Urgent Reading for the Commission: Why Postpone the Hard Spending Decisions?

As the Coral Gables City Commission is on the verge of making decisions to significantly increase property tax rates, do they know the city and the taxpayers will certainly confront the same and worse financial prospects for 2010 through 2012. Taxpayers cannot take more years of taxes being increased by 10 percent or more as homes values have plummeted, incomes are down, stock prices and retirement asset values have been destroyed and unemployment persists.

The Secretary of the Treasury was quoted by Bloomberg News, as follows:

Given the extent of damage done to the financial system, the loss of wealth for families and the necessary adjustments after a long period of excessive borrowing around the world, it is realistic to assume that recovery will be gradual, with more than the usual ups and downs.

First Budget Hearing: Taxes will Certainly Rise, by How Much?

The Commission held its first hearing on the 2009-2010 Budget Approval last night. Community comments were received by the Commission and there was a large community attendance. The meeting to set the final millage rate will be held on Tuesday, September 22 at 5pm. Also, the Commission agreed to have a workshop on Monday, September 21 at 5pm to review the final budget proposal with the City Manager, Mr. Pat Salerno. The community cannot make comments during the September 21 session.

Community comments on the budget were negative. The President of the Coral Gables Political Action Committee, Mr. Damian presented extended remarks criticisizing overspending, the management failures of the former city manager and the Commission’s unwillingness to remove him in the face crimes and financial debacles. Later Mayor Slesnick defended the management capacity and successes of the former Mr. David Brown, the city manager who resigned in disgrace. Mr. Slesnick’s commented that Mr. Brown had received as award as outstanding city manager of the year, which was met with scepticism and some restrained laughter in the attendees.

Only Mr. Cabrera and, secondarily, Mr. Kerdyck, raised any questions on the spending side of the budget with the city manager. Messrs. Withers and Slesnick, joined with Ms. Anderson, stating there strong confidence in the city manager, evidently feeling that it inappropriate to question the underlying budget numbers and logic. This is similar to the approach of only lightly questioning the city manager for close to a decade.

The bottom line is that the Mr. Salerno strongly defended the need for a tax rate (millage rate) increase from 5.25 to 5.995 (14.19% increase) to cover potential resources to pay for a shortfall in the pension fund. He indicated unwillingness to eliminate more than the agreed upon 43 full-time and 16 part-time positions in this budget and he implied that the pension fund actuarial analysis will require higher pension fund contributions than estimated in the budget. Mr. Kerdyk stated interest in a lower 5.75 millage rate (9.52% increase) but finally voted to accept a rate of 5.995.

My Summary Comments to the Commission

–As I have stated in my letter to the Commission, I am opposed to more taxes and new fews.

–Some Commission members may regard criticism of the budget as a personal attack on them. Said plainly, you are hearing many legitimate, and seriously concerned taxpayers today.

–We have heard very little reaction from the Commission about the financial well being of its citizens. We would like to hear the Commission talk about the impact of the tax and fees on our citizens–on our families budgets that are tight and, indeed, family budgets that are just as important to us as the City’s budget. I think there should be a better parity between Coral Gables’ budget and taxpayers, family and business budgets.

–Many people are against new fees. There are big differences between user fees, such as typical construction and permit fees, and the so-called fire fees–the fire fees are outright and open-ended taxes, not user fees. User fees are good policy—but fire fees are a way to get around regular citizen oversight.

–Why do the Commission’s Straight Talk letters so vehemently defend new taxes and spending, and all of the City’s Departments, many of which have been questioned as inefficient and bloated.

–Let us be clear–even if all of the Departments were extremely important and highly efficient, they would still have to be cut way back to meet the financial realities of the City.

–If you want a large IT Department or Public Works Department that is just fine, but you can’t have them all when there is not enough money to go around. It is time for serious austerity, setting of priorities and bigger staff cut backs.

–The budget shortfalls are unfortunate but they are not the sole result of the bad economy. Yes, it is the bad economy that triggered the crisis, but, be certain, the City’s crisis would have happened soon or later. Why would it have happened sooner or later? Because the crisis is a result of over spending, and questionable management and oversight.

–If good and conservative budget management had materialized in the last 7 years, the City could have absorbed the economic problems without too much sacrifice. So first let’s fix the spending, management and oversight–only then will we come out of the City’s budget crisis.

–In short, it is time to re-dimension our government services, now we should only be paying for the most critical and essential services at fair, market salaries and benefits.

–Follow the lead of Miami-Dade County. It is time to control government spending, and the time is now, not next year or the year after.

–As many of us are convinced–Commissioners–“No more taxes, and no new fees”.

Thank you for your attention.

NO FEE Sentiments of our Coral Gables Neighbors

IMG_0166.JPG

No Fee