last year.Associations (and individual unit owners) restrained themselves fromleveling accusations at one another for several reasons. 1) Sincethis ancillary damage occurred without intent, associations opted topreserve long-standing friendships rather than attempt to specificallysubrogate liability. 2) The insurance industry considers the damagefrom these incidents to be largely unassignable (i.e. - an “act ofgod”). Any viable action would have to include proof that theoffender had prior knowledge of the injury’s likelihood and failed totake some available mitigating action (good luck!). 3) Althoughsome associations were better prepared than others, most carriedsome measure of culpability (i.e. - we all live in glass houses... liter-ally and figuratively) 4) Prior to the actual events, no one fullyappreciated how their actions (or lack thereof) would ultimatelytranslate into damage expense.

That was then, this is now. None of last year’s mitigating “ratio-nales” are still credible. From direct experience, everyone is clearlyaware that a chair left on a balcony during a hurricane can dam-age a window, a fence, a windshield and/or kill. An unsecuredpiece of construction equipment is tantamount to a runaway train.There are no longer any viable excuses for neglecting to adequatelyprepare for catastrophic events. There is an unexpressed under-standing that if your roof enters my window AGAIN, you will atleast owe me a window – period.

To avert the prospect of engaging in sterile conjecture or recrimina-tions borne of alleged injuries, officials in several Galt MileAssociations focused on lessening their exposure to storm damagesuffered from inter-building debris. In May, managers and boardmembers from Galt Ocean Club (Pio Ieraci), Regency Tower (EricBerkowitz), Playa del Mar (Keith Tannenbaum, Betty Cholst, JoeErnest), Ocean Summit (Lee Lowenthal, Jim Comis) and Ocean Club(Herb Santiago) aspired to find some common standard of prepara-tion designed to minimize future damage. A mutual arrangement tosecure every roof and deck and remove all furniture from balconiesprior to an event would go a long way to abate future damagerepair costs – for everyone.

While securing the various decks and roofs would be the individualresponsibility of each association, a plan was developed to facili-tate the clearance of participating association balconies. Ordinarily,this task requires sending out personnel to check the balconies fromground level. To monitor the upper floor balconies, a staffer must besent down the beach with binoculars or make dozens of telephonecontacts and/or unit inspections. This critical task consumes hours ofvaluable staff resources at a time that they are at a premium. Howan association utilizes its personnel and organizes their time duringan emergency will often dictate whether or not their preparationsachieve fruition.

The new strategy afforded two benefits. In addition to being reliablyaccurate, the balcony review would take minutes instead of hours.Each Association would send representatives to their neighbors oneither side. They would be escorted to the roof from which theycould easily monitor one side of their building and identify whichbalconies remain obstructed. By performing this procedure from theroofs of both neighboring buildings, every association could get anaccurate accounting of which balconies required clearing.


GET THEWORD OUTON THESTREETAND GIVEYOURBUSINESSA FRESHVOICE!SAVE A SPACE IN THEGALT OCEAN MILE’SONLY TRUE NEWSLETTER.WHETHER FORA MONTH OR TWELVE,WE CAN HELP.

Scott..Continued

Year after year I engage in lengthy debate with my col-leagues on the Commission to further rollback propertytaxes and return more money to Broward County resi-dents. This year some headway was made. The Boardagreed to cut the millage rate by no less than 9%.

While this is a good start, I still believe that more has tobe done. The value of property in Broward County hascontinued to escalate over the past five years or more.Property tax roll increases have remained in the record-setting double digits. I believe that increased revenuesshould be returned to Broward taxpayers, not held ontointo a reserve for a rainy day. I just don’t think that thatis a role that government should play.

I think I’m making progress in that area, but I’d like tosee the County budget better analyzed to determine ifthere are excesses or just a better more efficient way todo business. I remain a strong proponent of zero basedbudgeting. This demands that every government agencyjustify it’s expenses instead of receiving a pre-determinedautomatic budget increase every year. Every Countydepartment should undergo this rigorous budget processevery year.

