Coral Gables Watch

Future US Economic Policy Could Hurt Coral Gables

August 13, 2010 Leave a comment

There is a lot of talk about resolving the fiscal crisis in the US by having higher taxes (letting the Bush tax cut expire for the wealthy) and slowing the growth and reducing spending on social security, medicare and medicare.

This will hurt Coral Gables in several ways.

Reduced spending will hit the State of Florida’s budget and cut transfers to local government and education spending (putting more pressure on property taxes);
Reduced spending will not be helpful in getting the economy back on track and this will hit consumer spending;
There will be less money available to carry out needed infrastructure investments locally;
Unemployment will continue to have bad effects since there is pressure to cut compensation for people who are unemployed for long time periods;
Retail sales and spending will remain sluggish;
It very hard to imagine that there will be a willingness to set up national disaster insurance and relief; and
There will be no relief in sight to help cover the costs of excessive local salaries and pensions.

This gives greater urgency to keep property taxes and fees down, and to do something about salaries and pensions in Coral Gables and build up local reserves.

Filed under Coral Gables, Economy, Finance

Recovery Around the Corner: So Thinks the City of Coral Gables?

August 12, 2010 Leave a comment

It would appear that the city manager and commissioners of the city of Coral Gables believe that in the not-too-distant future the economy will return to a better time. That seems to be behind their unwillingness to make significant reductions in the city’s operating costs. They are cutting capital investments–another sign that the economy will come back soon.

And–

We are still waiting for the city to play hardball with the police, firefighter and staff unions;
We are still waiting for a reduction in force of overstaffed and overpaid public security;
We are still waiting for the reorganization and consolidation of overstaffed and overpaid departments;
We are still waiting for a reduction in salaries of senior staff, including the city manager and the city commissioners;
We are still waiting for a cut back in the number of middle managers;
We are still waiting for the city to get tough with the Biltmore Hotel management;
We are still waiting to put a freeze on property taxes while the economy is stagnant;
We are still waiting for a recognition that taxpayers are paying “real money” in taxes to Coral Gables;
We are still waiting for information on the cost of the museum; and
In short, we are still waiting for a new culture of “open government” in the city of Coral Gables.

Filed under Coral Gables

More Bad Economic Signs for South Florida

August 12, 2010 Leave a comment

For signs that the local economy will remain stagnant. Also, you may have seen reports that China has slowed its imports–this hurts Latin American, Miami and commodity prices, as well as the US exporters. Not good signs for Coral Gables and not a good time to raise property taxes.

…for the past 10 weeks, the number of homes for sale — crucial in the supply-demand seesaw that determines real estate prices — has been inching upward, sparking questions about the state of the housing recovery and the effect of foreclosures on the marketplace.

The 4.6 percent increase of homes for sale in South Florida since May 31 represents the first two-month rise since the housing bubble burst, recently released data…

via Housing supply on the rise in South Florida – Real Estate News – MiamiHerald.com.

Filed under Business and Commerce, Coral Gables, Economy, Property Values, Taxes and Fees