Miami is the largest city in Miami-Dade County by population, and has the largest budget of any single city in South Florida at $3.6 billion, including operating and capital project expenses.
On Thursday, as the city begins its annual budget hearings, commissioners will have to somehow plan around one of the most uncertain financial years in recent history.
The two looming changes on the horizon for Miami are Florida's Amendment 3, a proposed massive cut to taxes for homesteaded properties, and a potential $450 million bond for public safety construction. Both are on the November ballot for voters to decide on, and both stand to cause major shifts in Miami's finances just a few months after the city locks down its budget for 2027.
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Ballot item uncertainty
Miami Mayor Eileen Higgins acknowledged the uncertainty regarding Amendment 3 — which would reduce the city's revenue from property taxes — in her budget proposal.
"Miami’s families are managing rising costs, which is why this budget holds the millage rate flat, at its lowest level in 60 years. It is built on sound assumptions and careful planning, with the State’s possible property tax amendment factored into our approach," Higgins wrote.
While the city's tax rate is remaining flat under Higgins' proposal, that doesn't mean that tax bills will stay the same. As property values increase, so will property taxes even if the millage rate is the same.
If Floridians vote in favor of Amendment 3, then property owners will see their homestead exemptions jump from $50,000 to $250,000 on their primary residences.
Property taxes account for more than half of Miami's total operating budget. City and county leaders have come out in opposition to the property tax change, arguing it will end up costing taxpayers more because fees will have to go up to pay for essential government services.
Proposed budget changes
The proposed budget sees moderate increases for most departments, with some notable jumps for the Mayor's office, City Manager, the Independent Inspector General and the Housing and Community Development department.
The Department of Real Estate and Asset Management's proposed budget sees a major drop from last year as 32 city marina positions were transferred to the General Services Administration (GSA). No reasoning is given behind the shift of marina staff to GSA, which handles maintenance of city facilities and vehicles.
The city marinas were some of the main profit generators for the real estate department, generating about $10 million in net income over the last few years. This comes as the management of the city's marinas on Virginia Key is up in the air pending a ballot initiative and lawsuit.
Higgins' office budget is would get an 11% increase from last year, owing to salary increases for non-union employees and increases in employee benefits and retirement contributions for the 20 staff members working under the mayor.
While Higgins' line item gets a bump under her proposal, the budget for city commissioners will see a 1% decrease from 2025-2026. According to the draft budget, Higgins proposes reducing operating expenses for the five commissioners while maintaining the same $1 million allocation per commission district to pay for personnel and operations.
The City Manager's office sees the biggest proportional increase in the proposed budget, with a jump from about $4 million to $6 million this coming year — a 32% increase. Much of that is thanks to the shifting of the Little Haiti Cultural Complex staff from the Parks department to the City Manager's budget. The proposed budget also contemplates increasing the manager's budget for contracted services from outside vendors.
Notably, the Higgins' budget seems to be investing in the recently created Office of the Independent Inspector General (OIG), a city agency meant to investigate fraud, waste, mismanagement and misconduct. The proposal increases the OIG's budget by about $400,000 and adds 15 positions to the office.
The OIG was created by the late Commissioner Manolo Reyes following WLRN's reporting on apparent conflicts of interest in the former city manager's spending.
READ MORE: City of Miami moves to create an independent inspector to investigate corruption
Miami Forever Bond
As Miami voters gear up to vote on a proposed $450 million bond to replace the city's police and fire department headquarters, the city's existing $400 million is almost completely allocated.
The Miami Forever Bond, passed in 2018, is meant to pay for major infrastructure projects throughout the city to fix roads, improve climate resilience and create affordable housing.
According to the city's capital plan overview, 96% of the Miami Forever Bond money has been allocated to a series of projects. That means projects have been identified and the money is earmarked for those purposes, but the funds have not necessarily been spent.
Of the 56 affordable housing projects funded through the bond, 35 have been completed, one is pending review, and 20 are anticipated to be completed by December 2027. The city has allocated about 95% of the bond money it has set aside for affordable housing.
This total includes the City funded “Homeownership Loan Program which consist of loans of up to $200,000 for qualified residents. The continuance of the program is pending review.
Miami Forever Bond money has also been allocated toward a Miami River Greenway project, flood improvements in the Edgewater neighborhood, construction of new parks facilities and baseball fields and a list of other initiatives. A full rundown of the bond allocations can be found here.
View a list of the City of Miami's elected and appointed officials here.
