The Miami Beach City Commission adopted final operating and capital budgets for fiscal 2026 and voted to lower the city's general operating millage rate modestly, then directed the administration to return an approximately $11 million projected surplus to residents.

The action came at a second-reading public hearing held in the commission chambers as the commission worked to meet a statutory deadline to adopt a balanced budget. Mayor Steven Miner opened the meeting by telling the chamber, “we are statutorily mandated to [finalize] our budget by today, 11:59 and 59 seconds.”

Why it matters: the vote sets the tax rate and spending plan for the coming year. Commissioners said rising costs for public safety and long-term capital needs have driven budget pressure, and several speakers during the public comment period urged the commission to reduce spending or return excess funds to homeowners and renters.

What the commission approved
- Millage and major totals: The commission approved a general operating millage of 5.856 mills for fiscal 2026 (down from the initially posted 5.8702) and left the debt-service millage unchanged. The FY26 budget as amended funds city operations, enterprise funds and capital projects across the city and related agencies. The commission also carried several amendments and line-item reductions developed during the meeting.

- Surplus rebate direction: Commissioners voted, 7-0, to direct city administration and the city attorney to present a plan at a special October 29 meeting to return the projected FY25 surplus (about $11 million) to residents. The motion, made by Commissioner Alex J. Fernandez and seconded by Mayor Steven Miner, asked staff to prioritize designs that would reach residents equitably and to examine options for including renters or other targeted assistance. The commission asked administration to present specific options and logistics at the October meeting.

- Budget adoption: The commission adopted the fiscal year 2026 operating and capital budgets with the amendments discussed at the hearing. Commissioners and staff identified roughly $3.5 million in net savings found during the budget process this fall (about $2.5 million identified in earlier meetings plus additional reductions discussed during the night's session). Commissioners directed some of those savings to budget stabilization and the one-time rebate planning process.

Debate and public comment
Public comment during the meeting was dominated by concerns about affordability and tax increases. Dozens of residents called or spoke in person, urging the commission to cut spending, roll back the millage and return money to taxpayers. Many cited rising utility bills, condominium assessments, home-insurance costs and the cumulative effect of repeated tax and fee increases.

Commissioners and staff defended key spending choices and said some increases are driven by public-safety and negotiated labor costs. Vice Mayor Joseph Magaziner told the meeting, “We absolutely are not raising your taxes here. Our millage rate for 3 years in a row ... is remaining flat,” and noted the city has identified recurring efficiency savings. Commissioner Alex J. Fernandez pressed for deeper cuts and for immediate action: “I'm ready to stay here all night and figure out what we can remove,” he said during debate.

Context and numbers provided at the meeting
- Projected FY25 surplus: approximately $11,899,000 (CFO projection presented during the hearing).
- Folios and homesteads: the city has about 55,289 property folios; about 14,173 are homesteaded folios (figures cited by staff during the hearing).
- Rollback threshold and scale: commissioners and staff noted that returning the millage to the rollback rate would require roughly $21 million in cuts to recurring spending.
- Capital needs: commissioners cited a multi-year unfunded capital program (figures discussed included about $138 million in capital budget for FY26 and roughly $1.3 billion in longer-term unfunded capital needs as presented during debate).

What the commission directed staff to do
- Return-plan: prepare and return on Oct. 29 with a detailed, implementable plan to distribute the projected FY25 surplus to residents, including options for homestead-only rebates, mechanisms to reach renters (if feasible), administrative logistics, and an analysis of legal constraints.
- Continued efficiency review: continue the line-by-line review of the operating budget and bring program-level options for recurring savings to the Finance & Economic Resiliency Committee and to full commission workshops.

Quotes
- Mayor Steven Miner: “We are statutorily mandated to [finalize] our budget by today, 11:59 and 59 seconds.”
- Vice Mayor Joseph Magaziner: “We absolutely are not raising your taxes here. Our millage rate for 3 years in a row ... is remaining flat.”
- Commissioner Alex J. Fernandez: “I'm ready to stay here all night and figure out what we can remove.”

Ending
The commission adopted the FY26 budget and a slightly reduced general operating millage and set a timeline for a one-time surplus distribution plan. Commissioners emphasized the work would continue: staff were asked to return with a detailed rebate plan and the commission signaled it will keep pursuing further efficiencies and program-level reviews during the months ahead.

Votes at a glance
- Direction to return projected FY25 surplus (~$11,000,000) to residents (motion directed staff to return plan at Oct. 29): mover Commissioner Alex J. Fernandez; seconder Mayor Steven Miner; outcome: approved 7-0 (motion recorded and will return Oct. 29). Note: motion asked staff to explore homestead-first options and also study renter inclusion mechanisms.
- Final general operating millage for FY26: 5.856 mills (committee adopted reduced rate after amendments); outcome: approved 7-0.
- FY26 budgets (operating and capital), as amended at the hearing: adopted (R7b and related items); outcome: approved (unanimous votes recorded for each item).