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HomeMy WebLinkAboutCC 2023-12-11 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Monday, December 11, 2023 5:05 PM Special Meeting City Hall City Commission Francis X. Suarez, Mayor Christine King, Chair, District Five Joe Carollo, Vice Chair, District Three Miguel Angel Gabela, Commissioner, District One Damian Pardo, Commissioner, District Two Manolo Reyes, Commissioner, District Four Arthur Noriega, V, City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk City Commission Meeting Minutes December 11, 2023 5:05 PM INVOCATION AND PLEDGE OF ALLEGIANCE Present: Chairwoman King, Vice Chair Carollo, Commissioner Gabela, Commissioner Pardo and Commissioner Reyes On the ll th day of December 2023, the City Commission of the City of Miami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, for its budget hearing session. The Meeting was called to order by Chairwoman King at 5:10 p.m., and adjourned at 8:40 p.m. ALSO PRESENT: Arthur Noriega, V, City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk Chair King: (INAUDIBLE) joining us for this special Commission meeting of December 11, 2023. We are going to get the meeting started. At this time, as I do for every meeting, we will open the meeting in prayer. Today, we have Deacon Wade joining us to give us the prayer. Deacon Wade: How you doing everybody? Let us pray. Invocation delivered. Chair King: Thank you, Deacon. Commissioner Pardo, would you lead us in the pledge of allegiance, please? Commissioner Pardo: Sure. Pledge of Allegiance delivered. Chair King: Thank you. ORDER OF THE DAY Chair King: At this time, we will have a statement read into the record by our City Attorney, Ms. Mendez. Victoria Mendez (City Attorney): Thank you, Madam Chair. This evening, the City of Miami is holding its second and re -noticed final budget meeting and the related second final budget public hearing for purposes of fixing the final millage rate, adopting a budget, and approving various agency budgets to address the alleged violation of Section 200.0655 Florida Statutes as noted in the November 27, 2023, letter from the Florida Department of Revenue to the City of Miami. This hearing was set by Mayor Francis Suarez, pursuant to Section 2-33(1), was properly and duly advertised, and is in compliance with Chapter 200 and Section 166.241 Florida Statutes and all other applicable codes, rules, and regulations. Detailed information about the process, order of business, rules of procedure and scheduling or rescheduling of City Commission meetings can be found in Chapter 2, Article 2 of the City Code, a copy of which is available online at www.municode.com. Any person who is a lobbyist pursuant to Chapter 2, Article 6 of the City Code must register with the City Clerk and comply with the related City requirements for lobbyists before appearing before the City Commission. A person may not lobby a City official, board member, or staff member until registering. A copy of Chapter 2, Article 6 of the City Code entitled "Lobbyists" is available in the City Clerk's Office or online at www.municode.com. Any person making a presentation, formal request, or petition to the City of Miami Page 1 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 City Commission concerning real property must make the appropriate disclosures required by the City Code in writing. The City of Miami requires that anyone requesting approval, relief or other action from the City Commission must disclose before the public hearing any consideration provided or committed directly or on its behalf to anyone for an agreement to support or withhold objection to the requested approval, relief or other action pursuant to Section 2-8 of the City Code. Any documents offered to the City Commission that have not been provided at least seven days before the meeting as part of the agenda materials will be entered into the record at the City Commission's discretion. In accordance with Section 233 (f) and (g) of the City Code, the agenda, and the material for each item on the agenda is available during business hours at the City Clerk's Office and online 24 hours a day at www.miamigov.com. Any person may be heard by the City Commission through the Chair for not more than two minutes on any proposition before the City Commission unless modified by the Chair. Public comment will begin at approximately 5:05 p.m. and remain open until public comment is closed by the Chair. Members of the public wishing to address the body may do so by submitting written comments via the online comment form. Please visit www.miamigov.com/meetinginstructions for detailed instructions on how to provide public comment using the online public comment form. The comments submitted through the comment form have been and will be distributed to elected officials and City administration throughout the day so the elected officials may consider the comments prior to taking any action. Additionally, the online comment form will remain open during the meeting to accept comments and distribute to the elected officials and City administration up until the Chair closes public comment. Public comment may also be provided live at City Hall, 3500 Pan American Drive, Miami, Florida, subject to any and all City rules as may be amended from time to time. If the proposition is being continued or rescheduled, the opportunity to be heard may be at such later date before the City Commission takes action. When addressing the City Commission, the member of the public must first state their name, their address, and what item will be spoken about. Any person with a disability requiring assistance, auxiliary aids, and services for this meeting may notify the City Clerk. The City has provided derent public comment methods to indicate, among other things, the public's support, opposition, or neutrality on items on the agenda today in compliance with Section 286.0114 (4)(c) Florida Statutes. The public has been given the opportunity to provide public comment during the meeting and within reasonable proximity and time before the meeting. Please note Commissioners have generally been briefed by City staff and the City Attorney's Office on items on the agenda today. Anyone wishing a verbatim record of the item considered at this meeting may request it at the Office of Communications or view it online at www.miamigov.com. Notwithstanding the foregoing, pursuant to Sections 200.0653 and 286.0105 of the Florida Statutes and Florida Administrative Code Rule 12d-17.005-2c-22, no verbatim record is required for the appeal of any decision made during the public hearings required by Chapter 200. This meeting can be viewed live on Miami TV, the City's Facebook page, the City's Twitter page, the City's YouTube channel, and Comcast 77, and AT&T Channel 99 for residents living in the City of Miami. The broadcast will also have closed captioning. Thank you. Chair King: Thank you, Madam City Attorney. City of Miami Page 2 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 PUBLIC COMMENT FOR "SP" ITEM(S) Commissioner Reyes: Madam Chair? Chair King: We're going to keep the order that I've had and I'm going to check and see if my colleagues -- Commissioner Gabela, would you like to --? Commissioner Gabela: Yes, one of my issues with this budget and although I was -- Chair King: Well, before we all have discussion, do you guys want to take public comment first or would you like to make your statement first? Up to you. Commissioner Pardo: Public comment. Chair King: Public comment? Vice Chair Carollo: I would agree. Chair King: Public comment. Commissioner Reyes: Yes, I would like to hear what the people have to say. Commissioner Pardo: They're all waiting. Chair King: So, at this time, I'm going to open the floor for public comment for the following items, SP.1, 2, and 3. If there's anyone here that would like to speak on behalf of the items before us today, please come forward. Horacio Stuart Aguirre: Chairwoman King, Vice Chair Carollo, Horacio Stuart Aguirre, as chairman of the Miami River Commission. Madam Chair, ifI'm out of order on the item, mea culpa. There is an allocation, Madam Chair, for about $250, 000 in the proposed budget. That was proposed by the prior Commissioner for District 1. The Miami River Commission would like that money to go back to the City. We don't need it. We're not going to use it. I think it would be incorrect and irresponsible for us to keep that allocation. We have no intention of running a boat parade as a Miami River Commission between now and September 30th of next year. If it happens, it would be in the following fiscal year, but not in the incoming fiscal year. So, for us to be hoarding that money would be correct -- incorrect. And perhaps you as a board or Commissioner Gabela would like to reallocate that money for somewhere else. Thank you. Vice Chair Carollo: If I may, Chair. Commissioner Reyes: We voted (INAUDIBLE). Vice Chair Carollo: We did that already. Commissioner Reyes: We did that already. Vice Chair Carollo: We did that already. We put it back into the -- Commissioner Reyes: That's right. Vice Chair Carollo: -- general fund. Chair King: Yes. Commissioner Reyes: Yes, we did that already last Commission meeting, through the Chair. City of Miami Page 3 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Good afternoon. Billy Corben: Madam Chair, Billy Corben, 403003, Miami Beach 33140. Happy Hanukkah. Congratulations to new Commissioners Gabela and Pardo. The Mayor has been going around the world, as did Commissioner Carollo today, telling people that Miamians are paying less in taxes than ever before. That is a lie. The exact opposite is true. Miamians are paying more money in taxes than they ever have before. It's because the millage rate is too high, and it 's because the budget is too high, and it is too high because every taxpayer in this city, every property owner, every resident, is paying a corruption tax. By my account, without any exaggeration, the current liabilities and exposure of this city and future liabilities are well into the hundreds of millions of dollars. You are paying for this city to victimize you, then you are paying to defend those crimes through attorney 's fees into the millions of dollars for a litany of civil litigation that includes against commissioners for allegedly shaking down lobbyists, against the City Attorney for allegedly exploiting her public position in order to assist her alleged -- her husband's alleged business of exploiting elderly residents and targeting them to steal their homes. You have a wrongful termination suit from the former Police Chief Acevedo. And you have in this budget millions of dollars to settle some of that litigation, including the six figures that went to the victim of Mayor Francis Suarez 's former Comms (Communications) Director, for molesting a teenage boy in a conference room just above this facility. And thankfully, thankfully, because this Mayor, certain members of this Commission, who have exposed this city to possible bankruptcy as a result of some of this litigation, they have turned City Hall, this administration, into a literal crime scene. Thankfully, we have Commissioners Gabela and Pardo, who campaigned on transparency and accountability and putting a stop to this racketeering enterprise masquerading as a city government. Gentlemen, good luck to you, God bless you, and cut the corruption tax. Chair King: Thank you. Vice Chair Carollo: Madam City Attorney, I have been mentioned by this individual. Applause. Chair King: We don 't clap. We don 't -- we do this. Vice Chair Carollo: I have been mentioned -- Chair King: We do this. Vice Chair Carollo: -- by this individual, and I deserve a right to answer. Chair King: No. Vice Chair Carollo: He mentioned me, and I deserve a right to answer. Chair King: Commissioner, Commissioner. Vice Chair Carollo: First of all -- Chair -- Chair King: We don 't have to -- Vice Chair Carollo: -- I'm not here to be a coward. Chair King: I understand, Commissioner. Vice Chair Carollo: He wants to talk about corruption. City of Miami Page 4 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Commissioner, this -- Vice Chair Carollo: He's the spokesman for corruption. Chair King: -- this is not -- he has a right for public comment. This is not the place, this is not the time. We have a job to do right now -- Vice Chair Carollo: No, but -- Chair King: -- with the budget. Vice Chair Carollo: -- but here's a man that doesn't even live in our city. He 's been paid by the corrupt so that he could do this kind of stuff Chair King: Commissioner. Vice Chair Carollo: And if he's going to get up here and call many of us in the city that have worked very hard and given everything we have to the city, corrupt, then he better put up and show where the money is because him and his buddies, I'm going to take them one at a time. Chair King: I understand, but it 's not going to serve anyone or the City of Miami residents to get into a match. Is there anyone else that would like to speak on behalf of the items before us? Brenda Betancourt: Good afternoon. Brenda Betancourt, 1436 Southwest 6th Street. Congratulations to the two new commissioners. Commissioner Gabela: Thank you. Ms. Betancourt: Good friends and for a long time. And I just want to say something very simple about the budget. There is a lot of different things than the budget reflect that I hope the two of you have the chance to review it. There are many things that have been done through the years and sometimes the information that the people receive in the dossier is not the same that is in the item and the budget. So, I hope the two of you be able to review and make sure that those items are being actually