HomeMy WebLinkAboutOrdinance 2026-4813ORDINANCE NO. 2026-4813
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF
ORDINANCES OF THE CITY OF MIAMI BEACH, BY AMENDING
APPENDIX A TO THE CITY CODE, ENTITLED "FEE SCHEDULE," TO
INCLUDE AN AUTOMATIC ANNUAL CONSUMER PRICE INDEX (CPI)
ADJUSTMENT FOR WATER IMPACT FEES AND SEWER IMPACT
FEES IMPOSED BYTHE CITY PURSUANT TO SECTIONS 110.167 AND
110-169; AND PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach (the "City') owns and operates utility systems that
provide essential water and sanitary sewer services to residences and businesses, operating 24
hours a day, 365 days a year; and
WHEREAS, the operational and financial sustainability of these utility systems is vital to
protecting public health and ensuring the safety of the City's residents; and
WHEREAS, the City constructed water and sewer infrastructure to support current
demand and accommodate future growth within its utility service area; and
WHEREAS, water and sewer "connection fees," which are based on meter size, may be
used to fund growth -related capital projects and associated debt service; and
WHEREAS, Section 163.31801, Florida Statutes (the "Florida Impact Fee Act"), imposes
specific requirements on the adoption, collection and use of impact fees. However, pursuant to
Section 163.31801(12), Florida Statutes, the Florida Impact Fee Act does not apply to water and
sewer connection fees; and
WHEREAS, the City established sanitation commercial impact fees pursuant
to Ordinance No. 98-3135 based on the number of equivalent commercial units (ECUs), the
monthly rate and 0.30% of the job value, functioning as a surcharge for commercial waste
collection and disposal; and
WHEREAS, these fees were last adjusted in the 1990s and have not been updated to
reflect the current costs of providing high -quality waste collection and disposal services; and
WHEREAS, Chapter 110 of the City Code, entitled "Utilities," and Appendix
A establish potable water rates for all users; sanitary sewer rates for all users except wholesale
customers (whose rates are set by contract); and stormwater rates for all stormwater system
users; and
WHEREAS, the City retained the firth GovRates, Inc. ("GovRates") to assist with the
determination of revised water and sewer connection fees; and
WHEREAS, a presentation on the formulation of the proposed rates, as well as public
comments, was offered at the February 21, 2025, Finance and Economic Resiliency Committee
("FERC") meeting; and
WHEREAS, at the conclusion of the presentation and discussion, the FERC voted to
transmit a favorable recommendation to the City Commission to adjust the water and sewer
connection fees, with implementation to start upon approval by the City Commission; and
WHEREAS, on June 25, 2025, the Mayor and City Commission adopted Ordinance No.
2025-4746 approving the water and sewer connection fee increase; and
WHEREAS, the Mayor and City Commission on March 19, 2025, referred to FERC a
comprehensive, systematic review of impact fees, connection fees, and Consumer Price Index
(CPI) increases in the City, at the request of Commissioner Tanya Bhafl, which was presented by
the Management and Budget Department at the October 15, 2025 FERC meeting; and
WHEREAS, the systematic impact fee review was intended to (1) confirm that all fees
reflected current infrastructure needs and legal requirements, considering inflation, changing
service demands and capital priorities; and (2) survey the law authorizing each fee, the date of its
last update, and any proposed changes for FY 2026; and
WHEREAS, the FERC voted to transmit the following recommendations to the City
Commission:
• Add an annual inflation index to the current water and sewer connection fees; and
• Add a one-time retroactive CPI adjustment to current sanitation commercial impact
monthly fees, bringing the fees closer to present-day cost realities and adding annual
inflation indexing to the monthly fees; and
WHEREAS, on December 17, 2025, the City Commission adopted Resolution No. 2025-
33989 accepting FERC's recommendation to direct the Administration to prepare any necessary
amendments to ordinances, resolutions, master plans, and fee schedules to implement the
recommended updates to water, sewer and sanitation commercial impact fees; and
WHEREAS, on March 18, 2026, the title of the Ordinance was read into the record, and
