Resolution 2024-32972 RESOLUTION NO. 2024-32972
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FOLLOWING
ADJUSTMENTS TO THE STIPEND PAYMENTS AND ALLOWANCES
RECEIVED BY THE MEMBERS OF THE CITY COMMISSION FOR
VARIOUS EXPENSES INCURRED IN THE PERFORMANCE OF THEIR
OFFICIAL DUTIES: (1.) AN ADJUSTMENT TO THE MONTHLY
STIPENDS TO ACCOUNT FOR INFLATION SINCE 2018, THE LAST
TIME THE STIPENDS WERE ADJUSTED, IN THE AMOUNT OF $460
PER MONTH FOR THE MAYOR, AND $517 PER MONTH FOR CITY
COMMISSIONERS; (2) A "GROSS UP" OF THE STIPENDS TO
ACCOUNT FOR ASSOCIATED FEDERAL INCOME TAXES DUE TO THE
CITY'S ELECTION TO REPORT SUCH STIPEND PAYMENTS UNDER A
"NON-ACCOUNTABLE" PLAN PURSUANT TO IRS REGULATIONS,
WITH THE STIPEND PAYMENTS TO BE ADJUSTED BY THE NET
AVERAGE FEDERAL TAX RATE OF 24.8%0; (3) AN INCREASE IN THE
VEHICLE ALLOWANCE IN THE AMOUNT OF $300 PER MONTH, AND
AN INCREASE IN THE MOBILE PHONEALLOWANCE IN THE AMOUNT
OF $50 BI-WEEKLY, TO PROVIDE PARITY WITH ALLOWANCES
PROVIDED TO CHARTER OFFICERS AND CERTAIN OTHER SENIOR
ADMINISTRATORS; (4) PROVIDING THAT THE FOREGOING
ADJUSTMENTS SHALL BE RETROACTIVE TO NOVEMBER 3, 2023; (5)
PROVIDING THAT THE STIPEND PAYMENTS SHALL BE ADJUSTED
FOR INFLATION EACH FISCAL YEAR THEREAFTER, UTILIZING THE
CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U)
FOR MIAMI-FORT LAUDERDALE-WEST PALM BEACH; AND (6)
ACKNOWLEDGING THAT THE CURRENT MEMBERS OF THE CITY
COMMISSION FOR GROUP 3 AND GROUP 5 HAVE AFFIRMATIVELY
DECLINED ACCEPTANCE OF THE STIPEND PAYMENTS SET FORTH
IN THIS RESOLUTION.
WHEREAS, the duties of the Mayor and City Commissioners oftentimes greatly
exceed the part- time nature of their positions, for which the City Charter only provides
annual salaries of $10,000 and $6,000 for the Mayor and City Commissioners,
respectively; and
WHEREAS, prior to 2018, the Mayor and City Commissioners received a monthly
stipend of$2,000 and $1,500, respectively, to help offset the expenses associated with
their public offices, such as providing food for elderly and needy residents, purchasing
tickets to attend a myriad of civic, non-profit and community events in order to engage
with City residents, and sending newsletters and correspondence to the City's residents
to keep them apprised of City business; and
WHEREAS, in February 2018, the Mayor and City Commission adopted
Resolution No. 2018-30201, authorizing a $750 per month increase to the stipend
received by the City Commissioners1, bringing the total monthly stipend received by the
City Commissioners currently to$2,250; and
WHEREAS, since 2018,the current stipend amounts for Commissioners have not
been increased despite an aggregate increase of 23%inflation in the relevant time period
and regular cost-of-living adjustments for classified and unclassified employees, as well
as many contracted personnel; and
WHEREAS, in addition, based on the City's election to include the stipend
payments under a "Non-accountable Plan" pursuant to IRS Regulations, the monthly
stipend is now subject to Federal income tax withholding,thereby further reducing the net
amounts available to members of the City Commission to offset their unreimbursed
expenses; and
WHEREAS, the current monthly stipends, net of taxes, do not reflect the impact
that inflation has had on expenses that City Commissioners must reasonably incur in
connection with the performance of their duties;and
WHEREAS, the Mayor and City Commission wish to adjust the stipends for
inflation during this relevant time period, increasing the monthly stipend for the Mayor by
approximately$460, and the monthly stipend for City Commissioners by$517.50; and
WHEREAS, in addition, the Mayor and City Commission wish to increase the
vehicle allowance in the amount of$300 per month, and an increase in the mobile phone
allowance in the amount of$50 bi-weekly, to provide parity with allowances provided to
charter officers and certain other senior administrators; and
