Coral Gables Writer’s Letter to the Editor about Taxes

September 2, 2010 by SMc Leave a Comment

Please read a letter to the editor of the Miami Herald today.  Please note that the writer is from Coral Gables (that wealthy city  the Teamsters, Police and Firefighters’ Union and City Commission think can keep paying more and more taxes).

After studying my notice of proposed property taxes, I must say that county government has lost touch with reality. I know the laws under which officials operate are partially responsible. However, laws can be amended for changing times.

My home value went down 15 percent this year, and yet my proposed taxes have gone up 15 percent. I have less income because of the current financial situation and have had to tighten my belt — whereas our county government appears to be oblivious to the folks who pay their salaries, perks and pensions.

This will not continue indefinitely. We are fed up with the lack of respect for the folks who pay the bills for a bloated government.

ROGER SHATANOF, Coral Gables

via Homeowners say call it what it is — a tax increase – Letters to the Editor – MiamiHerald.com.

Filed under Coral Gables, Miami-Dade County, Taxes and Fees

Coral Gables: Balancing Well-Being of Taxpayers and the Budget

August 30, 2010 by SMc 1 Comment

The Teamsters Union is now leading the general employees into a dark corner by asserting that Coral Gables is wealthy enough to keep paying high salaries, pensions and other benefits.  This is insulting to residents who have paid taxes through thick and (now) thin and have generally accommodated decent and fair salaries for most (and some not so great) employees in many years.

Many residents now believe that the Slesnick Commission has tolerated, if not outright defended, the well-being of employees above taxpayers.  Unions, of course, have cooperated in this process by defending the commission.

Now both the commission and the unions should work together and share the pain to get the budget back into balance.

Taxpayers cannot do any more than they have.

Filed under Budget, Coral Gables, Employees and Unions, Taxes and Fees

Coral Gables’ Budget: No Relief from Personnel Salaries and Pensions

August 19, 2010 by SMc Leave a Comment

Let’s take a look at the trends of personnel costs in the last three or four years with the number of positions cut from 875 in 2007-2008 to an estimated 791 in 2010-2011.  We have a city with fewer employees being paid more on average–this is not a formula to reduce pensions and other benefits.

  • Total personnel costs fell by about 6% in the period 2007-2010;
  • But personnel costs per employee increased by 4%;

In the Police Department

  • Total personnel costs are being reduced 4.67% in 2010-2011.
  • This is the first real proposed reduction in the personnel budget for police in three years, and the number of staff positions has fallen by 3.41%.
  • Average police salaries are reduced by an insignificant amount of 1.3%.

For the Fire Department

  • The total personnel budget is being reduced by 3.74%,
  • The number of staff is being reduced by 1.34% and outlay per firefighter increased by 2.43%.
  • Only two Fire Department positions have been eliminated in four years.

A look at the Public Works Department

  • Personnel costs are being reduced by 13.51% in fours years,
  • The number of staff is cut by 14.86% in three years (but very little in the 2010 estimated budget) and
  • The average position costs is increased by 1.59%.

Regarding the Development Service Department

  • Staff numbers have fallen from 70 to 63, or a 10% decline,
  • The personnel budget is expected to fall by only 2.2% in four years,
  • And average staff costs are expected to increase by 8.66%.

In the Information Technology Department

  • Personnel costs are the same as they were in 2007 after rising for two years,
  • The number of staff has been reduced by 6.25% in four years,
  • Average staffing costs have increased by 6.6% in four years, another department in which average employee costs have increased

Filed under Budget, Finance, Taxes and Fees

More on the Coral Gables Budget: Property Taxes as an ATM Machine

August 13, 2010 by SMc Leave a Comment

It is interesting to look at the historical budget and tax revenue data supplied by the city in the latest Estimated Budget, 2010-2011.

  • City property tax revenues rose from $29.5 million in 2000 to $66.4 million in 2009.  Let’s say that these property taxes had risen just by the inflation rate from 2000 to 2009.  How much would it have increased?  It would have increased from $29.5 million to $36.8 million in 2009, not $66.4 million.  In other words, property tax revenues have increased by more than 80% above the inflation rate.
  • Assessed values increased from $5.5 billion in 2000 to $13.0 billion in 2009.  The equivalent inflation rate would have seen values increasing from $5.5 billion to $6.85 billion.  Thus assessed values increased by 90% more than the inflation rate level.  That was the abnormal real estate value.
  • We can conclude that Coral Gables increased taxes as fast assessed values increased.
  • Like many families in Coral Gables, the city used its property taxes as an ATM machine–spending as fast as the money came in thinking that assessed values would keep rising.  Unfortunately, even today the city keeps increasing taxes as if property values were increasing just like the good old days instead of adjusting to the economic realities that may continue for years.