the Mayor and City Commission held a First Reading public hearing on the Ordinance; and
WHEREAS, additionally, the Mayor and City Commission approved a motion to bifurcate
the proposed Ordinance to (1) proceed with a Second Reading public hearing for the amendment
to include an automatic annual Consumer Price Index (CPI) adjustment to water and sewer
connection fees, applicable to new developments connecting to the City's municipal water and
sewer services and for upgrades to existing projects connected to municipal services; and (2) to
return the proposed sanitation commercial impact fee increase item to the Mayor and City
Commission at the April 22, 2026 meeting to further evaluate legislative options, including whether
to (1) implement a retroactive catch-up; (2) phase in the increase; (3) provide exemptions for
smaller and older buildings; (4) apply CPI adjustments going forward; or (5) take no action; and
WHEREAS, the water and sewer connection fees set forth in Appendix A to the Code of
Ordinances shall hereafter be indexed to the Consumer Price Index (CPI), any increase capped
at three percent (3%) per year.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Appendix A to the Code of Ordinances of the City of Miami Beach, entitled
"Fee Schedule," is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
Section of
Description
FY 2026 Fee
Annual
this Code
Adjustment
(References
shown as defined
at the end of this
Appendix A)
110-167(a)
Water impact fee,
assessed as a
connection fee based on
the meter size in inches:
1,630 00 WA [Al
%
�N/A
%
N/A
1
4,075.00
PUALAl
1'/z
8,150.00
WA FA]
2
13,040.00
N/A_A]
3
26,080.00
WA [Al
4
40,750.00
WAU
6 81,500.00 WA [At
8 130,400.00 N64 jA)
10 187,450.00 WA jAj
12 350,450.00 N/A JAJ
110-169(a) Sewer impact fee,
assessed as a
connection fee based on
I the meter size in inches:
%
1
1 %z
10
12
2,030.00
N/A
5,075.00
10,150.00
16,240.00
32,480.00
50,750.00
101,500.00
162,400.00
233,450.00
436,450.00
N/A LAj
NA
NA [At
N/AjAj
,rn
NA Al
NA [Al
NA LA1
NA LA1
WA LA1
NA IN
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this Ordinance shall become and be made a part of the
Miami Beach City Code. The sections of this Ordinance may be renumbered or re -lettered to
accomplish such intention, and the word "ordinance" may be changed to "section," "article," or
other appropriate word.
SECTIONS. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption, and the revised impact fee
rates shall be applied to all bills rendered on or after the effective date.
PASSED and ADOPTED this 9.1 day of ( , 2026.
ATTEST:
zw APR 3 0 1026 L �"
Leven Meiner, Mayor
Rafael E. Granad , City Clerk
(Sponsored by Commissioner Tanya K. Bhatt) Bcc•
Underline denotes new additionstR?o
?
Strikethrough denotes deletions } ily
H
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
9 ze fzE z G
C4 Atlerney Deb
2*
Ordinances - R5 I
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: April 22, 2026 9:50 a.m. Second Reading Public Hearing
TITLE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE CODE OF ORDINANCES OF THE
CITY OF MIAMI BEACH, BY AMENDING CMA "SOLID
— ---- 11 nnN/1\I n ...Ice rue
CCC To APPENDIX A; BY
AM€NDING APPENDIX A TO THE CITY CODE, ENTITLED "FEE SCHEDULE," TO
c 9 122 AND TO INCLUDE AN AUTOMATIC ANNUAL CONSUMER
PRICE INDEX (CPI) ADJUSTMENT FOR
€E€S, WATER IMPACT FEES, AND SEWER IMPACT FEES IMPOSED BY THE
CITY PURSUANT TO SECTIONS 90-133, 110-167T AND 110-169; AND
PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN
EFFECTIVE DATE.
RECOMMENDATION
The Administration recommends applying an annual CPI adjustment to the water and sewer
connection fees, applicable only to new development or to upgrades to existing water and sewer
infrastructure; and approving the Ordinance as presented on Second Reading.
BACKGROUNDIHISTORY
The City of Miami Beach ("City") owns and operates utility systems that provide essential water
and sanitary sewer services to residences and businesses, operating 24 hours a day, 365 days
a year. The operational and financial sustainability of these utility systems are vital to protecting
public health and ensuring the safety of the City's residents.
The City constructed water and sewer infrastructure to support current demand and
accommodate future growth within its utility service area. Water and sewer "connection fees,"
which are based on meter size, may be used to fund growth -related capital projects and
associated debt service.
