MONEY | County Wealth – Indian River, Fla.

Indian River County, Fla. Economic Summit Meeting, March 2016. That is your blogger in the red shirt.

The Indian River Economic Summit met last week at a restaurant overlooking the Atlantic Ocean in Vero Beach.

We discussed the Indian River and County and Vero Beach economies.

Indian River County ranks #7 in Florida on per capita income. See chart at right.


Zip Code Economic Analysis

Narrowing down to zip codes, Indian River County includes one of the wealthiest zip codes in the United States (32963, the Barrier Island of Vero Beach, traversed from top to bottom by State Road A1A).

IRS data on Adjusted Gross Income and Income per Return are available for 199 Florida zip codes.

But some of the zip codes cover are enclaves–with a small number of individuals and don't constitute real communities.

So in reviewing Florida's zip codes, we start by deleting those with fewer than 100 tax returns. That gives us the following 25 highest-income zip codes:

City	Zip Code	Returns	AGI	Income per Return
Florida	FLORIDA	6,894,447	294,420,323	$42,704
Miami Beach	33109	191	416,400	$2,180,105
Tallahassee	32306	53	39,727	$749,566
Fort Lauderdale	33394	35	19,786	$565,314
Palm Beach	33480	6,564	3,003,143	$457,517
Pensacola	32581	25	10,526	$421,040
Jacksonville	32232	62	21,027	$339,145
Boca Grande	33921	653	219,622	$336,328
Boca Grande	34630	40	12,216	$305,400
Boca Grande	32749	11	3,001	$272,818
Longboat Key	34228	3,610	972,220	$269,313
Orlando	32827	397	93,075	$234,446
Longwood	32752	361	81,969	$227,061
Vero Beach	32963	6,752	1,505,406	$222,957
Naples	34102	5,576	1,166,510	$209,202
Naples	33341	14	2,846	$203,286
Bradenton	34201	498	100,902	$202,614
Bradenton	33940	828	164,565	$198,750
Pensacola	32589	21	4,147	$197,476
Pineland	33945	204	39,435	$193,309
Miami	33261	420	78,226	$186,252
Boca Raton	33496	10,086	1,802,136	$178,677
Naples	34103	6,084	1,081,434	$177,750
Naples	34108	7,419	1,311,940	$176,835
Bonita Springs	34134	4,619	810,984	$175,576
Miami	33231	46	7,498	$163,000

Now we delete the odd zip codes with fewer than 100 tax returns and focus on the top 10. Look at the four zip codes that have 1,000 or more tax returns filed. These four zip codes stand out as viable communities with high incomes–Palm Beach 33480, Longboat Key 34228, Vero Beach 32963 and Naples 34102. Vero Beach ranks #3. The smallest is Longboat Key and the largest is Vero Beach. All four communities have cultural facilities that punch way above their weight for communities of their size.

1	Miami Beach	33109	191	416,400	$2,180,105
2	Palm Beach	33480	6,564	3,003,143	$457,517
3	Boca Grande	33921	653	219,622	$336,328
4	Longboat Key	34228	3,610	972,220	$269,313
5	Orlando	32827	397	93,075	$234,446
6	Longwood	32752	361	81,969	$227,061
7	Vero Beach	32963	6,752	1,505,406	$222,957
8	Naples	34102	5,576	1,166,510	$209,202
9	Bradenton	34201	498	100,902	$202,614
10	Bradenton	33940	828	164,565	$198,750

How does this play out in Vero Beach?

The Indian River Library is an indicator of the importance of being a wealthy community. It has benefited not only from the county's strong tax base but also from significant gifts that increase the library's usefulness to its patrons:

• A new two-story Main Library opened in 1991 and a bequest to the library by the Julian W. Lowenstein family in 1985 has been used to help construct a new library building with a much-expanded 2nd floor.
• It now houses The Florida History and Genealogy Department, reference department and reading room, bearing the name of Mr. Lowenstein.
• The library owns a microfilm copy of the entire U.S. census from 1790 to 1860. 
• The county commissioners approved funds to expand the children's, reference and genealogy departments. Between 1991 and 2002, the genealogy department quadrupled in size to 4,000 square feet.
• It includes the Indian River County Historical Society photographs (5000+) and documents (20+ boxes) to the library's "Archive Center", which now has more than 35,000 titles, 40,000 microfiches, 11,000 microfilms, 9 computers and Wi-Fi.

At the end of the last century the library was first or second in Florida in per capita attendance at adult programs and new borrowers.  This may account for the three negative reviews on Yelp of the library's services in 2013 and 2015 in comparison with, for example, the County Library branch at Sebastian. But one goes to a library primarily to look for books and other documents, and secondarily for the services of the staff, so it might be a good trade to go to the busier library even though the staff may be busier and less generous with their time than in a library with fewer books and patrons.

