Are We Blasé About “Misusing” Public Funds

August 17, 2010 Leave a comment

Thanks to the Miami Herald yet another misuse (misappropriation) of public funds has been reported for the City of Miami.  The so-called “misuse” (this reminds me of the term “misspoke”) of public funds is in fact institutionalized corruption that has been going on for years in this example.  It is not hard to guess that this sort of “informality” in the use of public funds is a county-wide problem.

One may also wonder whether these problems would ever have been discovered without the oversight of federal authorities.  Apparently, Miami-Dade citizens tolerate the misappropriation of public funds as a normal  part of the everyday business of government and of doing business with the government.

In a stinging report, Auditor Victor Igwe, backed by an opinion from the state attorney general, said the city tapped into even more restricted money — this time, $9.47 million in gas taxes — to fill gaping budget holes.

…the city shifted the money to the general fund to balance its plummeting checkbook, an improper practice that has been used in the past to mask deeper financial woes. The money went to operate street lights.

The city is already under federal investigation for the questionable transfers of millions in Impact Fees and other restricted funds, but this is the first time the use of gas taxes was found by auditors.

…the practice of tapping into the Local Option Gas Tax has been going on for nearly a decade.

Read more: http://www.miamiherald.com/2010/08/16/1779039/auditor-mimai-misusing-millions.html#ixzz0wt1KhbIR

Filed under Coral Gables, Finance

Thanks to Donna Shalala (I Believe)

August 17, 2010 Leave a comment

This progress is due to great focussed and disciplined university leadership.

Move over, Gators. The University of Miami is now the top college in the state of Florida, according to U.S. News & World Report magazine — a first-ever accomplishment for the Coral Gables school.

via Miami Hurricanes, Florida Gators get new ranking to argue about – Education – MiamiHerald.com.

Filed under Coral Gables

More Bad Housing News

August 17, 2010 Leave a comment

Housing problems continue unabated, which is bad news for the South Florida and Coral Gables economy.

In the average congressional district, serious mortgage delinquency rates – defined as borrowers more than three months behind on their payments – are 9.4 per cent, compared to 3.3 per cent at the time of the election in 2008, according to a study by Deutsche Bank.

…

The pain remains concentrated in states such as Florida, California and Nevada. More than one in five borrowers are at least three months overdue on their mortgage payments in 23 congressional districts – including 13 in Florida, six in California and two in Nevada.

via FT.com / US / Economy & Fed – US house mortgage arrears mount.

Filed under Housing

Average Personnel Costs are Still Rising in the City of Coral Gables

August 17, 2010 Leave a comment

I have taken staff costs and personnel numbers from estimated budget costs and historical information from the City of Coral Gables, 2010-2011 Budget Estimate [be warned this is a large download–you can request a hard copy of the document from the Finance Department] .

Here are some of the main conclusions:

  • The year 2007-2008 was the high water mark with 875 personnel in the City of Coral Gables.  The staff number for the new budget 2010-2011 is estimated at 791.  This is a decline of 9.6% in four years–hardly a dramatic decline;
  • The total personnel costs declined by 6% in the same period;
  • The average position cost increased by 4% ;
  • Thus average personnel costs are rising because the city is reducing the lowest paid staff for the most part.

Until the average costs start falling will the city get a handle on its biggest problems–shocking employee benefits.

Filed under Coral Gables

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