put in the right way. And one of the things I just want to say is, you guys are new faces for us in the dais. And I hope and I wish for you guys to be the best. Commissioner Gabela: Thank you. Ms. Betancourt: That's what we all hope from you guys, to be honest and try to just do the business of the city. And I just want to say something from the bottom of my heart. Do not get yourself caught up in a different reasons than just what you're supposed to be doing. Your district should be number one priority. Other people's problems, it might come around back and forth, but I hope the two of you to pay attention just to your district 's problems. Because sometimes that 's all a people need. My father lives in your district, my sister lives in your district, so I want that -- Commissioner Gabela: Yeah, your father voted for me. Thank you. Ms. Betancourt: -- too, just to be fair to everybody. And hope to have another friend in the dais who is going to reflect what the city needs. The budget, I hope that we are actually getting all the things that we need. And I'm going to tell you just this very fast, when I see $250,000 for food, I hope that you tell the seniors that the money comes from our taxes. Chair King: Thank you. Thank you. Good afternoon. Maria Cecilia Tavera: Good afternoon. Cecilia Tavera, 2 Grove Isle Drive, 1405, Coconut Grove. I'm here just to say -- well, hello, Commissioners, congratulations. City of Miami Page 5 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: Thank you. Ms. Tavera: Thank you for being here to represent us. And my only comment is that I do live in District 2 in the City of Miami, and Billy Corben speaks for me. Everything he said, I agree with. Thank you. Applause. Chair King: Thank you. Is there anyone else who would like to speak? Good afternoon. Fernand Amandi: Good evening, members of the Commission. Thank you. My name is Fernand Amandi. I am also a City of Miami resident. I live in the South Grove, and I'm here to congratulate in person Commissioners Gabela and Commissioners Pardo -- Commissioner Gabela: Thank you. Mr. Amandi: -- who I know were elected on a mandate not of silent rubber stamp complicity, which for too long we have unfortunately seen the Commission act, but rather in a resident's first posture. No matter what the political pressure, no matter what the cost to themselves, because you are here to do a public service, not personal enrichment. So, I thank you and congratulate both of you. And we all are here, not just those in the chamber, many watching throughout the city and at home, asking you to take into consideration a new approach. The reason we are in this predicament right now is not either of yours fault. You are being handed an opportunity because of unfortunate circumstances that the State has had to intervene and say, no, no, no, the City did it wrong, doing it right. This is my tax notice. I 've already paid. I'm one of those early payers to get the discount. My taxes actually went up this year. In spite of the Commissioner's point, he's correct, the millage went down, but my taxes did go up. The City as it currently stands has a hundred million dollars in additional revenue. So, even if the millage rate were to be cut, which I think would sound like a tax rebate for our conservative Commissioner friends, that's something that usually is a good thing, would be a good thing to get back. I think we can be more efficient within the budget. As Mr. Corben says, there are certain items in that budget that I think speak to millions of dollars that the residents should not and do not want to be paid for. So, please use that judgment and remember, we elected, in your case Commissioner Pardo in my district, I believe in your case too, Commissioner Gabela, on a platform of standing up for the residents. Zero tolerance for corruption, zero tolerance for unethical behavior, which unfortunately has been a blight on the City over the last several years. We will hold you to that standard and we expect and anticipate that you will run by that standard. And if you don 't -- Chair King: Thank you. Mr. Amandi: -- we will be back. Thank you all. Good luck with your decision tonight. Chair King: Thank you. Good afternoon. Elvis Cruz: Thank you, Madam Chair. Elvis Cruz, 631 Northeast 57th Street. Congratulations, Commissioner Gabela -- Commissioner Gabela: Thank you, sir. Mr. Cruz: -- Commissioner Pardo, and thank you for sacrificing your time to run and to serve. I know it's a thankless effort. It is disturbing that we are even here at this meeting. It is disturbing that the City apparently ignored state law and warnings from the State requiring this meeting, this do -over, if you will. Regarding the budget, the City of Miami has a long history of not maintaining its facilities and then demolishing them and rebuilding them. That is completely financially irresponsible. The City Administration has referred to that process as City of Miami Page 6 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 deferred maintenance, but it 's really financial negligence. So, I hope that this new Commission will take on that extremely difficult task of changing the groupthink, the culture of the City of Miami in neglecting maintenance of its facilities and wasting millions upon millions of dollars. Please maintain our facilities, don 't demolish them, and then spend millions more to rebuild them. Thank you. Chair King: Thank you. Good afternoon. Alexander Cardenas: Good evening. Evening, esteemed Commissioners. Congratulations, Commissioner Gabela, Commissioner Pardo -- Commissioner Gabela: Thank you. Mr. Cardenas: -- on your election. And good evening, Madam City Attorney, Mr. Manager. I just wanted to take this opportunity to just relive something that I had to deal with back in 2008 when I got hired as a firefighter. And just so that everybody knows, I'm sorry if I misspoke, Alexander Cardenas, president for the Miami Association of Firefighters, 2980 Northwest South River Drive. As a firefighter back in 2008, when I first got hired, the last thing that I thought I was going to end up dealing with was being provided with some pink slips and being told you might not last here too long because we 're about to go through a true fiscal crisis. Now I can tell you we've given up a lot since then. And during that time, there was financial urgency. And we gave it our all. We continue to do our job respectfully, as passionately as we always have done. And since then, it 's taken well over 8 to 10 years to try to recover from where we were back then. And during that time, we had a true fiscal crisis. Since then, the very last time that we received an across-the-board increase, a raise, was back in 2017. Now, we've been negotiating for well over a year and a half to try to improve the benefits, working conditions, retirement, health insurance of our firefighters and our paramedics. This that we would be doing today, if we did anything more than reconsider the fact that this budget has already been laid out, approved, it would be a major setback to do anything more than just continue to approve it as we had done before the correct way with all the City department budgets already budgeted and planned for and two months into this budget. I ask you today avoid a fiscal crisis. Chair King: Thank you. Mr. Cardenas: Thank you. Chair King: Thank you. Good afternoon. Denise Galvez Turros: Good afternoon and welcome to our new commissioners. Welcome aboard. I'm here as a resident in Manolo 's district. I'm also here as a de facto ombudsman for Little Havana and Shenandoah. I'm on the receiving end constantly of complaints from our residents, most of them middle class residents, many of them small business owners who just don't trust this administration anymore. Definitely don 't trust them to handle our taxes. They can't even implement simple things like cleaning up our streets and our sidewalks and picking up our garbage on time, you know, police enforcement or enforcement of our laws. So, I'm here to ask you to please not increase our millage rate because I think that unless there's more change -- and yes, we started with two commissioners, but there's a lot more change that needs to be done here at the City so we can go back to trusting our government to do what is right. I think we have a lot of people who 've been living off of the City for a long time, taking advantage of a lot of their special privileges, like our City Attorney. And I think all those people need to be called before us and put in question before we pass another dime and approve another dime to the City of Miami's budget. Thank you. Chair King: Thank you. Good afternoon. City of Miami Page 7 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Joe Simmons, Jr.: Good afternoon, ladies and gentlemen. Congratulations, Commissioner Gabela, Commissioner Pardo. Commissioner Gabela: Thank you, sir. Mr. Simmons, Jr.: I only ask that you guys consider the budget that was already approved and ratified before. Currently, in about two days, there's going to be a union contract that 's going to come before you. If you were to roll back some of the things that were allocated, and I understand you may have concerns because you just got in office, but changing or rolling back some things may affect now our contract. We bargained with the City in good faith for quite some time, and we understand the Manager's Office as well as you guys have an awesome task to balance the interest -- varying and competing interest. And we just ask that for your support because, in two days, our members have already ratified and approved it. The Manager has approved it two weeks ago, roughly two weeks ago, and it's going to come before you. And I'm going to come before you again and ask for your affirmative vote. So, we are asking you to consider those, keep that in mind. Thank you. Chair King: Thank you. Good afternoon. Felix Del Rosario: Good afternoon, good afternoon. Thank you, Chairwoman. Commissioners, congratulations. I'm Felix Del Rosario, president of the Miami Fraternal Order of Police, and I'm here to talk about the budget. Voting not -- reconsidering this budget as it is will hurt us with all the money coming from the state and everything. And as you all know, we are in the middle of negotiations. One of the big paramounts is not only recruiting new police officers, but also retaining them. We have a lot of officers that are leaving -- they're under 10 years -- for other departments, for better benefits and wages. And that's one of the big things that we discussed with the Manager is to increase our salaries and increase so we can not only recruit and retain because we do need more officers. So, doing anything more to the budget is going to hurt us. So, I think that we should not take it more than just reconsidering and talking about certain things within the budget. Thank you. Chair King: Thank you. David Winker: Good afternoon. Chair King: Good afternoon. Mr. Winker: David Winker. I live at 4222 Southwest 17th Street. That residents were able to have a free and fair election to choose these two new commissioners is a triumph of democracy and the will of residents. And that triumph is particularly acute given that Commissioner Miguel Gabela was forced to sue the City in order to undo the efforts by the city to prevent him from running against Alex Diaz de la Portilla. It is important to know that the City continues a scorched -earth effort in that litigation to disqualJ him from office. Those ofyou who voted for him need to know that that fight continues and your taxpayer money continues to fund that. Residents have spoken. The new Commission has a mandate. Residents are demanding better, more transparent, and cleaner government. And a big part of that is stopping the funding of legal and other fees of taxpayer dollars to defend wrongdoing and corruption. Together we can leave behind the ugliness and weaponization of City resources against residents and begin writing a new chapter to improve things for residents and everyone at the City of Miami. Let's continue to do the hard work. Thank you everybody on the Commission. Chair King: Thank you. Good afternoon. Mel Meinhardt: Good afternoon, Madam Chair. My name is Mel Meinhardt. I live at 3075 Virginia Street, Miami, Florida. Madam Chair, over the last two years, you and this Board, these Commissioners, and I thank you, best health to you, Commissioner, and I thank each of the Commissioners for your service. But your group, as it 's changing, as its face has changed, City of Miami Page 8 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 has dealt with and continues to deal with a crisis in confidence. And we've seen it in many different areas, from the redistricting to the lawsuits and in the budget -type hearings. The challenge here -- and I think it's within your grasp -- is to recognize that there may be, there almost certainly is, a systemic issue here. And corporations and large organizations have been able to deal with systemic problems of accountability and responsibility by looking hard and changing the way that they do business. I think that moment is here before the City of Miami, before we slide into a situation that is irretrievable. And Miami has been in such situations before. Therefore, I ask that we bring in the best practices of accountability and responsibility and visibility into the practices here that we have. All the elements that we've talked about, whether they're legal or they're in the budget controls, could be addressed if we get the right kind of talent in here. My personal worry is that we don 't have the talent. When I read the budget and I see the number of vacancies here and I hear about the problems, I see problems in -- structural