01-22-2011, 01:46 AM
Coral Gables has a three-way race for mayor this spring, but judging from a candidates’ forum Tuesday, it looked like two-against-one.
Challengers James Cason and Thomas Korge took turns criticizing the performance of incumbent Mayor Don Slesnick, who has been in office for 10 years. Slesnick said he had expected the flogging but is comfortable with his record.
Slesnick, 67, is a labor lawyer who represents municipal unions in other cities. He faces challenges from Cason, 66, a retired U.S. diplomat who served as ambassador to Paraguay and head of the U.S. Interests Section in Havana, and Korge, 61, a business and tax attorney and chairman of the city’s planning and zoning board.
The election is April 12.
The city’s pension plans, taxes and building and zoning department took center stage during a 90-minute candidates’ forum sponsored by the Ponce Business Association at Coral Gables Congregational Church. More than 125 people attended the event. The candidates took turns responding to questions from the association.
Pension costs
Both challengers said rising pension costs are eroding the city’s finances and preventing the city from making necessary investments in its budget reserves and repairs to its sidewalks.
“I’m here to tell you our quality of life is in jeopardy,” said Cason, who retired in Coral Gables in 2008 after 40 years as a diplomat. “Leaders must be held accountable. Do you think that those who got us into this mess can be trusted to help us get our way out of it?” he asked.
Armed with statistics, Cason began making his case.
“The city spends 77 cents of each dollar on wages, benefits and salaries for its employees. It gave overgenerous wages and did not put aside adequate funds for pensions,” Cason said.
Korge, the former chair of the city’s Pension Board, said, “We have unsustainable pensions and we are $197 million in the hole in our pension plans. In 2008, the pensions were underfunded by $168 million. We are going in the wrong direction.”
The pension board analyzed the fund’s investments and made recommendations. It did not vote on benefits and wages for the city’s police, fire and general employees unions. Korge touted his experience as a tax attorney and his knowledge of finance as strengths he would use to tackle Coral Gables’ pension woes.
Korge noted that Slesnick was the only one who voted in August against reducing future pensions and benefits for the city’s general employees union. The issue came before the commission because negotiations over wages, benefits and pensions between the Teamsters Local 769 and City Manager Patrick Salerno had broken down. With declining property taxes and higher expenses, City Manager Patrick Salerno pushed for changes in the pension formula that ensured a smaller payout and a higher rate of pension contributions from workers.
Slesnick said he voted against Salerno’s plan because those changes thrust the burden to the general employees more than the police and fire unions, which have their own pension contracts with the city.
“We must negotiate with the unions,” Slesnick said. “I wanted to vote for a plan the union would buy and go into effect and start reducing pensions. The fact is they are now in court over the plan the commission adopted. We’ve gotten nowhere, except another expensive court case.”
The mayor agreed the city’s pension funds were underfunded. But he said many pension funds, including Social Security, are also underfunded by design. “Most funds do it as pay-as-you go,” he said.
Slesnick said the pension funds lost money because their investments did not produce the returns that were anticipated — and those losses were beyond his control.
He touted how the Coral Gables City Commission has reduced pension costs.
“For the last seven years, we’ve done nothing but reform the pension plan. We did not vote on raising the cost of the pension plan. Now, employees pay 5 percent to the pension plan, which they did not do before 2003,” he said.
Korge said the reforms made in August were not major and called for more changes.
“Whatever they [general employees] had already earned, was kept. The reforms affect future earnings,” he said, “I think we have to cut away at this sooner than later.”
Cason agreed. “The union was able to put in all kinds of things into the formula in the last three years. If we don’t get a handle on this, there will come a time when we have to do drastic things like fire people.”
As the discussion turned to the city’s budget, Korge and Cason each criticized the city’s spending practices.
“We need to cut, seriously cut,” Korge said. “Taxes are a symptom of the disease, which is the lack of control over our spending. From 2001 to 2010, we went from a $95 million budget to a $145 million budget.”
Cason touted his experience as a U.S. State Department inspector who rooted out wasteful spending at U.S. embassies larger than Coral Gables government.
“I come in with a set of new eyes and ears,” said Cason. “We need to look for efficiencies. Otherwise, we will have to raise taxes or cut services, and I don’t want to do either.”
Slesnick challenged his opponents to explain which services they would cut.
“All of our money is going to people who put services on the street,” the mayor said. “The last three years, salaries have been flat. We cut 10 percent of employees. We run a pretty efficient government.”
Building Department
When the candidates discussed the city’s building and zoning department, both challengers called for reforms to make it more user-friendly. They blamed city leaders for not addressing its problems years ago.
Cason quoted from a 2004 consultants’ report that was critical of the department.
