Urgent News for the Commissioners: Home Prices To Decline Into Next Year

An important item to be considered in the forthcoming estimated budget discussion by the City Commission.

Home prices will decline into next year, Fannie Mae said Thursday, reversing earlier projections that the housing market would stabilize this year.

Former Federal Reserve Chairman Alan Greenspan said Sunday on NBC’s “Meet the Press” that a so-called double-dip recession was possible “if home prices go down.”

via Fannie Mae: Home Prices To Decline Into Next Year.

Coral Gables City Government: Why Isn’t There More Openness?

While the promotional materials of the city talk a highly educated and multilingual population, it is striking that there seems to be a lack of confidence in the residents and voters to participate in a open dialogue with the government.  The City Commission displays little practical interest in  the participation of citizens beyond comments on specific votes and in annual two sessions on the city’s estimated budget.

What is an open government? I cite a statement by the White House on the meaning of open government.

The three principles of transparency, participation, and collaboration form the cornerstone of an open government.  Transparency promotes accountability by providing the public with information about what the Government is doing.  Participation allows members of the public to contribute ideas and expertise so that their government can make policies with the benefit of information that is widely dispersed in society.  Collaboration improves the effectiveness of Government by encouraging partnerships and cooperation within the …Government, across levels of government, and between the Government and private institutions. [emphasis added]

via Open Government Directive | The White House.

What can the  City of Coral Gables do to have a more open government?

The Dialogue–

  • An open city government would be a government that incorporates frequent unimpeded dialogues among the city commissioners, the city manager and the citizens on the important problems of the day.  It is inadequate that time- and subject-limited presentations of 2 minutes to the City Commission can be thought of as openness.
  • Openness should involve is a serious, mature dialogue, debate or conversation between the government and the governed with each showing courtesy toward the other.  It is not one in which, at the final stage of decision making, a few interested citizens take 2 minutes for a colloquy on a serious city issue.  As I have observed, the people at commission meetings are lonely speakers and the commissioners and the city manager are polite observers who may simulate interest in comments on issues for which most decisions are already understood to have been taken.  The Commissioners state their views, but their views are never subject to deep questioning.
  • New forums need to be devised so that more citizens can participate more frequently.  The forums can be town hall meetings, neighborhood meetings in specific subjects, dialogues through the website or other social media, open sessions with important local organizations.  The meeting structure and organization is only limited by the imagination of the participants.

The Information–

  • The city provides information on the annual estimated budget as required by law.  More information of this sort could be provided on a quarterly basis.   Also, the city should publish the annual budgets results as soon as they are known and in the same categories as the detailed estimated budget to compare results.
  • The city should provide regular publications on the progress in capital spending.  Information on important projects, such as the city museum, should be published.
  • Information on the progress of the Country Club and Biltmore Hotel leases, their income and costs can easily be published.  There are frequent complaints of city commissioners on the publication of information by the Coral Gables Gazette.  This can easily be resolved by the city itself publishing current information.
  • Senior staff should be held responsible for providing more and regular information on the city’s website.

Some Basic Budget Questions for the City

There are some big budget questions that have not been answered by the 2010-2011 Estimated Budget, City of Coral Gables.  We don’t know what the basic assumptions have been made about the future of the local economy, assumptions that are very critical for long-term budget planning.

  • Does the city’s management think that the local economy is on the road to recovery? While they may be an occasional blip up in real estate sales, real estate values are not likely to change for many years to come and there is even a risk of both deflation including housing (mentioned by a Federal Reserve Governor recently), an economic slow down (already started), or maybe even a second dip recession (less likely but not impossible).
  • Do the city authorities think that property values will soon started increasing (say) next year? Wouldn’t it be safer to not plan on increases in property values for several years that are greater that any greater than the rate of inflation (now virtually zero).
  • Does the city think that the large pension liability will be reduced without tough negotiations with city staff and their unions.  There is no sign of a get tough policy but one of increasing property taxes yet again.
  • Why are the highest paid city staff insulated from serious reductions in salaries and pension including the city manager and his senior staff.  They should take at least a 8 percent salary reduction this year.
  • Why are firefighters and police not taking important salary and pension reductions or cuts in staff positions?
  • How much are more are taxpayers going pay to have to pay to cover what from the Biltmore Hotel owes the city?
  • What has the museum cost the city?
  • Why has it taken so long to get around to important reorganizations in city government?

Maybe there are answers to these questions in the budget but they are hard to find.

Please suggest some more questions for the Commissioners and the City Manager.

Coral Gables Budget: Automotive Department

The Automotive Department has made up about 5% of the city’s budget in recent years.  The staff numbers have been reduced  from 30 to 23 in two years.  Two mechanics and one (higher cost) supervisor positions are being dropped this year.  Personal services costs are estimated to decline from $2.7 million to $2.3 million.  Operating expenses remain constant and capital expenditures fall from $1.4 million to $1.1 million.  Equipment purchases and leasing together are about a constant $1.4 million over two years.  Motor fuel outlays are about the same $1.7 million estimated compared to the previous year of $1.8 million.

The overall costs automotive services, while down from last year’s budget, are relatively unchanged from the 2007 to the present time.  There is very little flexibility in reducing these costs over the long haul.