problems in leadership. That's what you can do. If we're going to make you responsible and you are responsible, who do you hold accountable for the actions that are here? Let's make that clear, let's make it consistent, and let's get done right by the citizens here. Thank you, Madam Chair. Chair King: Thank you. Is there anyone else who would like to speak? Seeing none, the public comment period is now closed. SP - SPECIAL MEETING City of Miami Page 9 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 SP.1 DISCUSSION ITEM 14644 Office of Management and Budget A DISCUSSION TO ALLOW DISCUSSION AND PUBLIC COMMENT ON THE FINAL FY 2023-24 MILLAGE RATE, TENTATIVE BUDGET, AND ALL OTHER BUDGET ITEMS ON THE AGENDA. RESULT: DISCUSSED Note for the Record: For additional minutes referencing Item Number SP.1, please see "Public Comment for "SP" Item(s)." Chair King: At this time, we will have a statement read into the record by the Budget Director. Marie Gouin (Director, Budget): Good afternoon, Chairwoman -- Chair King: Good afternoon. Ms. Gouin: - Commissioners. My name is Marie Gouin. I am the Budget Director for the City of Miami. Tonight what we're doing is redoing a hearing for the budget. So, the proposed general operating millage is 7.4843 mills for the City of Miami for fiscal year beginning October 1, 2023 and ending September 30, 2024. The operating millage is 13.30 percent higher than the state -defined rollback rate of 6.6055 mills. And the rollback rate is the revenue that was received in the prior year. Any questions on that? Vice Chair Carollo: Yes. For the record, the millage that the City adopted is lower than the millage that we had in the previous fiscal year, correct? Ms. Gouin: Correct. Vice Chair Carollo: Isn 't it a fact -- answer if you know it or not -- that for the most part, just about every fiscal year, the rollback rate is rarely, rarely approved by any city, and particularly a city of the size of Miami that has the expenses, the challenges that it has. Ms. Gouin: Yes, and since I've been here, we have not -- I've only been here for a couple of years, and when you look at history, no, the rollback rate has not been adopted by the city. Vice Chair Carollo: I can tell you that it's never been adopted, and I can tell you that you could go through Florida and every major city up and down, and it will be extremely rare if you find any city that has gone with the rollback rate. And that 's for the simple reason that, in particular years like this, inflation, the costs have gone higher than any other year that I can remember except maybe back in the early years when I was a very young commissioner that inflation hit between 18 and 22 percent. Every major developer in Miami went bankrupt except one that I can think of. And the inflation that we're facing today is the highest since back then in the early 2000s. Employees cannot keep making the same salary that they were making before because they will take a job somewhere else. They can 't afford to live. When, my God, you see that in McDonald's and in other fast food places, they're paying young kids up to $18 an hour, $15 an hour. That's a world we have to compete with. And it is a fact that food costs have gone through the roof. It is a fact that our gasoline costs have gone sky high. And it is most a fact that rent, mortgages have gone through the sky. Last fiscal year when we approved City of Miami Page 10 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 the budget, you could still get some mortgages at 3, 4 percent. I'm sure that Mr. Pardo, that's in that field, will confirm that. Today, what can you get mortgages for, Mr. Pardo? Commissioner Pardo: (INAUDIBLE). Vice Chair Carollo: Yeah. Commissioner Pardo: It depends what kind of mortgage. Vice Chair Carollo: Typical mortgage for the typical joe, the plumber that wants to get a mortgage for his home. Commissioner Pardo: It depends on the mortgage and the length of time and a lot of other considerations, but it could be anywhere between six, seven, eight. Vice Chair Carollo: And more, you're right. Commissioner Pardo: Depending if you get -- Vice Chair Carollo: Sure, it depends but -- Commissioner Pardo: -- a lien adjustable, you could go. Vice Chair Carollo: -- six, seven, or more. And you made the point that I wanted to make. From 3 percent, 4 percent, the fiscal year that we approved this last budget, this is where mortgages are at today. This is what the cost of money is. So, it is impossible for this city or any city -- and please show me any city in Florida this fiscal year that has gone back to the rollback rate. It is impossible to do that because with the high inflation and the high cost of everything, you can't do it. This city did lower the millage rate by a little bit, and we've done that every year. And every year, we've cut back the millage rate somewhat. And I hope that this Commission and future Commissions keep doing that. But to go back fully to a rollback rate, it is impossible. City of Miami Page 11 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 SP.2 ORDINANCE 14477 Office of Management and Budget AN ORDINANCE OF THE MIAMI CITY COMMISSION RELATED TO TAXATION, DEFINING AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI ("CITY"); LEVYING AN AD VALOREM TAX ON ALL REAL AND PERSONAL PROPERTY IN THE CITY AT A TOTAL TENTATIVE RATE OF 7.4599 MILLS ON THE DOLLAR OF THE TAXABLE VALUE OF SUCH PROPERTY, FOR THE PURPOSES OF FUNDING THE GENERAL OPERATING BUDGET AND PAYMENT OF DEBT SERVICE, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023, AND ENDING SEPTEMBER 30, 2024; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. ENACTMENT NUMBER: 14214 MOTION TO: Adopt with Modification(s) RESULT: ADOPTED WITH MODIFICATION(S) MOVER: Manolo Reyes, Commissioner SECONDER: Damian Pardo, Commissioner AYES: King, Gabela, Pardo, Reyes NAYS: Carollo Chair King: And at this time, I will hear from my colleagues. Commissioner Gabela. Commissioner Gabela: Thank you, Madam Chair. So, one of the things that I do want to -- I've got a couple of things to address, but one of the things I want to talk about today is I've been doing a little bit of research and homework here regarding the budget. And Larry, are you here? So, Larry, I had a question for you. First it was how much of that -- of the revenues that we collected were from new construction. Larry Spring: Through the Chair, Larry Spring, Chief Financial Officer, that number is approximately -- excuse me, approximately 17 billion. Commissioner Gabela: 17 million or -- Mr. Spring: Billion, billion, billion. Commissioner Gabela: 17 -- Mr. Spring: Assessed value. You're looking at the -- Commissioner Gabela: No, no, no, no. I want to know -- Mr. Spring: The revenue? Commissioner Gabela: -- the revenue. The gross revenues that we collected this year. Mr. Spring: From the -- from the -- Commissioner Gabela: Exactly. Mr. Spring: Hold on one second. Commissioner Gabela: While Larry's looking it up, can I proceed, Madam Chair, with something else? Or should -- oh, okay. You got it? City of Miami Page 12 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Spring: I'm listening to you (INAUDIBLE). Commissioner Gabela: Oh, I'm waiting for the answer, but ifyou -- Mr. Spring: Oh, okay. Commissioner Gabela: -- ifyou needed to get it, I was going to move on to something else while you were getting it. Mr. Spring: Oh, okay, okay. Commissioner Gabela: That's what was saying. Okay, so what wanted to touch is, while Larry gets that answer, I did a little bit of homework and it seems to me that on the mileage [sic] rate, it is true that the homestead -- those of us that have homestead exemption, the 3 percent cap on the value of the property has not gone up. That is true of this year. However -- however, we have a problem, okay. We got a big problem that part of the revenues that we're collecting this year as opposed to last year on non - homestead properties, for example, a duplex, has gone up 20 percent from last year, okay, 20 percent. In my case -- and I use my example of 1780 Northwest 21st Terrace -- this year we paid $1,215 and I also pay early, I already paid it, we paid $1,215. That's a 20 percent increase, Madam Chair, from the previous year that I paid. So, I paid $1, 250 extra this year. Now, I'm part of those 20 percent of property owners that are renting the property out, that it's a rental income property for my wife and I. And here 's the problem that I see here. The problem that I see here is that this forces the landlords to increase in turn the rent, because these costs are going to be passed existentially at some point to the tenant, to the residents of the City of Miami. So, this is one of the main problems that I have. Look, I hear all you guys, with all due respect, that work for the City of Miami. I hear the negotiations that's going on, but at the end of the day, I'm here to represent my constituents and what they -- and the people that elected me to serve here. Number one, I am against raising taxes for not a very good reason at all. The way I see it, we have a lot of problems here with litigation in the City ofMiami, okay. And I don't want to make accusations, I want to keep this professional. But for example, I have learned from the City Attorney that Mr. Carollo's defense has cost the City thus far $8 million, okay. My -- the lawsuits that they have placed against my person, Ms. Victoria Mendez, lawsuit number one for taking my house out of the district, which we won that lawsuit, then the appeal on that lawsuit, which we also won. And now, as I sit here today in front of you, and as I am commissioner, I am still -- right now there is pending litigation, pending litigation against my person, okay, in the courts trying to overturn the appeal. Okay, I have spoken to Mrs. Mendez, how much did this cost? I understand that the outsourcing of litigation in the last appeal, the -- case number three against my person, cost in excess of $50, 000. Is that correct, Victoria? Victoria Mendez (City Attorney): So, the outsourcing just happened so I don't think that that case has cost 50,000. Commissioner Gabela: You said to me the other day, and I quote, $50, 000 is what you spent. That 's what you said to me the other day. Ms. Mendez: No, what I said is to outsource it -- Commissioner Gabela: Right. Ms. Mendez: -- in the future, it could be $50, 000. City of Miami Page 13 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: But what more are you outsourcing in the future? Are you having -- Ms. Mendez: Well, I mean -- Commissioner Gabela: -- another lawsuit against my person that 1 don 't know about? Ms. Mendez: No, no, it's now because you are my client -- Commissioner Gabela: Right. Ms. Mendez: -- I can 't pursue the case. Commissioner Gabela: Okay, all right. Ms. Mendez: It has to be outsourced to address -- Commissioner Gabela: The point I'm frying to make here is, okay, that we do this budget deal here is -- we do this budget deal, we say to the residents, oh, we're lowering your taxes. And in actual fact -- okay, and I understood what Mr. Carollo was saying, I do, okay. But here's the problem that we're going to have, okay. This 20 percent that we're passing on to the property owners that have non -homestead, that is a lot of people, are going to be passing it on to their tenants, Mr. Pardo, and this is what I am scared of. This is what I cannot accept, okay, nor can I vote for this. And I will be candid, and then I'm going to yield to somebody else so I don't take up all the time. The other thing, the litigation that's going on in the City of Miami, this has to stop. I mean, this just has to stop. It's eating away at all corners. You know, it's not producing anything positive for our districts, for our residents, you know. And that's why, Madam City Attorney, respectfully, I have asked for your resignation, because every time something happens in the City of Miami, there 's a hurricane, you seem to be caught right smack in the middle of that hurricane, okay. And my question to you is, and we talked about this, I was candid with you the other day that I wanted your resignation, I was candid about that. And my question to you, Madam Attorney, at the end of all this shenanigans that's going on, how much have we spent on legal bills this year, this fiscal --? Or let me put it -- let me -- now this wouldn't be fair because this is only two months into the fiscal year. Last fiscal year from September/October of 2021 and then ending in -- ending in '22, how much have we spent on litigation, total, gross numbers? Ms. Mendez: I would have to check the records and get back to you. Commissioner Gabela: While you're checking, I yield my time to whoever else wants to -- Mr. Spring: If you will, Madam Chair, I do have the answer to his question. Chair King: Go ahead. Mr. Spring: Commissioner, that number, the tax revenue associated with the new construction, the new construction assessed value is $1.6 billion, and it is generating approximately, because you know, still estimate, $12 million in property -- Commissioner Gabela: So 12 -- Mr. Spring: -- property tax revenue. Commissioner Gabela: Property tax, 12 mil. City of Miami Page 14 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Spring: Yeah. Commissioner Gabela: So, out of that 12 mil is from -- so see that, that I don't consider a tax hike. And why don't I consider that a tax hike? Because that's new construction. I mean, somebody, you know, you've got to pay. You have a property, you have to pay so that I don't view as -- that -- that there I can negotiate on that as for me, and I don't know if we can negotiate this or not, but for me, I can negotiate that. I'd be willing to negotiate that. What I'm concerned again is the residents -- the