Committee backs bill to require municipalities to charge same water rate for residents where plant sits

The Florida Senate Regulated Industries Committee voted to report favorably Senate Bill 202, a measure by Senator Jones that would require a municipality that operates a water utility plant to charge the residents where that plant sits the same rate it charges its own residents. The bill grew out of a dispute over a 25% surcharge North Miami Beach applies to customers it serves outside its municipal boundaries, including parts of Miami Gardens.

State Representative Felicia Robinson, who identified herself as a Miami Gardens resident and former Miami Gardens city council member, told the committee the bill “does not say get rid of the surcharge. The bill actually says to charge the same fee that you're charging your residence.” Robinson said the change is meant to address what she called “taxation without representation” for Miami Gardens residents served by the Norwood treatment plant.

Mario Diaz, city manager for North Miami Beach, urged the committee to table the measure and seek a local resolution. Diaz said the surcharge helps fund more than $27 million in active projects and maintenance in North Miami Beach and that the city’s water fund covers salaries and benefits for more than 130 utility employees. He told the panel that forcing a uniform resident rate would shift financial burdens to North Miami Beach taxpayers.

Sally Haman, former state representative and former commissioner, testified in support of SB 202, saying the original 1998 statutory scheme sought to cap a reasonable surcharge at 25% where municipalities served customers outside their borders and that circumstances changed after Miami Gardens incorporated in 2003. Haman said the Norwood plant sits on property inside Miami Gardens and that Miami Gardens taxpayers provide police, roads and other services near the plant.

Committee members pressed several questions about the scope and statewide effect of the bill. Senator Jones said the language had been discussed with the League of Cities and that the intention was to limit the bill’s direct effect to the North Miami Beach–Miami Gardens configuration rather than to broadly sweep across the state. Senator Bernard asked whether litigation had taken place; Senator Jones and witnesses referenced litigation and a 2017 settlement that the sponsor described as a roughly $9,000,000 depository judgment related to earlier disputes.

After public comment from AARP of Florida, Miami Gardens residents and others who said the bill is needed to remedy unfair bills for Miami Gardens residents, the committee voted to report the bill favorably. The roll call on SB 202 included recorded Yes votes from several committee members and a recorded No from Senator Angolia; the bill was reported favorably by the committee.

The committee record shows the issue was the subject of sustained public testimony and intergovernmental disagreement; supporters said the bill is a narrow fairness correction for Miami Gardens residents, while North Miami Beach officials said it would shift costs to their ratepayers and threaten ongoing capital projects.