Keyhole to the Future?

What the housing turnaround will look like

Cape Coral, Fla., not long ago one of the foreclosure capitals of America, is now seeing a rebound as home prices hit once-in-a-generation lows.

Real estate agent Denny Grimes got 34 offers in two weeks on a foreclosed home in Cape Coral, Fla. He said one of the open houses was so frenetic that it was like a tryout for 'American Idol.'

Grimes notes that at the peak of the market in 2006, only 12 homes in the entire county were selling for under $100,000. Now there are 3,554 listed. At least 50 homes are selling for under $25,000.

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Less means Less

Taxpayers will soon get less from local governments caught in budget crunch

The bust in property values opened vast budget holes for local governments, and taxpayers across the region are sure to notice the difference.

BY AMY SHERMAN

ASHERMAN@MIAMIHERALD.COM

On the home front, property-tax rates are poised to increase for many homeowners still recovering from the economic storm. So, too, are water fees and trash-pickup costs.

In the community, some libraries and parks are closing an extra day, pool hours are likely to be reduced and bus service curtailed. Even senior meals on wheels won't be as plentiful.

At school, there will be fewer assistant principals in offices and teachers in classrooms. Students will find fewer guidance counselors to turn to.

As local governments throughout South Florida face the painful reality of fallen property values, residents will unmistakably feel the pinch.

``You are going to see library hours cut; you are going to see park hours cut,'' said Gary Resnick, president of the Broward League of Cities and mayor of Wilton Manors, which now closes city hall on Fridays to save money. ``The cuts are not going to be invisible.'' more...

Flippin' Nuts

Across Florida, the newspaper found 50,000 property deals involving $10 billion in sales that met the criteria for likely fraud. More...

Sarasota Outlook

SARASOTA COUNTY ECONOMIC OUTLOOK FOR 2009-2010 - The Arts Council

“Sarasota County’s economy has entered its worst economic episode in memory. The unemployment rate in the county, which historically has been below the national average, now exceeds the unemployment rate in the nation as a whole, and it’s expected to get worse before improving slightly in the second half of 2010." More...

Miami looks at steep cuts in cultural grants

Proposed budget would eliminate $11 million in cultural grants

By Zachary S. Fagenson
The head of Miami-Dade's Cultural Affairs Council says he doubts county commissioners will carry out Mayor Carlos Alvarez' proposal to eliminate $11 million in cultural grant money.
Arts and cultural groups inject too many dollars into the local economy to fall victim to Mayor Alvarez's cuts, said Adolfo Henriques, Cultural Affairs Council chair....

If carried out, the cuts would spell trouble for nearly 1,000 cultural groups of all shapes and sizes....

The mayor's cost-cutting measures also remove general-fund subsidies to Miami Art Museum, the Historical Museum of Southern Florida and Miami Science Museum. more...

Special report from Lehigh Acres

Citizen Special Report and Analysis: Financial crises loom in Lehigh Acres

For example a home with a $100,000 mortgage is now selling for $26,000. A sign outside a real estate office in Lehigh Acres advertises "Foreclosures from $25,000."

Holders of subprime mortgage bonds have flooded the market with foreclosed homes. More...

California no longer dreamin'

Devastating Cuts for Education, the Poor, Health Care, and Local Governments

Taking the brunt of the blow once again is education which has now had over $17 billion in cuts in the last two budget deals. That represents nearly one-third of the funding for education which is also the single largest line item on the budget. More...

Prudence in Pinellas, says Commish

Pinellas County did not spend all of the new tax revenue generated during the past few years, but saved a substantial portion of the new property taxes collected. About $65 million was allocated to the county's general fund reserves between 2004 and 2006. This "savings account" is set aside to better position Pinellas County to recover after a hurricane or other natural disaster, to maintain cash flow at the beginning of each new fiscal year and to handle other emergencies. During the last two years, the county has strategically spent down a portion of our reserves, while maintaining a minimum reserve of 15 percent of the general fund balance. More...

North Port in Denial?

NORTH PORT - North Port faces a looming financial crisis that could force it to cut tens of millions of dollars from its budget for years to come. But instead of cutting expenses, the city is spending its savings and hoping for an economic turnaround.

Without tax increases and deep spending reductions, city budget writers predict North Port's general fund will be $10 million short by 2011, with cumulative shortfalls of $59 million by 2014.

To come up with $59 million, the city would have to shut down City Hall, the police force, part of the fire department and the City Commission -- in other words, its entire general fund, which is $42 million this year. ...

Despite the problems, city leaders have avoided the steep reductions in services, wages or employees that other area local governments have taken. Indeed, last month, they approved $870,000 in wage increases for firefighters and rejected a proposed $400,000 budget cut for the police force next year.

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Sarasota Memorial may raise tax rate

SARASOTA — - Sarasota Memorial Hospital board members are planning to propose a nearly 15 percent tax rate increase at their meeting today.