average Joe out there, the guy that's frying to make a living for his family, to put food on the table, to put a ceiling over his head, to educate his children, that's who I'm concerned about. I'll have questions later on, but I yield my time for the time being. Mr. Spring: Okay. Commissioner Gabela: Thank you. Chair King: Thank you. Commissioner Pardo. Commissioner Pardo: I really wanted to just take a second and read the first sentence of the Citizens' Bill of Rights, which starts the Charter. It says, this government has been created to protect the governed, not the governing, in order to provide the public with full and accurate information, to promote efficient administration management, to make government more accountable, and to ensure to all persons fair and equitable treatment. The Miami dysfunction is our inability to act accordingly. The answer to everything can't be a lawsuit. And when we make the wrong judgment call and it doesn't go our way, there are simply consequences to making the wrong judgment call. That's frue everywhere in the world, and it's also true in government. In this case, we briefly talked about the millage, and we talked about the rollback millage. Well, millage is also a function of real estate values, and it may be frue that we've never gone back to the rollback rate, but it's also frue that we've never experienced such high real estate values that we're currently experiencing. And these are important factors to consider when we 're looking at the consequences of where we sit today. Because we are sitting here today because of this dysfunction. This is not how a normal situation should roll out. And I can tell you, from having been in similar situations myself whenever I have been in this situation, where I've had five business days to review information, where I don't know all the intricacies related in these numbers, it never works out to the benefit of residents or anyone I would represent to vote accordingly on something that I was simply not a part of or not made aware of. Chair King: Commissioner Reyes. Commissioner Reyes: Well, I have heard and every one of you and the people and I think there is a tendency to generalize that everyone that is here is corrupt. I challenge anybody to find anything that I have done wrong. I remember back in 2019 when I was elected, re-elected, I made a challenge to my fellow commissioners. And that challenge was simply was just leave your personal vendettas and do your personal agendas aside, leave it aside, and have only one agenda, which is the benefit of the people that you are representing. The benefit -- work for the benefit of the people that elected you and the rest of the City of Miami. That's the challenge, and I welcome you guys, I really do welcome you guys, but I hope, I really hope that what I -- that challenge that I made, you take it at heart. And we all can work together for the City of Miami and for the residents. And that's what I've been doing. And there are people that live in my district, they can attest to that. They can attest to that. Now, I have heard all the arguments about this budget that we passed. And Larry, could you please come to the --? Because I have a couple of questions for you. How many times have you heard me to talk about being more efficient and do a program so that City of Miami Page 15 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 every single department be more efficient and we use best practices. I really agree with the gentleman that stood there and said we have to be more efficient. And efficiency is very important because it would save a lot of money. And I remember that you did that years ago that I came when I was working for the school system. I came and I talked to you on implementing an efficiency department -- a program. And to that effect, I even became a black belt in Six Sigma, you see, just to try to bring efficiency. But in order to do that, we need the support and the backing of the administration, you see. So, by saying it, we don't get it. I also want to -- when I talk to you, I ask you that we reduce the millage, remember? Mr. Spring: Yes. Commissioner Reyes: And I even said, you see, we should reduce the millage and we should -- the savings that we are going to get, or either reduce the millage, or get some of the additional funds that we are -- what we are receiving and make a contribution to our residents, our taxpayers. You see, we (UNINTELLIGIBLE) say it the other way. And you asked me if we could wait until -- and I know that -- everybody that have work in budget, we know that we have to wait in order for us to know what really is going on, because a budget is not only more -- is not more nor less than a forecast. Mr. Spring: Correct. Commissioner Reyes: You are guessing, you are forecast. You're forecasting your costs and you're forecasting your revenues. When you forecast your costs, you have to take into consideration, you see, the rate of inflation that we are now suffering, you see. We have a rate of inflation because everything costs more, you see. And I ask you, how can we do that? And you said, and you promised me, and I want your word, you said, we are -- everybody knows that mid year, you do a review of performance of your revenues and your costs. And you are, most of the times, most of the times, and that has been the history of the City of Miami, we have been outperforming, outperforming, I mean, the revenues have been greater than costs and we could extend that to the end of the year and have substantial savings. Mr. Spring: Correct. Commissioner Reyes: You told me, you told me, what we 're going to do is once we get that number, which how much was it last year? Mr. Spring: We have conservatively forecast that the -- we started out with a forecast of about $30 million. We think -- we outperformed both revenues and expenditures combined. However, you know we 're in the year-end closing process, so we 're doing our accruals, so we 're -- we try to be very conservative as we end the year. We still have our hurricane set aside, even though we 're out of season, which is $5 million so, but roughly the gross number was around 30 million. Commissioner Reyes: About 30 million, but are you including in that the revenues that we have to receive from Dade County? Mr. Spring: Yes. Commissioner Reyes: Okay. Okay. Okay. So, what I'm proposing, and I think, and I know, and I know, that everybody, because I pay taxes too, you don't -- I mean, I pay taxes too, but what happened is that we are victims, we are victims of our success. The City of Miami has become so popular and so many people are moving here and so many people are demanding houses and apartments and all of that, that the cost -- that the cost has increased tremendously. And everybody that knows about how the City of Miami Page 16 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 budget is or millage, it works and how it works, your taxes work, you know that it is a function of the cost times the millage. You see, the market value times the millage. And we have that problem. And there's no way that we can correct that, you see? I know, and I agree with Commissioner Gabela that the ones that are suffering the most are the non -- I mean homesteaded property. The homesteaded property, they had (INAUDIBLE), whoever developed that. They have the Save Our Homes, which is they cannot be increased by more than 3 percent. Mr. Spring: 3 percent. Commissioner Reyes: Am I right? Okay. Commissioner Gabela: I think you are. Commissioner Reyes: We are -- we are -- I mean, we have been benefit because our property value has increased. And as the property values have increased, you see, our capital increased. We are richer, you see, because people are selling homes here and they're moving someplace else because of the property value that increased. I believe that what first thing that we have to do -- you see, we have a budget here. If we -- let 's say that we take away and from that $100 million that is exfra that everybody's talking about, let's say that we take $50 million and I do -- we do what I am asking -- I'm asking you to do at midyear once we readjust the budget, and granted, I think that now I will have support in demanding, you see, in demanding a program for efficiency, you see, and maybe we can hire somebody from the outside and then they go department by department. You know how that works. Mr. Spring: Yeah. Commissioner Reyes: You analyze the -- how each department is working and excess, whatever excess you have, you just get rid of it. And -- but -- and at mid year, you see, I think that it would be best to promise, I mean, have those funds directed back to the taxpayers, the (INAUDIBLE), you see, the ones that are homesteaded, which are the ones that are suffering the most. Because they are, in my district, I have, I would say, the majority in my district, they are retirees, that they are barely making it. They're barely making it, and they are the ones that need it the most, you see. And I think that we -- it is our responsibility to serve those that need it the most, be, I mean, very aggressive in trying to serve those people. Now I believe that we should wait until -- and this is the idea that I'm throwing out. We wait until midyear and any outperform quantity of -- I mean, the -- if we outperform our budget as we have been doing the past years, you see, what we will do, we would use those funds instead of bringing it back and spending it more, because if government -- government, if you -- they have $3, they're going to spend $4, you see, and you know that. And I've been in government for a long time, you see. And we are the worst administrators there is, you see. So, that we take those funds and we send it back like a Christmas present to our residents and our taxpayers, you see. And I want you to also, I ask you, if we start messing up with this budget that have been, which I wasn't too happy with, that we have adopted, let's say that we get up to $50 million, what will be the consequences? Because every action has a consequence. Mr. Spring: I'll let the Manager address that. Commissioner Reyes: Okay. Arthur Noriega (City Manager): Certainly, Commissioner, any reduction in the current budget of the current year would impact more likely city services. Obviously, it would have an impact on our bond rating as well. We just issued debt, so there would be probably more likely a residual impact on that as well. You know, one of the City of Miami Page 17 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 things that I think is kind of important to point out, and you mentioned the efficiency analysis, we just actually onboarded somebody to take on that role. Commissioner Reyes: Good. Mr. Noriega: She 's -- Cheriene Floyd. She 's -- Commissioner Reyes: Hallelujah. Mr. Noriega: Yeah, exactly. So, part of the sort of I think, set of realities that come into play in addressing a budget, either post approval or even in midyear, is that -- and the reason why we do a midyear budget adjustment is because we have had an opportunity to take a snapshot of what happens in the first six months, right? And then we have a reasonable forecast of where expenses are heading. In kind of speaking to the issue of revenue in particular, one of the things I think that gets lost in terms of the understanding and the evaluation of the revenue, yeah, we did roll back the millage, right? It didn't have a dollar -for -dollar decrease to the taxpayer, but that's partly because properties were appraised significantly higher year-to-year, right? And that's a process we have no control over, unfortunately. We don't, right? So there are a lot of property owners, whether they be residential homesteaded properties, whether they be non -homesteaded, whether they be commercial properties, they're all impacted by that property value increase. Those increases are a function of market, but they also almost are a direct reflection of what we deal with on the expense side as well. Because as values go up, what's also happened is every single expense we have at the City has increased as well. So, we 're sort of playing this game consistently of catch-up. And Elvis brought out an excellent point. And I want to kind of highlight that. Over the years, the City has had a history, a history, right, of deferred maintenance, right, not dealing with issues as it relates to maintaining properties, maintaining them properly, and then kind of kicking the can on that on a pretty consistent basis. It's an issue that we're actually trying to resolve, right? Look, you know, we spent really the first two years that I was in this position kind of dealing through -- working our way through COVID. We came out of it, and quite frankly, our first focus was how do we right -size the City from a staff perspective and from an operations perspective. We've done a ton of restructuring since, and as a result, I think we're really trying to align ourselves with being more efficient operationally, but also with the understanding that we're also -- and look, we spent a year plus probably negotiating an agreement with our fire union, probably we're almost a year in with police as well. We have a real issue there. I mean, as much as, you know, we sometimes want to ignore it, we are competing in a labor market that, quite frankly, we are undervalued in terms of our payroll. So that's constantly a situation that we're trying to address because other municipalities that, quite frankly, are -- just have better resources per capita than we do, bigger governments, the County being a perfect example of that, they poach a lot of our people because they pay more. And there's really not, you know, that's -- those are cold hard numbers. So we're -- we have a lot of competing interests relative to the expense side and matching it to the revenue. So when it was originally proposed by Commissioner Reyes as one of them, he wasn't the only one, that proposed we actually really look at a significant reduction in the millage, we countered, because ultimately I'm responsible for the entire budget with, hey, look, but we have these expenses on the other side of this as well. So we've kind of reached a happy medium and a compromise. Ultimately, that's the budget that's in front of you now. Now I'm going to speak to something that I know has been a fodder in sort of social media and with the media and sort of in general, and that's the issue of process. So I'm going to speak to that because I feel like it's long overdue. I've done it a couple times on social media and I think it's due an opportunity to discuss it now. I'm not -- I'm a big fan of history, so if we go back to those discussions between first reading and second reading of the budget, right, and what transpired between those two, we had a lot of open discussion, especially in that City of Miami Page 18 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 second meeting, about what is -- what are the repercussions to voting on the budget as is, right, on second reading, given that we had a vacant seat on the commission, a vacant seat that, quite frankly, none of us expected and left us with four remaining sitting commissioners, right? The Department of Revenue, whether you agree with their position or not. And, you know, I tend to agree with the City's position. We discussed it at the meeting. I agreed with it at the time. I felt their interpretation of whether or not we had a unanimous vote with four remaining members was flawed. The City Attorney's Office did their own due diligence on it, and quite frankly, you know, the Department of Revenue, in our eyes, and that opinion is flawed on a lot of different levels. And I can give you a very perfect example of that. Because if up until that second reading, we had a fully constituted commission, and let's say two days before the Commission, one of you had a serious accident and ended up in the hospital, let 's say, as an example, right, so we only had four seated members of the Commission, at no fault of anybody that was present, right? Under what scenario does it make sense that the four remaining voting members of that body don 't constitute a re -unanimous vote? It doesn't make any sense at all. So I was fully prepared, given the mandate we were given by the four commissioners that sat and heard that second reading of the budget, I was fully prepared that if the Department of Revenue continued to find our process flawed, we should pursue a remedy to that. Now, the interesting point to that whole timeline, right, so let's address the issue of when we received notice, right, very late in the process, right, almost right before the second reading. But then we voted on September 26th to approve a budget. Two months transpired before they issued us a letter saying we were noncompliant. Two months. By the way, that's an interesting timeline, considering they were well aware that we were voting on it, because they had provided us -- we had multiple communications with them, there was a lot of dialogue between the two of us, and they waited two whole months to issue us a letter saying we were non -compliant. That letter should have come the week after, not two months later. So we had a resolution in front of us, we felt this was the easier path, this meeting. But I'll be quite frank. If the Commission doesn't feel that they're ready to vote on this, if that's one of the alternatives, I think we 're prepared to address it and challenge it. Because I think that interpretation of the statute is flawed. And I'm going to put it on the record again, we said it before during the meeting, but I think the timing and how this entire process has transpired, right, has been unfair to the City, and I think it needs to be addressed. And I think even for future interpretation it needs to be addressed. I think we should challenge it anyway. Because I think for future consideration, if we're ever left in a scenario where we only have four sitting members of this body, and we need to vote on something, and it needs to be a unanimous vote, we need to have clarity in terms of how that rule is interpreted. Chair King: Thank you. Vice Chair Carollo: Madam Chair. Chair King: My turn. My turn. On what Art said, it was a legal impossibility for us to pass the budget with what the State is requiring. We did what we could with what we had. We are here today to get our budget passed. [Later... Chair King: I need Victoria to read into the record SP.2 because I understand that we need to take up SP.2 first, so I'm just going to have her get the procedural title into the record before I continue. Victoria Mendez (City Attorney): Thank you, Madam Chair. The Ordinance was read by title into the public record by the City Attorney. City of Miami Page 19 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Thank you. Mr. Spring? What is the City 's bond rating? Larry Spring (Assistant City Manager, Chief Financial Officer): Currently, our S&P rating is a double A rating. Chair King: And what's the highest rating? Mr. Spring: Triple A rating. Chair King: Do you know of any municipalities in the city of -- in Miami -Dade County that has a triple A rating? Mr. Spring: No. It's like having a perfect credit score. Chair King: Okay. What are the City's reserves? Mr. Spring: As of the 9/30/22 financial statements, we were at $188 million. Chair King: What are the ramifications if we cannot come to a consensus and have a unanimous vote on our millage? Mr. Spring: So, right now, if there's no unanimous vote, we would -- there's a few other tiers that we can consider. Two-thirds, which is a four -fifths vote, that millage level is at 7.4724, which would be a reduction in revenue of $856,000. A simple majority vote, the floor on that is a millage rate of 6.7931, so three of five, simple majority, that would be a reduction in revenue from what we previously considered and adopted of $49,666,000. And then there's the rollback rate, which is statutorily the same rate you would assess to receive the same amount of cash revenue that you received in the previous fiscal year. That rollback rate is 6.6055, which would be a difference in $63,145,000 from what we assessed. One of the things that staff wants me to put on the record generally, the numbers I'm giving you are gross. There's also the impact to the CRAs (Community Redevelopment Agencies), so the trickle -down impact, that would affect them as well. I won 't get into the numbers, but I just want you to understand there is a further financial impact. Chair King: Commissioners, before us now is SP.2, the millage rate? We've heard the ramifications. Staff has put it before us. I understand your concerns. Everyone has had an opportunity to speak. There's no reason for us to continue. Are you ready to vote? (COMMENTS MADE OFF THE RECORD) Commissioner Gabela: Just have a question. Chair King: Go ahead, Vice Chair, 15 seconds. Vice Chair Carollo: I'm glad the Manager brought this. Thank you. I'm glad the Manager brought this to the reason that we were here today, finally, because a lot of what you heard has got nothing to do with us today. The only thing that I 'd like to clam is that the $8 million figure that my new colleague mentioned, it's not so. I agree with you very much so on the increases, like you mentioned, on your rental property, 20 percent. But I'm going to tell you how bad it is. It 's even worse than you think because you have many other properties that have gone 25 percent, 30 percent, some even higher. And what I don't hear here today from about 40 plus people that are here today, taking out the City employees out of the equation, about a good third to half of faces that I recognize are activists that have their own biases in either ways. City of Miami Page 20 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 And what I don't hear is the same arguments for Miami -Dade County, the School Board, the Children 's Trust. A big chunk of the taxes that we pay in the City go to Miami -Dade County. What services do they give us for that money? And I submit to my new colleagues, look at police, look at fire. What services does Miami -Dade County give us for the money that they charge all our residents? I don 't see it. Maybe you guys could find out. But we're paying all this money that we don 't get, even from the School Board. Children's Trust, I know that's sacred, but where's all that money going to? So, the vast majority of the money that we pay in taxes in Miami, in the City of Miami, is not going to the City of Miami's coffers. They're going to other governments. And this is where the problem lies here. I want to be clear in what I spoke before, I spoke about lowering the millage rate. That's a big difference from the increases that the tax property appraiser gives, the 20 percent that Mr. Gabela was talking about, and more that I mentioned. And this is where the problem lies. Why have our property values, for the sake of being taxed, gotten so high? Well, Commissioner Reyes touched upon one of those areas. We've become so popular in the City of Miami that so many people want to move here. I guess we're not as bad as some would like to make us sound. Everybody wants to move to Miami. The other problem, ladies and gentlemen, that I'm going to tell you why our property values are going even higher, is that we have a lot of the rich and famous, and I 'll use that word that some like to use, some that are even very corrupt, that are bringing millions upon millions of dollars from other countries that they made it, their money with corrupt governments and corrupt ways, and they're buying tens of millions of dollars in our community, paying 25 percent, 35 percent, even 50 percent more than those properties are worth. Why? Because the inflation rate in their country is so high that by even paying 50 percent more here in a year and a half or so, they're okay, they're even, if they would have left it in their country. So, that's another reason that our property taxes are also going up. Because once you get a couple of these guys that buy properties in your neighborhood at such outrageous prices, when the property appraiser comes, he uses some of these to calculate what properties have gone up to. And we're all getting hit with it. Thank you. Chair King: Commissioner Gabela? Commissioner Gabela: Yes. Chair King: I'm sorry. I'm sorry. Mr. Spring. Mr. Spring: Sorry. Just a procedural thing for the record. I need to put in the record that we'll be adding to the record the notice that we received from the Department of Revenue with regards to the noncompliance, as a document, as well as the previously approved ordinance. I have to add that to the record. Chair King: Thank you. Commissioner Gabela. Commissioner Gabela: Yeah, what I was thinking is that while you guys -- while he's speaking, is that the two things, number one, it might be well that the School Board -- and I don't doubt it -- but at the end of the day, if we pass this, those people, the 20 percent that I'm talking about, the tenants, will get hit, regardless whoever's responsible at fault here, okay. And the other question that I have for you guys, you know, we got into this and I understand that vote number two, if it 's a four -fifths, Larry, I believe we spoke about this last week, that the shortfall was $865, 000, peanuts compared to our budget. Do you remember that conversation that we had? Mr. Spring: That is correct, sir. Commissioner Gabela: Let me ask you a question, Larry. How come this wasn 't brought at the forefront of this is what I'd like to know? City of Miami Page 21 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Spring: Well, I mean, I guess in context of the moment, we had -- you know, the administration had met with the sitting commissioners, we'd gone back and forth. So, it's not -- the millage rate consensus process, ifyou will, takes months to come to. And we had gone back and forth. The Mayor also participates in that process, and the Mayor requested -- because it's the Mayor's budget -- that we reduce the millage rate to a particular number. And that was the number -- Commissioner Gabela: You know -- Mr. Spring: -- that we brought forth. Commissioner Gabela: -- excuse me that I interrupt you, but on that note, since you mentioned the Mayor, maybe the Mayor might think about scaling back his detail of having six people taking care of him day and night. Because as it is for me, for example, I've been asked if I want a sergeant at arms, and I've turned it down, and not because I think they have bad ideas for me or not, but because simply I believe that I can drive my own car, I believe that I can pay for my own fuel, I'm capable, I'm an adult, and I believe that's wasted resources that we are doing when you have this sort of thing going on. Now, I understand on certain events you do want to use it, you know, for safety, for parking issues, all that, but we should start by telling the Mayor, okay, to scale down the -- what he's doing with the detail because those officers, I think, can be better served taking care of our neighborhoods. For example, I got a big problem in Allapattah with crime, and I was speaking to one of the police officers, and he's down at least seven men because they 've retired, they can't get fulfilled, put people to replace them in time. And this is going on in the City of Miami, another tax hole waste of money, in my opinion, at the end of the day. You know, and you know, rather than going out and asking these