C4M - Discuss Hiring Freeze

Committee Referrals - C4 M

COMMISSION MEMORANDUM

RECOMMENDATION

Please place on the June 25, 2025 agenda a referral to the Finance and Economic Resiliency Committee (the “Committee”) to discuss the possible institution of a temporary hiring freeze for non-essential positions.

BACKGROUND/HISTORY

Over the past several years, the number of City staff positions in Miami Beach has grown significantly, despite a consistent decline in the City’s resident population. At the same time, we are now observing troubling fiscal trends—most notably a decline in the growth of both property tax revenues and resort tax collections, which are critical to funding City operations.

Simultaneously, the City faces pressing capital improvement and infrastructure needs, many of which have been deferred for too long and now require immediate attention and resources. In light of these competing demands, it is necessary to re-evaluate staffing levels and ensure resources are aligned with the City's long-term priorities.

ANALYSIS

A temporary hiring freeze on non-essential positions would allow the City to rein in operational spending and begin a thoughtful evaluation of workforce needs. Each Department will be directed to:

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Identify critical positions essential to core functions and public safety; Recommend positions that can be combined, eliminated, or outsourced for cost efficiency without sacrificing service levels; Propose operational changes that improve service delivery without expanding staff.

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While the general freeze on non-essential positions, if directed by the Mayor and City Commission, is in place, Departments would still have the ability to bring forward hiring requests to the Mayor and City Commission for approval. In addition, the City Manager, City Attorney, City Clerk and Inspector General will retain authority to approve hires in their respective charter offices in emergency or mission-critical situations, including the resignation or termination of an employee in a key position. This structure ensures operational continuity while reinforcing fiscal discipline.

FISCAL IMPACT STATEMENT

This hiring freeze would produce immediate and long-term cost savings by curbing payroll growth, reducing benefits liabilities, and encouraging strategic staffing realignments. The total fiscal

impact will depend on departmental recommendations and the extent of positions held vacant, combined, or outsourced. However, even modest reductions in hiring can free up significant funds for infrastructure and capital improvement needs.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The City of Miami Beach must proactively adjust to changing economic conditions. A targeted, temporary hiring freeze—paired with a department-by-department review—will help align staffing levels with actual service needs and budget realities. By prioritizing infrastructure and exercising budget discipline, the City can better position itself for long-term sustainability and resilience.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s): N/A

Department

Office of Commissioner David Suarez

Sponsor(s)

Commissioner David Suarez

Co-sponsor(s)

Commissioner Kristen Rosen Gonzalez Commissioner Joseph Magazine

Condensed Title

Ref: FERC - Temporary Hiring Freeze for Non-Essential Positions. (Suarez/Rosen Gonzalez/Magazine)

Previous Action (For City Clerk Use Only)