More on Fees and Property Taxes–Taxes or Fees Will Rise For Sure

April 9, 2011 Leave a comment

Anyone who imagines that property tax rates and revenues will not have to be increased in the city of Coral Gables this year and in the coming budget cycles are dreaming.

There is no one in this crowd of candidates who will be able to stop the pressure to increase tax rates and revenues as property values continue to decline in the face of huge budget liabilities.

Now you are voting on firm increases in taxes( a la Slesnick) or more moderate increases.  Mr. Kerdyk will be reelected and he votes for taxes.  Ms. Anderson plus (say) Cason or Korge plus Rosenblatt or Sanabria will be on the commission.  Well meaning people they are, but they know how to add up revenues and expenses and some are big spenders.

They all mostly want the Mircle Mile/Giralda project so that means more spending.  It takes years to reorganize the Building and Zoning services.  We should charge for the trolley, but Mr. Kerdyk and friends of Miracle Mile will not stand for that.  Be sure that the Biltmore liabilities will not be fixed that easily and taxpayers will continue to subsidize that albatros.  Even with favorable negotiations with police and firefighters (who favor Rosenblatt and Sanabria, maybe others), the impact on pension liabilities is years away.  If Miami-Dade holds the line or reduces property taxes that is another opening for the city of Coral Gables to increase property taxes.

That is why I favor increasing fees across the board with a user-pays approach for fire services, trash, and permits and others, rather than increasing unfair property taxes again and again.

In summary, I hope I am wrong, but the financial problems of the city will take several years to fix, even with a good economy and rising real estate market.

Filed under Coral Gables, Election, Taxes and Fees

Coral Gables’ Fees Vs Property Taxes: Which Is Fair? Sanabria Is Wrong

April 9, 2011 3 Comments

Actually, fees are much fairer than property taxes in the State of Florida.  Through fees everyone pays the same for the same service (the poorest taxpayers might be excluded if you like), whereas, property taxes are paid more by newcomers than property owners who are long-time residents with homestead protection.

Sanabria’s proposal to cut fees is wrong because, again, it protects long-term property owners versus newcomers–a highly unfair system.  Fees are great because the user pays.  I say, give use more fees based on the real cost of the services.  For example, trash collection is highly subsidized in Coral Gables through (unfair) property taxes.  If fire services were charged through fees, then taxpayers would be screaming about the pensions and salaries of firefighters.  I wonder, is that why Sanabria is against fees?

(And I will not get into why we need an income tax in Florida along with an equalized property tax system, like many modern state governments.)

Filed under Coral Gables, Taxes and Fees

Third Best Choices for City Commissioner No. 4

April 8, 2011 3 Comments

Economist talk about the “first best” (the really best, the optimal), the second best (less than optimal, of which there may be many), but here in Coral Gables we seem to be facing “third best” candidates for commissioner No. 4 (ex-Whithers).

(IN NO PARTICULAR ORDER)

We have Mr. Quesada who has shown is lack of knowledge and, especially, interest and experience in the government of Coral Gables.  Too often he has mentioned his “study” of other local government experiences while he has taken a some vague-I will see positions about the big financial and organizational issues of the city.

We have Mr. Sanabria.  He also has demonstrated very little actual background in the day-to-day issues of the city, but he seems tough enough to deal with city problems.  He has the support of the police union (a negative for me).

We have Mr. Alvarez.  He is a totally unknown quantity and, perhaps, this is why he got the support of the Miami Herald.

We have Mr. Rosenblatt.  He represents essentially the Miracle Mile business district and rehabilitation interest, has campaigned on things like saving the Biltmore, keeping taxes low (are they really “low”), etc.  I think he will be a big spender.

We have Mr. Martin.  Seems to be community-minded.  Has an unfunded, weak campaign.  He is becoming the perennial candidate.

We have Mr. Holmes.  Mr. Miracle Mile himself.  I don’t see that he has a consistent, coherent campaign program or goals for the city.  I don’t understand his positions.

These are truly third best choices, without any evidence that  we will get a strong voice of support for the taxpayer and voter after the election.

None of the candidates has pushed much for openness, transparency and participation (basic democratic values) in government.

Filed under Coral Gables, Election

Pension Reform and Voter Trust

April 8, 2011 1 Comment

A simple, but not easy, I assume, first step in pension reform is to require employees in Coral Gables to contribute 10 percent of their salaries to the pension fund.  This has the effect of reducing city and taxpayer liabilities.

Too bad the city manager, mayor and commissioner are reticent to supply citizens with information about on-going pension negotiations.

This displays a terrible lack of trust in the judgement of voters.

Filed under Coral Gables, Pensions

← Older posts

Newer posts →