St. Edward's School – and the Classical Orchestra that performs there – is another gem in Vero Beach.

The Vero Art Museum and the Riverside Theater are two more institutions that are astonishingly vigorous for such a small community.

The Indian River Medical Center his attracting talented doctors in a variety of fields. The Vero Beach Regional Airport is a joy to use as an alternative to Orlando, West Palm Beach or Melbourne.

New attractions are picking up support like the Indian River Historical Society.

Our Summit over, we agree on a positive outlook for the
Indian River County economy.

Indian River State College is a community college with some B.A. degree offerings in public service and agricultural fields for which demand for skilled help n the region is high.

For advanced degrees students attend institutions in neighboring cities with academic faculties offering master's and doctoral programs.

The Economic Summit meeting concluded with a general sense of optimism about the county's economy, with a diverse base of supporting institutions and available labor for agricultural, cultural, real estate, retail, medical and sports employers.

The Summit members were, however, concerned that local priorities remain focused on adequate protection of the environmental attractions that draw visitors and retirees to the area. This means controlled growth and aggressive precautions to avoid or prepare for natural and man-made disasters.

BLOG VIEWS | 240K–CityEconomist, Top Posts

The CityEconomist blog just passed 240,000 page views.

Thank you for reading.

Here are the Ten Most-Read Posts during the past month, and following that, the Ten Most-Read during the life of this blog.

PAST MONTH

MONEY | 10 Ways to Cut Cable Bills (Updated Feb. 1... Feb 6, 2016

DEATH | April 7–Lazăr Edeleanu, 75 Years Ago (Upda... Feb 13, 2016

PENSION FUNDS | Beaver Award to TSP Feb 10, 2016

JOBS | Retail Continues Strong in January 2016 Feb 5, 2016

CREDIT CARD | Curb Recurring Charges! (Updated Feb... Feb 1, 2016

JAPAN | Video History Feb 14, 2016

NYC COMPTROLLER | Eric Wollman of FOCEA Jan 31, 2016

BANKS | Why Their Shares Fell Feb 3, 2016

WW2 | BOISSEVAINS Links (Updated Feb. 23, 2016) Jan 26, 2015

RETIREMENT | Planning and Saving Feb 21, 2016

SINCE THE BLOG WAS CREATED

MED BIZ | How the Clinton Plan Was Killed, 1993 Jan 31, 2009

DEPRESSION | Cause–the Fed? Or Real-Estate Specula... Feb 23, 2009

NYC | More Catholic, Jewish, Muslim Feb 15, 2008

JOBS | Brazil #1 in Workplace Innovation (Updated ... Jul 29, 2014

JOBS | Low Labor Participation Puzzle - I (Demogra... Oct 10, 2014

JOBS | Which David Brooks Should We Listen To? Oct 24, 2014

JOBS | What Keynes Said, What Bush 43 Did Jun 23, 2012

MED BIZ | BBC Panorama on U.S. Jan 25, 2009

NYC | In the Eye of the Storm, OMB's Mark Page Mar 22, 2009

BANKS | New Regs after 2008 (Superseded) Mar 22, 2008

GAO | Three Big U.S. Agencies Unauditable

Yesterday the GAO issued its report on its audit of Federal agency spending. Its summary is here. The summary includes a link to the full report.

For FY 2015 three big U.S. agencies–the Department of Defense, Department of Housing and Urban Development, and the Department of Agriculture–failed to get clean opinions. Their accounts had "material weaknesses". Last year (FY 2014), by contrast, almost all of the key federal agencies received clean audit opinions.

In addition, the GAO highlighted the following risks:

Pension Benefit Guaranty Corporation (PBGC) liabilities exceeded its assets by more than $76 billion as of the end of FY 2015.

Fannie Mae and Freddie Mac reported maximum remaining contractual commitment to the GSEs, if needed, is $258.1 billion.

U.S. Postal Service has reached its borrowing limit of $15 billion and finished FY 2015 with a reported net loss of $5.1 billion.

Wall Street on Parade comments that people who think that Donald Trump will clean up this mess should take a look at his own financial reporting as required under campaign finance laws.

TERRORISM | Feb. 26–First WTC Attack, 1993

February 26, 2016–Today in 1993 a massive explosion occurred in the parking garage underneath the World Trade Center in New York City.

At that time I was working for the New York City Comptroller as Chief Economist and the first I knew of the destruction was the large number of police and fire vehicles headed south.

