STRAIGHT TALK from the City of Coral Gables

August 6, 2009 Leave a comment

Please find the text of an email received on August 5 from the City of Coral Gables. The text is as follows:

August 5, 2009

Separating Fact from Fiction

FROM YOUR CITY GOVERNMENT

Tough times. Difficult choices. Significant needs. A challenge no doubt. But it is a
challenge the City of Coral Gables can meet if financial common sense and
responsibility prevail. Make no mistake, Coral Gables, like virtually every city in the
United States, is coping with financial problems caused by the dramatic downturn in
the economy, among other factors. This year is probably the most challenging for
cities in a generation. The unpredictable and ever-changing economy has taken a toll
on residents and, in turn, Coral Gables has suffered with revenues plummeting.
Several steps were taken to cut costs this year. The City laid off employees,
implemented a hiring freeze, and instituted a freeze on discretionary spending and
capital purchases, but more was needed. Until recently, Coral Gables had
approximately $9 million in reserves to handle emergency situations such as
hurricanes and other unexpected events that can burden the City financially. In order
to make it through this fiscal year, the City has had to utilize nearly all its reserves to
balance the current budget, all but eliminating the general operating fund safety net.
The proposed budget mirrors the belt-tightening that citizens are making in their
daily lives and they should expect the same from their government. There are many
factors affecting next fiscal year’s budget (October 1, 2009 – September 30, 2010)
and as such, a multi–pronged approach is being utilized to steer the City through
these extremely challenging times. The solution must be balanced to preserve the
high standards, quality of life and beauty that make Coral Gables a special place and
helps support our property values. The City Commission and staff have not lost sight
of their role as stewards of the public interest. In doing so, we will ensure that all
options remain on the table as we pilot city government through these uncertain
times.
Recently some community publications and groups have made statements that are
simply not true. Misinformation is never valuable to residents, the Commission or the
future of this City. Here atStraight Talk, we feel it is important to address
misinformation and provide residents with the facts.
Fiction: The City is proposing a 27% property tax hike.
FACT: The current millage rate is 5.250 per $1,000 of taxable value and the
preliminary rate is 6.243, a 1 mill increase. This does not mean the City Commission
will adopt that millage rate in September at the Budget Hearings, but it does
establish the maximum rate which can only be reduced. Because of an overall decline
in property values, the millage rate necessary to generate the same amount of
property tax revenue as the current fiscal year is 5.537. The difference between
5.537 and the preliminary rate of 6.243 is .70 mills, a 13% increase. It is the City’s
goal to hold any millage rate increase to a minimum. Most cities in the County
including Miami and Miami Beach have increased their preliminary millage rate for
next year. Out of the total amount of property taxes you pay to the Miami-Dade
County Tax Collector’s Office, 38% is directed to the Miami-Dade County Public
School System, 32% is directed to Miami-Dade County, 27% goes to the City of Coral
Gables and the balance is sent to the state.
– – – – – –
Fiction: 40 low-salaried or part-time employees are being cut.
FACT: A total of 64 positions are being cut. It should be noted that 20% of the full-
time positions proposed for elimination come from management, professional and
technical employees, yet this group makes up only 15% of the total workforce.
Among the high-ranking positions being eliminated are an Assistant Chief of Police
and an Assistant Public Works Director, both second in command in their respective
departments.
– – – – – –
Fiction: City expenses are out of control.
FACT: The City’s proposed budget slashes expenditures by approximately $9 million.
The budget calls for a 5% cut in salaries for all employees and a significant reduction
in benefits, an unprecedented move in the City’s history. We are unaware of another
community in South Florida cutting salaries more. It is worth noting that employees
in management positions have not received a cost of living adjustment since 2007.
Despite the significant reductions in expenses and necessary fee increases, the City
may have to lay off more employees, including police officers. Currently, 55 cents out
of every dollar spent from the City’s general operating fund goes toward public safety
(Police and Fire Departments). The proposed budget calls for a total of 828
employees, that’s fewer employees than the City had a decade ago.
– – – – – –
Fiction: It is much more financially sensible to tier salary reductions: Cut salaries by
5% for employees making more than $35,000; 10% for those making more than
$80,000 but less than $130,000; and 15% for employees making more than
$130,000.
FACT: A tiered salary approach would create inequities in the City’s pay plan. This
suggestion reduces the differential between higher-ranking and longer-term
employees and those they supervise. Increasing the percentage of reduction for
higher paid employees wrecks havoc with a sensible pay plan designed to reward
experience, expertise and responsibility. For example, under the aforementioned
tiered concept, a supervisor making $80,000 would now be paid $72,000 and a
subordinate with a salary of $78,000 would make $74,100; that’s more than the
supervisor they work under. Likewise, under this problematic approach, employees
with seniority could be paid less than those with fewer years of service to the City.
This is one of the reasons no other city in Florida, that we are aware of, is pursuing
tiered salary reductions. Approximately 85% of City employees are represented by
unions with collective bargaining agreements in which case the City does not have
the ability to simply make unilateral changes in salaries.
– – – – – –
Fiction: The City is cutting part-time employees. This measure is not economical
because these employees do not receive benefits.
FACT: The City is reducing the number of employees in a prudent manner. For
example, as part of the proposed budget, the City is cutting six full-time sanitation
workers with benefits and adding one part-time sanitation worker without benefits.
Remaining employees will work harder and smarter to get the job done.
– – – – – –
Fiction: The proposed fire fee will cost homeowners $96 a week.
FACT: The fire assessment fee is proposed as a flat $50 annual fee per residence. The
fee would be dedicated to fire protection services. The City is working on developing a
hardship exemption for seniors with limited incomes.
– – – – – –
Almost every municipality in the country is struggling with the same issues affecting
Coral Gables. This City must strike a balance of continuing to provide vital services to
the community while keeping costs down. Unlike businesses that cut costs by
providing self-service features, Coral Gables should not become a self-service city.
Among the vital services the City provides are Police and Fire protection. All City
departments have slashed their budgets and many dedicated employees will be laid
off. The proposed budget goes right to the root of the problem and provides
solutions. The decisions are difficult but they must be made to ensure that Coral
Gables emerges from this national economic crisis with a foundation for a better
future.
In a nutshell, the City is faced with the predicament of significantly diminishing
revenues, rising expenses and a fiduciary responsibility that this City must not back
down from: meeting the needs of citizens, all the citizens of Coral Gables — no
matter where you live, no matter what your income is, and no matter the particular
circumstances of your lives.
The City is committed to making the community proud of how our continued
dedication to the heritage and tradition of Coral Gables adds value to our citizens; to
being an organization that residents can trust and believe in and one that you can
admire for the good we do and the future direction towards which we steer.
– – – – – –
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or call the Office of Public Affairs at 305-460-5205.

