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HomeMy WebLinkAboutResolution 2025-33989RESOLUTION NO. 2025-33989 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 AT ITS OCTOBER 15, 2025 MEETING, DIRECTING THE CITY ADMINISTRATION TO IMPLEMENT THE RECOMMENDED UPDATES TO THE CITY OF MIAMI BEACH'S WATER, SEWER, AND SANITATION IMPACT FEES, AS WELL AS PARKS CONCURRENCY FEES, PURSUANT TO THE SYSTEMATIC REVIEW OF IMPACT FEES AND OTHER RELATED FEES. WHEREAS, at the March 19, 2025 City Commission meeting, the Mayor and City Commission referred to the Finance and Economic Resiliency Committee (FERC) an item for a systematic review of all City of Miami Beach impact fees and Consumer Price Index (CPI) increases; and WHEREAS, impact fees are charges imposed on new development projects to fund infrastructure and public services needed to support growth, ensuring new development pays its fair share for the additional demand placed on public resources; and WHEREAS, impact fees cannot be mitigated by complying with minimum code requirements; and WHEREAS, the City Administration completed a comprehensive review, which was presented to the Finance and Economic Resiliency Committee (FERC) at its October 15, 2025 meeting, of all of the City's impact fees comrprised of Mobility, Water and Sewer, and Sanitation, as well as other related fees frequenfly categorized as impact fees such as Fee in Lieu of Parking, Parks Concurrency, and Sustainability Fees to ensure that the City's fees accurately reflect current infrastructure investment needs, regulatory obligations, inflationary pressures, and capital improvement priorities; and WHEREAS, the review that was presented included analysis of authorizing legislation, historical revenue, recent adjustments, and recommendations for adjustments; and WHEREAS, the Finance and Economic Resiliency Committee (FERC) recommends the City Administration prepare any necessary amendments to ordinances, resolutions, or fee schedule, and to update the Parks Master Plan based on the following recommendations: • Mobility Impact Fees: Maintain fees at the current rates; • Water and Sewer Impact Fees: Add annual inflation indexing to the current fees; • Sanitation Impact Fees: Apply a one-time retroactive CPI adjustment to the current monthly fees and add annual inflation indexing to the monthly recurring fees; • Fee in Lieu of Parking: Maintain fees at the current rates; • Parks Concurrency Fee: Update the Parks Master Plan to support a shift in the from the current Concurrency Fee structure to an Impact Fee structure; • Sustainability Fee: Maintain fee at the current rate; and WHEREAS, aligning City fees with actual system demands and inflationary trends ensures that new development contributes its fair share toward the cost of growth without placing undue burden on existing residents and businesses. 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 accept the recommendation of the Finance and Economic Resiliency Committee at its October 15, 2025 meeting, directing the City Administation to prepare any necessary amendments to ordinances, resolutions, master plans and fee schedules to implement the recommended updates to the City of Miami Beach's Water, Sewer, and Sanitation Impact Fees, as well as Parks Concurrency Fee pursuant to the systematic review of impact fee and other related fees PASSED and ADOPTED this 17 day of beu"66 ✓ . 2025. Y O o}y I Steven Meiner, Mayor ATTEST: DEC 2 2 2625 Rafael E:Granado, City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 101Z.1ZOLS Giry Attorney Data Resolutions - C7 Z MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: December 17, 2025 TITLE: 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 AT ITS OCTOBER 15, 2025 MEETING, DIRECTING THE CITY ADMINISTRATION TO IMPLEMENT THE RECOMMENDED UPDATES TO THE CITY OF MIAMI BEACH'S WATER, SEWER AND SANITATION IMPACT FEES, AS WELL AS PARKS CONCURRENCY FEES, PURSUANT TO THE SYSTEMATIC REVIEW OF IMPACT FEES AND OTHER RELATED FEES. RECOMMENDATION The Administration recommends that the Mayor and City Commission adopt the attached Resolution, accepting the recommendation of the Finance and Economic Resiliency Committee (FERC) at its October 15, 2025 meeting to implement the recommended updates to the City's Water, Sewer, and Sanitation Impact Fees, as well as Parks Concurrency Fees, pursuant to the systematic review of impact fees and other related fees. At the March 19, 2025 City Commission meeting, at the request of Commissioner Tanya K, Bhatt, the Mayor and City Commission approved a referral (Item C4 K) to the Finance and Economic Resiliency Committee (FERC) to discuss a systematic review of all impactfees and CPI increases in the City of Miami Beach to ensure that Cityfees remain aligned with current infrastructure needs and inflationary trends. Impact fees are one-time charges that are imposed by local governments on new development projects to help fund the infrastructure and public services needed to support growth. These fees cannot be mitigated by complying with minimum code requirements, and are generally used to offset the costs of adding, expanding, and/or improving public facilities and infrastructure such as roads, parks, and utilities. The purpose is to ensure that new development pays its fair share for the additional demand it places on