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South Miami town-hall details $65 million bond question, officials outline projects, oversight and tax implications
Summary
City officials explained Referendum 3, a proposed authorization for up to $65 million in general-obligation bonds to fund parks, infrastructure, public safety and municipal facilities; officials said projects would be phased, require later public hearings and that retiring parking-garage debt in 2026 could free about $700,000 in capacity.
Mayor convened the town-hall to explain Referendum 3, which would authorize the City of South Miami to issue general-obligation bonds "not exceeding 65,000,000 in 1 or more series maturing not later than 30 years," payable through ad valorem taxes, city staff said. The city manager said the authorization would not necessarily mean borrowing the full amount at once but creating a pool of capacity to be tapped through tranches as projects become ready.
The manager listed possible uses including parks and recreation projects, land acquisition for green space, art installations, improvements to Little House Preserve, aquatic center work, community center expansion and fleet replacement. He cited long-deferred infrastructure needs such as the Manor Lane culvert replacement and a one-lane bridge on the Brock Canal as examples of work that has been delayed under a pay-as-you-go model. "These projects are typically a 20 year program," the manager said, adding that some projects would require planning and engineering before an issuance.
Officials emphasized the mechanics and checks that would follow a voter authorization. The mayor noted the distinction created by a charter change passed in August: if the public authorizes the bond program, a future commission could approve specific general-obligation issuances with three of five votes rather than the four-of-five threshold otherwise required for certain debt. The mayor also pointed to the October 1, 2026 retirement of much of the city's parking-garage debt as a near-term source of capacity: "on 10/01/2026, we retire a substantial portion of our parking garage debt, which has debt service payments about $700,000," he said.
To address oversight concerns, the mayor said he would consider expanding duties of the existing budget and finance committee (a citizen advisory body) to provide additional review of financing, project scope and cost validation for projects funded with bond proceeds. The city manager added that each specific tranche and issuance would return to the commission for public hearings and approvals and that bond counsel, financial advisors and market scrutiny add accountability.
PFM financial advisors presented a preliminary credit analysis: Sergio Masquedal of PFM said the city has not gone to market in decades and that PFM "penciled out at about a double a credit rating" based on reserves and the city's financial profile. Officials cautioned that final ratings would be set by rating agencies during a market process and that issuance structure, pledges and covenants would affect ultimate terms.
What happens next: officials said the referendum, if approved by voters, would authorize the city to pursue issuance in tranches; each tranche would be the subject of additional public hearings and commission votes. If the referendum fails, staff said the next statutory opportunity to ask voters for authorization would be August or November 2026.
