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Resolution 2023-32694 • RESOLUTION NO. 2023-32694 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE • CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIANCY COMMITTEE ("FERC") TO INCREASE THE MONTHLY STIPEND AMOUNT AVAILABLE THROUGH THE THREE-YEAR RESIDENCY INCENTIVE PILOT PROGRAM FOR FIRST RESPONDERS LIVING ON MIAMI BEACH (THE "PROGRAM"), APPROVED AS PART OF THE FY 2023 BUDGET, FROM $250.00 to $360.00, WITH NO ADDITIONAL ANTICIPATED IMPACT TO THE ALLOCATED BUDGETS• OF $150,000 EACH FOR FY2023 AND FY2024. . WHEREAS, on January 20, 2022, the Mayor and City Commission approved Resolution No. 2022-31999, which established a three-year (3) residency incentive pilot program for police officers and firefighters with a budget of $450,000 over three years and a limit of fifty (50) participants; and WHEREAS, additionally, as .a part of the Fiscal Year 2022 budget, the residency incentive benefit was extended to also include code enforcement officers; and WHEREAS, .$150,000 has been allocated per fiscal year of the• pilot program and less than 30% of the allocated amount has been dispersed during each of the first two years; and WHEREAS, on April 28, 2023, the City Commission referred an item to FERC to discuss a cost-of-living adjustment related to the Program; and WHEREAS, the Administration has provided FERC a report on the number of participants who have utilized the Program and the estimated budgetary impact for the remainder of FY 2022-23 and for FY 2023-24: and . WHEREAS, on June 23, 2023, FERC discussed the item and projections provided by the Administration and unanimously approved a recommendation to increase the monthly stipend from $250.00 to $360.00 per person. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,. FLORIDA, that the Mayor and City Commission of the City of Miami Beach, Florida, hereby accept the recommendation• of the Finance and Economic Resiliency Committee ("FERC") to increase the monthly stipend amount available through the Three-Year Residency incentive pilot program for first responders living on Miami Beach (the "Program"), approved as part of the FY 2023 BUDGET, from $250.00 to $360.00, with no additional anticipated impact to the allocated.budgets of $150,000 each for FY2023 and FY2024. PASSED and ADOPTED this 076 day of 11: 2023. ATTEST: =�•' s �IPI ORPORA ED;i fan Gelber, Mayor '�, •. ....., D,� APPROVED AS TO ;y'~ :H�:�=- FORM&LANGUAGE Rafael E. Granado, CityClerks 26-�-` �•« , "> &FOR EXECUTION JUL 282023 City Attorney WIC_/,C p Resolutions-C7 Q MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: July 26, 2023 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE ("FERC") TO INCREASE THE MONTHLY STIPEND AMOUNT AVAILABLE THROUGH THE THREE-YEAR RESIDENCY INCENTIVE PILOT PROGRAM FOR FIRST RESPONDERS LIVING ON MIAMI BEACH (THE "PROGRAM"), APPROVED AS PART OF THE FY 2023 BUDGET, FROM $250.00 to$360.00, WITH NO ADDITIONAL ANTICIPATED IMPACT TO THE ALLOCATED BUDGETS OF $150,000 EACH FOR FY2023AND FY2024. RECOMMENDATION It is recommended by FERC that the Mayor and City Commission approve the Resolution authorizing an increase to the monthly stipend amount available through the Three-Year Residency Incentive Pilot Program for First Responders Living on Miami Beach from $250.00 to $360.00. BACKGROUND/HISTORY At the Commission meeting on January 20, 2022, Resolution No. 2022-31999 was adopted, which established a three-year (3) residency incentive pilot program for police officers and firefighters. As a part of the FY 2022 budget, the residency incentive benefit was extended to include code enforcement officers as well. The maximum number of recipients for this benefit is fifty(50). The amount originally set aside for the pilot was $450,000 over three years, budgeted at$150,000 annually. The residency incentive became effective October 1, 2021. The program provides eligible police, fire, and code,enforcement officers a$250 monthly