The City’s Own View of Coral Gables’ Future. Sustainable or Not?

August 6, 2010 Leave a comment

What is the future of the economy of Coral Gables and what on activities and sectors of the local and regional economy will depend the future economic growth and well being of Coral Gables.   The Economic Sustainability Department (formerly the Development Department) has the responsibility for promoting the city and local economy for existing and new business.

The small Department basically seeks to keep and expand the businesses that we have.  It does not seem to recognize the need to identify and seek out new business sectors and lines of activity that would help lead the city grow faster in the future.  It is a small service unit rather than a place to promote new activities on its own or to help the city think about the options for the future.

The Department has a business development plan to assist realtors, building owners, and organizations in attracting domestic and international prospects by utilizing direct contacts, follow-up visits, brochures and audiovisual material. A special focus is placed on multinational recruitment and retail development. The Department also emphasizes the need for developing a better relationship with the existing business community to help improve the retention and expansion of these businesses.

via City of Coral Gables Web Site.

The city has published “A Briefing on the Economic Base in Coral Gables” (2009)  and “Coral Gables, The City Beautiful” (2010) for interested parties.  These reports emphasize the following features of the local economy:

  • The City’s multinational business…includes…oil production, health care, biomedical research, international finance, import and export, transportation, manufacturing, travel and tourism, news information services, telecommunications, and construction real estate.
  • …high quality of life, convenient access, responsible growth, and a diversified economy, property values will continue to increase, supplemented by new appropriate construction…
  • Coral Gables is considered one of the premium office markets in South Florida…
  • …regional headquarters for over 175 multinationals…
  • …over 100 countries are served from corporate addresses…
  • Since…1925, the largest single employer has been the University of Miami…
  • …the combined totals of multinational employment exceed 6,000…
  • …Coral Gables has nine retail districts…
  • …over 30 banking institutions…
  • The median house value has increased by nearly 1,400% since 1970…
  • …Strict zoning laws, a favorable property tax rate…

Filed under Business and Commerce, Coral Gables

Some Basic Budget Questions for the City

August 5, 2010 Leave a comment

There are some big budget questions that have not been answered by the 2010-2011 Estimated Budget, City of Coral Gables.  We don’t know what the basic assumptions have been made about the future of the local economy, assumptions that are very critical for long-term budget planning.

  • Does the city’s management think that the local economy is on the road to recovery? While they may be an occasional blip up in real estate sales, real estate values are not likely to change for many years to come and there is even a risk of both deflation including housing (mentioned by a Federal Reserve Governor recently), an economic slow down (already started), or maybe even a second dip recession (less likely but not impossible).
  • Do the city authorities think that property values will soon started increasing (say) next year? Wouldn’t it be safer to not plan on increases in property values for several years that are greater that any greater than the rate of inflation (now virtually zero).
  • Does the city think that the large pension liability will be reduced without tough negotiations with city staff and their unions.  There is no sign of a get tough policy but one of increasing property taxes yet again.
  • Why are the highest paid city staff insulated from serious reductions in salaries and pension including the city manager and his senior staff.  They should take at least a 8 percent salary reduction this year.
  • Why are firefighters and police not taking important salary and pension reductions or cuts in staff positions?
  • How much are more are taxpayers going pay to have to pay to cover what from the Biltmore Hotel owes the city?
  • What has the museum cost the city?
  • Why has it taken so long to get around to important reorganizations in city government?

Maybe there are answers to these questions in the budget but they are hard to find.

Please suggest some more questions for the Commissioners and the City Manager.

Filed under Budget, Coral Gables, Organization

Aid Failures in Haiti: Not A Big Surprise

August 4, 2010 Leave a comment

On a somewhat different subject, but relevant for South Florida–

The procurement procedures of the international organizations (the UN System) and multilateral development banks (World Bank, Inter-American Development Bank) and bilateral aid agencies (USAID, EU) have deeply ingrained historical procedures that involve strict control and supervision of the project design, execution format and competitive multi-stage procurement procedures that allow for extensive frequent and detailed challenges by the losers during the competitive bidding process.   This slows down the implementation of projects and may delay them by years.  (The procurement procedures of the City of Coral Gables may be considered light weight and efficient by international standards).   International procedures and the culture of control that exists in multilateral and bilateral institutions will make the process of reconstruction in Haiti very difficult indeed.

As co-chairs of the Interim Haiti Reconstruction Commission, [President] Clinton and [Prime Minister] Bellerive have been expressing frustrations with not just donors, but also the World Bank — the trustee in charge of managing a multidonor trust fund dedicated to the reconstruction.

The source of the friction is what the World Bank’s role should be and the projected costs for small projects. Both Clinton and Bellerive say that the fees charged by the bank for administering the reconstruction trust funds are too high for small-scale projects.

The procedures, the commission complains, are too bureaucratic and further threaten to slow down the rebuilding by adding months to the approval process with “redundant technical reviews.” The commission would like uniform vetting procedures.

via Leaders look to end dispute over Haiti earthquake aid – Haiti – MiamiHerald.com.

Filed under Florida, Miami-Dade County

Coral Gables Budget: Automotive Department

August 3, 2010 Leave a comment

The Automotive Department has made up about 5% of the city’s budget in recent years.  The staff numbers have been reduced  from 30 to 23 in two years.  Two mechanics and one (higher cost) supervisor positions are being dropped this year.  Personal services costs are estimated to decline from $2.7 million to $2.3 million.  Operating expenses remain constant and capital expenditures fall from $1.4 million to $1.1 million.  Equipment purchases and leasing together are about a constant $1.4 million over two years.  Motor fuel outlays are about the same $1.7 million estimated compared to the previous year of $1.8 million.

The overall costs automotive services, while down from last year’s budget, are relatively unchanged from the 2007 to the present time.  There is very little flexibility in reducing these costs over the long haul.

Filed under Budget, Coral Gables, Finance

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