Coral Gables Budget: Public Works

July 30, 2010 Leave a comment

A few notes on the Public Works Department’s budget based on observations on the current budget estimate.

Public Work’s total budget outlays have risen during the most recent budget periods 07/08/09/10 from $17,0 million to 18.9 million in 2010-2011.  Staff numbers have been reduced from 74 to a proposed 63 in this budget.  Salaries and benefits have declined in this period from 7.9 million to 6.9 million but, as noted, overall costs have risen.  The city is contracting out some professional services (such as architectural services after the elimination of the Architectural Division in 2009-2010 budget) needed by Public Works.  It makes payments for waste water services from Miami-Dade and has increased costs for operating equipment for stormwater management and sewer services, among others.

Although staff has been reduced in Public Works, overall costs have not been decreased that much because of the cost of payments to Miami-Dade and equipment costs.  Also, this personnel services reduction is minimal since overall capital expenditures of the city have been significantly reduced in the new budget year.  There seems to be opportunities for further saving in the Public Works Department given that the work program for capital expenditures is declining.

Filed under Budget, Coral Gables, Employees and Unions

Coral Gables Taxes and Staffing: Much More to Do

July 29, 2010 Leave a comment

Take a look at the last few pages of the 2010-2011 Budget Estimate where there is some historical information.

Some salient facts there are

  • Property values increased 2.44 times in the period 2000 to 2009.
  • Property taxes increased 2.25 times from 2000 to 2009.
  • In the period 2000 to 2006 (during the most rapid property value increases), property values increased 1.93 times.
  • In the period 2000 to 2006, property taxes have increased 2.19 times.
  • In the period 2000 to 2006 total staff in Coral Gables declined as follows:  871 ( 2006), 875 (2007), 868 (2008), 808 (2009) and  791 (estimated 2010).

In short, on average, property taxes have followed assessed values in Coral Gables since the year 2000.  Rapid increases in property values were used by the city to raise taxes and increase staffing and spending as if this phenomenon was to continue without limit.  And following the stagnation and decline in property values, the city has increased taxes faster that assessed values.

The city has reduced the number of staff, but many of them are at the lowest  grade salary levels. Operating expenses, closely capturing staff salary and benefit expenses, have remained stable at $131.3 million (2007), $136.0 million (2008), $132.0 million (2009), and are expected to decline to $127.7 million (estimated budget 2010).

The number of staff has been reduced by 9.6% but the city’s operating expenses only fell by 3.1%.

This indicates that a much greater effort is needed to increase city efficiencies and reduce salary and pension costs.  When will the Commission get around to do this–this doesn’t seem to be the year.

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

True Cost of Biltmore Not Paying its Back Rent

July 28, 2010 Leave a comment

I am struck by one of the proposals of the city manager, who indicated that if the City Commission wanted to adopt a millage rate of 5.895 compared to the proposed rate of 6.072,  $1,990,000 revenues would be lost.  We note that the Biltmore Hotel is stated in the budget to have refused to pay rent for $1,910,000. ( I understand a temporary agreement on this might have been reached.)

Therefore, we see what it would cost the city taxpayer’s to have to pay for the Biltmore.

On page ix of the Estimate Budget the following items are lost by the city:  reduce cultural funding, $75,000; reduce funding for 7 police officers and 1 civilian position, $560,000; reduce city paid health insurance, $685,000; reduce 2 firefighter positions, $145,000; reduce police overtime, $300,000; and reduce 2 workdays through furloughing, $225,000.

This is $1,990,000 and shows the cost to the city and taxpayers of Biltmore’s failure to pay–about 7 police officers, cut health insurance, lose 2 firefighters, cut police overtime and furloughing staff and cutting cultural spending. This the same tax reduction that would be lost by our citizens.  It is worth it for taxpayers and residents to suffer these cuts for the Biltmore?  I think not.

Filed under Budget, Finance, Property Values, Taxes and Fees

Coral Gables Budget: Police

July 28, 2010 Leave a comment

The cost of 255 police positions is $31.6 million in personal services at an average cost, including salary and benefits, of $123,900 per position. The average cost of 10 administrator positions is $156,300.  A large number of positions are 97 for uniform patrol ($128,400 per position), 42 in criminal investigations ($135,100 per position) and 56 in technical services, mainly communications ($98,000 per position).  The total cost of the police services is estimated at $36,933,675 that cover salaries, benefits and all other ancillary operating expenses services and equipment.

Filed under Budget, Coral Gables, Finance

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