I’m always interested in hearing your thoughts, ideas andopinions. I can be reached at my office at (954) 357-7004. You can also e-mail me at [email protected]

Sincerely, Jim ScottBroward County Commissioner, District 4

Background – Save Our Homes A benefit restricted to homeowners claiming ahomestead exemption, the 1992 “Save our

Homes” amendment limits increases in the “just value”of a property to the lesser of the percentage change in theCPI (Consumer Price Index) or 3 percent. A 1965Supreme Court decision defining the “Just Value” of aproperty as its “market value” provides the basis for oursystem of “property value-based” assessments. The“Save our Homes” amendment shields us from the taxramifications of skyrocketing property values. Pensionerswho serendipitously experienced a doubling or trebling of their home’s market value avoid the crushing tax consequence that would normally place their assessmentexpense beyond their resources. While this insulationfrom erratic market surges rescued the homes of thou-sands of Broward residents who might otherwise havebeen forced to relocate, it also manifested an unexpecteddrawback, a trap.

An unintended consequence of the “Save our Homes”amendment arises from its lack of portability. The protec-tion only persists as long as the homestead claimantremains in their existing property. Should an “empty-nester” decide to move to smaller, more affordable, sur-roundings, the protection evaporates. On January 1st ofthe following year, the new home is exposed to the fulltax consequence of its “just” or market value, oftendoubling or trebling despite its being half the size, twiceas old and much less valuable than the prior residence!Characterized as the “moving penalty”, this insufficiencyin the amendment has literally trapped thousands ofFloridians who would have moved but for the attendanthorrific tax abuse.

Annual legislative attempts to correct this inequityhave hit brick walls. Several obstacles have consis-tently undermined portability bills offered by lawmak-ers in both houses.



www.galtmile.com


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Scott... Continued

A pernicious disunity has eroded the once powerful South Floridalegislative presence in Tallahassee into a political weak sister.The dysfunctional Miami-Dade, Broward and Palm BeachLegislative Delegations no longer set aside disparate ideologyand self-serving agendas as did their predecessors when tacklingregional issues. North and Central Florida legislators quickly filledthe resulting power vacuum.

Many North and Central Florida counties and municipalities rep-resented by these lawmakers have exhibited quasi-paranoidopposition to any perceived threat to their tax base. They are rab-idly opposed to sacrificing the immediate boost in individual taxvaluations that occur when the Save Our Homes limitations areterminated by relocation.

These same counties and municipalities have become serendipi-tous beneficiaries of the amendment’s “moving penalty”. To side-step a punitive tax consequence, many South Florida residentsare moving to north and central Florida localities unaffected byrunaway property valuations. Nervous bureaucrats envisionPortability as a threat to the new-found economic growth adjunc-tive to this influx of displaced South Floridians.

Those jurisdictions benefiting from this demographic shift are likelyto continue opposing portability. However, by recasting it as alocal option, Scott’s plan should relieve the concerns expressedby a healthy segment of its historical opposition – perhapsenough to tip the scales.

The same formula was used to overcome what appeared to beinsurmountable opposition to slot machines. Fundamentalist anti-gambling opposition in North Florida and capitalist anti-competi-tive elements in Central Florida vacation Meccas like Orlandoand Kissimmee closed the door on slots in South Florida. A strongfavorable grass roots showing at the Broward polls changed thepolitical stakes, transmogrifying the issue from gambling into oneof home rule. A repeat performance on behalf of portabilityshould yield similar results, enabling thousands of Broward resi-dents to live where they choose instead of where they foundthemselves when the Real Estate boom sent their property valuesthrough the roof!

For additional information about the Save Our Home amendment,click on “Issues” on the GMCA website (www.galtmile.com) atopeach page and click on Broward County Property Appraiser on the the Broward County page. Scroll down to “Trapped”; also see many“Ask Lori”entries whereinPropertyAppraiser Lori Parrishaddresses theHomesteadSave OurHomes limits. [editor]•

Albert Einstein spent his twilight years in a futile search forthe cosmic key to the universe. The incompatibility ofQuantum Mechanics with his Theory of Relativity becamethe Holy Grail of modern physics. M Theory – orMembrane Theory – is currently considered to be thelong sought missing piece of his cosmic puzzle. The logi-cal offshoot of String Theory, M Theory requires the exis-tence of 11 dimensions. It also supports the prospect ofan infinite number of alternate universes. Two of them areright here in Fort Lauderdale.