Section 163.31801, Florida Statutes (the "Florida Impact Fee, Act"), imposes specific requirements
for the adoption, collection, and use of impact fees. However, pursuant to Section 163.31801(12),
Florida Statutes, the Florida Impact Fee Act exempts water and sewer connection fees.
Prior to 2025, the City's water and sewer connection fees were last adjusted in the 1990's and
had not been updated to reflect current costs. Chapter 110 of the City Code, entitled "Utilities,"
and Appendix A establish potable water rates for all users; sanitary sewer rates for all users
except wholesale customers (whose rates are set by contract); and stormwater rates for all
stormwater system users.
The City retained the firm GovRates, Inc. ("GovRates") to assist in the determination of revised
water and sewer connection fees. A presentation of the formulation of the proposed rates, as well
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as public comments, were offered at the February 21, 2025 Finance and Economic Resiliency
Committee ("FERC") meeting. At the conclusion of the presentation and discussion, the FERC
members made a motion to proceed to the City Commission with a favorable recommendation to
adjust the water and sewer connection fees, with implementation to start upon approval by the
City Commission. On June 25, 2025, the Mayor and City Commission approved Ordinance No.
2025-4746 to increase water and sewer connection fees (Attachment A).
On March 19, 2025, the Mayor and City Commission (City Commission), at the request of
Commissioner Tanya Bhatt, referred to FERC a comprehensive, systematic review of impact fees,
connection fees, and Consumer Price Index (CPI) increases in the City. This review was
presented by the Office of Management and Budget (OBPI) at the October 15, 2025, FERC
meeting. The purpose of the review was to confirm that all impact and connection fees (Mobility,
Water and Sewer, Sanitation, Parking, Parks, and Sustainability) reflected current infrastructure
needs and legal requirements, and considered inflation, changing service demands, and capital
priorities. The review also covered the law authorizing each fee, the date of its last update, and
any proposed changes for Fiscal Year 2026. At the conclusion of the presentation and discussion,
FERC members made a motion to move the item to the City Commission, with a favorable
recommendation, to modify the City's impact and connection fees, as proposed by the
Administration.
On December 17, 2025, the City Commission approved the FERC recommendation to modify the
City's impact and connection fees, via Resolution No. 2025-33989 (Attachment 8). The
amendments specific to Public Works were:
• Add an annual inflation index to the current (recently increased) water and sewer impact
fees; and
• Add a one-time retroactive CPI adjustment to the current monthly sanitation commercial
impact fees, bringing the fees closer to present-day cost realities and adding annual
inflation indexing to the sanitation commercial impact fees.
On March 18, 2026, the Public Works Department presented an Ordinance to the City
Commission for First Reading Public Hearing, proposing the amendment of Chapter 90 of the City
Code, entitled "Solid Waste," by relocating the table of sanitation commercial impact fees to
Appendix A, adding sanitation commercial impact fees, and including an automatic annual CPI
adjustment for sanitation commercial impact fees, water connection fees, and sewer connection
fees imposed by the City pursuant to Sections 90-133, 110-167, and 110-169 of the City Code,
respectively.
Following the Administration's presentation and deliberation by the City Commission, the City
Commission made a motion to bifurcate the proposed Ordinance and to: (1) proceed with a
Second Reading public hearing for the amendment to include an automatic annual CPI
adjustment to water and sewer connection fees, applicable to new developments connecting to
the City's municipal water and sewer services and for upgrades to existing projects connected to
municipal services; and (2) to return the proposed sanitation commercial impact fee increase item
to the Mayor and City Commission at the April 22, 2026 meeting to further evaluate legislative
options, including whether to (1) implement a retroactive catch-up; (2) phase in the increase; (3)
provide exemptions for smaller and older buildings; (4) apply CPI adjustments going forward; or
(5) take no action.
ANALYSIS
The proposed Ordinance (Attachment C) implements an automatic annual CPI adjustment to the
City's water and sewer connection fees, with any increase capped at three percent ON per year.
This approach is consistent with prior direction provided by the City Commission. While these
fees were recently updated, the absence of an automatic indexing mechanism would result in the
gradual erosion of cost recovery over time due to inflation.
