Coral Gables as a Miami-Dade Island?

Public statements by Coral Gables Commissioners at the First Budget Hearing defied critics, taxpayers and citizens by rebutting or ignoring the protests of voters and taxpayers against increased taxes and new fees.

The new city manager, who has now put himself in the corner of Mayor Slesnick, Vice-Mayor Kerdyk and Commissioners Anderson and Withers, has increased city spending back to about $155 million where it was in 2007.

In the extended political theater of the night, the Commissioners shifted the full responsibility for the budget to the new city manager, as they declared full loyalty to the manager. No commissioner questioned the budget details or stood up against manager’s demand for a 14 percent property tax increase (although Mr. Kerdyk briefly hestited.)

The press has reported in the past few days that essentially all of the municipalities (including Miami-Dade County, the City of Miami, South Miami, Homestead, Miami Beach), except for Coral Gables and perhaps two or three others, have rejected increases in property taxes and spending.

On a morning interview on Channel 10, the Mayor of Homestead declared as “disingenuous” any increases in fees.  All municipalities are taking the strong medicine to cut present and future spending and pension liabilities, but Coral Gables government stands along against its citizens by untenable spending and tax and fee increases.

Thus the Coral Gables Government is proceeding as an island unto itself, indifferent to the citizens’ well-being.

Urgent Reading for the Commission: Why Postpone the Hard Spending Decisions?

As the Coral Gables City Commission is on the verge of making decisions to significantly increase property tax rates, do they know the city and the taxpayers will certainly confront the same and worse financial prospects for 2010 through 2012. Taxpayers cannot take more years of taxes being increased by 10 percent or more as homes values have plummeted, incomes are down, stock prices and retirement asset values have been destroyed and unemployment persists.

The Secretary of the Treasury was quoted by Bloomberg News, as follows:

Given the extent of damage done to the financial system, the loss of wealth for families and the necessary adjustments after a long period of excessive borrowing around the world, it is realistic to assume that recovery will be gradual, with more than the usual ups and downs.

First Budget Hearing: Taxes will Certainly Rise, by How Much?

The Commission held its first hearing on the 2009-2010 Budget Approval last night. Community comments were received by the Commission and there was a large community attendance. The meeting to set the final millage rate will be held on Tuesday, September 22 at 5pm. Also, the Commission agreed to have a workshop on Monday, September 21 at 5pm to review the final budget proposal with the City Manager, Mr. Pat Salerno. The community cannot make comments during the September 21 session.

Community comments on the budget were negative. The President of the Coral Gables Political Action Committee, Mr. Damian presented extended remarks criticisizing overspending, the management failures of the former city manager and the Commission’s unwillingness to remove him in the face crimes and financial debacles. Later Mayor Slesnick defended the management capacity and successes of the former Mr. David Brown, the city manager who resigned in disgrace. Mr. Slesnick’s commented that Mr. Brown had received as award as outstanding city manager of the year, which was met with scepticism and some restrained laughter in the attendees.

Only Mr. Cabrera and, secondarily, Mr. Kerdyck, raised any questions on the spending side of the budget with the city manager. Messrs. Withers and Slesnick, joined with Ms. Anderson, stating there strong confidence in the city manager, evidently feeling that it inappropriate to question the underlying budget numbers and logic. This is similar to the approach of only lightly questioning the city manager for close to a decade.

The bottom line is that the Mr. Salerno strongly defended the need for a tax rate (millage rate) increase from 5.25 to 5.995 (14.19% increase) to cover potential resources to pay for a shortfall in the pension fund. He indicated unwillingness to eliminate more than the agreed upon 43 full-time and 16 part-time positions in this budget and he implied that the pension fund actuarial analysis will require higher pension fund contributions than estimated in the budget. Mr. Kerdyk stated interest in a lower 5.75 millage rate (9.52% increase) but finally voted to accept a rate of 5.995.