poor people, the 20 percent, the tenants, that they're going to pay more in rent, why don 't we start looking at ourselves, okay, what's going on here in this body? And I include myself by the way. I 'm going to hold myself accountable, like you gentlemen, I'm sure you are, okay, that maybe we should start cost cutting somewhere in this budget. Because if you think about it, the 50 mil that we're talking about, or 49 million that we're talking about, if you divide it up into five districts, we're talking basically $11 million. Is that not right, Commissioner Pardo? That's really a drop in the bucket, really, you know, for our budget on a $2.6 billion, $2.8 billion budget, but to the small guy, the guy that you increase his rent as a landlord because you've been hit with this 20 percent deal over here, okay, that guy asking him to pay you another 3 or $400 at the end of the month, that's a big thing to ask for that guy. And I'm tired of hearing -- because I just came in fresh, you know, I've been in the business world all my life, okay, been on both sides, okay, and I'm tired of hearing that you guys need this and this is needed. And the gentleman over there, back there, Mr. Rosario, that basically, you know, is asking for the FOP (Fraternal Order of Police). And, of course, he was head of the union, or is, of the FOP. Why don't you guys look inward, you know, and see where you can do some cost cutting. But don't come here because I for one would not be fooled, me, and I'm speaking for myself telling me, crying, that oh, there's a problem over here and if we don't do this, we're not going to have that. Well, you know what? Let 's all look at our budgets and see where we can curtail the 50 mil, because I'm not going to be voting for this, by the way, because to me at the end of the day, the accounting is beautiful, okay. I did my own accounting in my firm, okay. I use Intuit books, okay? And the 20 percent to the layman, to us, you know, we can talk technical terms, but to the layman, to the guy that's got to put that 20 percent this year, okay, that guy only understands one thing, okay, that he paid a lot more taxes this year than last year, okay? So, I, for me, in good conscience, I cannot vote for this SP.2. Thank you. Chair King: Commissioner Gabela -- Pardo, I'm sorry. City of Miami Page 22 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Pardo: Larry, I had a couple of quick questions. Mr. Spring: Sure. Commissioner Pardo: The increase in revenue year over year was about a hundred million, right? Mr. Spring: Yes. Commissioner Pardo: About a hundred million. And if we -- and if we don 't have two votes here, which it looks like we're not going to, we're talking about 49 million, correct? Mr. Spring: That is correct. Commissioner Pardo: More or less, less than S percent. Mr. Spring: Of the -- yeah. Commissioner Pardo: Of the overall budget. Mr. Spring: Of the overall operating budget. Commissioner Pardo: Right. So, I mean, these kinds of fluctuations in budgets and operations are not extraordinary. I mean, if you were to provide maybe a list of all the vacant positions, their salaries plus fringe, and if it's an aged list, so we can see how long have those been -- those positions been open, or a list of one-time projects that were included in the capital budget that can be deferred just for one year, or a list of projected expenses for fleet purchases, vehicle purchases. I mean, there's a lot of expenses that you can defer, right? Mr. Spring: Well, you -- I'm going to give you a technical answer, Commissioner. I heard people talking about deferred maintenance, right? When we started out this budget process, and like I said, it 's an iterative process, we did a very thorough analysis from last year to this year. We are looking down the barrel of a $70 million deferred capital reinvestment right now issue, that we did a lot of analysis. There's a memo that was produced by the Manager's office, and that one expenditure or group of expenditures was $70 million. The Commission thought better to reduce the millage, do some of that, but not all of it, right? So, when you say, yes, can we move stuff around, obviously, we can. It does take some time. We are not about just haircuts. We would do strategic analysis to figure out where we could, but you know, everybody would be affected. When you look at percentages -- Commissioner Pardo: Understandable. Mr. Spring: -- yes, it is small. When you look at percentages, yes, we can say it's small, but for instance, in the budget, we thought it fit to give each Commissioner's district $2 million for capital needs, because you guys have your own NET (Neighborhood Enhancement Team) and district operations, so that you can decide and prioritize where you want to invest. That was $10 million, right? So, it's -- I, you know, obviously, because I've been an administrator here for a long time, I've done -- I've been the budget director, you know, I advocate for what I would say is a strategic and fiscally smart kind of budget appropriation and we work with all the commissioners, as we've already started with you and with you, Commissioner Gabela, to get to that point. City of Miami Page 23 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: And by the way, I want to say one thing, you have been very courteous and you -- everything that I've asked of you, you brought it. I just want to point that out. Mr. Spring: I appreciate that, sir. Commissioner Pardo: And I just wanted to add that basically what you're saying is we do have options. We're not -- Mr. Spring: We have -- Commissioner Pardo: -- looking at blowing up contracts. We're not looking at losing our bond rating. We're not looking at -- Mr. Spring: Well, here's the thing. Our -- you don 't know this yet, but when this issue came up, I did have to do a disclosure to the bond rating agencies and to our underwriters ' counsel because we just did a bond -- we just closed a bond deal. Now, what was great about that bond deal? We oversubscribed by five times, we sold $300 million, we got $1.5 billion in orders, which means we did a good job of keeping the interest rate down for the citizens, right? When this happens, questions are going to come. Hey, what happened to your ad valorem revenue? You know, where are we now? This is an abrupt cut at the end of the day. So, I don 't know how the market will react to that cut. And we are intending, because of the bond -- the GOB (General Obligation Bond) that the citizens passed for affordable housing, for infrastructure, resiliency, we're getting ready to go back into the market at the beginning of the year. This may -- this will absolutely affect the rating relative to that because it is an ad valorum -- it's a general obligation debt issuance so -- Commissioner Pardo: And you did say we had $188 million in reserves. Mr. Spring: Which is a ordinance, a financial integrity ordinance, a law passed by this city for many, many years that was the result offiscal irresponsibility -- Commissioner Reyes: That's right. Mr. Spring: -- in the '90s. So, you know, once again, good policy, that gets it there. And for the record, I should say, this is something that we 've been talking -- we talk about efficiency and looking at where we are. Myself the Manager, and the Finance team, along with the Finance Committee that each of you submit board members to, have been looking at what is a better practice or best practice on our reserve policy. Because that could be a means of sharpening our millage tool. But that 's something that, once again, as your CFO (Chief Financial Officer), I wouldn 't just say, hey, let 's just go do this tomorrow because I need to assess how the rating market will treat that change. Because, and it is a proud thing for a CFO or financial staff we have one of the best reserve policies in the country and it is recognized as such. And dealing with it or not following it, ifyou will, may have some ramifications. But I'm not telling you, you know, not to make decisions. I 'm just -- Commissioner Pardo: But as a best practice in general -- Mr. Spring: Yes. Commissioner Pardo: -- it probably would have been better if we would have taken the four votes and had 856, 000. Mr. Spring: Well, again, facts matter, timing matters. You know -- City of Miami Page 24 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Pardo: Understood. Mr. Spring: -- we have -- yeah, you know. Commissioner Reyes: Madam City Attorney. Chair King: One second, one second. My colleagues have stated that they are not interested in passing the millage as it is. I'd like to hear from each of you what you would like the millage rate to be. If you're not interested in passing what is before us now, what would be your recommendation? Commissioner Gabela. Commissioner Gabela: Okay, so I'll go first here. And mine would be the equivalent, Larry, the equivalent of the non -homestead properties. Okay, so I want to exclude the homestead properties. I want to exclude the new construction because they're going to have to pay anyway and that's not -- you know. But what I do consider, you know, out of you know, out of whack is this 20 percent rate hike on the non -homestead properties where the -- where I fear the 20 percent is going to be passed on to the tenants. Okay, so on that, how many properties or what's the amount? What percentage of the 50 mil or, you know, in percentage terms or in dollar amount, what is that equal to? Mr. Spring: I don 't -- I don 't have that detail. I'd have to do quite a bit of analysis to - - because I know you and I did a very specific example. And I -- you know, we did do one analysis where we looked at the average, which is not -- so, your house might be more, because it's a greater value, not homesteaded. Another citizen's -- and this is an important group, seniors. We have a -- there 's a senior exemption already out there, there's veterans, so when you go and look at theirs, they have these exemptions. And, as a matter of fact, there's senior veterans out here that don 't pay property tax because they have a full exemption. So, I'd have to look at that. And I don 't have that detail readily available for us to then translate that to like a millage kind of number, if you will. I'd have to do it in like a gross number. Chair King: Thank you, thank you. Mr. Spring: Yeah. Commissioner Pardo: Was --? Chair King: Commissioner Pardo, what would be your recommendation? Commissioner Pardo: Was the four vote option at $856,000 ever proffered? Mr. Spring: No. Chair King: Not during our subsequent -- Commissioner Reyes: No. Vice Chair Carollo: No, there was no motion on that. Chair King: Our previous budget because -- Commissioner Reyes: There was no motion on that. Chair King: -- we were unified on the millage that was before us, so I'd like to hear -- Commissioner Pardo: Yeah, I would be -- City of Miami Page 25 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: -- what your recommendation -- Commissioner Pardo: -- I would be comfortable with the 6.7931 that actually a second vote would have created. Vice Chair Carollo: The second tier? Commissioner Pardo: The second tier. Vice Chair Carollo: For a little under $900,000? Chair King: The one for four -fifth -- no, no. The one -- the four -fifths vote is 7.4724. Commissioner Pardo: No, I'm looking at the -- Chair King: The simple. Commissioner Pardo: -- what creates a $49 million deficit reduction. Mr. Spring: That's a simple majority, not -- Chair King: That's a simple -- Commissioner Pardo: That's a simple majority. Chair King: So, that requires three. Commissioner Reyes: Madam Chair. Chair King: Commissioner Reyes. Commissioner Reyes: Yes, I do understand -- I do understand that -- I understand your concern and your concern. I have the same concern. But if we do such a drastic reduction now, it's going to create havoc within the City of Miami. And I'm going to tell you why. We just passed, I mean, our employees, they, in this new budget, they already received 5 percent increase, you see? And I want to ask Larry, do we have to roll back that increase? Or we have to lower the increase? Mr. Spring: Actually, you could not lower that increase because it is in the -- it's part of the union contracts already, so. Commissioner Reyes: Okay, no, no, well, okay, fine, it 's part of all the union contracts. Mr. Spring: Yes. Commissioner Reyes: Okay, from where else can we get those $49 million? We 're talking the same language, but what I'm trying to do is postpone it to the midyear, you see, pass it, and the midyear we come back and we apply, you see, all the savings that we have gotten and probably we are going to outperform it, and then at that time, without creating all the havoc that we going to create now, you see, we commit whatever, whatever outperforming -- I mean, amount is to lowering. I mean, just take it back. That's what I'm trying to say. Vice Chair Carollo: A rebate. City of Miami Page 26 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Reyes: Huh? Vice Chair Carollo: A rebate. Commissioner Reyes: No, not a rebate because we cannot say that, but it is a present from the City. And I asked him before, you see, before we voted, the four of us, that was a minimum, an ask that I had, you see, and a condition for me voting, you see. We're talking the same language. We want -- we want to lower the millage. We want to lower the millage, okay. And -- Vice Chair Carollo: Could we ask Commissioner Pardo if he could tell us where he would like to make the cuts? I'm sure that you have some idea where you want to make these cuts from that you 're proposing. Commissioner Pardo: Well, since I wasn 't part of this process -- Chair King: Before we go to -- Commissioner Pardo: Sure. Chair King: -- where you