By Sebastian del Marmol
sdelmarmol@cggazette.com

At the end of a contentious five-hour hearing, the Coral Gables city commission unanimously approved the budget and the 14 percent tax hike that City Manager Pat Salerno sought.

Despite impassioned pleas from residents that collectively lasted more than three hours on Sept. 8, the commission ultimately sided with Salerno, who does not pay taxes in Coral Gables, and ratified a $155.1 million budget and a millage rate of 5.995 on first reading. The current millage rate is 5.25.

If ultimately adopted at the second budget hearing on Tuesday, Sept. 22 at 5:01 p.m., the proposed budget calls for the elimination of 42 full-time and 16 part-time positions. According to Salerno, 10 of the 48 full-time positions are currently vacant.

Salerno’s budget would slash operating expenses by $6.53 million but increase spending on capital projects 286 percent to $13.725 million.

When Vice Mayor Bill Kerdyk, who originally said he could not support a millage rate higher than 5.75, asked Salerno what was the plan moving forward, the city manager responded, “No one is predicting a turnaround next year. Things could deteriorate further and an increased pension contribution is curtain. Salerno added, “Further cuts are likely” in the coming months. “Some of the work culture has to change,” explained the city manager. “We are going to have to learn to do more with less.”

Commissioner Ralph Cabrera said he could empathize with taxpayer frustration. “People are struggling and are furious,” said Cabrera. “The answer to the city’s problems is not to be found on the expense side of the ledger. We must cut spending.” Cabrera’s conclusion that, “We can’t tax our way out of this,” drew thunderous applause from the audience.

After acknowledging that he and the Coral Gables Museum have become the lightning rod for criticism, Commissioner Wayne Chip Withers said he had complete faith and trust in the city manager and whatever millage rate he proposed.

Cabrera suggested and Kerdyk supported the scheduling of another budget workshop on Monday, Sept. 21 in which commissioners would go over the proposed tax hike and budget and give Salerno another opportunity to state his case.

During the first budget hearing, the city manager was unequivocal. A lower tax rate would eventually result in more lost city jobs and a degradation of city services.

“Where we are at right now, I need to look at personnel (cuts). Those cuts are the most difficult to make and none of you up here relish the idea and understand the pain they cause,” Salerno said. “(With a lower tax rate) I’ll need to look at more bodies and more people losing their jobs. Frankly, I don’t like doing that but I will do it. But it just won’t be more people; we are going to be hitting services and not going to see things done the way you are used to.”

The city manager went on to say that he was brought on board to get the city back on track and that neglecting to go with a tax hike would simply put off the inevitable.

“I solve problems, I don’t postpone them. Some day someone is going to have to deal with them,” he said, adding that if they didn’t this year, it would be worse next year.