Filed under Coral Gables, Government

Robert Burr’s Comments on the 2009-2010 Budget Options: Call to Action

July 28, 2009 1 Comment

I copy Robert Burr’s email to the community about Coral Gables’ budget challenges:

Once in a while, we need to pay attention to what’s happening in city government. This is a time to share your opinions with city leaders in Coral Gables. After years of spending increases, home values rising at astronomical rates, millage rate increases, salaries, benefits and pension increases that clearly are not sustainable — and a luxury lifestyle of fine wine and dining for city officials — it’s time for a reality check in Coral Gables.

Our new city manager has a daunting task. Rein in all the waste and excess while retaining the most important services to citizens. Now, our leaders need our help in making important decisions. They’re proposing new fees on us now to increase their budgets once again. Apparently, they’re not getting the message to cut budget expenses further. It’s time to communicate with them — now.

Recently, citizens felt the need to set limits on their leaders. You voted for term limits for the mayor and commissioners. You voted to elect the mayor every two years, as we’ve done since the city was founded. You voted against allowing the city manager to spend up to $100,000 without commission approval. You voted to keep the city trail board in place to oversee important management decisions.

Now, it’s time to give our city leaders some limits on how our money will be spent. Like any well-run business, we must aspire to keep our cost under control and set limits on how we spend the funds mandated to be assessed from citizens. We want the system to be fair, transparent, efficient and operated within sound parameters.

Your Coral Gables Citizen’s PAC has recently urged commissioners and the city manager to use common sense in reducing expenses in all city departments. While the city has proposed to cut some of the lowest paying jobs, the PAC is recommending reduction in salaries at higher levels.

“The cutting of part time employees is sometimes the least economical since they are paid the least and may not be getting benefits. We should be looking at the top. We have over 80 City employees making over $100,000. We know there is slack in the higher echelons and they can be reduced. The greatest savings would be at that level. We strongly urge the 5% cut across the board for all employees who are making more than $35,000; 10% across the board cut for all employees making more than $80,000 and less than $130,000; and 15% cut across the board for all employees making more than $130,000 (or some other graduated scale but topping out at least at 15%). In addition, we need to look where we can cut personnel at the higher levels so that each cut will make a large savings. When hiring replacements, if necessary, they should come in at the lowest possible level.”

Next, citizens must consider whether to put a cap on the overall percentage of the city budget that can be allocated to salaries, benefits and pensions. Most large companies limit these expenses to 50% of their budget.

Our city salaries, benefits and pensions are nearing 80% of the budget, which is far out of control. Citizens can initiate a ballot measure in the next election cycle limiting these expenses to 50, 55 or 60% of the total budget, allowing management and commissioners to decide how best to spend the funds within that limit.

It’s up to our management and leaders now to make significant progress on these out of control expenses. Let’s urge them to get their costs under control now.

If they can’t do it, the citizens will once again set these necessary limits which their leaders are unable or unwilling to do.