“It called for a one-stop shop and getting rid of consultants. It said management controls were not in place and management information reporting was nonexistent,” Cason said. “Six years later, a new city manager comes in, there’s a new study by the same group and they recommend the same things. And now he [Salerno] is doing it. Good for him.”
Korge said the department is “dysfunctional.” “We all have our horror stories. It has to be fixed.”
He reminded the audience that the building and zoning department had been involved in corruption under former Building Director Margaret Pass, who was fired in 2007 for gross mismanagement.
In September 2006, Jorge Reyes, an assistant to Pass, was charged with theft and fraud for allegedly splitting paychecks with acquaintances-turned-ghost employees from a temp agency who never worked a single hour.
Korge and Cason both accused Slesnick of backing former City Manager David Brown, who ran City Hall during the building department scandal. Brown resigned in November 2008 after scandals erupted over his relationships with female city employees and his attempts to cover up meals on his city-issued credit card.
“Margaret Pass reported to David Brown, who had the support of the mayor. David Brown was not up to the job. That’s the source of the problems,” Korge said.
After the forum, Slesnick said Brown, who became city manager in 2001, had done a lot of good things for Coral Gables.
“But his life deteriorated and he brought pain and embarrassment to himself and the commission. He did not make as many mistakes as they claim,” Slesnick said.
For example, he said the prior commission, not Brown, chose the vendor to rebuild the Coral Gables Country Club. When that project ran into problems, the current commission chose a new company to finish the work and reopen the club. Both were accomplished last fall.
In his closing remarks, Slesnick defended the building and zoning department. He said a new building director is streamlining the department; and the commission has reformed permit fees.
The Biltmore
On The Biltmore Hotel, the candidates found common ground. Though it has not paid its rent and golf management fees to the city since April 2009, all of them said the hotel must not be closed.
“They stopped paying the rent in the middle of the downturn. That doesn’t relieve them of their responsibilities,” Slesnick said.
Cason took a wait-and-see approach. “Let’s see how well they have managed. I hope we can work this out if they get good marks for managing the hotel. It cannot be a drain like so many other things in the city,” he said.
He urged Salerno to make the PriceWaterhouseCoopers report on the Biltmore’s business practices available to the public.
Korge blamed city leaders, including Brown, for not renegotiating the city’s lease with the Biltmore years earlier. He pointed out Salerno failed to implement an interim agreement with the hotel, which outlined a repayment plan for the back rent and terms for paying its rent.
“With a little luck, maybe they will finish this before the election,” Korge said. “I hope they do. The lack of rent comes out of our taxes.”
Challengers James Cason and Thomas Korge took turns criticizing the performance of incumbent Mayor Don Slesnick, who has been in office for 10 years. Slesnick said he had expected the flogging but is comfortable with his record.
Slesnick, 67, is a labor lawyer who represents municipal unions in other cities. He faces challenges from Cason, 66, a retired U.S. diplomat who served as ambassador to Paraguay and head of the U.S. Interests Section in Havana, and Korge, 61, a business and tax attorney and chairman of the city’s planning and zoning board.
The election is April 12.
The city’s pension plans, taxes and building and zoning department took center stage during a 90-minute candidates’ forum sponsored by the Ponce Business Association at Coral Gables Congregational Church. More than 125 people attended the event. The candidates took turns responding to questions from the association.
Pension costs
Both challengers said rising pension costs are eroding the city’s finances and preventing the city from making necessary investments in its budget reserves and repairs to its sidewalks.
“I’m here to tell you our quality of life is in jeopardy,” said Cason, who retired in Coral Gables in 2008 after 40 years as a diplomat. “Leaders must be held accountable. Do you think that those who got us into this mess can be trusted to help us get our way out of it?” he asked.
Armed with statistics, Cason began making his case.
“The city spends 77 cents of each dollar on wages, benefits and salaries for its employees. It gave overgenerous wages and did not put aside adequate funds for pensions,” Cason said.
Korge, the former chair of the city’s Pension Board, said, “We have unsustainable pensions and we are $197 million in the hole in our pension plans. In 2008, the pensions were underfunded by $168 million. We are going in the wrong direction.”
The pension board analyzed the fund’s investments and made recommendations. It did not vote on benefits and wages for the city’s police, fire and general employees unions. Korge touted his experience as a tax attorney and his knowledge of finance as strengths he would use to tackle Coral Gables’ pension woes.
Korge noted that Slesnick was the only one who voted in August against reducing future pensions and benefits for the city’s general employees union. The issue came before the commission because negotiations over wages, benefits and pensions between the Teamsters Local 769 and City Manager Patrick Salerno had broken down. With declining property taxes and higher expenses, City Manager Patrick Salerno pushed for changes in the pension formula that ensured a smaller payout and a higher rate of pension contributions from workers.
Slesnick said he voted against Salerno’s plan because those changes thrust the burden to the general employees more than the police and fire unions, which have their own pension contracts with the city.