would want to make cuts, because I appreciate that you weren't part of this process, nor were you. There is a midyear budget where we can adjust. Commissioner Reyes: That's right. Chair King: I would ask that you consider, consider passing the millage so that we don't fall into a deficit or a negative because we will have another bite at the apple. You will have more time to review the budget. It's very drastic to ask the residents of the City of Miami who will shoulder this burden because it will affect programs and services that we're allowed -- that we will provide, that the City will provide. So, I'm asking -- and I understand each of your concerns. I understand your concern. I'm asking that you would consider either the first tier or the second tier where the impact is $865,000 versus $49 million because you '11 get another opportunity at the midyear. Am I correct? Commissioner Reyes: Before you answer, if I may, before you answer, if we -- at midyear, if we give credit because -- or refund, you see, of about $40 million or something, it would be close to $7 million or lower? $7 million or lower? Mr. Spring: Yeah, it would be. Commissioner Reyes: You see. Mr. Spring: Yeah, it would actually be a little -- Commissioner Reyes: So, we're talking the same language. Mr. Spring: It would actually be a little -- slightly under seven mil. Commissioner Reyes: Under seven, which would be six something. We '11 bring it back -- we'll bring it down through that tactic. And we don 't create the -- I mean, right now, they have to sit down and say, okay, we are going to cut this. As a matter offact, I don't want to lose the $2 million that -- because I need that $2 million to, I mean, repave roads as I've been doing, drainage projects. And you need that more than anybody else because your district -- City of Miami Page 27 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: I know I do. Commissioner Reyes: -- Mr. Gabela, was totally abandoned. Commissioner Gabela: Yes, I know. I understand. Commissioner Reyes: Yes, and you need it more than even me because I have been working all alone, all alone, all alone in doing that. Chair King: So -- Commissioner Gabela: But in my case, as a business person that I am, I can assure you that I will find in my budget -- if you guys say to me, hey, we're going to cut the 50 mil, okay, I can assure you that the 10 mil, and let's say that 's split, you know, between the general and five ways for five districts. I can assure you, Mr. Reyes, that I will find a way how to cut here and there and get it done. You know, because in business that 's the way you do it. You don't do it, hey, give me more money or, you know -- and like you said, government, no disrespect, but you're right. Government always has a knack to -- Commissioner Reyes: Yes, yes, yes. Commissioner Gabela: You know, we're a disaster. Commissioner Reyes: They're always hungry for money but -- Commissioner Gabela: Exactly. Commissioner Reyes: -- but what I'm trying to avoid, what I 'm trying to avoid -- Commissioner Gabela: No, no, I understand your point. Commissioner Reyes: You see, I go along with the four votes. I mean, I don 't want to lose a single penny. I don 't want to lose a single penny because if we lose $800, 000, maybe that could be how much for a police officer, how much do we need? Commissioner Gabela: Yeah, but -- Chair King: Wait, wait, wait, wait. Commissioner Gabela: But by one token, you guys are telling me -- Commissioner Reyes: No, no, no, no, listen. Chair King: Hold on, hold on, hold on, hold on, hold on. Commissioner Reyes: But I don 't want to lose any -- I 'm just -- Chair King: Commissioner Reyes. Commissioner Gabela: No, I understand. Chair King: Commissioner Reyes -- Commissioner Reyes: You see -- City of Miami Page 28 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: -- I don't believe any member of this Commission wants to lose any money. Commissioner Gabela: Of course not. Commissioner Reyes: Yes. Chair King: I don 't believe that is any of our intentions to lose any money. What I am asking is that we pass this budget so we don't lose any money and then we start to make the process -- address your concerns, address your concerns, because right now we have to comply. And if we're not in compliance, it affects our revenue. I'm asking that we pass the budget as it is. Now, it seems as if I have four in com -- four who agree with me. I am asking you, sir, if you can, and we can address it, a month, two months, three months from now is not going to make that much of a difference versus us losing $56 million. And if we have to go to the second tier, where it 's a four -fifths vote, Ifeel like, from what my colleagues have said, we have the votes. But I'd like for you, Commissioner Gabela, to vote with us if there is a way, if there is a way that you can see fit to do that. If not, we'll move on because we don't need to continue to drag this out if this is where you are. Commissioner Gabela: One of my guys just offered to me, they did some quick math back there, and they say that why not lower the millage to 7.0668 and that's a reduction of $30 million. Is anybody agreeable to that? Would anybody want to do that? Commissioner Reyes: As I said before, you see, I am -- I am shooting for reducing about $50 million, but the way that the only way we can do that without creating all of this, I mean, commotion that we're going to create now is by, just as Madam Chair said, we review -- you see, we have the power to review the budget whenever we want. Commissioner Gabela: Oh, then you guys go ahead and pass it. I'll be voting no. Commissioner Reyes: Okay, well, that's fine. Commissioner Gabela: You have the four votes. Go ahead and do it. Commissioner Reyes: That's right. And then -- Chair King: Hold on a second. Our CFO wants to say something. Mr. Spring: Yes. If you are considering a lesser operating millage, I just need to make sure that when we pass it, it includes -- Chair King: It says operating, I understand. Mr. Spring: Right, and it includes -- Chair King: Entiendo. Mr. Spring: -- and leaves the debt. Chair King: Entiendo, entiendo, entiendo. So, again, I want us, our first business with all of us here, I want us to be united. I want us to present a united front to the residents of the City of Miami. I have a four -fifth. I don't want to lose any money. If we cut, we cut because we cut and we are being fiscally responsible ourselves, not because we lose the money to the State, is what I'm trying to impress upon you. City of Miami Page 29 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: No, and listen -- Chair King: But I respect what you're saying. Commissioner Gabela: Madam Chair, listen -- Chair King: So -- Commissioner Gabela: -- I don 't -- I don 't come here to -- you know, for chaos or any of that stuff as has been said by some. I come here to do the business of the residents that elected me. Okay, and as of such, okay, I either have to worry about this 30 mil that equals 7.0668. I will do that, you know. And if not, I respect, you know, what you're saying. I'd like to come along with you, but I can't do it. I'm sorry. And it 's been also called to my attention right now, my staff was telling me that there 's no such thing that's able to be done to change the millage in the middle of the year. Can somebody elaborate on that? Arthur Noriega (City Manager): No, let's clam something because I think there's some confusion here. What Commissioner Reyes is proposing is not a reduction in the millage. What he's proposing is that when we get to the midyear budget, we evaluate the numbers, right? How we're doing from an expense standpoint, how we're doing from a revenue standpoint, and at that point, ifyou feel like there 's some ability either through a surplus or a reduction in the expense in the budget, then whatever that delta is, right, at that point you propose it as some sort of rebate to the residents. That -- yeah, (INAUDIBLE) make sense of however you want to propose it. That's what he's proposing. Chair King: And therefore -- Mr. Noriega: We actually discussed that last year. Chair King: Right. And therefore, we don't forfeit $56 million. We don 't forfeit the money. Ms. Mendez: The other issue is if you reduce the millage today, the residents aren't going to get a check, you know, this week. They will get a reduction credit for next year. Commissioner Gabela: But guys, I wasn't part of your budget meeting. You know, I didn't have anything to do with that. You know, now, you know -- and I'm saying I'd like to vote for you -- with you because I don 't like that -- Chair King: Well, let's do that. Commissioner Gabela: -- idea, but I can't, in good conscience with what I promised in my campaign to go against the citizens, and I have to stick to my guns on this one. No due respect to you, Manolo, no due respect to you, Mrs. King -- Chair King: I understand. Commissioner Gabela: -- or you or anybody here. Chair King: I understand. Commissioner Gabela: But that 's my position, you know. Chair King: I understand. City of Miami Page 30 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: Unless you guys tell me, hey, we can lower it today to the 7.06668 and it equals 30 million, I'm out. Chair King: Okay. Commissioner Pardo. Commissioner Pardo: Yeah, I would love nothing better than unity and collaboration. The problem is we can 't do it this way because it can 't be a promise of the future that at some point we might do this, unfortunately. I would love nothing better than that. Commissioner Reyes: Listen, listen. Commissioner Pardo: That's just not where we're at. Applause. Commissioner Reyes: I am -- I'm just going to say this. I am not willing -- I am not willing to lose $49 million to the State now and reduce the services as we have to because we have to readjust the budget, you see. And there is going to be an increase in the millage anyway, you see, because there is going to be an increase in the millage because you are going to go back to the millage that we had before, you see? Chair King: Okay, so -- Commissioner Reyes: So, I am not -- I mean, people are going to keep on paying the same taxes, you see. Chair King: Okay. Commissioner Reyes: You are not reducing the taxes. You're reducing the revenues, you see. Chair King: Vice Chair. Vice Chair Carollo: Let me put this on. I've been kind of quiet hearing this last part. In all my years that I've been watching budgets here, this is a doozy. The bottom line here is that someone in the State of Florida decided to use the Revenue Department against us to try to create havoc for a short time in something that they know they cannot win in court. Let's look at the logic of this, of what the State is saying. You have four elected Commissioners, but if the State itself, through the Governor, took out one, an action of the State, what you have left for a majority is four. How in the world can you have a majority offive when you only have four remaining, and it was the State itself that took one out. This is not logical in Miami or anywhere else in the world. But someone wanted to play games with this city because what they're interested in is havoc, to create havoc and particularly temporary havoc, so some will get their way in trying to destroy this city. It is impossible to have gotten five votes when we only had four. Now, I've asked my colleagues if they want reductions, explain to me where do you want them from. Where are they going to come from? It's just not throwing, we're going to reduce the budget by `X" amount, but okay, tell me where. Commissioner Gabela: Well, how about we start with we reduce lawsuits? Chair King: Commissioner, Commissioner. Commissioner Gabela: How about we start there? City of Miami Page 31 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Commissioner, Commissioner. Vice Chair Carollo: No, give me a full accounting. Chair King: No, no, wait. Vice Chair Carollo: Don't tell me we start by. Chair King: Wait, Commissioner. Commissioner Gabela: Okay. Chair King: Commissioner, Commissioner. Commissioner Gabela: I got a couple ideas. Chair King: Commissioner Gabela, we let you speak. Commissioner Gabela: Yes, ma'am. Chair King: Let him speak. Commissioner Gabela: I apologize. Vice Chair Carollo: At the same time -- Chair King: I wouldn 't let anybody interrupt you. Vice Chair Carollo: Thank you, Chair. And I apologize, Commissioner, I don 't want to get you upset or anybody upset. Commissioner Gabela: You're not getting me upset. Vice Chair Carollo: At the same time, we need to see where, if this is going to go this way, where the changes are going to be at. Because this is going to create havoc, just like Commissioner Reyes stated. Furthermore, in the previous meeting, as I remember, but I could be corrected if I'm wrong, the Commission made it clear it wanted a challenge if it needed to be challenged. But here we go. We 're going to be told you can't spend any money in defending the residents of the city, which is what we will be doing. Because the idea is that this is easy to do, each district gives up $11 million, what I've heard, don 't work that way. Chairman King's district is the poorest in this city. You can't take $11 million from the poorest district in the city just like that. Mr. Pardo 's got the richest district in the city. How can you take $11 million from the poorest that is going to hurt so much more than if you take the same $11 million from the richest? Commissioner Pardo: Well, District 2 -- Vice Chair Carollo: So, this is not an even situation at all. But whether you were sitting here as a commissioner when this was approved, or you were planning on running for elected office, Commissioner here, someone running for elected office, had the responsibility