Candidates show their true primary colors
www.waltonsun.com
This election cycle, the Walton County Taxpayers Association and The Sandestin Voters have sponsored a series of Meet the Candidate forums at the Walton County Library, South Walton Annex. Walton County?s three candidates for County Commission District 4, Sara Comander, Ro Cuchens and David Kramer, fielded a bevy of questions, but the best part of the meeting was the Chocolate Puddle cookies from La Loba?s Bakery, which someone brought for snacks.
There were few surprises, but some interesting things did pop up.
In response to a question regarding county debt, Kramer proposed negotiating lower rates on county debt with bondholders.
If fruitless, then Walton County would repay the principal. Sounds good, right? There is only one small problem. Outside of default or bankruptcy, the interest rate on Walton County bonds (debt) is not negotiable, regardless of current interest rates. A bond indenture is a binding legal document, and the issuer cannot modify it on a whim. An issuer of municipal debt, for instance Walton County, guarantees the buyer a stated coupon rate until the bond reaches maturity. The bond owner takes the chance that interest rates could be higher in the future, with the trade-off being a guaranteed rate of return. It is how the municipal bond market operates. Some bonds can be paid off early or ?called? by the issuer only if the bond indenture specifically references a ?call date.?
Our county took on debt to build parks, schools and jails and expand the courthouse ? all legitimate expenses. Just like when homeowners buy a house or businesses decide to expand, we took on debt and will pay it back over time. Debt is an important tool, while excessive debt is the villain.
Many questions addressed the county?s budget and the frustration over ad valorem taxes.
All three candidates cautioned that reducing expenses will be difficult and trying. Unfortunately for taxpayers, essential county services are not related directly to property values. If your house catches on fire, it takes just as many firefighters to put it out whether it was worth $350,000 two years ago or $250,000 currently. Since Florida (fortunately) does not have an income tax, more of the tax burden falls on real estate and real estate transactions. Despite the teeth-gnashing, Florida remains a low-tax state, particularly for retirees. According to Kiplinger?s (October 2009), Florida remains one of the most tax-friendly places to retire in the U.S. Alabama and Mississippi have lower property taxes, but we have prettier beaches.
Like many things in financial planning, there are trade-offs.
Comander pointed out that Walton County has reduced expenses dramatically over the past three years ($36 million), with additional cuts expected. A tourism-based economy has infrastructure needs whose burden (trash, roads, law enforcement) ends up on the taxpayers.
It was good all three candidates disapproved of nearshore drilling in the Gulf of Mexico. The Florida Legislature?s inexplicable refusal to allow debate on a constitutional amendment banning near-shore oil exploration is inexcusable. The beaches of Gulf Shores have been closed for more than 50 days (Mobile Register, July 29). Let that sink in ? 50 days.
Both candidates for House District 7, David Pleat and Marti Coley, were in the audience. Pleat has been in the forefront opposing oil exploration off our coast. Coley opposes near-shore drilling when she is in Walton County. On the other hand, in Tallahassee her voting record reflects the opposite.
Drilling oil wells off the coast of Florida is sowing the seeds of economic and ecological disaster for our home.
Protecting the coast should be nonpartisan.
Buz Livingston is a certified financial planner. He operates Livingston Financial Planning Inc. focusing on hourly financial planning and investment management. Contact him directly at 850-267-1068 or at buz@LivingstonFinancial.net? .
BUZ LIVINGSTON
Just Plain Talk
www.waltonsun.com
This election cycle, the Walton County Taxpayers Association and The Sandestin Voters have sponsored a series of Meet the Candidate forums at the Walton County Library, South Walton Annex. Walton County?s three candidates for County Commission District 4, Sara Comander, Ro Cuchens and David Kramer, fielded a bevy of questions, but the best part of the meeting was the Chocolate Puddle cookies from La Loba?s Bakery, which someone brought for snacks.
There were few surprises, but some interesting things did pop up.
In response to a question regarding county debt, Kramer proposed negotiating lower rates on county debt with bondholders.
If fruitless, then Walton County would repay the principal. Sounds good, right? There is only one small problem. Outside of default or bankruptcy, the interest rate on Walton County bonds (debt) is not negotiable, regardless of current interest rates. A bond indenture is a binding legal document, and the issuer cannot modify it on a whim. An issuer of municipal debt, for instance Walton County, guarantees the buyer a stated coupon rate until the bond reaches maturity. The bond owner takes the chance that interest rates could be higher in the future, with the trade-off being a guaranteed rate of return. It is how the municipal bond market operates. Some bonds can be paid off early or ?called? by the issuer only if the bond indenture specifically references a ?call date.?
Our county took on debt to build parks, schools and jails and expand the courthouse ? all legitimate expenses. Just like when homeowners buy a house or businesses decide to expand, we took on debt and will pay it back over time. Debt is an important tool, while excessive debt is the villain.
Many questions addressed the county?s budget and the frustration over ad valorem taxes.
All three candidates cautioned that reducing expenses will be difficult and trying. Unfortunately for taxpayers, essential county services are not related directly to property values. If your house catches on fire, it takes just as many firefighters to put it out whether it was worth $350,000 two years ago or $250,000 currently. Since Florida (fortunately) does not have an income tax, more of the tax burden falls on real estate and real estate transactions. Despite the teeth-gnashing, Florida remains a low-tax state, particularly for retirees. According to Kiplinger?s (October 2009), Florida remains one of the most tax-friendly places to retire in the U.S. Alabama and Mississippi have lower property taxes, but we have prettier beaches.
Like many things in financial planning, there are trade-offs.
Comander pointed out that Walton County has reduced expenses dramatically over the past three years ($36 million), with additional cuts expected. A tourism-based economy has infrastructure needs whose burden (trash, roads, law enforcement) ends up on the taxpayers.
It was good all three candidates disapproved of nearshore drilling in the Gulf of Mexico. The Florida Legislature?s inexplicable refusal to allow debate on a constitutional amendment banning near-shore oil exploration is inexcusable. The beaches of Gulf Shores have been closed for more than 50 days (Mobile Register, July 29). Let that sink in ? 50 days.
Both candidates for House District 7, David Pleat and Marti Coley, were in the audience. Pleat has been in the forefront opposing oil exploration off our coast. Coley opposes near-shore drilling when she is in Walton County. On the other hand, in Tallahassee her voting record reflects the opposite.
Drilling oil wells off the coast of Florida is sowing the seeds of economic and ecological disaster for our home.
Protecting the coast should be nonpartisan.
Buz Livingston is a certified financial planner. He operates Livingston Financial Planning Inc. focusing on hourly financial planning and investment management. Contact him directly at 850-267-1068 or at buz@LivingstonFinancial.net? .
BUZ LIVINGSTON
Just Plain Talk
