C7G - Suspend Cpi Hike, Go Cashless

Resolutions - C7 G

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission (City Commission) hereby accept the recommendation of the Finance and Economic Resiliency Committee (FERC), at its July 16, 2025 meeting to (1) suspend the FY2026 Consumer Price Index increase to residential parking rates; and (2) shift to fully cashless payments at all city-owned garages effective October 1, 2025 and adopt the resolution.

BACKGROUND/HISTORY

On September 25, 2019, the City Commission adopted Ordinance No. 2019-4299, providing, among other things, for an annual adjustment by the City Manager to certain specified fees and charges in Appendix A to the City Code, entitled “Fee Schedule”, to reflect increases in the Consumer Price Index (“CPI”).

On November 20, 2024, the City Commission adopted Ordinance No. 2024-4657, adjusting all parking fees to increase by CPI annually, with a 3% cap, with certain parking fees to be rounded to the nearest cent and other parking fees to be rounded to the nearest dollar starting in FY2026, as set forth in the Appendix A.

On May 21, 2025, at the request of Commissioner Alex Fernandez, the City Commission referred Item (C4 W) to the Finance and Economic Resiliency Committee (FERC), to discuss the suspension of the annual CPI increase to residential parking rates and evaluate the possibility of a cashless option at all city owned garages.

At the July 16, 2025, FERC meeting, the administration presented the item and the members unanimously recommended going forward with both recommendations.

The First Reading of the Ordinance amending Appendix A of the City Code to exclude the FY2026 CPI increase for residents registered in the Resident Parking Discount program is also included in this Commission agenda as a companion item.

ANALYSIS

This proposed recommendation reinforces the City’s commitment to affordability while preserving the flexibility to reinstate CPI-based increases in future fiscal years based on economic conditions

and City needs.

Concurrently, the Administration is assessing the operational, financial, and technological feasibility of transitioning to a fully cashless payment model at all City-owned parking garages. This initiative reflects a broader industry trend toward modernized, digital payment systems and is intended to enhance both customer convenience and operational integrity.

The benefits of a cashless system include faster transaction times and significant reductions in costs associated with cash collection, handling, and deposit. Additionally, a cashless model aligns with public expectations for seamless and secure digital services, particularly as contactless and mobile payments become the norm across various sectors.

The suspension of the annual CPI increase to residential parking rates is estimated to result in a revenue loss of $100,000. However, this revenue loss would be partially off-set by the $60,000 cost savings of shifting to fully cashless payment at garages.

The Administration wishes to implement cashless payments at garages concurrent with the implementation of the FY2026 CPI increase for all non-residential rates on October 1, 2025.

FISCAL IMPACT STATEMENT

The Administration has determined that the proposed one-year freeze will result in an estimated revenue loss of approximately $100,000. While the transition to fully cashless operations is expected to yield $60,000 in cost savings, the projected net fiscal impact remains a $40,000 shortfall. Although modest in the context of the overall budget, this shortfall warrants close monitoring to ensure the continued financial stability of the Parking Department.

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

N/A

CONCLUSION

The Administration recommends that the Mayor and City Commission hereby accept the recommendation of the Finance and Economic Resiliency Committee (FERC), at its July 16, 2025 meeting to (1) suspend the FY2026 Consumer Price Index increase to residential parking rates; and (2) shift to fully cashless payments at all city-owned garages effective October 1, 2025 and adopt the resolution.

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):

Department

Parking

Sponsor(s)

Commissioner Alex Fernandez

Co-sponsor(s)

Condensed Title

Suspend FY26 CPI Increase to Parking Rates/Shift to Cashless Payments at All Garages. (AF) PK

Previous Action (For City Clerk Use Only)