Doubts On The Budget For The City of Coral Gables
July 18, 2011 Leave a comment
The follow summarizes my doubts about the budget and where we stand with city taxing and financing. My largest concern is that this budget assumes that the economy will come roaring back along with tax revenues. This is completely wrong–we are headed into multiple years of slow growth, unemployment and underemployment and a shortage of State and Federal funding to mitigate local problems.
The city is basically holding taxes steady this year, when they should be reduced.
- tax rates–still too high and they should be cut to help local taxpayers. Taxpayers are not getting any real relief with the current proposal for a minuscule tax rate cut.
- staffing–staffing reductions havestagnated and certain staffing is being increased to manage the so-called renaissance plan.
- unfunded pension liabilities–these liabilities are still quite high (about $200 million) and management has elected to pay in the minimum legally required contribution. When will the city pay them off. Is the city praying for a sustained stock market recovery.
- The debt surge seems wrong in the face of the other problems of the city. These monies are needed to pay unfunded health benefits and pensions.
- When will the unresolved Biltmore lease dispute get resolved. We are out of pocket substantial funds that are being paid for by taxpayers–that in part explains the trivial tax cut planned for this year.
- The Miracle Mile is stagnant if not in plain decline relative to other shopping centers.
- The city has the practice of promoting over spending on unproductive public works, museums, i.e., the renaissance investment plan and debt surge.
- The real estate market will be stagnant for years to come. Right?
- Incomes and employment will stagnate in South Florida for years ahead.
About Stephen E. McGaughey
Coral Gables Watch 