Miami's fiscal crisis: Look at the bright side

December 5, 1996

An Open Letter to America from the City of Miami:

As everybody knows, our city is in the throes of a financial crisis. The media coverage has been so gloomy that tourists, newcomers and investors are being frightened away.

It's time to clear the air, set the record straight and take the bull by the horns. The bad news: Miami is so broke that the state of Florida has stepped in to try to stave off bankruptcy.

The good news: Our days of harebrained spending, bumbling management and corruption are temporarily over, because there's basically nothing left to waste, misspend or steal.

Heck, we're in the hole by 68 frigging million bucks—who'd try to rip us off now? Which brings up the first of several ugly misperceptions that must be addressed.

• Misperception 1: The entire city is corrupt.

Flatly untrue. Not one current Miami commissioner or administrator is under indictment, house arrest or the regular supervision of a parole officer—a record we're darn proud of.

Most city employees are honest and hard-working, except for a few deadbeat relatives and cronies of politicians. So what if there's an ongoing criminal investigation. Don't tell us the FBI never body-wired any informants at your city hall!

• Misperception 2: The city infrastructure is a disaster.

To begin with, "disaster" is a relative term. Miami hasn't been flooded by a hurricane or leveled by an earthquake. Most nights it's not even on fire.

And if it was, we've still got plenty of skilled firefighters on the payroll, at least until March or possibly April.

• Misperception 3: The city is a dangerous place to live.

Oh, come on. If Miami was so unsafe, would Madonna and Sly Stallone own homes here? No way. Not even with their high-voltage fences and beefy bodyguards.

And don't forget Pat Riley. He could've coached an NBA team any place he wanted, but he chose Miami. Why? Not just because of the incredible contract he got, but because he wanted to be in a city that offered his family the very finest selection of high-voltage fences and beefy bodyguards.

• Misperception 4: The city is unsafe for visitors.

Contrary to what you've heard, the streets of Miami haven't been overrun by gangs and drug dealers—well, most of the streets haven't. Pat Riley's, for example.

And we've still got hundreds of experienced police officers on the payroll, at least until March or possibly April.

• Misperception 5:The city is a risky place to invest money.

Once more, "risky" is an awfully broad term. Perhaps you just like adventure. Maybe there's some riverboat gambler in your blood. Come on down and take a chance on Miami.

Given the negative publicity, it's understandable if major corporations and commercial investors are apprehensive about the city's ability to provide basic services, such as garbage pickup.

Be assured we've got some of the most efficient garbage collectors on the whole Eastern seaboard, at least until March or possibly April.

• Misperception 6: The city is about to be abolished.

Again, the word "abolished" can mean so many things. Remember that Miami is more than just arbitrary boundaries on a road map—it's a state of mind.

Say, for the sake of argument, that the city charter is dissolved. The magic wouldn't die. Miami wouldn't suddenly disappear. It would still be right where it is today, smack dab between the airport and the beach.

Which means you suckers still have to drive through the place, regardless of what happens in March or April.

Suarez's act won't play on Wall Street

December 4, 1997

Miami Mayor Xavier Suarez is in New York today, still trying to convince Wall Street that the city is in tiptop shape. Before he comes home, he should drop by Bellevue for a checkup.

Because the mayor is either certifiably nuts or seriously under-medicated.

In only a few short weeks, he has single-handedly managed to undermine both Miami's image rebuilding and its fiscal recovery, which were well under way before he took office.

First, Suarez dumped the well-regarded city manager, Ed Marquez. Then he declared war on the state oversight board that essentially had saved Miami from bankruptcy.

No wonder Moody's Investors Service, an important bond-rating firm, warned that the mayor's actions "have introduced significant uncertainty" about Miami's future, and "could disrupt or even reverse [the city's] recent progress toward fiscal recovery."

The firm added: "There does not appear to be any financial experience at the helm right now." In other words, the inmates are running the asylum.

Suarez's transformation from a reasonably bright, thoughtful guy to a babbling fruitcake has been both astonishing and sad to watch. Erratic, impulsive and imperious, Suarez has morphed into the delusional loner we once predicted of his predecessor, the tightly wound Joe Carollo.

Ironically, it's Carollo who has behaved for the last year like a grownup, making levelheaded decisions and cooperating with the rescue panel appointed by the governor.

Meanwhile, Suarez campaigned on the theory that the city's $68 million budget shortfall was fabricated for political purposes by Carollo, abetted by the state, this newspaper and other nefarious interests. Never mind that capable, independent persons who examined the city's books concurred that disaster was imminent.

Once elected, Suarez strolled into City Hall and began firing people. More incredibly, he talked of lowering taxes, a rather unorthodox approach to a cash shortage. He didn't even show up at the last commission meeting, choosing instead to hunker in Nixonian seclusion inside his office.

With each new day, Suarez gets loonier and Carollo looks more like Alan Greenspan.

The mayor's paranoid rant is playing poorly in all venues north of Flagler Street. He got a frosty reception in Tallahassee this week when he tried to convince lawmakers (one of whom he bizarrely addressed as "Senator Cabbage") that Miami doesn't need any more help.

As proof, Suarez proudly pointed to the city's current $13 million surplus—money, he might have added, that exists only because of cost-slashing measures imposed by the oversight board.

It takes a certain type of person to boast about somebody else's hard work, then try to get rid of them. A crazy person is what it takes.

As shown by Moody's preemptive strike, Wall Street will be an even tougher audience for the mayor. His conspiracy theories are bewildering enough, but wait until he tries to explain his choice of Humberto Hernandez as chairman of the City Commission.

As a rule, legitimate bankers and brokers shy away from accused money launderers. Suarez's appointment of the federally indicted Hernandez has done nothing to inspire Wall Street's confidence.

In fact, you'd have trouble finding any experts who would heartily recommend investing in Miami. Even before the election, the city's general obligation bonds were considered "junk," with an anemic double-B rating from Standard & Poors.

But don't underestimate Mayor Suarez. By the time he's finished campaigning, Wall Street could be inspired to create a whole new category for Miami bonds: Triple D, for deranged.