Oh, I thought
» No, there was shades.
» Mr. Clay, are you ready?
>> Yes, sir.
» Yes, sir.
>> Okay. Thank you.
» Okay. Thank you.
Good afternoon, uh, mayor,
vice mayor, members of council,
Craig Clay, deputy city manager. Um, we
generally start our budget process in
February uh, each year as we begin to
look at a number of things that are out
there uh, in the universe.
This year we started a little bit early
because we knew that there were going to
be some things happening. Uh we started
in January uh right after the release of
a report by the Florida Department of
Government Efficiency that talked about
a number of things
um regarding what they termed to be
wasteful spending etc etc.
We then came back in June.
>> Excuse me. Clay, are there any residents
» Excuse me. Clay, are there any residents
from the city of Miami Gardens present?
None.
>> But we're live.
» But we're live.
>> You good?
» You good?
>> Okay. We're live.
» Okay. We're live.
>> We are live. We are live.
» We are live. We are live.
>> No, don't don't say that.
» No, don't don't say that.
>> No, don't.
» No, don't.
>> We're live.
» We're live.
>> No, I just wanted that for the record.
» You can go ahead, Miss CL.
You
>> Yeah, I'm ready. Okay, I'm ready. All
» Yeah, I'm ready. Okay, I'm ready. All
right. And so
after after that we we began to think
about where we would land moving forward
in fiscal year 2027.
And so where we landed is what we're
calling a tale of two budgets. Um we
know that there are some things out in
the universe which we will talk about uh
during the presentation uh in terms of
state legislation that will potentially
require us to do certain things. Um
having said that though uh we we will we
planned accordingly. Uh but today we'll
take you through some things that you
have normally seen in this budget
presentation where we talk to you about
what our taxable value uh has become uh
what that means for us uh from a
financial standpoint, talk to you about
some budget highlights and talk about
what we believe to be uh on the horizon.
And so to summarize our general fund
budget, the preliminary property tax
value for this year is a little over 10
billion, $10.1 billion, which is an
increase of $482 million approximately
above our taxable value for fiscal year
2026.
The increase in taxable value would
generate an additional $3.2 2 million in
fiscal 27 if certain things don't happen
come November.
The budget will be estimated to be
approximately 128 million uh which is
about $6 million above this year's
general fund in fiscal year 2026.
Historically, our taxable values have
risen since 2015.
uh we see incremental changes which is
kind of what we want to see uh from 15
to 22. You look at 23 24 and 25 uh there
were some blips in a good direction uh
because of new construction and just
general increases in taxable value u
after subsequent to co uh and this year
you see that percent change is about 5%
we'll call it 4.82%.
We are proposing a millage rate, our
operating millage rate of 6.9363
mills. Uh this is the same millage rate
uh for the last 14 budgets.
Our debt service millage rate which is
solely for payback of our general
obligation bond
4137 mills. So for essentially 41 cents
on $1,000 of taxable value, our
residents get all of the new park
amenities that you see and continue to
see as we finish up those projects.
This next slide is the graphical
representation of what you just saw. We
want to continue to see those blue bars
continue to increase and that orange
line continue to come down. And as long
as those blue bars increase, the orange
bars uh will and should continue to uh
come down.
What is the impact on the average
homeowner?
And so based on our average homesteaded
taxable value of $131,000,
if
nothing were to happen in November, the
average homeowner would pay an
additional $5.50 50 per month or about
$66 per year. I want you to keep that
$131,000
number in mind as we move through.
A few highlights on the personnel side.
This is the first year of our new FOP or
Federation of Police contract. Uh that
used to be the PBA.
Uh there is a slight increase in our
overall pension rates. This is pretty
good news for us. Since COVID, that
number has been somewhere between four
and 7% each year.
On the flip side of that though, we do
anticipate a rather significant increase
in our health insurance premiums moving
into fiscal 27. Uh we have asked our
carrier to look at a couple of things as
we've met with them. And in August and
when we get back together in September,
we hope to have uh some better news on
that front.
In our operating budget, the transfer to
the CRA uh due to property values
increasing in the CRA uh will increase
from 3 million to 3.2 million. Um and as
a result of many of the new buildings
that we have, we anticipate an an
increase in our property insurance
premiums. We will also have a better
idea of that when we get back together
in September because we will receive uh
those estimates around August as well.
On the revenue side, uh this is typical.
Uh we just checked the website uh
yesterday. These values are not
available. Uh these are the
intergovernmental revenues that we talk
about. They come from the state
municipal revenue sharing, half cent
sales tax and communications taxes.
Those estimates should be available
around early August. We will incorporate
those uh into our numbers uh and bring
that back at our first budget hearing uh
in September.
