Mayor’s Response to My Letter on the Budget Crisis

Without further comment, I reproduce a response from Mayor Don Slesnick to my letter to him and Commissioners. I thank him for the direct response and I think that it summarizes quite nicely his public views on the budget.

…We are taking the pension issue very seriously and have been the first Commission in thirty years to reign in some of the cost items and are planning to do more – but everything must be done (by state law) through collective bargaining with the unions. If you have some specific suggestions it might help. However, please know that we are planning to lay off about 8% of the work force and cut some salaries – and freeze all others. Today, in the FOP impasse hearing, we took further steps to “draw back “on the cost of the pension plan while still trying to maintain the morale and espirit de corps of the department. I do not think that anything we are proposing or considering is unacceptable – we need to keep our city as one of the special places of Florida with first class services and amenities that bring residents and businesses to us (one of the strongest real estate markets in the State – even during bad times). To become a “cut rate” city will not serve you well as the market turns upward. Having said that – I do not believe that we are intending to raise the millage as high as we advertised – we felt it was a smart business move (even if it drew comments like yours) to give ourselves some wiggle room as we delved deeper into the budget challenges and opportunities for the coming year…

One of the Oldest Budget Tricks. Is It Still Being Used?

cggazette.com tells the story about past administrations using funds for unstaffed positions for other purposes.

Under David Brown, practically all departments, especially those headed by his favorites, were brazenly undisciplined, fiscally and administratively. Annual budgets routinely, and perhaps purposely, had over 30 unfilled positions, money which formed a slush fund of sorts. That cash was used by Brown to cork up large fiscal leeks and to pay for such expenses as his junkets, his infamous wining and dining and, on one occasion, a birthday cake for himself.

Part of the so-called positions reductions come from the elimination of unfilled positions. This certainly does not represent a reduction in staff and benefits liabilities.

Double Dip Recession Bad News for Coral Gables Government

A leading economist indicates possible U shaped rebound from recession. If this were the case property values and business in Coral Gables will suffer a period of stagnation in revenues, asset values and tax revenues for the City of Coral Gables.

Nouriel Roubini, a leading economist who predicted the scale of global financial troubles, said a U-shaped recovery is possible, with leading economies undeperforming perhaps for 3 years.

My Letter to Coral Gables

September 2, 2009

Mayor Donald D. Slesnick
Vice Mayor William H. Kerdyk, Jr.
Commissioner Maria Anderson
Commissioner Rafael Cabrera, Jr.
Commissioner Wayne E. Withers
City Manager Patrick G. Salerno

Dear Mayor, Commissioners and City Manager:

I am writing to respectively express my deep concerns about an increase in property taxes in Coral Gables. To be sure I am equally concerned about what is happening with taxes and spending in the Miami-Dade County Government.

I urge you make the hard and, indeed, unpleasant decisions to save our families from rising taxes this year and in the coming years.

I observe, like many do in the community, that the City Government is overstaffed and the staff overpaid. I urge you to identify and announce to the community the essential and key services and reduce salaries and benefits, including pensions. I urge you to freeze and reduce capital expenditures, except for those few really essential projects. Cut back unnecessary staff in building and zoning and other units that are under worked, and eliminate the excess and overpaid middle and upper management throughout the city, including in the police and fire units.

It is time for the City to rethink its failed function as a property owner of a hotel, golf courses and a country club.

The challenge in yours.

I look forward to following your decisions in the coming days.

Sincerely,

Stephen E. McGaughey