The vote for and against the issuance of bonds in the Village of Pinecrest is currently ongoing and will end next Tuesday, March 26 at 7:00 pm. While some have already voted, others are still trying to decide.
If the bonds are approved, the Village will increase taxes for all property owners by .23 mills for the next twenty years to pay for water line extensions that property owners may or may not want. In addition, the proposed Village-wide tax solution may actually create more problems than it solves.
The following are some of the unpleasant consequences of the tax solution for water line extensions:
- A punishing tax for the more than 180 property owners who over the last few years paid to extend the County water to their property at their own cost and are now being asked to pay a tax on top of what they paid to help others achieve a lower cost for their water line extension.
- A double tax for those previously connected to County water since they, or a previous owner or builder, paid for their water line. As properties change hands, some new owners are under the false impression that the water line was free or that it was paid for by the Village as a service to its residents. The Village has made it clear that it does not provide water service to its residents.
- Perpetuates financial imbalances such as the one created 10 years ago from the County bonds issuance. The County funds were intended for all 1500 property owners on well water but the amount offered was not sufficient to complete the lines for all the properties. A Special Taxing Assessment District was considered to pay for the balance but The Village Council rejected this plan and instead, applied the funds to about half the properties resulting in a near-zero cost for this group while the rest were left empty-handed. The proposed tax-all solution in this vote does not resolve the created imbalances and instead creates new ones.
- Punishes the elderly, retirees and those that simply do not want or cannot afford to connect to County water by forcing them to pay a tax and ultimately pay to connect. It places a financial burden on those on fixed incomes, some of whom are Pinecrest pioneers that have helped make the City what it is today.
- Hurts apartment dwellers and commercial property tenants as property owners will likely pass the tax increase on to their tenants.
- Saddles the Village with a $15,000,000 debt obligation–the largest bond ever issued in the City’s history and more than half its annual budget. It also continues the recent pattern of tax increases in the Village and leaves the City vulnerable to new spending needs.
- Leaves the City with no capital improvements to show for its capital expenditures. When the lines are completed, they will be handed over to the County and all water service revenue will go to the County.
- Creates private profit-making opportunities at taxpayer expense when properties that are given access to their water line at a reduced cost are sold for a premium.
- Does not give an equal voice for all property owners that are directly impacted by the vote as those owning rental properties in the Village but do not reside there cannot vote.
- Does not offer any other financing alternatives for the water line extension except the City-wide tax increase for all property owners.
If passed, the tax increase will directly benefit a small group of Village residents at the expense of many. Supporters of the tax increase suggest there is no alternative… that if the vote fails, they will be left unable to get access to County water that they desire. That is untrue.
To bolster the cause, supporters of the tax increase play on fears and emotions and personal attacks. Claims are made about groundwater contamination when no proof is given and the Village staff states otherwise; claims of insufficient fire hydrants for fire suppression are made when no proof is given and fire department officials claim otherwise; and personal attacks are made on those opposed to the tax increase by accusing them of being selfish and inconsiderate.
The truth is that by spreading the cost among all Pinecrest property owners the cost of the water line is greatly reduced for those receiving the benefit while the rest pay most of the bill. This is contrary to Miami-Dade policy that states that “the cost associated with new water infrastructure be borne by private developers/private property owners.” With much to be gained, supporters of the tax increase have launched an aggressive marketing campaign including inaccurate and misleading statements to get voter approval. Even the ballot wording is confusing as it states a vote for bonds instead of a vote for a tax increase.
A more balanced approach can be taken that takes into consideration the different needs of citizens and offers a more fair and equitable financing alternative. In addition, new efforts can be undertaken to seek assistance from all governmental entities. County officials, in particular, can be approached again and presented with new and updated proposals that may be more palatable and correct past mistakes. Also, other governmental entities and newly elected officials can be approached for assistance.
However, once the new tax is approved, the odds of getting any governmental financial assistance are practically eliminated.
A new start is needed and that begins by rejecting the current bad tax proposal. Pinecrest citizens must vote AGAINST THE BONDS.
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