WHEREAS, furthermore, the Tax Cuts and Jobs Act, signed into law in December
2017, resulted in the elimination of many itemized deductions commencing in 2018,
including the unreimbursed job-related expense deduction, thereby exacerbating the
deficit resulting from a stipend that has not been adjusted for inflation in five years; and
WHEREAS, the Mayor and City Commission wish to "gross up" the stipend
payments to account for associated federal income taxes by the net average federal tax
rate of 24.8%, similar to other stipends such as housing rental stipend for fire rescue or
law enforcement personnel desiring to live in the City of Miami Beach, whereby the City
Commission has"grossed up"those stipend payments to account for associated taxes in
a similar fashion; and
1 With respect to the stipend for the Mayor,the stipend amount has not been increased in 18 years,as in
2018, Mayor Gelber declined to participate in the stipend increase approved in Resolution No.2018-
30201.
WHEREAS, current members of the City Commission for Group 3 and Group 5
have affirmatively declined acceptance of the stipend adjustments set forth in this
Resolution;and
WHEREAS, if in the future, the current commissioners for Group 3 and Group 5
desire to accept the adjusted stipends as set forth in this Resolution, any such request
will require City Commission action to amend this Resolution.
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 hereby approve the following adjustments to the stipend payments and
allowances received by the members of the City Commission for various expenses
incurred in the performance of their official duties: (1) an adjustment to the monthly
stipends to account for inflation since 2018, the last time the stipends were adjusted, in
the amount of$460 per month for the Mayor,and$517 per month for City Commissioners;
(2) a"gross up"of the stipends to account for associated federal income taxes due to the
City's election to report such stipend payments under a "non-accountable" plan pursuant
to IRS regulations, with the stipend payments to be adjusted by the net average federal
tax rate of 24.8%; (3) an increase in the vehicle allowance in the amount of $300 per
month, and an increase in the mobile phone allowance in the amount of$50 bi-weekly,
to provide parity with allowances provided to charter officers and certain other senior
administrators; (4) provide that the foregoing adjustments shall be retroactive to
November 3; 2023; (5) provide that the stipend payments shall be adjusted for inflation
each fiscal year thereafter, utilizing the Consumer Price Index for all Urban Consumers
(CPI-U) for Miami-Fort Lauderdale-West Palm Beach; and (6) acknowledge that the
current members of the City Commission for Group 3 and Group 5 have affirmatively
declined acceptance of the stipend payments set forth in this Resolution.
PASSED and ADOPTED this g day of 4rCk , 2024.
ATTEST:
Steven Meiner, Mayor
7V MAR 2 1 2024
Ra ael E. Granado, City Clerk
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
City Attorney p�Z Date
New Business and Commission Requests -R9 S
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission •
FROM: Rafael A. Paz, City Attorney and Maria Alpizar, Human
Resources Director
DATE: March 13, 2024
SUBJECT: DISCUSS/TAKE ACTION: STIPENDS AND STAFFING FOR MEMBERS OF
THE CITY COMMISSION.
BACKGROUND/HISTORY
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 name of lobbyist(s)and principal(s): N/A
ANALYSIS
Since the November, 2023 election, I have received various inquiries from members of the City
Commission regarding the stipends and staffing resources provided to members of the City
Commission.
To this end, to avoid piecemeal, or competing, agenda items submitted by one or more
members on the same subject, I have prepared this memorandum, in consultation with Human
Resources,to summarize the relevant issues.
