Miami Beach City Commission Final Budget Adoption and Millage Rate Reduction, 2025-09-30
Miami Beach City Commission Final Budget Adoption and Millage Rate Reduction, 2025-09-30
On September 30, 2025, the Miami Beach City Commission held a hybrid public hearing to finalize the fiscal year 2026 budget and millage rate, as statutorily required by midnight. The meeting began at approximately 5:00 PM and lasted nearly five hours, concluding with the adoption of a reduced millage rate, approval of a $11 million surplus rebate to residents, and $3.5 million in budget cuts across multiple departments.
Public Comments & Testimony
- Omar Jimenez (candidate for City Commission) criticized the 45% budget growth over five years, record 2,330 employees, and $1.2 billion in unfunded capital projects, calling for a tax rate rollback and fiscal responsibility.
- Paula Allen (345 Ocean Drive and 100 Meridian Avenue) opposed spending on arts projects and design fees, urging focus on infrastructure (pumps, pipes) and competitive salaries.
- Celia Gruce (1201 20th Street) stated the city has a "spending problem" and cited $42 million spent on a park while infrastructure deteriorates.
- Mitch Novick (901 Collins Avenue) called for $200–300 million in budget cuts, noting 17 consecutive utility rate increases and a doubling of the budget since the former city manager left.
- Monroe Mann (1110 Pennsylvania Avenue) raised seven points including filthy sidewalks, opposition to tax increases, bringing metro-mover, enforcing marijuana laws, restoring a bookstore and movie theater, ending mandatory 18% tips, and licensing electric bikes/scooters.
- Ava Frankel (70 LaGore Circle, candidate for Group 1) suggested creative revenue solutions (e.g., ad-supported parking discounts) and advocated for underground water storage over above-ground tanks.
- Tom McGlone (736 13th Street) questioned the billion-dollar budget, cited inefficiency (13 inspections for a kitchen renovation), and called for a Doge-style audit.
- Walter O'Leary (110 Washington Avenue, economics professor at University of Miami) urged the city to adjust to rising costs and limited resources, not continue tax-and-spend.
- Quentin Weisberg (4560 Royal Palm Avenue) opposed rising property taxes given insurance and utility cost increases.
- Sharon Weiss (233 81st Street) called the budget "mind-boggling" and urged a millage rate rollback, warning of a condo crash.
- Inez Flax (1500 Ocean Drive #1006) agreed with previous speakers, stating Miami Beach is unaffordable.
- Andrea Speradinakos (227 Michigan Avenue, 25-year resident) criticized the $900 million budget for 80,000 people, 17 consecutive rate increases, and bureaucratic bloat (e.g., two-year permit for a front door).
- Irene Bigger (1500 Ocean Drive) advocated for public-private partnerships and review of tax money efficiency.
- Valerio (1580 Bay Road) concurred with opposition to the tax hike, noting $10,000 property tax increase and 400 vacant units.
- Janet Silverman (6899 Collins Avenue, board member of North Beach/Allison Park Neighborhood Association but speaking personally) noted the budget is not prepared on a ground-up basis and lacks benchmarking against similar cities.
- Karen Rukas (non-homesteader) highlighted the 10% annual cap on non-homestead property tax increases is unsustainable, and requested a special assessment loan program.
- Wayne Roberts noted that commercial property owners pass on tax increases to tenants, driving business closures.
- Daniel Seraldo (candidate for Group 1) criticized the meeting's length and micromanagement, and suggested cutting $800,000 for the Wadza Palooza Fitness Festival.
- Lori Bakum (representing Power Access and South Beach Jazz Festival) defended arts and culture nonprofits as economic drivers.
Discussion Items
- Budget Process and Millage Rate: The commission debated the FY2026 budget and millage rate. City Manager Eric Carpenter and CFO Jason provided details on the budget, which had grown due to union contracts (police and fire). The proposed millage rate was 5.8702 mills (6.5% above the rollback rate of 5.5114). Commissioner Suarez argued the rate effectively increases taxes, citing a 6.5% increase vs. 2.9% inflation, and called for a rollback to the rollback rate. Commissioner Magazine noted the city had already cut $2.5 million from the budget and proposed further cuts. A lengthy discussion ensued about whether to roll back the millage rate entirely or find additional savings.
- Surplus Rebate: Commissioner Fernandez proposed using the anticipated $11 million surplus from FY2025 to send rebate checks to homesteaded property owners (and possibly renters). After debate, the commission voted 7-0 to direct staff to return with a plan by the October 29 meeting to distribute the surplus to residents, including a potential set-aside for tenants.
