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

Coral Gables Writer’s Letter to the Editor about Taxes

September 2, 2010 Leave a comment

Please read a letter to the editor of the Miami Herald today.  Please note that the writer is from Coral Gables (that wealthy city  the Teamsters, Police and Firefighters’ Union and City Commission think can keep paying more and more taxes).

After studying my notice of proposed property taxes, I must say that county government has lost touch with reality. I know the laws under which officials operate are partially responsible. However, laws can be amended for changing times.

My home value went down 15 percent this year, and yet my proposed taxes have gone up 15 percent. I have less income because of the current financial situation and have had to tighten my belt — whereas our county government appears to be oblivious to the folks who pay their salaries, perks and pensions.

This will not continue indefinitely. We are fed up with the lack of respect for the folks who pay the bills for a bloated government.

ROGER SHATANOF, Coral Gables

via Homeowners say call it what it is — a tax increase – Letters to the Editor – MiamiHerald.com.

Filed under Coral Gables, Miami-Dade County, Taxes and Fees

Coral Gables: Balancing Well-Being of Taxpayers and the Budget

August 30, 2010 1 Comment

The Teamsters Union is now leading the general employees into a dark corner by asserting that Coral Gables is wealthy enough to keep paying high salaries, pensions and other benefits.  This is insulting to residents who have paid taxes through thick and (now) thin and have generally accommodated decent and fair salaries for most (and some not so great) employees in many years.

Many residents now believe that the Slesnick Commission has tolerated, if not outright defended, the well-being of employees above taxpayers.  Unions, of course, have cooperated in this process by defending the commission.

Now both the commission and the unions should work together and share the pain to get the budget back into balance.

Taxpayers cannot do any more than they have.

Filed under Budget, Coral Gables, Employees and Unions, Taxes and Fees

Coral Gables’ Budget: No Relief from Personnel Salaries and Pensions

August 19, 2010 Leave a comment

Let’s take a look at the trends of personnel costs in the last three or four years with the number of positions cut from 875 in 2007-2008 to an estimated 791 in 2010-2011.  We have a city with fewer employees being paid more on average–this is not a formula to reduce pensions and other benefits.

  • Total personnel costs fell by about 6% in the period 2007-2010;
  • But personnel costs per employee increased by 4%;

In the Police Department

  • Total personnel costs are being reduced 4.67% in 2010-2011.
  • This is the first real proposed reduction in the personnel budget for police in three years, and the number of staff positions has fallen by 3.41%.
  • Average police salaries are reduced by an insignificant amount of 1.3%.

For the Fire Department

  • The total personnel budget is being reduced by 3.74%,
  • The number of staff is being reduced by 1.34% and outlay per firefighter increased by 2.43%.
  • Only two Fire Department positions have been eliminated in four years.

A look at the Public Works Department

  • Personnel costs are being reduced by 13.51% in fours years,
  • The number of staff is cut by 14.86% in three years (but very little in the 2010 estimated budget) and
  • The average position costs is increased by 1.59%.

Regarding the Development Service Department

  • Staff numbers have fallen from 70 to 63, or a 10% decline,
  • The personnel budget is expected to fall by only 2.2% in four years,
  • And average staff costs are expected to increase by 8.66%.

In the Information Technology Department

  • Personnel costs are the same as they were in 2007 after rising for two years,
  • The number of staff has been reduced by 6.25% in four years,
  • Average staffing costs have increased by 6.6% in four years, another department in which average employee costs have increased

Filed under Budget, Finance, Taxes and Fees

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