Town hall on tiny tax cut in Coral Gables shows residents don’t want it

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It’s not often we see residents beg their elected leaders not to cut taxes. But in Coral Gables this year, it’s a resounding cry. Nobody wants the city to increase taxes, but one after the other, residents who spoke at a town hall on Tuesday said they would rather keep the taxes the same than lose services.

Mayor Vince Lago — who did not attend the town hall — has proposed a 2% millage or tax rate cut that would cut about $2.6 million from the city budget. Vice Mayor Rhonda Anderson — who did attend the town hall and sorta tried to sabotage it, but failed miserably — is supporting him.

Read related: Coral Gables pissing match on taxes continues Friday at budget workshop

They are both up for re-election this April and this seems like a campaign stunt. Residents are on to it.

The other three commissioners — Melissa Castro, who hosted the town hall, Ariel Fernandez and Kirk Menendez, who also attended the town hall — have stood their ground to keep the millage rate the same. Either choice needs a 4/5th vote of the commission.

Many Coral Gables department heads and staffers attended the meeting to answer questions and provide details on what services could be cut: recreational programs, tree trimming and landscape maintenance — no “pretty flowers” downtown — less security checks on city computers, less holiday decorations, code enforcement coverage. Vacant positions woulds stay vacant, causing overtime spending and hurting morale. The police chief and fire chief each said that there would be no personnel cuts — which is a exactly the opposite of what they said at the July 11 workshop — but that they would suffer “indirect impacts” through the cuts to IT, Human Resources and other departments.

The main argument against the tiny tax cut was that the savings for the average homeowner are a pittance and the real benefits are for commercial property owners and developers who will save tens of thousands of dollars. Commercial property owners and developers, by the way, who contribute heavily to the campaign accounts of Lago and Anderson.

Castro presented a slide show that included examples of some of the real beneficiaries of the tiny tax cut.

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

Tom Wells said the taxes for the Houston-based owners of Gables Station would go down by $29,408, while his own taxes would fall by only $94. “Why are we giving these foreign companies a tax cut that’s going to hurt our services?”

Other residents said their cuts were also not worth the potential impact to city services.

Activist Maria Cruz, who has lived in the Gables forever, will save $28.11. Sue Kawalerski, president of the Coral Gables Neighbors Association, said she might save $30. Maite Halley, the Gables Pickleball queen, said she would save $18.66.

Halley said that she had email exchanges with some of the commissioners (read: Anderson) and found their arguments to be “specious” (plausible but wrong) and full of misdirection. She said that the very idea that the tax cut was to protect future potential residents who wanted starter homes in the Gables, instead of actual residents who live there, was ludicrous. And she said she was tired of hearing the gripes about the salary increase that the three commissioners against the tax cut gave themselves last year.

“It’s a misdirection,” she said, adding that the benefit to $245,000 — or .09% of the budget.

“You may not like how that came about but it’s not going to break the bank. But this millage rate , if we don’t get our commissioners to agree, it will break the city,” Halley said.

What she means is that the commission must agree to something by Aug. 4 or the county will make the decision, which will be the rollback rate, so residents will pay exactly what they paid this year but the city will take a 10% cut. City Manager Amos Rojas said the administration had not even contemplated that. “Because, frankly, it’s unimaginable,” he said, adding that there would be layoffs.

There were a few residents who said that the city needed to get leaner and meaner and that the additional revenues from the increased property values should be enough to maintain services. But they were outnumbered. Interestingly, candidate Richard Lara, who is running against Menendez and was there with his handler, Nicolas Cabrera, did not say a word. Ladra suspects he is waiting for the budget workshop Thursday, as he is used to campaigning in public comments.

Their despair was evident.

Anderson was also visibly pouty. She said it was “disingenuous” to present only a 2% scenario, but Castro told her that this is what is being presented by Lago. Her slide show also showed a 3% scenario because it would only require a 3/5th vote, and could avoid a $10 million cut in city revenues.

Menendez said that the garbage fee cut was more equitable than the tax rate cut proposed because it would benefit the larger property owners disproportionately. He is also up for re-election and is the only one, so far, with a challenger. But he has the courage to stand up for what is right — and what most residents apparently want.

Debra Register, a member of the budget and audit advisory board said that the last meeting was extended for the first time ever because of this standoff. She said the board had studied the budget and given it much thought before recommending the current millage or tax rate stay the same.

“If you cannot listen to your advisory board, for the expertise that we have, along with-our finance department, then why are we a board? We have five talented members… we’re not needed,” she said.

Three city union leaders sent a letter to the commissioners Thursday morning also asking that the millage or tax rate remain the same. They are certain that critical services will be impacted.

“Maintaining our current rate is essential for preserving the quality of pubic services, supporting economic growth, and ensuring equitable treatment for all residents,” reads the letter sent by International Association of Firefighters President David Perez, Fraternal Order of Police Lodge No. 7 President Chris Challenger and Teamsters President Josh Zivalich. They collectively represent more than 600 employees.

“The benefits of adequately funded police and fire services, reliable emergency responses, effective waste management and robust infrastructure far outweigh the short-term appeal of a lower millage for political purposes.”

The city’s final budget workshop (probably) will start at 9 a.m. Thursday in commission chambers at City Hall, 405 Biltmore Way. It can also be viewed on the city’s website and on YouTube.

  Coral Gables politics, Kirk Menendez, Melissa Castro, Rhonda Anderson