Just Like The City Manager Of Coral Gables

July 5, 2011 Leave a comment

The city manager planned–as was bought into later by the city commissioners (except one)–and hid his designs for a huge post-election investment program and, and along with one commissioner (real estate broker and banker), distorted the real cost of the financing the program by stating that since the debt payments had been budgeted, there is no additional cost to the city of the refinancing.

A first year economics student at UM can tell you that this is pure baloney.

Indifference to public opinion in Miami-Dade, including Coral Gables, is because of voter indifference and politicians’ dislike for good, transparent and participatory government.

Of course neither the White House nor congressional leadership has shown the slightest interest in keeping the American people informed about any step of this process, and they have evinced even less interest in reflecting the values and opinions of the American people. Public opinion counts for almost nothing these days in guiding public policy.

via Jeffrey Sachs: Restoring American Democracy.

Filed under Coral Gables, Finance, Government, Miami-Dade County, National

The Debt Surge and Management in Coral Gables

June 27, 2011 2 Comments

The Commission (except for one of the commissioners) is missing the point of the city manager’s renaissance spending plan (the $22.2 million Debt Surge).

The Debt Surge was conceived in the dark, pulled out of the sleeve of the city manager at the first commission meeting after the election, and its funding comes first, rather than last after priority spending should have been discussed with the community.

The financing package makes no sense with permanently low interest rates that are certain to not rise for years (not months, not weeks), with refinancing could easily be done in stages in tandem with spending needs, and the savings used to solve intractable financial weaknesses.

Apparently, some of the outgoing commissioners are looking for projects on which to stick their names, the city manager projects his new role as the “Machiavelli of Coral Gables”and he marks the end of the “Middle Ages” (i.e., the Slesnick Years) to redress the Decline of Coral Gables.

This city cannot afford a period of pharaonic spending to glamorize the city’s progress.  The Commission needs to fix the city’s pension liabilities, maintain its infrastructure, fix the Biltmore mess and hold down taxes for a few years and build its reserves,i.e. place the city on very sounding financial footing.

Above all, we need a city manager who is committed to the highest standards of democracy, citizen participation and transparency–something we didn’t have for years and we still don’t have.

The city manager, it would appear, has fully assimilated the methods of the Slesnick era (the “Middle Ages”) with secrecy, back room negotiations and resentfulness of citizen comments and participation.

Filed under Coral Gables, Finance

Row Over New Projects. Is This Coral Gables?

June 25, 2011 Leave a comment

Sorry, this is not Coral Gables, but it shows what happens when projects and financing are selected without community participation and consultation.

Railroading programs over the views of the community, even under the guise of beneficial investments, is not a good idea for the long-run political well-being of the city, nor is it a sign of a health democracy.

Critics say there was no consultation, a classic example of the way business was done…

via BBC News – Row over Egyptian lake earmarked for new tourist resort.

Filed under Coral Gables, Finance

Coral Gables Debt Surge–Take Note, Interest Rates Will Stay Low

June 22, 2011 Leave a comment

One justification for the Debt Surge in Coral Gables for its so-called Renaissance is that the city will lose a window opportunity of low interest rates.  This is nonsensical since interest will stay low for a long time, and the dange of overspending on the Renaissance projects is far greater that the rush to refinance now.

The following is from today’s Federal Reserve statement:

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent.  The Committee continues to anticipate that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

via FRB: Press Release–FOMC statement–June 22, 2011.

Filed under Coral Gables, Finance, Government

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