As theoretically predicted, they occupy the same space atthe same time, a state of existence previously consideredimpossible. Unsuspecting Galt Mile residents who foryears lived side by side with one another have recentlycome to grips with their two distinct states of being. Thereare those living in Homesteaded properties and, ofcourse, everyone else.

On July 18th, Budget Department Director Alyson Lovepresented City Manager George Gretsas’ new municipalbudget designed to run from October 1, 2006 toSeptember 30, 2007. The $503.5 million budget heproposed is actually a combination of the General Fund,debt service and several self-funded municipal projectslike the WaterWorks 2011 sewer and water improve-ment projects, the Fort Lauderdale Executive Airport, sani-tation, stormwater and the parking system. The $308.9million General Fund, appropriately known as theOperating Budget, is the meat and potatoes that nourishPolice, Fire-Rescue, Parks and other public services.When it comes to funding these spreadsheets, propertytaxes do the heavy lifting.

The City is only one of several entities that feed at theproperty taxes trough, chewing up only 22.39% of the

upcoming tax bill. About 77% of our property taxesfund the Broward County School Board (34.47%),Broward County (27.67%), the North BrowardHospital District (9.56%), the South Florida WaterManagement District (3.06%), the Children’s ServicesCouncil (1.86%), the Hillsboro Inlet District (0.81%)and the Florida Inland Navigation District (0.17%).After each of these organizations estimates theirexpected required resources, the individual “sub-totals”are added together to ascertain how much money isneeded to keep all of them afloat for another year.

To fill the bill, officials first total the expected incomefrom all available resources. The shortfall is pluggedby property taxes. It is precisely at this point that thearea is split into two universes. The Broward CountyProperty Appraiser’s office totals the property value ofall the homesteaded properties and separately calcu-lates the value of all non-homesteaded properties.They are charged with calculating how much moneythey must collect from each of these two universes tomake up the collective shortfall of the entities listed onyour tax bill. When performing this Middle Schoolarithmetic, they are constrained by one factor; theincrease they consider from the homesteaded proper-ties cannot exceed the larger of last year’s ConsumerPrice Index or 3%. After subtracting the modest rev-enue expectation from homesteaded properties, what-ever liability remains on the table is charged to thenon-homesteaded properties. Working backwards,they calculate how many dollars must be charged toeach property owner for every thousand dollars ofproperty they own. This is called the Millage Rate. It isoften mistakenly presumed to be an indicator ofwhether taxes are being increased or decreased. It isnot. When property values heat up (increased 19.5%this year – from $23 to $28 billion), a decrease in

the Millage Rate can still resultin a tax increase. To simplifydisclosure, Statute requires thata taxing authority admit to anincrease if they expect toassess more than they did dur-ing the previous year.

To achieve the$503,505,846 budget pro-posed by Mr. Gretsas, the FY2006/2007 combinedMillage Rate for operations,debt service, etc. will be5.2326 or $5.23 for every$1,000 in taxable value. Thisamounts to a 3.8% decreaseof the 5.4313 Millage Ratethat underwrote the current$452.4 million budget. Sinceproperty values increased dra-matically last year, the lowermillage will net the City$140,860,267 in AdValorem taxes (property taxdollars), a 14.7% increaseover this year’s$122,811,237.

Since the revenues collectedfrom newly constructed build-ings and/or annexed land areincremental to the currentyear’s budgetary line items,they provide no basis fordrawing fiscal year tax com-parisons. When these first-timerevenues are excluded as con-tributing factors, the new budg-et represents an 11.3%increase over the current year’sactual budget. However, theState of Florida makes no suchdistinction. Since its statutoryperspective requires thatunprecedented assessments beincluded when formulatingcomparisons, it defines thenew budget as carrying a13% increase.

While the proposed $503.5million budget is all-inclusive,the Operating Budget orGeneral Fund fuels the Parks,Police, Fire-Rescue, Finance,Building Services, PublicWorks and other municipaldepartments that power FortLauderdale’s daily life support.Other General Fund resourcesare franchise fees, sales & usetaxes, utility taxes, licenses &permits, charges for services,fines & forfeitures, etc. It alsoincludes some interest income,rental income, special assess-ments and transfers.