incentive, after proof of residency is established and confirmed by the Human Resources ("HR") Department. Three unions (IAFF, FOP, CWA) agreed to the residency incentive benefit and pilot program through a bargaining process with the City. At the April 28, 2023 City Commission Meeting, Commissioner Arriola requested that the Mayor and the City Commission refer an item to FERC to discuss a cost-of-living adjustment related to the Program. The Human Resources department subsequently presented a report on the current utilization and budgetary impact of the Program at current rates to FERC, as well as Page 596 of 1588 projected increases to the budgetary impact at a range of increased rates. Upon FERC's analysis and discussion of the proposed rates, Commissioner Richardson motioned this item to be heard at the July Commission meeting, favorably recommending an amendment to the current resolution which would revise the monthly stipend from $250.00 to $360.00. This item was approved unanimously. ANALYSIS Since the inception of the pilot program, HR has managed the enrollment and distribution of the monthly incentive after eligibility criteria is met by each applicant at a rate of $250.00 per month per recipient. Below is a report on the growth of the Program through the duration of its administration. Number of Current Total of Number of Group Recipients at Recipients Added Recipients Inception (Oct during FY 21-22 Receiving Benefit 2021) FY 22-23 Police Officers 7 2 8 Firefighters 4 0 4 Code Enforcement 0 2 2 Officers Totals: 11 4 14 Below is a report on the status of the Program and its expenditure at current rates of utilization. Number of Stipends FY 2022-23 Group Recipients FY 2022- (projected) 23 Police Officers 8 $24,000 Firefighters 4 $12,000 Code Enforcement 2 $6,000 Officers Totals: 14 $42,000 At the current stipend amount, 26% of the allocated $450,000 for the pilot is projected to be expended: FY 2021-2022 $34,250 (actual) FY 2022-2023 $42,000 (projected) FY 2023-2024 $42,000 (projected) 3 Year Total =$118,250 (projected) Page 597 of 1588 As the cost-of-living continues to rise, the South Florida housing market becomes increasingly challenging for renters as well as home buyers. The increased demand for housing in South Florida. among other factors, has consistently driven up housing prices in the local community. Based on data from the US Bureau of Labor Statistics, the Miami-Ft. Lauderdale-West Palm Beach area has seen an increase in housing costs of 16% (attachment). With the current annual budget for this pilot program set at $150,000, less than 25% of the annual residency incentive budget has been used during FY2022. If the Program continues at current benefit and utilization rates, only 28% of the annual residency incentive budget is projected to be used in FY2023, leaving substantial room within the current allocation to increase both the rate of utilization and the benefit amount. On June 23, 2023, FERC discussed a range of possible increase amounts proposed by the Administration, settling on the increase amount reflected below: Current Stipend Proposed Stipend Amount per Employee $250 $360 After Taxes (estimated 30% rate) $175 $252 SUPPORTING SURVEY DATA Not applicable. FINANCIAL INFORMATION If the City is to implement the recommended one-time cost-of-living increase, the Program expenditure can be expected to increase by $3,080 during FY 22-23, and $18,480 during FY 23-24, for a total increase of $21,560. The total annual Program expenditure would increase to $60,480, well within the current Program allocation of $150,000 per year. Groups: Police Firefighters Code Compliance Totals: Number of Recipients 8 4 2 14 1 Year Projection $24,000 $12,000 $6,000 $42,000 (at current benefit/utilization) 2 Month Impact of Increase for $1,760 $880 $440 $3,080 FY 22-23(August/September) 1 Year Projection for FY 23-24 $34,560 $17,280 $8,640 $60,480 (at proposed benefit/same utilization) 12 Month Impact of Proposed $10,560 $5,280 $2,640 $18,480 Increase for FY 23-24 Amount(s)/Account(s): 011-9322-000343-90-400-592-00-00-00- CONCLUSION Since the number of participants remain lower than what was originally planned. the Page 598 of 1588 recommended cost-of-living increase is unlikely to increase the program expenditure to an amount that would surpass the original budget allocation. Any change to this benefit would need to be bargained with the respective bargaining units (IAFF, FOP, CWA). The FERC recommends an increase to the monthly stipend amount available through the Three-Year Residency Incentive Pilot Program for First Responders Living on Miami Beach from $250.00 to $360.00, with no additional anticipated impact to the allocated budgets of $150,000 each for FY 2023 and FY 2024. Applicable Area Citywide Is this a "Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Neighborhoods - Provide quick and exceptional fire and emergency response. Legislative Tracking Human Resources ATTACHMENTS: Description ❑ CPI Reference Sheet ❑ Resolution Page 599 of 1588 Ilk BLS CONSUMER PRICE INDEX ` tit RI \I t►I (_ W\\ IRNI \IINIIt s. /%, <'•�' t N t/t I'\RT\tl\1 nI 11t�RR December 2022 . 1 SOUTHEAST INFORMATION OFFICE • Atlanta, Ga. • 404-893-4222 • hls.gov'regionsIsoutheast For release: Thursday, January 12, 2023 All urban consumers Wage earners &clerical workers Group Percent change Percent change Index Dec 21 to Nov 22 to Index Dec 21 to Nov 22 to Dec 22 Dec 22 Dec 22 Dec 22 U.S. City Average' All items(1982-84=100) 296.797 6.5 -0.3 291.051 6.3 -0.5 All items (1967=100) 889.073 - - 866.953 - - Food and beverages 314.459 10.1 0.3 313.801 10.1 0.3 Housing 310.725 8.1 0.6 307.346 8.4 0.7 Apparel 124.587 2.9 -1.7 124.557 2.9 -1.7 Transportation 255.993 3.9 -3.3 258.567 2.9 -3.6 Medical care 551.002 4.0 0.0 559.789 4.0 0.0 Recreation` 133.172 5.1 0.2 127.075 5.0 0.0 Education & communication` 144.922 0.7 0.0 130.940 0.1 0.1 Other goods and services 518.088 6.4 -0.1 572.669 6.4 0.0 South' All items (1982-84=100) 288.205 7.0 -0.3 283.431 6.7 -0.4 All items (1977=100) 467.509 - - 459.048 - - Food and beverages 309.645 10.5 0.4 308.830 10.6 0.4 Housing 290.077 9.8 0.6 291.051 10.1 0.6 Apparel 134.195 2.6 -2.0 134.138 3.0 -2.0 Transportation 256.321 3.2 -3.0 254.038 1.9 -3.2 Medical care 521.499 3.6 0.3 535.270 3.8 0.4 Recreation' 133.207 5.9 -0.3 127.175 5.7 -0.3 Education &communication' 139.993 0.1 0.3 123.258 -0.7 0.3 Other goods and services 501.130 7.4 0.5 547.206 7.8 0.4 All urban consumers Wage earners&clerical workers Group Percent change Percent change Index Dec 21 to Oct 22 to Index Dec 21 to Oct 22 to Dec 22 Dec 22 Dec 22 Dec 22 Atlanta-Sandy Springs-Roswell' All items(1982-84=100) 295.452 8.1 -0.5 287.366 6.9 -0.9 All items(1967=100) 890.994 - - 868.891 - - Food and beverages 310.713 12.0 0.8 307.581 12.8 0.9 Housing 314.940 11.7 0.6 311.930 11.5 0.4 Apparel 154.098 2.0 -5.2 156.552 2.8 -4.0 Transportation 262.219 1.5 -4.2 253.143 0.4 -3.9 Medical care - - - - - - Recreation' 96.648 8.5 -1.0 89.144 6.8 -0.5 Education &communication 139.570 -3.1 0.3 120.510 -3.9 0.1 Other goods and services 468.979 7.2 0.4 551.417 7.7 0.8 Miami-Fort Lauderdale-West Palm Beach All items (1982-84=100) 322.210 9.9 1.0 315.996 9.3 0.6 All items (1977=100) 519.358 - - 513.397 - - Food and beverages 309.946 8.4 0.5 308.900 7.5 0.2 Housing 357.491 16.0 2.2 354.930 16.1 1.8 Apparel 143.144 3.8 1.5 153.140 4.7 -0.7 Transportation 263.241 0.7 -2.0 274.437 1.6 -1.7 Medical care 611.211 3.4 -0.7 633.121 3.8 -0.6 Recreation' 132.309 4.4 0.5 118.829 3.9 0.3 Education & communication' 132.573 6.3 2.2 124.927 6.4 2.5 Other goods and services 443.654 8.0 2.7 429.929 7.3 1.2 'Indexes on a December 1982-84=100 base, unless otherwise noted `Indexes on a December 1997=100 base. -Data not available. *Full surveys for Atlanta-Sandy Springs-Roswell and Miami-Fort Lauderdale-West Palm Beach are compiled every two months and are published for February.April,June.August.October,and December Page 609 of 4588