As we talk about
how we move forward, there are two
pieces of legislation uh that we believe
to be critical for us to keep our eyes
on. One of them is already passed, will
become effective January 1st of 2027.
And that's SB134.
That is the DEI bill. And HJR1F is the
joint resolution uh that was passed by
the House, the Florida House, and
Florida Senate back in early June of
2026.
And so what what this calls for is a
ballot amendment
to be on our November ballot that talks
about and asks residents of the state of
Florida whether or not they want to at
some point eliminate property taxes. So
the first step in that measure is an
increase in the homestead exemption from
50,000 up to 150,000.
So throughout this presentation, we're
going to talk about year one versus year
two. So that is year one. Year one would
be an increase in the
uh homestead exemption from 50,000 to
150,000.
The next step, if the measure passes,
would be the implementation of what they
are calling a super exemption. And this
would be an increase in the homestead uh
exemption from 150,000 to 250,000.
The most critical part of the bill,
which is not being talked about as much,
is the mandate that some at some point
the Florida legislature gets to full
elimination of property taxes for
homesteaded property
after year two. What the bill says is
that the homestead exemption would
increase by the rate of inflation each
year until full elimination.
We don't know how long full elimination
will be, but
on the floor there was discussion about
a five-year time frame. So that would
take us out to 2032 potentially beyond.
That part is very critical because from
a budgetary standpoint we can't
calculate it yet because we don't know
what inflation would be come year three,
four, five and so on and so forth.
So if we take a look at our revenue
sources in our general fund, we see that
property taxes, which is the far left
bar, is by far the largest generator of
revenue uh in our general fund. And
that's the case for any local government
throughout.
The next highest source
intergovernmental revenue is four times
less than property taxes.
These revenue sources together total
about $126 million thereabout in our
general fund. What we anticipated to be
in fiscal year 2027.
If the ballot measure passes, what will
happen is a significant reduction in
property taxes from 68 approximate to
$58 million approximate. [snorts]
Reducing that general fund revenue to
$116 million.
Obviously, you see on the right hand
side of the screen what that would do to
us. If you total up all of those numbers
that that $61 million to fund the police
department, about $17 million for park
and wreck, and everything else in the
general fund, including uh debt service,
our internal services departments, etc.,
etc., is about $50 million.
So that year one loss
totals to $9.7 million or let's say $10
million.
Year two, as we talked about when we
implement the super exemption, that
number increases to $14 million
thereabout.
And so obviously
that type of loss causes us to have to
make adjustments to our plan.
adjustments to our budget and
adjustments to where where we will wind
up.
And so, as we began back in February,
move through June, now here in July, uh
we we talked about budget reduction
philosophy uh and best practices.
And with any budget, there are only a
few things that you can do.
You can increase revenues, decrease
expenses, or do a combination of both.
And so what we've done is is three
things. We've done what we call
strategic expense management. Uh as of
July 1st, manager Benson implemented a
hiring freeze in our general fund. Um
and we've done revenue optimization.
And so those revenue generating
departments in the general fund uh park
and recreation planning and zoning
they have been tasked with taking a look
at their fees and one making sure we
generally do this every two years but we
did it last year and because of
everything that's going on we're doing
it again this year. Uh do our fees make
sense across the board? Doesn't always
necessarily mean that fees will go up.
It necessarily means that our fees need
to be competitive with any and everybody
that's in the surrounding area. Fees
could be lowered, but if we lower them,
does that mean that we will generate
more revenue because of more usage?
Those types of things we have to think
about.
And so, as we looked at that
um on the expense side, uh a couple of
adjustments have been made.
81 total vacancies um have been frozen
and we've made a significant reduction
in the number of special events.
Uh these two adjustments would prevent
any furlows being necessary and it would
prevent any layoffs from being
necessary.
Here are the detailed list of the
special event cuts.
Uh some of them uh we have incorporated
them into parks programming uh with
little impact
and some uh those national holidays
where we have done things in the past
Veterans Day, MLK Memorial Day, 4th of
July uh those uh remain.
Moving forward, uh, we will have a
workshop on, I'm sorry, a our first
budget hearing will be September the
9th, 50:01 p.m. And our final budget
hearing on September the 23rd at 5:01
p.m. Mayor, that's all I have.
There are any questions, we'll be more
than happy to address those.
How will we for those new incoming
council members? Will they get a budget
workshop for them during the uh time off
in August?
>> Will you have you have two budget
» Will you have you have two budget
hearings in September? So the the date
of the election is the 18th.
>> Yeah.
» Yeah.
