Miami’s new commissioners show strength, force tax cut at first meeting

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The first meeting of the newly-elected Miami commissioners showed the change in the dynamic that voters seem to want in their city government when Miguel Gabela and Damian Pardo refused to rubber stamp the old budget and fought to make changes that resulted in a $25 million shave on operational expenses and a tiny tax cut.

But it’s the thought that counts.

Commissioners Gabela and Pardo each beat incumbents last month in an election framed by political corruption and the lack of transparency in the city less than two months after former Commissioner Alex Diaz de la Portilla was arrested on charges that include money laundering, bribery and unlawful compensation. The new commissioners have a mandate. And they know it.

“I came here to do the business of the residents,” Gabela said. “I’d like to come along with ou, but I can’t do it.”

Pardo called Miami’s government “dysfunctional” and said he wasn’t comfortable passing the old tax rate.

They wouldn’t even bend to Mayor Francis Suarez, who made two rare, cameo appearances to, first, urge the commissioners to pass the old tax rate in what sounded more like a campaign speech than an actual administrative decision. He said it was the biggest tax cut ever and the highest property values — which Pardo pointed out go hand in hand — and blah blah blah.

Read related: Damian Pardo beats odds, incumbent Miami Commissioner Sabina Covo

When that didn’t work, he came back to tell the commissioners to find the budget cuts right there and then if they were going to cut the tax rate. He talked about furloughs.

Gabela and Pardo might as well have yawned. The scare tactics backfired. Baby X made no difference with his spin. Pardo was able to counter each of his points with logic. Both were prepared to do keep going for as long as it took to get their wy. whatever it took. That mandate was palpable.

The commission had to meet Monday on an emergency basis to set the tax rate because the Sept. 28 vote was not valid, according to the state. The city needed a unanimous vote of 5-0, the state said. The error could cost the city $56 million in its share of gas tax funds.

The city’s position, and they are fighting it in court nonetheless, is that there were only four commissioners seated at the time — Gov. Ron DeSantis had suspended Diaz de la Portilla — and the vote was unanimous at 4-0. There was some finger-pointing going on.

Gabela blamed City Attorney Victoria Mendez. City Manager Art Noriega blamed the state.

Read related: New commissioner moves fast to fire Miami City attorney Victoria Mendez

“Two months transpired before they issued us a letter that we were not in compliance,” the manager said, even though they were warned in September. Noriega said the state decision was flawed and that the city was taking it to court anyway to have the answer for the future.

The future? Let’s do this again, everybody. Really? That means more needless legal spending. Did the new commission agree to that?

Nevertheless, they did need to set the tax rate by Monday, city administrators said. The old-timers on the commission wanted to keep the tax rate the same and not touch the city’s budget. They tried several times to get Gabela and Pardo on board — and lost several votes 3-2.

Then they tried to lower the rate by just a tad, which would cost the city $856,000, but would only need a super majority vote, or four of the five, said Chief Financial Officer Larry Spring. But that didn’t sell either. Not even after Commissioner Manolo Reyes said — repeatedly, like a broken record — that the commission could also direct the city manager to find more than $30 million in savings by mid year.

Nananina, said the newbies.

They did vote to pass a major reduction that would have put the city $49 million in the hole. Pardo, a financial consultant, said it represented only 5% of the budget and that the city could likely find easy reductions that would not cut into services. Vacant positions that are budgeted can be cut. Some capital projects and fleet purchases could be deferred for a year.

But that failed 3-2 also, with Reyes, Carollo and an increasingly frustrated Chairwoman Christine King voting no.

Carollo then floated the scorched Earth edition of the budget, going back to the rollback rate and cutting $63 million from the budget. “If we’re going to have a bonfire, let’s have a real big one,” Loco Joe said. Some thought he was kidding. But he wasn’t. He’d definitely bite his nose to spite his face. That motion failed also.

Finally, they settled on a compromise that left nobody happy, King said. Gabela had proposed a $30 million cut but settled for a small adjustment on the tax rate to shave $25 million off the budget and save taxpayers a few dollars. For that, he’d just need a simple majority and would get King.

Read related: Miami’s Alex Diaz de la Portilla loses re-election bid to Miguel Gabela on 4th try

It’s a small reduction, but a huge symbolic victory. Even King comes out looking like the great negotiator. And, of course, the residents — some of whom showed up to congratulate the new electeds and urge them to keep their word, ending up applauding at the showdown — also won.

The only losers Monday were Carollo and Reyes. Reyes voted against the $25 million at first and then floated a $27 million cut after they were identified by a staffer. He should have gone with the $49 million reduction. After all, look at how fast they found $27 million in excess dollars. Let’s do that again.

Among the potential cuts identified by his office are the $2 million from each of the electeds district funds for capital improvement projects (read: road paving) that they agreed to give up at the meeting. Another $2.6 million could come from the transportation trust and $7 million can be saved on frozen positions that are still budgeted in parks, solid waste and public works. Another $6 million budgeted for frozen first responder positions won’t be touched. With $1 mil taken here and another there,