South Miami officials urge voters to approve charter change to ease borrowing rules for infrastructure projects

Mayor Javier Fernandez announced an Aug. 20 charter referendum that would change how the City Commission of the City of South Miami authorizes borrowing. "If the voters blessed it ... we as the body should ratify that by a majority," Fernandez said, explaining that a debt issuance approved by voters would require only a 3-2 vote on the commission to enter contracts.

Fernandez and other commissioners said the 2004 charter language has largely prevented the city from seeking market financing for capital projects. The mayor recalled post-2004 problems tied to the town-center parking garage financing and IRS private-activity limits, saying that experience led to the current restrictive standard. "That engendered a whole series of fees and penalties," he said of the earlier financing.

Under the current charter, most borrowings require at least four votes and any indebtedness exceeding roughly 5% of the operating budget requires unanimous approval. The proposed amendment removes the 5% criterion for the special unanimity rule and establishes this structure: voter-authorized borrowing becomes actionable by a simple majority on the commission; borrowing pursued without prior voter authorization would still require a supermajority (four of five).

Officials framed the proposed change as a policy correction with built-in safeguards, not immediate permission to borrow. City Manager (role) clarified that any particular debt proposal would still be a separate question and — if sent to voters and approved — later presented to the commission for ratification. "This item isn't about borrowing something immediately," Commissioner Brian Corey said, adding the change is "about the policy of borrowing itself."

Commissioners and the mayor cited specific capital needs that the change could help fund in a planned, programmed way: repairs to a single-lane bridge (partly closed at FDOT direction), replacement of failing culverts, fleet replacement, and downtown streetscape work. Fernandez suggested a possible future borrowing capacity figure for discussion: "$65,000,000," which he said would not cover 20 years of needs but would allow the city to leverage matching funds from state and federal sources.

Residents at the town hall raised turnout and development concerns. Joanne Branson, who lives near a large redevelopment at the former Winn-Dixie site, warned that low turnout in past votes meant a small share of residents decided major changes. "If we have 13,000 people living in the city, why is our voting roll so low?" she asked; officials responded that the administration intends any eventual authorization question to appear on a November general-election ballot to increase participation.

City officials emphasized constraints on use of bond proceeds: borrowing may only finance capital projects — not salaries or routine operations — and any general-obligation bond would carry its own debt-service millage limited by statute. The mayor noted state statute now restricts municipal ballot timing to an August primary or November general election and the commission has chosen November for any bond authorization question to encourage broader turnout.

Next steps: the policy question is on the Aug. 20 ballot; if voters approve that change and the commission later asks for authorization to issue debt, that authorization would be scheduled in a later election (the commission has discussed the November ballot for debt authorization). Any specific borrowing proposal would return to the commission for a separate ratifying vote and public review.

Ending: Officials closed the session inviting residents to review the posted FAQ and ballot language on the city's website and to contact staff with follow-up questions.