Whether you agree with me or not, please share your opinions with city leaders today.

Thank you.

Robert A. Burr
rob@robertburr.com
http://www.RobertBurr.com

Filed under Community, Coral Gables, Government

Didn’t Congresswoman Ros-Lehtinen Vote Against This?

May 14, 2009 Leave a comment

As published on the City of Coral Gables website. I thought that all of the Republicans, including Congresswoman Illeana Ros-Lehtinen, voted against the Obama Administration economic recovery package!

City of Coral Gables to Receive $642,500 in Federal Funds

Two major improvement projects in the City of Coral Gables will be funded this year, thanks to federal government dollars recently approved by Congress and the President.

“This is great news for the Coral Gables community,” says Mayor Don Slesnick, who recently returned from the National League of Cities’ annual Congressional Conference. “This local government welcomes funding support from the state or federal level to fulfill the needs and priorities of our infrastructure and maintenance of our quality of life. These federal funds will definitely help us achieve that.” Coral Gables, which is part of Florida’s 18th Congressional District represented by Congresswoman Ileana Ros-Lehtinen, will receive $500,000 for wastewater infrastructure improvements and $142,500 for the construction of pedestrian bridges.

“It is a true blessing whenever we can get federal dollars to South Florida because the reality is that without federal assistance, projects can be delayed or scrapped all together,” says Congresswoman Ileana Ros-Lehtinen. “The City of Coral Gables is a great example of the many good things achieved when local and federal officials come together and cooperate for the greater good of the community they represent. I look forward to continue working with local officials so that we may get a bigger share of the federal pie.”

The $500,000 federal funding will be used to make the mandatory improvements to the City’s sewer infrastructure. The repairs involve the replacement of several miles of large diameter force main with additional repairs to the City’s pumping stations. The improvements to the wastewater infrastructure are necessary for the preservation of the City’s public health and aesthetic beauty.

The $142,500 federal funding will be used to build pedestrian bridges next to the Hardee, Granada and Maynada bridges where vehicular traffic has created safety concerns for crossing pedestrians and cyclists. These new bridges will allow for more efficient and safer traffic flow throughout the City. Improved pedestrian safety along busy roadways in the City of Coral Gables will also benefit from this project.

In effect, she voted against the bill, but took credit for it in Coral Gables. Another question–Why would the Government of Coral Gables participate in these political cosmetics?

Rep. Ileana Ros-Lehtinen told the state’s mayors visiting DC last week that “just because you vote no, doesn’t mean you don’t get the money. We will fight like tigers for us to get our share.”

Democrats called the statement “hypocrisy at its worst.

“If Rep. Ros-Lehtinen meant what she said, she would have voted for economic recovery,” said Democratic Congressional Campaign Committee spokeswoman Jessica Santillo. “Instead she voted against cutting taxes, investing in local business and strengthening Florida infrastructure and somehow thinks she can still take credit for the projects back home.”

Filed under Coral Gables, Florida

City of Coral Gables Budget Shortfall

May 13, 2009 Leave a comment

The City of Coral Gables newsletter distributed today include the following:

The City of Coral Gables, like other local governments throughout Florida and the nation, is facing a decline in revenues due to the downturn in the economy. The latest financial information reveals approximately a $9 million general fund budget shortfall for the fiscal year that ends September 30, 2009. This shortfall is due to a number of factors, beginning with a decline in revenues totaling nearly $5 million. Added to this number is approximately a $2.5 million increase in expenditures as a result primarily of collective bargaining agreements with the general employees’ and firefighters’ unions and other operating costs. Also adding to the shortfall is approximately a $1.5 million appropriation from last fiscal year’s reserves to balance the budget. In addition, the City is projecting a similar shortfall as it enters the budget preparation process for next fiscal year which begins October 1, 2009 and that would need to be addressed prior to adopting a balanced budget. In a letter sent to all City employees on April 28th, City Manager Patrick Salerno announced a citywide freeze on hiring, capital and discretionary spending as initial steps taken to address the situation. Furthermore, 16 part-time temporary positions were recently eliminated. The City Manager has expressed his desire to minimize the number of positions that need to be reduced further from the City’s workforce. City administrators are analyzing other cost cutting measures and revenue enhancement strategies to address the current financial challenge. For additional information, contact the City of Coral Gables Office of Public Affairs at 305-460-5205.

Some interesting questions are 1) why the decline in revenues was not anticipated months ago by City authorities, as it was by the Obama Administration, Governor Crist or the Miami-Dade County Government; 2) why did the City negotiate employee salary increases when they couldn’t be paid for by the City under the most optimistic projections; and 3) who neglected budget control and supervision during the last few months and why didn’t the City Commission know that?
Why would the City Manager’s main objective be to avoid reducing employees? Is he expecting that the problems be quite short lived and the large numbers of staff will be needed during the next boom phase of the City?

Filed under Coral Gables

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