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City subsidy for trolley likely over $1 million

City Manager Pat Salerno said the Coral Gables Trolley program, “…was budgeted to go into the hole every year.”
City Manager Pat Salerno said the Coral Gables Trolley program, “…was budgeted to go into the hole every year.”

While at its most recent meeting the Coral Gables City Commission ultimately approved the purchase of two used diesel trolleys to replace two “failing” hybrid vehicles in the fleet at a cost of $70,000, it was only after it was disclosed that the program costs significantly more than advertised.

City Manager Pat Salerno told the commission, “In the last several week, we have determined that the (Public Works) Department was simply under budgeting the (trolley) expenditures on a regular basis to the tune of a couple hundred thousand dollars a year.” This would mean the city has had to use more than $1 million in general funds to subsidize the program since it began six years ago. Salerno said consequently the city has made cost adjustments by cutting hours of service.

Commissioner Ralph Cabrera then asked for clarification: “We’re sustaining this (trolley program) with general fund dollars?” Salerno responded, “Yes.” Cabrera reminded his colleagues that the subsidy excluded $75,000 in vandalism related expenses last year.

Cabrera then called the project as “unsustainable” as the county ½-Penny Sales Tax revenues that were to fund the trolley have been less than projected. “Yeah, it’s pretty trolley; it gets a lot of ridership, mostly low-wage earners and students,” said Cabrera. “But residents are not riding the trolley. I have a problem supporting a venture that continues to cost us money.”

Salerno responded that the trolley, “…was budgeted to go into the hole every year” and vowed, “no more mystery budgeting.”

While Commission Maria Anderson acknowledged she does not ride the trolley, she did call for a comprehensive report seeking to learn “why should we keep the trolley.”

Vice Mayor Bill Kerdyk, the trolley program’s architect, defended how important the trolley is to the quality of life, adding that the 6,000 daily riders free up 700 parking spaces.

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