Broward Board of County Commissioners


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Scott..Continued

Dear Friends & Neighbors:

I’ve been a proponent of tax relief and conservative gov-ernment spending throughout my years of public service.During my twenty-four years as a Florida State Senator, Iconsistently supported budget reforms including zerobased budgeting and performance based budget measures.I continue to practice that same philosophy as a BrowardCounty Commissioner.

Never has property tax relief been more necessary. Asproperty values increase so have property taxes. Cost-of-liv-ing expenses such as rent, gasoline and food have escalat-ed. Recent hurricanes have sent homeowners insurancecosts skyrocketing. It’s clear that Broward County residentsneed a break!

Recently, I convinced my colleagues on the Board of CountyCommissioners to support placing a measure on theNovember ballot that asks voters if they approve of theportability or ability to transfer the Save Our HomesHomestead Valuation Exemption upon sale of their hometo a new home in Broward County.

Under the terms of the 1992 Save Our Homes Amendmentto Florida’s Constitution, the increase in the assessed valueof your property for taxing purposes is limited to no morethan three percent per year, no matter how much the mar-ket value increases. However, once you sell your home andbuy a new home, rising property values means a dramaticincrease in taxes. The proposal would allow for Browardand other Florida counties, through a local option, to pro-vide portability of the Save Our Homes HomesteadLimitation.

Right now many County residents are prisoners in theirhomes. This includes seniors wanting to downsize and grow-ing families who need bigger homes. Young people trying tobuy their first home are also affected. There is also tremen-dous pressure on the rental market, which affects the avail-ability of affordable rental housing.

I believe that if people are allowed to transfer their Save OurHome homestead exemption, it will provide a great andmuch needed tax break. I also think it will stimulate homesales and eventually create more affordable housing.

The State Legislature has the authority to change the Floridaconstitution. In my experience as a State Senator, these typesof ballot questions display such a strong expression of sup-port and provide the focus and impetus for action by theLegislature.

I’m hoping that everyone will vote for this in Novemberand the legislature will pay attention to the will of the peo-ple of Broward County.


Budget...Continued

What legislators had inmind when they devel-oped this tax policy isunclear. Evidently, theywere attempting toreward the commitmentof property ownerswho were willing tomake Florida their pri-mary home. Some sim-ple arithmetic clearly demonstrates that with time, one segmentof the population would ultimately have to support the other.The structural mechanics of the “Save Our Homes” protectivecap inexorably shifts the overall tax burden from the entirebody of property owners to those unprotected by theHomestead Exemption. Whether they neglected to considerhow a feverish real estate market would impact this policy ormistakenly anticipated some alternative scenario, the alreadysevere imbalance is destined to perpetuate itself… and grow.

Those residents currently paying the bulk of the City’s expensesneed the cooperation of their homesteaded counterparts toalter the statutory formula. Relying on the promises of local officials to cut taxes is a dead end. While municipal and coun-ty budgets are often rife with overt examples of unnecessaryspending, excising every scintilla of waste and abuse will provide negligible relief at best. Since budgets are a zero sumgame, lowering anyone’s liability means increasing someoneelse’s burden. In this case, the burden would be lifted from apopulation with a high percentage of people not registered tovote in Florida and fall on a population of eligible voters. Assuch, it is highly unlikely that a spontaneous political solutionwill restore some modicum of balance.



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COMMISSIONER JIM SCOTT’S PORTABILITY PLAN

Following through on his May 18th commitmentto advance the cause of Homestead portabilityafter it backfired during the legislative session,Broward County Commissioner Jim Scott reportedhis progress at the September 21st meeting ofthe Galt Mile Community Association AdvisoryBoard. District 4 Commissioner Scott, the GaltMile’s voice on the Broward Board of CountyCommissioners, briefly summarized some of hisrecent efforts to cut taxes, build accountabilityinto the Budget process, preserve the County’sLand Use authority to control development, act asthe Commission’s most viable go-between inTallahassee and assemble a plan to immunizeBroward residents against the disastrous taxpenalty adjunctive to relocation.

