Inflation Outpaces Incomes in Polk

As printed in The Ledger on January 26, 2011, Inflation Outpaces Incomes in Polk, this article really gives the residents of Polk County and especially in Polk City a reality check.  In the five-year U.S. Census Bureau estimate, which was recently released, it shows that the median household income for Polk County was $44,043 and increased by only 22% since the 2000 census, while the Consumer Price Index (CPI) rose 28% during that same period.  In order to keep up with the Consumer Price Index, also known as Cost of Living Increase or inflation, the median household incomes must have increased by at least 28%.  The median is the halfway mark, which means that half of Polk County's 224,299 households have incomes of less than $44,043 and half have higher incomes.  The income figures for the five-year average estimates have been adjusted to reflect 2009 dollars.

Of the 17 cities in Polk County, only 3 cities exceeded the counties' median household income increase:  Eagle Lakes increased by 39.1%, Auburndale increased by 30.0% and Lake Whales increased by 29.6%.  Polk City came in third from the bottom, with a measly 5.7% increase in median income.  Only Hillcrest Heights with a 5.0% increase and Highland Park with an actual decrease of 17.2% were below Polk City. The retirees have been hit especially hard, since interest on savings and investments have been lowered considerably, and they have not received a cost-of-living increase from Social Security over the past two years.

According to the census bureau, the median income in Polk City was $32,083 in 2000, and $33,897 in 2005-2009.  With that in mind, the increases in utility costs and advalorem tax we have endured in this city over the past few years, there is little doubt that Polk City's residents are hurting financially.  Now our city's leadership is considering adding another $2Million - $3Million dollars debt to our already astronomical $10.4Million existing debt.  A 12.4Million debt divided by the population of 1685 amounts to more than a $7,300.00 debt for every man, woman and child living in Polk City.
Why is Polk City so obsessed with keeping and expanding its waste water treatment plants despite its  financial troubles?  The city's debt exploded once it got into the sewer business, and the anticipated growth which was to fund this sewer endeavor never happened.  Yet the administration is continuing to push forward, when there is no significant growth expected in this long recession.  At present, the city's utility customers are paying approximately 2/3 of the city's revenue for its $3.8Million annual budget.  It is the city administration's goal to add as many residents as possible to their sewer system, which is now only operating at approximately 25% capacity and is losing money.  That will more than double the monthly water bills, once these customers are put on the sewer system instead of using their septic tanks.  Most of our residents cannot afford this extra expense every month.  They are having a hard enough time paying to keep their gas tanks full so they can go back and forth to work. 

By seeking permission from our City Council to borrow additional Millions at the upcoming Feb. 14-15th meeting, the city is then planning to get the County off their back by paying off the debt it currently owes for $531,000 in past-due impact fees, and $1.4M for the Mt. Olive spray field.  Then it plans to reroute the existing customers from the ailing Mt. Olive Water & Sewer Plant to the Temporary Cardinal Hill Treatment Plant, over the strong objections of the neighboring residents of that plant.  This will potentially result in another expensive lawsuit the city will be facing in the near future.  The property owners near the plant have expressed stiff opposition, and fear their drinking wells will become contaminated, forcing them onto city utilities.  In addition, the lease on the Cardinal Hill property is expiring in February, 2012, and the temporary permit will have to be extended at great cost to the taxpayers. The city already had the Cardinal Hill property appraised last year, and is planning to purchase it with the additional borrowed funds.

 At the February 7, 2011, mediation meeting with the city, the County repeated it's offer to take back the Mt. Olive WWT plant.   By taking this Albatross off the city's back, it will give Polk City residents some relief of their mounting debt with no real tax base to support it.  County Chairman Ed Smith said that would eliminate approximately $1.4Million of the city debt.  However, the city continues to spend thousands of dollars in legal fees to prevent this from happening.

Polk City is on a path of financial destruction.  Low income levels, economic factors and decisions now being considered by this administration make it less and less affordable to live here.  Growth in Polk City will be the last thing that will happen with this business plan.