What I Learned during the Budget Hearing Tonight

September 14, 2010 Leave a comment

I  learned a few things from the Commission meeting today.

  • The Director of Finance sings the same song every year, and he has for many years.  “We have a great millage rate.”  “We really need the money.”  “We are a great city that needs the money.”  “Don’t worry, Miami-Dade is taking a much bigger share of the rate so our tax rate isn’t that bad, really.”
  • The City Manager has a plan to reorganize, restructure and right size the city’s government.  [I wonder what is the plan and whether we, the citizens, hear about it in more detail.]
  • The City Manager feels that the employees have sacrificed a lot and when the economy comes back the sacrifices can be rectified. [Many citizens think it is the taxpayers that have been sacrificing, rather than the employees.  Maybe the Manager is just playing up to his staff.]
  • One Commissioner reminded us that employees haven’t received salary adjustments for a couple of years.  [I am personally reminded that there is been literally no inflation for two years, so their salaries haven’t gone down in real terms for two years.]
  • Mr. Kerdyk said that there are 1,000 housing units in “pre-foreclosure” out of 16,000 so times are really, really, tough for the community.
  • The City Manager said that there are plenty of candidates for the jobs of police and firefighters.  [Economics tells you that we don’t have to pay the police and firefighters as much in these conditions–supply and demand.]
  • There are 7 police officers and 2 lieutenants positions that are unfilled and will mostly remain so as a financial buffer.
  • The reserves have taken a huge hit because of the FEMA double billing debacle.  We just have $3.3 million after repaying FEMA.
  • I have the feeling that the City Manager and the Commissioners are praying for a strong economic recovery as a way of digging out of the financial mess. [The City Manager said we have a financial mess (in so many words).  Don’t count on a strong economic recovery.
  • Nothing, nothing was said about the Biltmore.  [Maybe, I missed it.]

Filed under Budget, Coral Gables, Finance, Taxes and Fees

“Quality of Life” in Coral Gables and the Budget

September 13, 2010 Leave a comment

I am impressed by the number of Coral Gables politicians, commissioners and the mayor who use the expression “quality of life” as something to be protected or that is facing impending loss. Certainly, we have heard the mayor and other commissions use the expression, and now we have at least one candidate, Brad Rosenblatt who has done the same.

Brad Rosenblatt, president of the Coral Gables Business Improvement District and a commission candidate, said he hopes city leaders forge a fair compromise on the budget.

“We are living through extraordinarily difficult economic times and I want to be sure that the city does everything possible to cut expenses without reducing our quality of life,” he said.

via Coral Gables tightens its economic belt – Coral Gables – MiamiHerald.com.

I conclude that “quality of life” might be a metaphor for raising the tax millage rate and revenues in these hard times.

Filed under Budget, Finance, Taxes and Fees

Some Random Thoughts on the Budget (re: the Commission’s Budget Meeting on Tuesday, September 14)

September 11, 2010 Leave a comment

  • City authorities should accept that the City of Coral Gables is in a real long-term budget crisis that will only get worse unless significant cost cutting and a deep reorganization is performed by city management.
  • The budget should be based on a realistic and educated awareness of the economic, financial, community and business future of Coral Gables–city authorities may be way too optimistic about an early economic recovery.
  • The biggest danger to the financial future of the city is the huge unresolved pension and health care benefit liabilities–a recent step in reducing benefits for general employees needs to be followed with similar agreements with police and firefighters (the “golden employees” of Coral Gables).
  • Public security costs, which are more than 50% of the city’s budget, seem to be untouchable–these costs have to be reduced to solve the budget crisis.
  • The city has been too slow to make the internal organizational reforms to streamline services and reduce the number of middle and upper management staff that certainly would make it more efficient and help prioritize critical services to the citizens, businesses and visitors.  Someone (commissions or management) appears to resisting significant staff reductions at the middle and higher management levels.
  • The city authorities are greatly underestimating the negative impact of the economic recession and tax increases on individual taxpayers who have suffered huge losses in both their assets and incomes.  Many taxpayers are not able to sustain further property tax increases.
  • As far as the citizens know, the problem of Biltmore Hotel operator’s failure to pay its lease has been postponed until after the budget and taxes are approved.  This is concerning because we do not know if the future negotiation will lead to another favorable agreement with the Biltmore operator that in turn forgives significant debts to the city and loads the losses on taxpayers.

Filed under Budget, Finance, Organization, Taxes and Fees

Community Budget Committee

September 9, 2010 Leave a comment

What the city of Coral Gables needs is a new community organization that keeps an eye on city spending, taxing, fee decisions and organization, constituting a community forum to deliberate about the annual budget and undertake little studies and evaluations of the budget  (say) with  help from UM or other sources.

Community, nongovernmental committees exist in other cities to great success in raising citizen awareness, engagement and participation in the governing process, especially when the city is only slightly interested in consulting with the community on the budget, government spending and organization.

Filed under Budget, Community, Finance

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