895 of 2461
Incorporating an annual CPI adjustment ensures that fees remain aligned with the actual cost of
providing utility infrastructure and services, while reducing the need for infrequent, larger -scale
adjustments in the future. This approach promotes predictability, transparency, and long-term
financial sustainability, and aligns with best practices for maintaining equitable and up-to-date fee
structures.
FISCAL IMPACT STATEMENT
No fiscal impact.
Does this Ordinance require a Business Impact Estimate? Yes
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on: 4/9/2026
See BIE at: https /lwww.miamibeachfi.gov/city-hall/city-clerk/meeting-noticesI
CONCLUSION
The Administration recommends approving the Ordinance on Second Reading Public Hearing.
Applicable Area
Citywide
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
Pursuant to City Code Section 2-17? Project?
Yes
.M
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
Public Works
Sponsors)
Commissioner Tanya K. Bhatt
Co-sponsor(s)
Condensed Title
9:50 a.m. 2nd Rdg, Amendments to Water & Sewer Impact Fees. (Bhatt) PW
Previous Action (For City Clerk Use Only)
First Reading Public Hearing on 3/18/2026 - R5 N; Not reached on 2/25/2026 - R5 J; Not
reached on 2/5/2026 - R5 T
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ORDINANCE NO. 2025-4746
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE
CODE OF THE CITY OF MIAMI BEACH ENTITLED "UTILITIES,"
AMENDING ARTICLE IV, ENTITLED "FEES, CHARGES, RATES AND
BILLING PROCEDURE," BY AMENDING SECTION 110-167 THEREOF,
ENTITLED "WATER IMPACT FEE"; BY AMENDING SECTION 110-169
THEREOF, ENTITLED "SEWER IMPACT FEE"; AND FURTHER,
AMENDING APPENDIX A OF THE CITY CODE, ENTITLED "FEE
SCHEDULE," TO INCREASE THE WATER IMPACT FEES AND SEWER
IMPACT FEES IMPOSED BY THE CITY PURSUANT TO SECTIONS 110-
167, 110.169, AND APPENDIX A; PROVIDING FOR CODIFICATION;
REPEALER; SEVERABILITY; AND AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach owns and operates utility systems that provide
essential water and sanitary sewer services to residences and businesses, and that operate 24
hours per day and 365 days per year; and
WHEREAS, the operational and financial sustainability, of the utility systems is vital to the
public health and safety of the City's residents; and
WHEREAS, the City has constructed water and sewer infrastructure to support and
provide water and sewer capacity to meet both current demand and future growth within the
City's utility service area; and
WHEREAS, water and sewer impact fees, which are assessed as "connection fees"
based on the size of the meter, can be used to fund growth -related capital projects and growth -
related debt service; and
WHEREAS, Section 163.31801, Florida Statutes (the "Florida Impact Fee Act'), imposes
specific requirements on the adoption, collection, and use of impact fees; and
WHEREAS, pursuant to Section 163.31801(12), Fla. Stat., the Florida Impact Fee Act
does not apply to water and sewer connection fees; and
WHEREAS, the City's water and sewer connection fees were last adjusted in the 1990s
and have not been increased to reflect the City's current costs of providing water and sewer
capacity to growth: and
WHEREAS, Chapter 110 of the Code of the City of Miami Beach ("City Code"), entitled
"Utilities" and Appendix A to the City Code establish the City's potable water rates for all water
users; the sanitary sewer rates for all sanitary sewer users except sewer rates for wholesale
customers established through contract; and the stormwater rates for all users of the stormwater
system; and
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WHEREAS, through a formal procurement process, the City retained the firm of
GovRates, Inc. (GovRates) to assist in the determination of revised water impact fees and sewer
impact fees, including connection fees; and
WHEREAS, GovRates has recommended updated impact fees to fairly reflect the City's
current costs of providing water and sewer capacity to growth and has also recommended
periodic reviews of the impact fee amounts; and
WHEREAS, the recommended impact fees for water and sewer, which are assessed as
"connection fees," are competitive with those charged by other Florida local govemments; and
WHEREAS, the City seeks to amend Chapter 110 and Appendix A to codify the
GovRates recommendations; and
WHEREAS, at its February 21, 2025 meeting, the Finance and Economic Resiliency
Committee recommended approval of the GovRates recommendations; and
WHEREAS, on March 19, 2025, the City Commission approved accepting the
recommendation of the Finance and Economic Resiliency Committee to increase the City's
water impact fees and sewer impact fees; and
WHEREAS, the amendments set forth below are necessary to accomplish the above
objectives.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Chapter 110 of the Miami Beach City Code entitled 'Utilities," Article IV,
entitled "Fees, Charges, Rates and Billing procedure," at Section 110-167, entitled "Water
impact fee," and Section 110-169, entitled "Sewer impact fee," are hereby amended as follows:
CHAPTER 110
UTILITIES
ARTICLE IV, Fees, Charges, Rates and Billing Procedure.
