Coral Gables Police and Firefighters Salary Negotiations: 2004!

October 2, 2009 Leave a comment

I cite an article on the Coral Gables website dated 4/15/2004 that indicates that city authorities surveyed comparative public safety wage salaries in the region and found that Coral Gables paid in the top ranges. Some commissioners argued in the recent budget hearing that Coral Gables was forced into paying higher salaries because the city was at a disadvantage in attracting public security personnel. The following clearly suggests that Coral Gables was already paying at the highest salary ranges and that the city negotiated even higher wages than necessary.

A recent comparison of police officers and firefighter salaries (and pension contribution) among all muncipalities in Dade and Broward counties, based on proposed wage increases and on firgures provided by unions, place Coral Gables police officers and firefighters in the top starting salary ranges, as compared to other public safety agencies.

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City negotiators have offered both unions an 8 percent wage increase, offset by a five percent employee pension contribution over a two-year period. The City has also agreed to annual merit increases (from 3 to 5 percent)…

Filed under Coral Gables, Employees and Unions

Where are the City’s Reserves and Capital Improvements? (Part II)

October 2, 2009 1 Comment

In response to comments on a previous post, I have endeavored to find information about salaries, wages and benefits in Coral Gables and comparative full service cities. Detailed information on salaries and benefits are not easily obtained. The most recent information indicates a few interesting comparative facts.

The Coral Gable’s 2009-2010 initial proposed budget indicated average costs of $118,300 per employee. The average pension costs are $23.5 million in addition to wages ($58.9), pension costs, FICA, workers comp., and sick leave adding up to $97.8 million out of total budget of around $155 million, or more than 60% of the total budget (that were subsequently changed in millage rate negotiations).

Based on 2007 comparative information (source: http://www.City-Data.com) there indicates that police and firefighters wages in Coral Gables are consistently above those in Key Biscayne, Miami Beach, the City of Miami, West Palm Beach and Fort Lauderdale. The average firefighter earns $95,661 in Coral Gables; compared to $77,685 in Key Biscayne; $91,503 in Miami Beach; $85,569 in the City of Miami; West Palm Beach $76,718; and $40,978, Fort Lauderdale. Similarly for police officers, the salary in Coral Gables is $77,547, compared to $75,404 in Miami, $73,741 in Key Biscayne; the much larger $96,165 in Miami Beach; 79,155 in West Palm Beach; and Fort Lauderdale, $79,696. It is assumed that these rates do not include pension benefits.

Average wages in government are as follows: Coral Gables, $67,595; Key Biscayne, $71,215; Miami, $64,576; Miami Beach, $63,709; West Palm Beach, $60,553 and Fort Lauderdale, $55,062. These data do not take account benefits that greatly add to average wage costs.

One may conclude that Coral Gables wages are generally above the average compared to other full service cities, although there are some specific differences. One wonders why Coral Gables would have to pay in the highest range of salaries given the relatively good working conditions and residential environment in City Beautiful. The higher wages and benefits, therefore, are due to additional factors such as the leverage of local unions, their involvement in local elections and the relative apathy of local voters and taxpayers as well as the abundance of tax revenues in recent years.  Also, other cities were making the same mistake as Coral Gables of pushing up wages and benefits in good budget times.

Filed under Coral Gables, Finance

Coral Gables by iPhone

October 2, 2009 Leave a comment

IMG_0275

Filed under Coral Gables

Where are the City’s Reserves and Capital Improvements?

September 26, 2009 1 Comment

In the recent Budget Hearing the mayor and commissioners (e.g., Mr. Withers) explained the need for high wages and pensions for public security staff (and by implication all other employees) and justified this by a tight labor market in Miami.

A cursory look at Bureau of Labor Statistic data for the last decade in the Miami area for firefighters and police patrol officers do not show a rise in salaries similar to that which occurred in Coral Gables during the period 1999 and 2007 (overall wage payments rose by about 7 percent on average in Coral Gables).

In the Miami regions the average salary for firefighters increased from $42,000 in 1999 to $54,000 in 2007. This an average annual rate of 3.2% per annum that approximately covers inflation during the period. For police patrol staff the wages increased from 44,100 in 1999 to 57,800 in 2007. This is also an average rate of 3.4% in the period without in major fluctuations on a year to year basis.

This suggests that the market for these workers was not especially tight in the period in which Coral Gables dramatically increased salaries and benefits and wages were good and they more than kept up with inflation.

City income increased dramatically during the real estate bubble that lead to an average annual increase in property tax revenues for the city of almost 12%, and total revenues increases of about 10%. Under these circumstances the city should be sitting on an ocean of reserves and top notch capital improvements.

Rather the funds were squandered in exaggerated salaries and pension benefits that has left the city with immense pension liabilities that have “come home to roost” because tax revenues are falling dramatically now and will not grow in coming years.

Filed under Coral Gables, Employees and Unions, Government, Management

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