>> Okay. So we would meet we we will be
» Okay. So we would meet we we will be
meeting with them prior to the September
hearings
as a part of their meeting with us. We
will walk them through the sim similar
presentation andor updates to that
uh prior to those September meetings.
>> Okay. So they will have the same
» Okay. So they will have the same
information you have currently and the
updated information going forward.
>> All right. Thank you.
» All right. Thank you.
>> Question. I don't have a question.
» Question. I don't have a question.
>> Well, it it's not more so of a question.
» Well, it it's not more so of a question.
It's about moving forward. So, should we
uh should the voters of the state um
decide to move forward with the elim the
elimination of property taxes and a
implementation plan is put in place? How
would we go about with the implementing
of our
uh the new budget that will basically
include the cuts and the adjustments.
Another uh bill that recently passed uh
vice mayor which I didn't have it up
here and I I don't remember the the
identifying number but the governor is
now required that when we submit our
budget on uh in late September we also
submit with that a listing of cuts that
you have identified and and that is will
be required of of us. uh if it does not
pass, you can certainly restore any cuts
that have been made um
it would through a budget amendment or
budget adjustment uh that we would do at
that particular point in time.
>> So, so the budget that my colleague my
» So, so the budget that my colleague my
colleagues and I will vote on with the
first and second hearing in September,
we're voting on that would be with the
proposed cuts.
>> Yes, sir.
I thought we were the proposed cuts
wasn't going to be t that wouldn't take
place unless it was I mean unless it
passed in November. That's that was the
purpose of me saying how would that
implementation look what that imple
implementation would look like.
>> Do you get what I'm saying?
» Do you get what I'm saying?
>> I get you. I get you.
» I get you. I get you.
>> So why are we voting on the cut of the
» So why are we voting on the cut of the
budget if we don't necessarily know
what's to come?
I I think for us uh Vice Mayor, it's a
it's a timing thing. Uh because
you're going to you're going to start
implementing your budget October 1st,
your new budget October 1st.
I think the safest thing for us to do is
to march along a path that prepares us
for the worst case scenario. It is much
easier for us to begin restoring cuts if
something doesn't happen versus trying
to implement cuts once we've started
down a certain path.
Okay. I'm I'm fine with either or, but
it wouldn't be implementing cuts because
we have two prepared but we basically
have a tail of two budget. So, it
wouldn't be implement. we know what
we're looking forward and what how we be
moving forward. So, it wouldn't be that,
but I'm cool with either or. I just was
curious as it relates to moving forward,
why would we why would we do that? But,
okay. Thank you.
» No other questions.
» Questions?
>> Thank you, Mr. Clay.
» Thank you, Mr. Clay.
I guess these are the hard facts we got
to deal with right now.
» Mr. Manager,
that's it.
>> Unless there are other questions.
» Unless there are other questions.
>> Showing no other questions then. and and
» Showing no other questions then. and and
mayor I just want to thank you vice
mayor for your question but also keep in
mind that we have to submit a balanced
budget going forward. So that's why
we're taking the path that we're taking
right now
>> and if there needs to be an adjustment
» and if there needs to be an adjustment
down the road if it doesn't pass we have
that flexibility to address it at that
time as well. So, and I think that's
important as well that we can always do
a budget amendment
um to bring back or to unfreeze the the
81 positions and all of that. So, I I I
think although, you know, we're we're
working towards the, you know, being
prepared should this happen in November
based off the voters's decision. Um but
but I I don't want to shine away from
81 cuts is an interruption to municipal
services because although we're
functioning now without them, but that
doesn't mean one don't need it to
effectively do their job. So that's
that's what the reality hit in for me
when I heard that and saw that I was
like, "Yeah, okay. This is this is
actually really happening." Um, so
that's all I have for that.
» All right.
>> I just have a statement to say. I I
» I just have a statement to say. I I
commend the um finance team and everyone
for putting together this budget
especially at this time when so much is
at stake. I think fiscal conservatism
probably is the name we'll give this as
we go forward.
But I believe as stated the beauty of
being conservative now
um even if the
law does not pass, it now gives us an
opportunity to re-evaluate
our expenditures
and are they truly really contributing
to the
needs that the residents have. Sometimes
a reset is not a bad idea.
Um, of course, keeping in mind as my
councilman said that for those things
that require
such as departments, I'm sure our
manager will implement the needed steps
should any department fall below. And
I'm confident he would not have our city
function below standard of safety and
care. Um, so just thank you for the
work. I know it was difficult um going
conservative at any time on a budget. As
a business owner myself, I definitely
understand. So just want to give
gratitude. Thank you.
» All right, there's no more questions or
any issues. Our hearts and minds are
free and clear. This workshop is
ajourned.
So that wasn't