Salerno has a Good Financial Plan, or Not?

September 29, 2010 1 Comment

According to his very brief presentation at the 2nd Budget Hearing, the city manager said he is right-sizing (his favorate words, it seems) the City of Coral Gables so that when the economy comes back the city can retake a better financial path.

This is where his plan is not that clear.  Will the city take advantage of increased revenues from rising property values (values go up and we pay more taxes) to make up for delays in capital projects, or will the city take advantage of its rightsizing (=downsizing) to keep property taxes low for us all when the economy comes back.  Will the city retake its historical path of paying too much, increasing merit pay and making inflation adjustments.

These are fair questions because so far the evidence is that when property values go up, our taxes go up; and when property values go down, our taxes go up.  Can the city commissioners work to get our property taxes to stay the same at the very least.

I see us on a long-term path of constantly rising property taxes in Coral Gables to pay for two items–pensions and health care for active employees and pensioners.  No amount of pension reform, no matter how good, will reduce the existing committed unfunded liability.

Does anyone have evidence to the contrary?

Filed under Finance, Taxes and Fees

Deferring Benefits: Would that have happened in Coral Gables?

September 25, 2010 Leave a comment

I wonder what sacrifices the city’s management, commissioners and mayor are willing to make for the good of the city.

So far there is no evidence that the city leaders are willing to take the lead in making sacrifices for the city.  Indeed, more than once we have heard that we have to keep employees, salaries and benefits up to sustain our quality of life.  Who is willing to forgo some of their salaries and benefits to demonstrate to the unions that they will lead the city in a time of sacrifice.  Will the candidates for public office make a pledge to work ad honorem for the well being of the city.

Florida A&M University President James Ammons says he’s deferring an $80,000 performance bonus due to tough economic times.

via Florida college president says he’s deferring $80K bonus – Miami-Dade Breaking News – MiamiHerald.com.

Filed under Budget, Coral Gables, Finance, Management

Salaries at the White House: Compare to Coral Gables

September 23, 2010 Leave a comment

You will find here the information on staff, number of staff, staff positions and 2010 salaries at the White House.  The City of Coral Gables information comes from the 2010-2011 Estimated Budget that can be found on the city’s website, http://www.citybeautiful.net/CGWeb/default.aspx

The total White House salaries paid are $38,796,307 for 469 staff for an average salary of $82,721.  You may be sure that Coral Gables retirement plans are better than the White House staff.

Here are some interesting examples to compare.

White House:  Director of Finance  $66,300; National Security Council Chief of Staff, $93,840; Director of Travel Office, $71,400; Chief of Staff, Office of Legislative Affairs, $114,000; West Wing Receptionist, $42,000; Speechwriter, $60,000; Director of Technology, $71,400, Director of Information Services, $50,000; Director of White House Administration, $100,000; Director of White House Operations, $130,500; Assistant to the President for Management and Administration, $162,900; Director and Press Secretary of the First Lady, $85,680; Chief of Staff of the National Economic Council, $130,500; Policy Director, $179,700 [This is the maximum salary for the President’s close assistants.].

Coral Gables:  City Clerk, $108,093; City Attorney, $197,954; Administrative Assistant to the Mayor, $56,555; Police Chief, $153,917; Assistant Police Chief, $84,220; City Manager, $190,000; Executive Assistant to the City Manager, $77,562; Public Affairs Manager, $74,547; Public Affairs Specialist, $61,618; Chief Compliance Officer, $93,299; Development Services Director, $127,000; Historic Preservation Officer, $94,181; Public Works Director, $126,000, Finance Director, $154,957. [These numbers don’t include about 65% more for pension benefits.]

Filed under Coral Gables, Finance, National

Are the Commissioners in the same Family as the Employees?

September 22, 2010 Leave a comment

Thanks to reporting by the Miami Herald we have learned that the City Commissioners have not taken a reduction in their pension accumulation factor of 3 percent during their first ten years of service.  Why wouldn’t the City Commissioners lead the way by reducing their own pension factor to the same as the general employees.  Should they think they are in the same family as the employees?  Commissioners still haven’t shown enough toughness in handling budget, pensions and other benefits (especially health care benefits).

According to the ordinance, the multiplier for non-union pensions would decrease like this:

• Managers, who include commissioners, would keep the 3 percent multiplier for their first 10 years of service. In subsequent years, the multiplier would be reduced to 2.25 percent for every year of service.

• Professionals and supervisors, would have a 2.5 percent pension multiplier for the first 10 years of service, and then a 2.25 percent multiplier for subsequent years of service.

• Commissioners will decide in a few weeks whether or not to change the multiplier for “appointed” employees, such as City Attorney Elizabeth Hernandez and City Clerk Walter Foeman. Salerno does not belong to the non-union pension plan.

via Coral Gables OK’s pension cuts for employees and managers – Coral Gables – MiamiHerald.com.

Filed under Budget, Government, Pensions

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