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The proposed increase, the hospital’s first since the recession began in 2007, comes as other taxing districts are deciding to hold rates steady or drop them.

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Hospital officials say the increase is needed to fund building projects and a growing number of expenses incurred as the region’s only public hospital, charged with providing services that are increasingly unprofitable such as delivering babies and treating the poor.

Without the rate increase, the hospital would lose an estimated $6.6 million because of the decline in property values.

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The board is set to vote today whether to propose a rate increase. The vote is on whether to increase the rate on Sept. 21, after the last of two public hearings. The proposed new tax rate is $1.08 for each $1,000 of taxable home value, up from the current rate of 94 cents per $1,000. More...

Cuts still loom for Sarasota school district

SARASOTA COUNTY -- The Sarasota County School Board will hold its first tentative budget hearing Tuesday, following a regular board meeting. And despite drastic budget cuts, positions will still be lost.

The board has been working since last fall to trim its 2009-10 budget, and has succeeded in identifying more than $40 million, or about 20 percent, that can be cut.

While visiting family in Massachusetts over the weekend, Board Chair Caroline Zucker said about $31 million was the result of cuts, while the rest came from cost-saving measures. link

Low-cost health plan available to Miami-Dade residents

A low-cost health plan is now available for Miami-Dade County residents who don't have insurance.

BY WILMA HERNANDEZ

WHERNANDEZ@MIAMIHERALD.COM

Miami-Dade residents who don't have health insurance can sign up for a new plan aimed at helping the estimated 600,000 uninsured in the county.

Called Miami-Dade Blue, the program went into effect July 1. It's a joint venture between the county and Blue Cross and Blue Shield of Florida and is designed with low premiums and low co-pays.

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Depending on age and gender, individuals can expect to pay between $70 and $300 a month for coverage, which includes regular check-ups, pharmacy, labs, emergency room visits, basic dental care and hospital coverage.

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An obstacle the county faced was bargaining prices with hospitals and healthcare providers, Martinez said. The program has about 1,500 doctors in the network, with most of them agreeing to take about $50 for a basic office visit, which is the amount the plan will pay. Specialists will cost more.

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Miami-Dade officials estimate there are 600,000 uninsured people countywide. Of those, 80 percent work but cannot afford health coverage.

The plan is open to individuals under 65, regardless of income. more...

Palm Beach County commissioners discuss raising taxes 15 percent

PALM BEACH COUNTY - Palm Beach County commissioners on Monday initially endorsed raising property tax rates as much as 15 percent next year, which would still not avoid layoffs and deep cuts to community services.

The county blames a drop in tax revenue amid a struggling economy for the need to boost tax rates to pay for county services.

If given final approval, the property tax rate would go from $3.78 per $1,000 of taxable value to $4.34. For a home worth about $230,000 and eligible for a $50,000 homestead exemption, that would equate to about $800 in county property taxes next year. That could translate to about $100 more in property taxes than this year and doesn't include taxes for schools, cities and other government agencies.

Even with an increased tax rate, the county is considering almost 200 layoffs as well as deep cuts to programs serving children, the elderly and the handicapped.

For budget planning purposes, a majority of commissioners Monday needed to agree on the maximum tax rate they would be willing to consider. A formal vote on the preliminary rate is scheduled for July 21. That proposed rate could still come down when commissioners take a final vote on the tax rate and proposed $4 million county budget in September.

For weeks, county commissioners have debated whether to cut spending deeper or boost tax rates to support county services.

"We are kind of walking around the deck of the Titanic here," Commission Chairman Jeff Koons said.

A coalition of business groups opposed boosting the property tax rate. The Business Forum of Palm Beach County in a letter to the commission called for deeper budget cuts instead of tax increases that "remove more dollars than absolutely necessary from local residents and businesses during this difficult economic time." More...

City's Budget Now Online

PROPOSED BUDGET AVAILABLE ONLINE

Sarasota, FL – The proposed budget for Fiscal Year 2009-10 is now available for review on the City of Sarasota website www.sarasotagov.com. An icon on the right side of the homepage links you directly to an executive summary as well as the complete proposed budget. A 30-minute television show devoted to the City’s financial state is also available atwww.sarasotagov.com. City Manager Robert Bartolotta hosts “City Focus” and provides an overview of the proposed budget with Finance Director Chris Lyons. The program is also being shown regularly on Access Sarasota, the government access channel, Comcast channel 19 and Verizon channel 34. Citizens will have an opportunity to provide input on the proposed budget Wed., July 15, 2009 at 6 pm in the Commission Chambers at City Hall, 1565 First Street. The public input session is being held prior to the City Commission’s budget workshops, when Commissioners begin the decision making process to establish the millage rate. There will be no formal staff presentation during the public input meeting. The budget workshops will be held Tues. July 21st and Wed. July 22nd 8 am – 5 pm in the Commission Chambers. The workshops are open to the public; however, public input will not be permitted at that time. Public input on the proposed budget will be heard Wed., July 15th.