Coral Gables pissing match on taxes continues Friday at budget workshop

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Melissa Castro hosts community town hall first

Somebody is going to have to back down.

The Coral Gables Commission will have it’s third budget workshop Friday after they were unable to reach an agreement earlier this month. Mayor Vince Lago and Vice Mayor Rhonda Anderson want a tiny tax cut that will save the average homeowner about $61 a year but will save the millionaires in Cocoplum and Gables Estates thousands.

Commissioners Melissa Castro, Ariel Fernandez and Kirk Menendez wanted to go with the staff recommendation, and also the budget advisory board recommendation, to leave the tax rate the same, which would mean an increase in taxes because of increased property values, which would presumably be about the same — $61 a year for the average folk, but thousands for the millionaires.

The meeting July 10 ended with an impasse because the change in the tax rate requires a 4/5th vote. “Read the room. You don’t have the votes,” Lago told a frustrated Budget Director Paula Rodriguez, as she practically pleaded with the commission to pass the same rate and let the staff work on efficiencies to bring back at the budget hearings.

The three commissioners who listened to the staff — even the police and fire chief said this would impact their operations — didn’t budge either.

Read related: Coral Gables leaders play game of ‘chicken’ with city budget, tax rate

Instead, the compromise was to come back to this meeting Friday. three weeks later, to see if the staff could find the savings that Lago wanted.

The commission needs to make a decision by Aug. 4, or the county will take the city to the rollback rate, which could cause an estimated $10 million shortfall in the budget. So, basically, the commission is playing chicken to see who’s going to dodge first.

The three commissioners opposing the tax cut argued that the board can always reduce it in the future, at the September budget hearings, for example. But the city can’t increase it once it is lowered. Voting on the 2% tax cut that Lago is pushing would have set it in stone no matter what.

And, at that point, there had been no public comment on the matter. Maybe residents don’t want to give up services for $1.18 a week.

Commissioner Castro is having a town hall meeting Tuesday to get residents input on the proposed tax rate cut and the potential of cut services and police and fire rescue personnel. Castro says that the only reason Lago and Anderson are pushing it is because they are up for re-election in April.

“Their latest tactic to secure votes is proposing a 2% reduction in the millage rate,” Castro wrote in an email blast to city residents. “While on the surface this might seem beneficial, we need to examine the true impact on our community.”

The Lago proposed reduction will save the average homesteaded property owner about $61.23 a year, or $1.18 a week, according to the budget workshop earlier this month. You can’t even by a cortadito at Vicky Bakery with that.

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“While savings are always welcome, it’s crucial to consider what we might lose in exchange for such a nominal amount,” Castro said.

Police Chief Ed Hudak and Fire Chief Marcos de la Rosa already told the commission at the July 11 meeting that any cuts to the city budget –which would be necessary if the tax rate is cut — would likely mean not hiring the five new officers and five new firefireghter/paramedics the city was planning to bring on to those departments this year. That is a “significant loss,” Castro said.

The town hall on Tuesday is expected to provide residents with a better understanding of which services could be affected and how the impact might trickle down to them.

The meeting begins at 6:30 p.m. at Coral Gables Police and Fire Headquarters, 2151 Salzedo Street; Zoom Link:  https://zoom.us/j/3054466800; Meeting ID – 305 446 6800.

Castro also urges everyone, whether they can make it to the meeting or not, to make their voices heard by emailing the mayor and full commission with the subject line “Leave the Millage the Same,” or “Lower the Millage,” depending on where they stand on the issue.