Coral Gables Budget–Read the Footnote on the Biltmore

July 26, 2010 Leave a comment

(Page 14)  “*The Biltmore is currently refusing to pay rent under the Biltmore Lease and the Management fees under the Biltmore Golf Operating Agreement to be $1,910,000.  If this is not resolved, the City will have to find additional sources of revenuue or have further reductions in personnel/operating costs.”

This states that the budget could be close to $2.0 million shortfall in the budget.  This means more taxes and/or reduced spending.  Let’s see what the city does with the Biltmore lease negotiation.  Almost certainly taxpayers will take another hit because of the Biltmore.

Filed under Coral Gables

Coral Gables Budget: Tax Time Again

July 26, 2010 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

What’s in the Coral Gables’ Budget–Few Personnel Changes

July 26, 2010 Leave a comment

I am inclined to try to go through the 2011-2011 Budget submitted by the City Manager to City Commission on July 7, and presented in a workshop a few days later.  The following will try to highlight some of the most significant aspects of the first full budget prepared by Pat Salerno, City Manager.

The budget involves a reduction of 7.6 percent from last year’s budget (we don’t yet know the final outcome of last year’s budget).  The bulk of the decrease $7.1 million comes from cutting capital expenditures and $4.3 million cuts in the operating budget (and of this $3,6 million salaries and benefits).

Interpretation:

  • A reduction in capital expenditures from one year to the next is totally arbitrary since capital outlays can usually be postponed unless they involve special tied funds that have to go for specific purposes (e.g. road maintenance) required by law and cannot be shifted elsewhere in the budget.  Where did the City get the capital spending number of $4.3 million and why did they budget $11.5 million last year.  Last year’s capital budget could have been much smaller.  And I wonder whether last year’s budget of $11.5 million was really spent–my guess is not given the slowness in the execution of projects in Coral Gables.  So the big reduction in capital spending should be ignored for now.
  • Salary and benefit reductions are only 2.4% of last year’s budget,  a relatively small amount for a city.  And a net reduction in staff  of  17 positions (30 old positions-13 new positions) also is a relatively modest share, about 2%, of the total 791 positions.  All reductions are very low level positions and the new ones are not.  (We look at this in a later post.)

Next,  TAXES.

Filed under Coral Gables, Employees and Unions, Finance

National Unemployment at 9% until 2012

July 23, 2010 Leave a comment

If you think that someway the South Florida economy will miraculously come back before 2012 or 2013 look at the this, the projection that national unemployment will be above 9% (that means a lot more for South Florida) until 2012.  The City of Coral Gables needs to adjust its budget and taxes to this reality.

CNN Political Ticker: All politics, all the time Blog Archive – White House: Unemployment at 9% until 2012 « – Blogs from CNN.com.

Filed under Business and Commerce, Coral Gables, Florida

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