R5H - Exclude Cpi, Add Garage Rates

Ordinances - R5 H

COMMISSION MEMORANDUM

9:40 a.m. Second Reading Public Hearing

RECOMMENDATION

The Administration recommends that the Mayor and City Commission (City Commission) hereby accept the recommendation of the Finance and Economic Resiliency Committee, at its July16, 2025 meeting to exclude the FY 2026 consumer price index (CPI) adjustment on October 1, 2025 for all Miami Beach Residential rates and add the monthly garage residential rates to Appendix A of the city code by approving the Ordinance at Second Reading/Public hearing on September 17, 2025.

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”).

At the May 21, 2025 City Commission meeting, at the request of Commissioner Alex Fernandez, the City Commission referred an agenda item (C4 W) to the Finance and Economic Resiliency Committee (FERC), to discuss the suspension of the annual CPI increase to residential parking rates for the upcoming fiscal year 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.

The proposed Ordinance seeks to adjust all rates for residents registered in the Resident Parking Discount program to exclude a CPI increase for FY 2026.

At the September 3, 2025 City Commission meeting, the City Commission approved the proposed Ordinance amendment on First Reading and scheduled a Second Reading/Public hearing for the September 17, 2025 City Commission meeting.

ANALYSIS

Under the City Code, certain parking fees adjust every five years based on the Consumer Price Index (CPI), rounded to the nearest dollar. The first such adjustment, scheduled for October 1, 2024, would have increased Resident Parking Discount Program rates from $1 to $2 per hour, and on-street meter rates in the Entertainment District from $4 to $6 per hour, among other increases.

In FY 2025, pursuant to Resolution No. 2024-33300, the Mayor and City Commission suspended these automatic adjustments to reduce the financial burden on residents, workers, and visitors. Subsequently, Ordinance No. 2024-4657 established annual CPI-based adjustments with a 3% cap, effective FY 2025, with certain rates rounded to the nearest cent and others to the nearest dollar.

The proposed Ordinance would exempt Resident Parking Discount Program rates from the FY 2026 CPI adjustment and formally add certain Resident Parking Discount Program fees to Appendix A of the City Code, as detailed in Exhibit A.

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? No (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 (City Commission) hereby accept the recommendation of the Finance and Economic Resiliency Committee, at its July16, 2025 meeting to exclude the FY 2026 consumer price index (CPI) adjustment on October 1, 2025 for all Miami Beach Residential rates and add the monthly garage residential rates to Appendix A of the city code by approving the Ordinance at Second Reading/Public hearing on September 17, 2025.

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

9:40 a.m. 2nd Rdg, Exclude FY 25 CPI Adjustments/Add Garage Rates to Appendix A. (AF) PK

Previous Action (For City Clerk Use Only)

First Reading Public Hearing on 9/3/2025 - R5 O