I heard the sirens as I was leaving for the airport on Friday evening for a vacation with my family and parents-in-law in Florida.

Six people died in the explosion and another thousand suffered injuries. When I got to Florida I was contacted about estimating the economic impact. I returned early, on Sunday, and started making estimates based on reports that were coming in on the damage to the cars in the parking lot, insurance claims, the damage to the building, the impact on security and the overall impact on the outlook for the New York City economy and tax revenues.

Meanwhile, investigators at the bomb scene found a section of a van frame that had been at the center of the blast, with the vehicle identification number still legible. Detectives interviewed the Ryder Rental Agency in Jersey City, which gave the renter as Mohammed Salaamed, who reported it stolen on February 25. Someone named Salameh in the FBI database as a potential terrorist. The renter returned to Ryder to get back his $400 deposit and when he came to collect it, the FBI was waiting to arrest him. His notes led them two other suspects.

One of the terrorists was found to have bought hydrogen tanks from AGL Welding Supply in New Jersey and three tanks marked “AGL Welding” were found at the site of the bomb.

The owner of a storage facility in Jersey City reported he had seen four men loading a Ryder van on February 25. Sure enough, investigators found enough chemicals there, including nitroglycerin, to make another bomb, along with videotapes on bomb-making that led to a fourth suspect. Each of the men was sentenced to 240 years in prison.

These terrorists did not bring down the World Trade Center because the force of the bomb was taken by the first of the steel pillars, protecting the next in line. Repairs were expensive but the buildings stood.

A World Trade Center Property Risk Report, prepared for Silverstein Properties in anticipation of the WTC lease (Source: www.nistreview.org, FOIA request.), asserts (p. 29) that the Maximum Forseeable Loss from another terrorist act would be five weeks' rent:

The 1993 terrorist bombing of the WTC resulted in a maximum forseeable property loss. This event shut Tower 1 down for 6 weeks and Tower 2 for 4 weeks. The explosion, that occurred in the garage area of B-2, caused portions of the Plaza and two Subgrade floors (about 4 bays by 4 bays) to collapse on to the B-6 level damaging mechanical and electrical equipment of the Chiller Plant. As large a blast as it was, there was negligible structural damage done to structural members. Damage was limited to the replacement of these concrete floors, repairing spalled concrete where reinforcing steel had been exposed and rebuilding non-bearing walls.
The magnitude of this type of MFL loss can be estimated at 5 weeks rent or 1/10th of the $364m annual rent or $35m. Plus property damage to the building from the 1993 incident is estimated to be $175m and equipment damage of $120m or a total of $330m.

On the subject of the possibility of an aircraft striking one of the towers, the scenario was considered "highly unlikely".

In 1946 a military aircraft struck the Empire State Building. Since that time the manner in which aircraft are "controlled" has dramatically changed. In the event [of] such an unlikely occurrence, what might result? The structural designers of the towers have publicly stated that in their opinion that either of the Towers could with stand such an impact from a large modern passenger aircraft.
The ensuing fire would damage the "skin", in this scenario, as the spilled fuel would fall to the Plaza level where it would have to be extinguished by the NYC Fire Department. The replacement of the "skin" is estimated at 35% of the building replacement value or $420m. Loss of rents for 1 year or $150m for a total estimate of <$600m.
For MFL (maximum forseeable loss) determination methodology, see page 88 of the pdf.

On September 11, 2001, the World Trade Center was again attacked. The damage was approximately 100 times greater than the impact of the 1993 bombing.

RETIREMENT | Planning and Saving

I have a post up on my Network Solutions website (CityEconomist.com) that gives various self-help calculators.

As a result, I get suggestions all the time for additional resources to add. I check these out and often they promote a particular product. The writer is a paid promoter and I tend to go no further.

The following articles relating to retirement savings seem to be genuinely useful, so I am posting them here, rather than trying to update the website.

How Much of Your Income Should You Save?

Calculate Your Money Saving Goals: Compound Interest Savings Calculator

Simple Steps to Manage Your Money

How to Grow Your 401k at Any Age

5 Tax Reasons to Start a 401k

If you question any of these resources, or have additional ones to suggest, please comment or send me an email at john[at]CityEconomist.com.

JAPAN | Video History

History of Japan – definitely entertaining and seems to cover the ground I am familiar with. Early emperors and shogunates, samurai code, European and American (Commodore Perry) visits, Korea-Chinese conflicts, two world wars, rapid economic growth.

Video starts slowly, ends fast, a good formula. The history has been viewed 5 million times, but not so much yet in Japan.

https://globalvoices.org/2016/02/11/hilarious-animated-history-of-japan-gets-rave-reviews-including-from-japanese/