The City Charter establishes a salary of $10,000 for the Mayor, and $6,000 for City
Commissioners. To help offset the expenses associated with their public offices, such as
providing food for elderly and needy residents, purchasing tickets to attend a myriad of civic,
non-profit and community events in order to engage with City residents, and sending newsletters
and correspondence to the City's residents to keep them apprised of City business, for many
years the Mayor and City Commissioners have separately received a monthly stipend.
The monthly stipend for the Mayor is currently $2,000. This stipend has not been adjusted in
approximately 18 years. The monthly stipend for City Commissioners is currently $2,250. This
stipend has not been adjusted in over 5 years.
Based on the input I have received from multiple members of the City Commission, below is a
list of possible issues for discussion/action:
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1. Inflation adjustment.
At the City Commission's discretion, the stipends could be adjusted for inflation, which has
increased by approximately 23% since 2018. If the City Commission were to adjust the
stipends for inflation during this relevant time period, the monthly stipend for the Mayor would
increase by approximately $460, and the monthly stipend for City Commissioners would
increase by$517.50.
2. The City's tax treatment of stipends.
Based on the City's election in 2018 to include the stipend payments under a"Non-accountable
Plan" pursuant to I RS Regulations, the monthly stipend is now subject to Federal income tax
withholding, thereby further reducing the net amounts available to members of the City
Commission to offset their unreimbursed expenses. Specifically, the Tax Cuts and Jobs Act,
signed into law in December 2017, resulted in the elimination of many itemized deductions
commencing in 2018, including the unreimbursed job-related expense deduction, thereby
exacerbating the deficit resulting from a stipend that has not been adjusted for inflation in five
years.
At the City Commission's discretion, the City Commission could elect to "gross up" the stipend
payments to account for associated federal income taxes, similar to other stipends that the City
Commission has adjusted for taxes, such as the housing rental stipend for fire rescue or law
enforcement personnel desiring to live in the City of Miami Beach.
If approved, the monthly stipend would be adjusted by the net average federal tax rate of
24.8%.
3. Vehicle and Mobile Telephone Allowances.
Members of the City Commission receive a $500 monthly vehicle allowance and a $50 bi-
weekly mobile phone allowance which has not been adjusted in many years. By comparison, as
part of their overall compensation packages, Charter Officers receive an $800 monthly vehicle
allowance. Most of the Charter officers receive a$100 bi-weekly mobile telephone allowance.
If the City Commission desires to address these allowances comprehensively and provide
parity with the allowances provided to the City's Charter Officers, the foregoing allowances
could be adjusted, at the City Commission's discretion, to an amount equal to that provided to
Charter Officers, or to some other amount, at the City Commission's discretion.
4. Automatic Annual Adjustments for Inflation to Avoid "Catch ups" over time.
If the City Commission were inclined to provide for such annual automatic adjustment to
stipends and allowances each fiscal year, it is recommended that the adjustment be made by
reference to the Consumer Price Index for the Miami-Fort Lauderdale-West Palm Beach,
Florida area, as published by the Bureau of Labor Statistics of the United States Department of
Labor. This is the same inflation index used by the City pursuant to Section 1-15 of the City
Code,for annual adjustments to the City's Fee Schedule.
5. Staffing.
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The City Commission may also wish to discuss the process for approving additional staff to
better manage the workload of the office and respond to the public. This discussion could
involve additional staff assigned to each commissioner, or shared staff assigned to multiple
commissioners.
To this end, currently, at least two (2)commissioners have staff vacancies within their respective
offices. At this time, it is not clear when either these vacancies will be filled and/or if the City
Commission would prefer to reassign existing vacancies for different purposes, in an effort to
better manage the workload of the office and respond to the public.
Finally, for reference purposes only, if the City Commission were to approve all of the above
adjustments, the total aggregate monthly adjustment would approximate $1,650 for each
member of the City Commission. The effective date of these adjustments would be at such
date as may be determined by the City Commission.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
The fiscal impact will depend on any action taken and availability of funding within the existing
budget.
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
Legislative Tracking
Office of the City Attorney/Human Resources
Page 785 of 1070