“We must negotiate with the unions,” Slesnick said. “I wanted to vote for a plan the union would buy and go into effect and start reducing pensions. The fact is they are now in court over the plan the commission adopted. We’ve gotten nowhere, except another expensive court case.”
The mayor agreed the city’s pension funds were underfunded. But he said many pension funds, including Social Security, are also underfunded by design. “Most funds do it as pay-as-you go,” he said.
Slesnick said the pension funds lost money because their investments did not produce the returns that were anticipated — and those losses were beyond his control.
He touted how the Coral Gables City Commission has reduced pension costs.
“For the last seven years, we’ve done nothing but reform the pension plan. We did not vote on raising the cost of the pension plan. Now, employees pay 5 percent to the pension plan, which they did not do before 2003,” he said.
Korge said the reforms made in August were not major and called for more changes.
“Whatever they [general employees] had already earned, was kept. The reforms affect future earnings,” he said, “I think we have to cut away at this sooner than later.”
Cason agreed. “The union was able to put in all kinds of things into the formula in the last three years. If we don’t get a handle on this, there will come a time when we have to do drastic things like fire people.”
As the discussion turned to the city’s budget, Korge and Cason each criticized the city’s spending practices.
“We need to cut, seriously cut,” Korge said. “Taxes are a symptom of the disease, which is the lack of control over our spending. From 2001 to 2010, we went from a $95 million budget to a $145 million budget.”
Cason touted his experience as a U.S. State Department inspector who rooted out wasteful spending at U.S. embassies larger than Coral Gables government.
“I come in with a set of new eyes and ears,” said Cason. “We need to look for efficiencies. Otherwise, we will have to raise taxes or cut services, and I don’t want to do either.”
Slesnick challenged his opponents to explain which services they would cut.
“All of our money is going to people who put services on the street,” the mayor said. “The last three years, salaries have been flat. We cut 10 percent of employees. We run a pretty efficient government.”
Building Department
When the candidates discussed the city’s building and zoning department, both challengers called for reforms to make it more user-friendly. They blamed city leaders for not addressing its problems years ago.
Cason quoted from a 2004 consultants’ report that was critical of the department.
“It called for a one-stop shop and getting rid of consultants. It said management controls were not in place and management information reporting was nonexistent,” Cason said. “Six years later, a new city manager comes in, there’s a new study by the same group and they recommend the same things. And now he [Salerno] is doing it. Good for him.”
Korge said the department is “dysfunctional.” “We all have our horror stories. It has to be fixed.”
He reminded the audience that the building and zoning department had been involved in corruption under former Building Director Margaret Pass, who was fired in 2007 for gross mismanagement.
In September 2006, Jorge Reyes, an assistant to Pass, was charged with theft and fraud for allegedly splitting paychecks with acquaintances-turned-ghost employees from a temp agency who never worked a single hour.
Korge and Cason both accused Slesnick of backing former City Manager David Brown, who ran City Hall during the building department scandal. Brown resigned in November 2008 after scandals erupted over his relationships with female city employees and his attempts to cover up meals on his city-issued credit card.
“Margaret Pass reported to David Brown, who had the support of the mayor. David Brown was not up to the job. That’s the source of the problems,” Korge said.
After the forum, Slesnick said Brown, who became city manager in 2001, had done a lot of good things for Coral Gables.
“But his life deteriorated and he brought pain and embarrassment to himself and the commission. He did not make as many mistakes as they claim,” Slesnick said.
For example, he said the prior commission, not Brown, chose the vendor to rebuild the Coral Gables Country Club. When that project ran into problems, the current commission chose a new company to finish the work and reopen the club. Both were accomplished last fall.
In his closing remarks, Slesnick defended the building and zoning department. He said a new building director is streamlining the department; and the commission has reformed permit fees.
The Biltmore
On The Biltmore Hotel, the candidates found common ground. Though it has not paid its rent and golf management fees to the city since April 2009, all of them said the hotel must not be closed.
“They stopped paying the rent in the middle of the downturn. That doesn’t relieve them of their responsibilities,” Slesnick said.
Cason took a wait-and-see approach. “Let’s see how well they have managed. I hope we can work this out if they get good marks for managing the hotel. It cannot be a drain like so many other things in the city,” he said.
He urged Salerno to make the PriceWaterhouseCoopers report on the Biltmore’s business practices available to the public.
Korge blamed city leaders, including Brown, for not renegotiating the city’s lease with the Biltmore years earlier. He pointed out Salerno failed to implement an interim agreement with the hotel, which outlined a repayment plan for the back rent and terms for paying its rent.
“With a little luck, maybe they will finish this before the election,” Korge said. “I hope they do. The lack of rent comes out of our taxes.”