His plan initiates with the placement of a measureon the November ballot asking voters if theyapprove of Homestead portability - the right totransfer their Save Our Homes – HomesteadExemption valuation to a new Broward homewhen they sell their current residence. An over-whelmingly positive response would enable

Broward and other Florida counties, through alocal option, to provide portability of the Save OurHomes Homestead tax cap. During the past fewyears, while South Florida legislators and proper-ty appraisers have supported statewide portabilitylegislation, it was successfully opposed by munici-pal and county officials in central and northernFlorida fearful of undermining continued access torecent property tax windfalls. By offering porta-bility as a local option instead of a statewidemandate, Scott’s plan allows officials opposed tothe measure to preserve existing local tax policy.This targeted implementation will hopefully permitMiami, Broward and/or Palm Beach Counties toassent to portability without threatening NorthFlorida municipal tax rolls.

A few days prior to Scott’s Advisory Boardupdate, Administrative Aide Lisa Castillo for-warded to GMCA a letter directed at con-stituents that expands on the plan’s details. It reads as follows: [editor]

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Eric Berkowitz

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Frustrated residents with commercial, rental or seasonal properties orthose who recently purchased a home have been frantically seekingsome rationale borne of enlightened self-interest useful for promptinghomestead beneficiaries into relinquishing some of their benefits andassume a larger obligation.

Recently, several meritorious arguments useful for encouraging reconsid-eration of current tax policy have gained momentum. Potentially devas-tating consequences of this inequitable imbalance are directly threaten-ing economic growth and development. Florida’s second home market,a historical fiscal bellwether, is rapidly losing steam. The longstandingattraction of South Florida to the domestic vacation home market is with-ering under these sizable tax penalties. Although foreign sales continueto benefit from the weak dollar – economists regard this offset as short-lived. Florida’s reputation as the ideal retiree destination is facing amore serious threat. A common denominator for retirees at every eco-nomic level is stability. By definition, retirement requires the successfulmarriage of relatively fixed resources to a reliably stable set of expens-es. Millions of retirees need the “dream homes” they purchased yearsbefore occupying them to be affordable when retirement arrives. The tre-bling and quadrupling of tax assessments has contributed to a reversalof this trend, forcing retirees to sell their retirement properties while dis-couraging prospective retirees. The tax penalty, in conjunction withunstable insurance costs and media-enhanced hurricane paranoia haspunctured several of South Florida’s critical revenue streams.

A more direct threat to growth derives from a critical scarcity of work-force housing. On January 19, 2006, Assistant City Manager KathleenGunn addressed the Galt Mile Community Association Advisory Board.As the City Manager’s primary agent for economic development, sheworks with the Community and Economic Development Department toattract new employers while addressing the expansion and retentionneeds of existing companies. She explained, “There are two key com-ponents in the selection of a new location or expansion site. The firstincludes a favorable tax structure, availability of business assistance,accessibility of US and international markets, prime office space, andexceptional dollar values in housing.” After identifying the second com-ponent as quality of life, she described it as, “a combination of cultural,recreational, and educational amenities that have attracted a highlytrained, well-educated, diverse work force.”

It is addressed in both of Ms. Gunn’s “key components”. Small andmedium businesses considering relocation options place a large premi-um on the availability of a significant pool of local employees. Many ofthose who can afford to purchase homes are forced to pass due to thetax penalty. Since landlords pass their increasing tax expense through totheir tenants, affordable rental property has also become “endangeredhousing”. A similar dilemma is undermining recruitment efforts by boththe City and the County. Teachers, firefighters, nurses, police officersand other public service employees all require hefty benefit packages asinducements to offset an inconvenient and expensive commute.

While threats to our economic growth are worthy of addressing, fewpeople will directly participate in a voluntary redistribution of wealth tonourish an improved economic climate. Appealing to some collectivesense of fair play or Samaritan-like charitable instinct has thus far gar-nered only token support. At the end of the day, non-homesteaded resi-dents face the seemingly insurmountable task of convincing their neigh-bors to voluntarily give up some or all of their sizable tax benefits so thatthey may be more equitably redistributed. Unless some realistic incentiveto motivate such a sacrifice gains credibility, this dilemma will continueto defy resolution. Until then, all the City Manager and the CityCommission can do to pacify the annual outcry by half the City’s popu-lation is to swallow hard and apologetically nibble at peripheral lineitems.•

Broward District 4 Commissioner Jim Scott


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ernesto - the galt mile community association · october 2006 galt mile news page 20 ... ernesto...

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