Sec. 110-167. Water impact fee.
(a) There is hereby imposed upon all new connections to the water system and upgrades to
meter sizes a one-time water impact fee. Such water impact fee shall be assessed as a
connection fee based on the size of water meter serving such premises as set forth in
appendix A.
(b) The water impact fee shall be due and payable at the time of issuance of the initial building
permit for the premises or upon submittal of the application to the public works department.
899 of 2461
(c) All water impact fees collected shall be deposited into the citys water impact fee subaccount
within the water and sewer impact fee account. The moneys on deposit in the water impact
fee subaccount, together with investment earnings thereon, shall be used by the city only in
accordance with the provisions of applicable law.
Sec. 110-169. Sewer impact fee.
(a) There is hereby imposed upon all new connections to the sewer system or upgrades to water
meter sizes a one-time sewer impact fee. Such sewer impact fee shall be assessed as a
connection fee based on the size of water meter serving such premises as set forth in
appendix A.
No sewer impact fees shall be charged for water meters used strictly for irrigation or other
purpose that does not generate wastewater returned to the sanitary sewer system.
(b) The sewer impact fee shall be due and payable at the time of issuance of the initial building
permit for the premises.
(c) All sewer impact fees collected shall be deposited into the citys sewer impact fee subaccount
within the water and sewer impact fee account. The moneys on deposit in the sewer impact
fee subaccount, together with investment earnings thereon, shall be used by the city only in
accordance with the provisions of applicable law.
SECTION 2. That Chapter 110, "UTILITIES." Article IV "Fees, charges, rates and billing
procedures," in APPENDIX A is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
110-
Water
Annual
167(a)
impact
fee,
Fee
Adjustrnent
(References
assessed
Effective
shown are
as a
connection
Upon
! Aooroval
defined at
I the end of
900 of 2461
NUNN
M.11
110-
Sewer
Annual
169(a)
impact fee,
Adjustment
assessed as
(References
a
shown are
connection
defined at the
fee based
Fee
end of this
on he per
Ef<e ,vim
Appendix A)
meter size
Upon
in inches:
Approval
%
$235.00
$2,030.00
WA
%
350.00
NIA
WA
1
585.00
5.075.W
WA
1''A
1,175.00
10.150.W
WA
2
1,880.00
16,240.W
WA
3
3,760.00
32,480.00
WA
4
5,875.00
50,750.00
WA
6
11,750.00
101,500.00
WA
a
18,800.00
162,400,00
WA
10
233.450
NIA
901 of 2461
12
436,450
WA
Larger
than a
aehe6
based ea
relative
rpeter
0-00
WA
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION S. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this ordinance shall become and be made a part of the
Miami Beach City Code. The sections of this ordinance may be renumbered or re -lettered to
accomplish such intention, and the word "ordinance" may be changed to "section," "article,' or
other appropriate word.
SECTION 6. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption, and the revised impact fee
rates shall be applied to all bills rendered on or after the effective date.
PASSED and ADOPTED this �K day of 7NN4 2025.
ATTEST: J
JUN 3 0 2025 Sleven Meiner, Mayor
ranado, City Clerki APPROVED AS TO FORM AND
REGIS BARBOU LANGUAOEL6ND FOR EXECUTION
Underline denotes additions jt/-Iwtotr or1FF
denotes deletions +?� ^w'
�9ht�.H:zb'rAf f WW
(Sponsored by Commissioner Tanya astt) City Attorney �k Date
Co -Sponsored by COMOSS orrer Josepr I 9B
ZI
C&Sponwred by Commissioner David Suarez
C04potnored by CommissionerNex J. Femandez 5
902 of 2461