EDITORIAL: In Coral Gables, bigger isn’t always better

In Coral Gables, bigger isn’t always better

In the fall of 1996, the Coral Gables Gazette published its first issue with the headline: “With No Debate, Coral Gables Passes $71.7 Million Budget.” Nearly three decades later, debate is abundant. The proposed fiscal year 2026 budget now stands at $308.2 million. Last week’s annual budget workshop on July 2 revealed a city government proud of its services, divided on its priorities, and weighed down by its scale.

Adjusted for inflation, Coral Gables now proposes to spend more than twice what it did in 1996. That invites a question: Is life in Coral Gables twice as good?

The answer lies in proportion.

The city’s population has grown but modestly. In 1996, the U.S. Census recorded roughly 41,000 residents. Today, Coral Gables is home to about 49,000—a 20 percent increase. Staffing has risen at a similar rate: from 808 employees in the mid-1990s to a proposed 955 positions for the coming fiscal year. That may sound proportional, but per capita spending tells a different story.

In 1996, the city spent the equivalent of $3,473 per resident in today’s dollars. The proposed FY2026 budget calls for $6,289 per capita—an 81 percent increase in real terms. That increase appears to reflect steady operational growth rather than a major surge in capital improvement projects, whether measured in nominal or inflation-adjusted dollars. Coral Gables has simply become more expensive to operate.

Soaring property values have driven higher assessments and sharply increased tax collections. The city has used that revenue growth to fund steadily expanding budgets, even as it has kept the politically sensitive property tax rate nearly flat for 30 years: 5.51 mills in 1996 and 5.559 today.

This expansion brings consequences. Rising expectations, deeper service footprints, and broader administrative responsibilities all follow. A leaner city can make do with less. A sprawling one must justify every new layer.

The July 2 workshop highlighted the city’s accomplishments in planning, parks, capital investment and staffing. It also underscored the challenges of scale: how to sustain legacy services while venturing into new areas, and how to fund long-term projects when revenues depend on volatile real estate trends.

The contrast with the past is instructive. In the 1990s, city commission meetings often ended before lunch. Today, they can stretch into the evening, sometimes lasting nearly ten hours. That reflects a system increasingly burdened by its own complexity, inefficiency, politics —or all three.

Then-Mayor Raul Valdes-Fauli once said, “A budget hearing without Roxy Bolton is like a garden without flowers.” He was referring to the late beloved activist whose spirited presence enlivened civic life. Today, public comment is mostly met with defensiveness or dismissal—a tone that reflects the mood more than the moment.

Coral Gables has grown and its progress deserves recognition. Still, there’s value in studying how simpler structures once served the city well. As per capita spending doubles in real terms, city leaders have an opportunity to ensure that growing investment yields not just more services but better ones.

The 2026 budget offers a moment for self-examination. With inflation cooling and property values flattening, the era of effortless revenue growth may be closing. Future budgets will require more than efficiency—they will demand clarity. Taxpayers deserve a clear accounting—not just of how much is spent, but why, and to what end.

This marks a turning point. The decisions made this fall won’t just shape next year’s numbers—they’ll define whether Coral Gables can sustain its ambitions and uphold its civic promise.

In a city that values beauty, heritage and excellence, fiscal clarity is a standard to uphold. And now is the time to do so.

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