South Miami workshop: committee backs flat 3.95 millage, 6% COLA cap and targeted infrastructure spending

The City of South Miami’s Budget & Finance Committee recommended that the commission keep the millage rate flat at 3.95% as it moves into the FY25 budget hearings, the committee chair said at a July 18 budget workshop. Committee members told the commission their review of city finances showed a healthy surplus and recommended maintaining the current millage for the coming year.

The committee also recommended a budgeted cost‑of‑living adjustment capped at 6% for full‑time employees and selective implementation of salary ranges from the Evergreen Compensation Study rather than across‑the‑board raises. “We recommended adopting those proposed salary ranges and review the report carefully and implement the recommended changes selectively,” the Budget & Finance Committee Chair said in presenting the committee letter dated July 16.

City staff told commissioners the proposed FY25 budget includes year‑one implementation costs for the Evergreen plan of roughly $230,000 and about $150,000 projected for year two. The city manager said the measures aim to make salaries competitive while preserving fiscal stability and recommended holding reserves at industry benchmarks.

On the capital side, finance staff highlighted several major projects supported in the draft budget: $1.1 million for resurfacing and reconstruction, full funding of recommended sidewalk work (about $150,000), and $1.7 million allocated toward septic‑to‑sewer conversions using a mix of federal, state and local appropriations. Staff also noted ongoing design work on bridge repairs and culvert replacements and said the city would continue to seek federal earmarks for some projects.

Parks came up as a funding priority: the committee asked that a $170,000 allocation for temporary restroom facilities at South Miami Park remain in the parks budget to serve visitors while a permanent restroom and concession building is planned. Staff clarified the $170,000 is currently budgeted for a lease option, while purchase options remain under evaluation and will be analyzed for cost and lifecycle use.

Staff cautioned commissioners about several items that remain uncertain for the September hearings, including results of union negotiations, county garbage and recycling fees tied to county solicitations, and the final terms of certain contracts. Finance staff also noted the city’s current debt schedule, pointing to a taxable loan at an approximate 4.3% interest rate and a Chase loan at about 1.3% that carries a back‑loaded amortization schedule; staff said projected peak debt service in later years could approach the high single‑digit millions and urged careful matching of debt maturity to the useful life of financed assets.

Commissioners asked staff for additional detail on reallocations and reappropriations that had occurred in past years so future budget and finance committees can track shifted dollars more readily. The mayor directed staff to return with the requested clarifications and supporting materials ahead of the September millage‑setting and budget hearings.

The commission did not take a final vote at the workshop; the manager said the budget will continue to be refined with follow‑up memos and hearings scheduled in August and September.