Filed under Budget, Coral Gables, Finance, Property Values, Taxes and Fees

More Bad Economic Signs for South Florida

August 12, 2010 by SMc Leave a Comment

For signs that the local economy will remain stagnant.  Also, you may have seen reports that China has slowed its imports–this hurts Latin American, Miami and commodity prices, as well as the US exporters. Not good signs for Coral Gables and not a good time to raise property taxes.

…for the past 10 weeks, the number of homes for sale — crucial in the supply-demand seesaw that determines real estate prices — has been inching upward, sparking questions about the state of the housing recovery and the effect of foreclosures on the marketplace.

The 4.6 percent increase of homes for sale in South Florida since May 31 represents the first two-month rise since the housing bubble burst, recently released data…

via Housing supply on the rise in South Florida – Real Estate News – MiamiHerald.com.

Filed under Business and Commerce, Coral Gables, Economy, Property Values, Taxes and Fees

Coral Gables Taxes and Staffing: Much More to Do

July 29, 2010 by SMc Leave a Comment

Take a look at the last few pages of the 2010-2011 Budget Estimate where there is some historical information.

Some salient facts there are

  • Property values increased 2.44 times in the period 2000 to 2009.
  • Property taxes increased 2.25 times from 2000 to 2009.
  • In the period 2000 to 2006 (during the most rapid property value increases), property values increased 1.93 times.
  • In the period 2000 to 2006, property taxes have increased 2.19 times.
  • In the period 2000 to 2006 total staff in Coral Gables declined as follows:  871 ( 2006), 875 (2007), 868 (2008), 808 (2009) and  791 (estimated 2010).

In short, on average, property taxes have followed assessed values in Coral Gables since the year 2000.  Rapid increases in property values were used by the city to raise taxes and increase staffing and spending as if this phenomenon was to continue without limit.  And following the stagnation and decline in property values, the city has increased taxes faster that assessed values.

The city has reduced the number of staff, but many of them are at the lowest  grade salary levels. Operating expenses, closely capturing staff salary and benefit expenses, have remained stable at $131.3 million (2007), $136.0 million (2008), $132.0 million (2009), and are expected to decline to $127.7 million (estimated budget 2010).

The number of staff has been reduced by 9.6% but the city’s operating expenses only fell by 3.1%.

This indicates that a much greater effort is needed to increase city efficiencies and reduce salary and pension costs.  When will the Commission get around to do this–this doesn’t seem to be the year.

Filed under Budget, Coral Gables, Finance, Property Values, Taxes and Fees

True Cost of Biltmore Not Paying its Back Rent

July 28, 2010 by SMc Leave a Comment

I am struck by one of the proposals of the city manager, who indicated that if the City Commission wanted to adopt a millage rate of 5.895 compared to the proposed rate of 6.072,  $1,990,000 revenues would be lost.  We note that the Biltmore Hotel is stated in the budget to have refused to pay rent for $1,910,000. ( I understand a temporary agreement on this might have been reached.)

Therefore, we see what it would cost the city taxpayer’s to have to pay for the Biltmore.

On page ix of the Estimate Budget the following items are lost by the city:  reduce cultural funding, $75,000; reduce funding for 7 police officers and 1 civilian position, $560,000; reduce city paid health insurance, $685,000; reduce 2 firefighter positions, $145,000; reduce police overtime, $300,000; and reduce 2 workdays through furloughing, $225,000.

This is $1,990,000 and shows the cost to the city and taxpayers of Biltmore’s failure to pay–about 7 police officers, cut health insurance, lose 2 firefighters, cut police overtime and furloughing staff and cutting cultural spending. This the same tax reduction that would be lost by our citizens.  It is worth it for taxpayers and residents to suffer these cuts for the Biltmore?  I think not.

Filed under Budget, Finance, Property Values, Taxes and Fees

Coral Gables Budget: Tax Time Again

July 26, 2010 by SMc 1 Comment

The new budget requires another increase in taxes.  Be cognizant that the increase is truly what economists call “real” increases because there is no inflation–these increases, however small or large, are real dollars coming out of your pocket.

Last year’s tax rate was 5.895 per thousand of property values.  The so-called rolled-back rate is 6.189. This is the rate that keeps the city’s property tax revenues the same as last year–in essence the concern is with the “well being” of the city rather that the impact on the citizen.  [Maybe we should call the rate a "rolled-forward rate" since it is higher than the last rate].

The Budget estimate requires a tax rate of 6.072 millage rate.  This is the rate that a simple majority of the Commissioners can approve, without the usual recent past dissenters of Messrs. Cabrera and Kerdyk, who might certainly force the lower so-called TRIM rate of 6.072 or a 3% increase assuming that one’s property value is the same as last year.  Let’s see what happens in coming weeks, but certainly the plan is for everyone to pay more taxes here in Coral Gables and in Miami-Dade county.

Filed under Coral Gables, Finance, Property Values, Taxes and Fees

← Older posts