- Line-by-Line Budget Cuts: The commission went through 66 items in Attachment E, voting to accept or reject each. Major cuts included: eliminating a vacant CIP field inspector ($70,000), reducing interpreter services for special magistrate ($1,000), cutting newspaper public notices ($30,000), eliminating newspaper subscriptions, reducing city manager's office operating expenditures, eliminating a vacant code compliance officer position (rejected), reducing funding for community satisfaction survey (shifted to every four years, saving ~$13,000), cutting overtime for Rolling Loud event ($100,000) and Cooper fitness testing ($10,000), reducing the crime lab contract from $200,000 to $100,000, eliminating the film incentive program and position, and cutting six inclusionary aid positions and one recreational leader. Total savings from the line-item exercise: approximately $793,500. Combined with previous cuts of $2.5 million, total savings reached $3.5 million.
- Program Budgeting and Zero-Based Budgeting: The commission discussed moving to program-level budgeting for FY2027 to provide granularity. Commissioner Suarez proposed a motion to invite the state's Doge to audit the city, but it lacked a second. The commission directed staff to come back with a line-item budget for FY2027.
- Millage Rate Reduction: Commissioner Fernandez moved to reduce the general fund millage rate from 5.8702 to 5.8560, reflecting the $793,500 in cuts. The motion passed 7-0, marking the first reduction in the operating millage rate since 2018-2019.
Key Outcomes
- Millage Rate Reduced: The commission approved a final ad valorem millage rate of 5.8560 mills for general operating purposes (down from 5.8702), and kept the debt service rate at 0.279 mills. The vote was 7-0.
- Budget Adopted as Amended: The FY2026 budgets for all funds (general, geo bond, debt service, City Center RDA, North Beach CRA, enterprise, internal service, and special revenue) were adopted as amended, reflecting the millage reduction and the $3.5 million in cuts. The capital improvement plan for FY2026-2030 and the capital budget for FY2026 were also approved.
- Surplus Rebate Planned: The commission directed the city administration to return the anticipated $11 million FY2025 surplus to residents, with a plan to be presented at the October 29 meeting. The motion included exploring ways to include renters.
- Future Budget Process: The commission agreed to move toward program-level budgeting for FY2027 to provide more granularity and enable more efficient cuts.
- Resolutions Adopted: R7A (millage), R7B (budget), R7C (Normandy Shores NID millage), R7D (Normandy Shores budget), R7E (capital improvement plan), R7F (North Beach CRA budget), and RDA and CRA items were all approved as amended.
Meeting Transcript
Please ensure that you sign in first. You can use the sign in sheets on the podium or scan the QR code on top, please. Alex J. Fernandez. David Suarez. Joseph Magazine. City Manager Eric Carpenter. City Attorney Ricardo J. Dopico. City Clerk, Rafael E. Granado. As a courtesy to everyone present, please silence all cell phones and electronic devices at this time. Lobbyist disclosure reminder. If you are a lobbyist appearing before the city commission or any city board, you must have registered with the city clerk prior to participating. If you have not yet registered, please do so immediately. Presentation reminder. If you submitted a presentation within the twenty-four hours prior to the start of today's meeting, please check the computer located at the podium to ensure your file is properly loaded. When the floor opens for public comment, please step up to the podium, speak clearly into the microphone, and begin by stating your name and address for the record. How to participate in public meetings via Zoom. As soon as the host grants you permission to speak, a dialog box will pop up on your screen with two options. After you finish speaking, mute your microphone and click on the lower hand icon. If you are joining Zoom via phone, tap the keypad icon and press star nine to notify the meeting host that you have raised your hand to speak. After you finish sharing your comments, be sure to press star nine to lower your hand and star six to mute yourself. Thank you for your cooperation, and thank you for participating in your local government here in the city of Miami Beach. Another one of them was from Nick from the only one. Please take your seats. The meeting is about to begin. Remember to speak into the microphone as this meeting is being recorded for public record. Please stand by. We are going on air in five, four, three, two, one. Good afternoon. Thank you for coming to our commission meeting to finalize our budget, which we are statutorily mandated to do by today. 1159 and 59 seconds. Good afternoon, everyone. Welcome to today's hybrid commission meeting. The city commission is physically present in the commission chambers at Miami Beach City Hall. 1700 Conventional Center Drive, third floor. Members of the public are invited to attend either in person or virtually. If you're joining us virtually, here's here's how to participate. You can log in using the Zoom app or visit the Zoom.us on your browser. You could also call by phone at 305-224-1968. Again, 305-224-1968 or toll-free eight eight eight four seven five four four nine nine. The webinar ID is eight one three nine two eight five seven six seventy-one pound. Again, the webinar ID is eight one three nine two eight five seven six seventy-one pound. If you'd like to speak on an item during the meeting, please click the raise hand icon if in the Zoom app or press star nine on your phone. The Zoom link, webinar ID and phone numbers stay the same for every commission meeting. Before we begin, I'd like to go over city lobbyist regulations. All lobbyists must register with the office of the city clerk located on the first floor of City Hall. You do not need to register as a lobbyist if you're an expert witness giving only technical or specialized testimony. A representative of a neighborhood association or a not-for-profit group speaking without pay or reimbursement, a public official or employee acting in your official role, someone required to appear before the board or commission for responding to a code violation or a private citizen speaking on your own behalf without compensation.
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