public resources and infrastructure, rather than shifting the financial burden to existing residents and taxpayers. At the October 15, 2025 Finance and Economic Resiliency Committee (FERC) meeting, the City Administration presented a comprehensive review of all impact fees comprised of Mobility, Water and Sewer, and Sanitation, as well as other related fees frequently categorized as impact fees such as Fee in Lieu of Parking, Parks Concurrency, and Sustainability, Fees. J;LL�iE9l=: The comprehensive review that was presented at the October 15, 2025 Finance and Economic Resiliency Committee (FERC) meeting included analysis of authorizing legislation, historical revenue, recent adjustments, and recommendations for adjustments. The findings that were presented by the City Administration, which were recommended by the Finance and Economic Resiliency Committee (FERC), are summarized below: 1230 of 3458 Mobility Impact Fees Established by Ordinance No. 2019-4306, these fees, which generally vary depending on land uses, fund transportation infrastructure and encourage alternative modes of commuting. The current fee structure is indexed annually to CPI and was last updated as of October 1, 2025. Recommendation: Maintain fees at the current rates. Water and Sewer Impact Fees Established by Ordinance Nos. 95-2990 and 95-2991, these connection fees support expansion of the City's utility infrastructure. The most recent update was through Ordinance No. 2025-4746 that was adopted by the Mayor and City Commission on June 25, 2025. Recommendation: Add annual inflation indexing to the current fees. Sanitation Fees Established by Ordinance No. 98-3135, these fees, which are based on the number of equivalent commercial units (ECUs) and monthly rate, as well as 0.30% of the job value, function as a surcharge for commercial waste collection and disposal. Recommendation: Apply a one-time retroactive CPI adjustment to the current monthly fees bring these fees closer to present-day cost realities and add annual inflation indexing to the monthly fees. Number of Equivalent Commercial Units (ECU) r Current Monthly Fee (unchanged since 1998) rr Recommended Monthly Fee r rr r• Irr Fee in Lieu of Parking Allows projects to satisfy parking requirements by paying a one-time or recurring fee instead of constructing parking spaces. The current fees that were set by City Commission resolution were last revised in September 2014. On April 23, 2025, the Mayor and City Commission adopted Resolution No. 2025-33606 to maintain the existing in -lieu parking fee of $40,000 per required off-street space. Recommendation: Maintain fees at the current rates. Parks Concurrency Fee Originates from the City's 2003 Comprehensive Plan and ensures adequate parks facilities for new development based on a flat rate of $98.75 per residential unit that was last updated as of October 1, 2022 since it is not applicable to the City's indexing provisions and fee schedule. Recommendation: Update the Parks Master Plan to support a shift from the current Concurrency Fee structure to an Impact Fee structure to provide a more effective mechanism to address the 1231 of 3458 growing and diverse capital needs of our park system that would offer greater Flexibility to fund a broad range of critical projects, including the renovation and replacement of aging facilities. 1232 of 3458 1233 of 3458 Sustainability Fee Established by Ordinance No. 2016-3993, this fee supports environmental sustainability and resilience initiatives. It is a percentage -based fee, which allows the fee to scale automatically with the underlying cost or valuation metric, which in this case is the total construction value. Recommendation: Maintain fee at the current rate. FISCAL IMPACT STATEMENT See detailed information provided above. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: hftps:/Iw .miamibeachfi.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION See detailed information provided above. CONCLUSION The findings and recommendations presented at the October 15, 2025 Finance and Economic Resiliency Committee (FERC) meeting, which were recommended by the Finance and Economic Resiliency Committee (FERC), for updates to the City's Water, Sewer, and Sanitation Impact Fees, as well as Parks Concurrency Fee, provide a solid foundation for fiscal sustainability and long-term capital planning goals. This will ensure that City fees remain aligned with current system demands and inflationary trends, allowing new development to contribute its fair share toward the cost of growth without placing undue burden on existing residents and businesses. Should the attached Resolution be adopted, the City Administration, more specifically, the departments that are responsible for these fees shall prepare any necessary amendments to ordinances, resolutions, master plans and fee schedules, to implement these changes. EC/JDG/TOS/RA 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 2-177 Project? Yes No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal ennaned in lobbying? No 1234 of 3458 If so, specify the name of lobbyist(s) and principal(s): Department Management and Budget Sponsor(s) Co-sponsor(s) Condensed Title Accept Rec/Implement Water/Sewer/Sanitation Impact Fees & Parks Concurrency Fees. OMB Previous Action (For City Clerk Use Only) 1235 of 3458