of becoming aware of the budget. The first thing I did when I ran again, back in '17, I asked for a meeting with the then City Manager and the meeting was to go over the budget and to get copies of the budget and other budgetary materials. And that's what I did. So, to me it 's a non -excuse that we weren't here because ifyou run for office in this city, you have a responsibility -- City of Miami Page 32 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: Okay, now I need to answer -- Vice Chair Carollo: -- to know the budget beforehand. Commissioner Gabela: -- because now I need to answer. Now I need to answer. Chair King: Commissioner Gabela, no. Commissioner Gabela: Okay, but I 'm going to answer. Chair King: No, no. Commissioner Gabela: Give me a chance to answer because now I need to answer. Chair King: You can answer when it 's your -- Commissioner Gabela: Okay. Chair King: -- but not to interrupt. Commissioner Gabela: Alright. Chair King: Not to interrupt. Vice Chair Carollo: These are facts, logical facts. So, if the decision that two members of this body wants to take us to, for the sake of those in media that are so eager to bring Miami down, is that we're going to immediately have $50 million, or maybe more, that we have to cut from this budget, I will tell you the first thing that 's going to happen, you're going to send the bond markets with major concerns. It might affect our bonds by the beginning of next year. That 's going to increase what we pay out. Bottom line is that whatever the will of two new members that they want to do here today, let's do it, let's finish it, let's get it done, and let's not play any more games. And -- Chair King: One second. Vice Chair Carollo: -- don't complain if this city will be going to court against the State because we have no other alternative. Because this law that 's being applied to the City of Miami only will not stand in court. It cannot. There's no logic behind it. Chair King: Now, before you respond, before you respond, I'd like to remind everybody here, you do not have to attend every argument you 're invited to. Commissioner Gabela: I'm sorry? Chair King: You don 't have to attend every argument you're invited to. Commissioner Gabela: No, I got it. Chair King: Every -- you -- every -- Commissioner Gabela: You know, wise words. Chair King: So, just so we can manage. Now, I'd ask the question. Commissioner Gabela: Yeah. City of Miami Page 33 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: I understand you're a no on -- Commissioner Gabela: But I'd like to speak, please. Chair King: Okay, but let me be clear. Commissioner Gabela: Alright. Chair King: You're a no on the millage rate of 7.8078, and I believe Commissioner Pardo, you're also a no. So, let's do away with the formalities and get this off the table. Do I have a motion for 7.8078? I have a motion. Vice Chair Carollo: The motion is for -- to approve. Chair King: To approve the millage rate at 7.8078. Vice Chair Carollo: As we have on SP.2. Chair King: It's SP.2 we're on, right. Vice Chair Carollo: Okay, there 's a motion. Chair King: I have a motion and a second. All in favor? Aye. Vice Chair Carollo: Aye. Commissioner Gabela: No. Commissioner Pardo: No. Chair King: All opposed? We have two recorded no 's. Todd B. Hannon (City Clerk): Understood. Chair King: So, the -- Mr. Hannon: So, the motion fails, 3-2, with Commissioner Gabela -- Chair King: -- the motion fails, 3-2. Mr. Hannon: -- and Commissioner Pardo voting no. Understood. Applause. Chair King: Stop clapping. [Later... J Commissioner Pardo: Madam Chair, when you can. I did want to just -- Chair King: Going in order. Commissioner Gabela. Commissioner Gabela: No, go ahead. Chair King: Commissioner Pardo. City of Miami Page 34 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Pardo: I just wanted to add that District 2 is a donor district. It generates 70 percent of the revenue of the City of Miami. It could use some relief. I don't think this fearmongering is appropriate. I think the kind of money we 're talking about is manageable. I don't think it's going to create havoc, and I think we should move forward, given the circumstances. Chair King: So now, do you want to speak -- Commissioner Gabela: Yes, I -- Chair King: -- or do you want me to give the next one? Commissioner Gabela: Yes, I do want to speak and I want to say that, look, as for me, ifyou guys find the -- if you guys want to stay all of this week to find where we can cut reasonable, and we act like adults, I'm willing to do that. I am willing to do that. Okay, and no, I am not here, Mr. Carollo, to please the media and this -- I just simply have my thoughts, my opinions, okay. I am respecting yours and everybody else here and I respect what all of you have to say, okay. So please, when I speak, give me the same courtesy, and don't start accusing me whether I'm cowing to the media or to anybody else, okay. I was elected like yourself I'm a public official like yourself and I have the same right to my thoughts and my opinions. And if we can learn to respect each other in this body, we'd get, you know, a lot more things done. That 's all I ask. Thank you. Chair King: Agreed. Vice Chair Carollo: Cabel [sic], I don 't know what you're talking about. I've shown you all the respect that a commissioner should be given. Commissioner Gabela: Sir, you said that the -- I'm kowtowing basically to the media, that's now that -- Chair King: Okay, okay. Vice Chair Carollo: That's not what I said, sir. Chair King: Alright, okay, okay. Commissioner Gabela: That 's what I heard you say. Chair King: Okay, okay. Vice Chair Carollo: You misheard. Chair King: Commissioner. Commissioner Reyes: There's no need to be arguing. Chair King: Right. Commissioner. Commissioner Reyes: Point well put -- well taken. Chair King: Commissioner Reyes is good. Commissioner Reyes: No, I agree. Chair King: I can. So, next up is SP.2 at -- City of Miami Page 35 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Vice Chair Carollo: Tier 2. Chair King: Tier 2, at 7.4724, which will -- operating, SP.2, 7.4724, operating. Do I have a motion? Vice Chair Carollo: Move. Commissioner Reyes: Second. Chair King: I have a motion and a second. All in favor? Vice Chair Carollo: Aye. Chair King: Aye. Commissioner Gabela? Commissioner Gabela: No. Chair King: Commissioner Pardo? Commissioner Pardo: No. Todd B. Hannon (City Clerk): So, for the record, the motion fails 3-2 with Commissioner Gabela and Commissioner Pardo voting no. Vice Chair Carollo: Chair, there's nothing else to vote upon here. Commissioner Reyes: That 's right. Vice Chair Carollo: The City Attorney has to file suit against the State, and hopefully this will be heard in an emergency basis -- Commissioner Reyes: That 's right. Vice Chair Carollo: -- so that we can get some relief. Ms. Mendez: Right. The only issue about the lawsuit, and we will prosecute the case. However, these things are being done by the two commissioners, so I don't know that we will get the answers that -- it's not a four -fifths or a unanimity question now. It 's something that was done. Commissioner Pardo: So there wouldn't be a remedy? Ms. Mendez: There may -- there may not be the ability to litigate this because you're not doing a four -fifths vote. Vice Chair Carollo: Well, it could affect the litigation, but the actual vote that we will be going on would be the original vote. Ms. Mendez: We will make that argument. Arthur Noriega (City Manager): Yeah, I think the interpretation of that unanimous vote needs to be addressed either way. Commissioner Reyes: Absolutely, absolutely. City of Miami Page 36 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Noriega: Because I think for future consideration, we need to have clarity. And since that opinion was written by a mid -level individual at the Department of Revenue, we didn't even get it from upper management, I think it needs to be addressed. Commissioner Gabela: Okay, can I -- Chair King: Wait, hold on one second. I see our mayor has joined us. Mr. Mayor. Mayor Suarez: Thank you, Madam Chair. How are you doing this evening? Chair King: No complaints here. Mayor Suarez: Welcome, guys. Vice Chair Carollo: Good evening, Mr. Mayor. Mayor Suarez: Welcome, Commissioners. I just want to get a couple of things on the record because I think it 's important for there to be factual clarity on some issues, and so I think it's always important to have at least a clear factual record. So, first thing, Mr. Spring, can you please come up? Thank you. There has been some discussion about whether or not we have raised taxes or lower taxes, at least the decision that was made by the Commission in late December. Do we control the property value rate, the assessment of property taxes in Miami -Dade County? Do we control that, the City of Miami? Does the City of Miami control that? You can answer, Mr. -- Mr. Noriega: No, we do not. Mayor Suarez: Okay. What do we control? Do we control the millage rate? Mr. Spring: Only, yeah. Mr. Noriega: Yes, sir. Mayor Suarez: Okay. Did we increase the millage rate or did we decrease the millage rate? Mr. Noriega: We decreased it. Mayor Suarez: Okay. I just wanted to get that out for factual purposes. Second question, historically, what is our millage rate rank, our current millage rate, the one that was set in September, what does that rank historically in terms of low or high? Mr. Spring: It is the lowest in probably 40 years. Mr. Noriega: Longer than that. Mayor Suarez: I think it's the lowest ever. Mr. Noriega: Ever, yeah. Mayor Suarez: Yeah. Mr. Noriega: I think it may be ever. City of Miami Page 37 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mayor Suarez: So actually I think last year we reached that level. We got to the lowest level. Mr. Spring: Last year, and then we went even more. Mayor Suarez: This year we pushed it even lower. So on a per thousand dollar basis, it is the lowest we've ever taxed the City of Miami residents in the history of the City of Miami. Is that correct or incorrect? Mr. Spring: That is correct. Mayor Suarez: Okay. Now, does this government -- is this government mandated by State law to effectuate labor contracts, labor union contracts with its employees? Mr. Spring: That 's more of a -- I think we're required to bargain, but -- Mayor Suarez: That's right. And in the absence of contracts, does the formerly agreed to increases in wages roll over into the next fiscal year? Mr. Spring: Yeah, there are several that are already permanently constituted in our steps, in our compensation structure. So, yes, they're there. Mayor Suarez: So, with this new revenue that is a result of lowering our millage rate, isn't it right that our only management right as a city is to furlough employees in order to cut costs? Mr. Spring: Process -wise, it is one of the relief points, as a management right, yes. Mayor Suarez: My point is if we pass a budget that is $59 million or $50 million out of balance, we have a limited amount of tools in the toolbox to balance our budget. Is that correct? Mr. Spring: Relative to the contracts, yes. Very limited. Mayor Suarez: Yeah, one would be, for example, entering into contracts with our employees that allowed us to balance our budget. Mr. Spring: Correct. Mayor Suarez: Do you see that happening under this scenario? Mr. Spring: No, no, no. Mayor Suarez: Okay. So one other option would be to furlough our employees. Mr. Spring: That is an option. Mayor Suarez: Because I was here in 2009, I remember. I was the only elected official in 2009 that was elected without union support. My dear friend, it was a very hard fought election. I barely won by 260 votes. But I didn't receive union support and I didn't receive union support because I refused to raise taxes. And it was very difficult to have to cut 12 percent, 9 percent, 7 percent, 5 percent, and also pension benefits from our labor employees. But we did that to balance our budget. I think at the time our reserves were 15 million? Mr. Spring: We got down to like 40 -- 40, 50 million. City of Miami Page 38 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mayor Suarez: No, I think we got down to 15, 1-5. Mr. Spring: That last -- Mayor Suarez: Yeah. Mr. Spring: I have to look at it, it's been a long time. Mayor Suarez: I remember it. I'm traumatized by it, so I remember it very well. So you said we had $188 million reserves. Is that the -- what does that rank in terms of our highest reserves ever? Mr. Spring: It 's got to be top two, three. Mayor Suarez: I think it's the highest we've ever had. Have we ever had a higher reserve than $188 million, that you can recall? Mr. Spring: Well, from a formula standpoint, it would have to be -- Mr. Noriega: No, it is the highest, because of the formula. Mr. Spring: -- because of the revenue formula. Mayor Suarez: So we have the highest reserves we've ever had. Have we ever had a higher bond rating? Mr. Spring: Not in my history with the City. Mayor Suarez: We haven 't had a higher bond rating. So we went from in 2009, a $15 million surplus, a $115 million deficit, what they call a do-nothing deficit, meaning if you would have done nothing, we would have had a $115 million deficit. The City would have been bankrupt. To now the highest reserves, the highest bond rating, with the lowest taxes in history. Is that accurate? Mr. Spring: It is accurate. Mayor Suarez: Okay. By the way, what is our homicide rate this year? Because that 's an interesting statistic. In fact, let me ask you a different question. Mr. Spring: I don 't know that. Mayor Suarez: Is the police chief here? Mr. Spring: I don 't know that number. Mayor Suarez: Do you know the historical, on homicides? Let me just enter into the record because we're talking about -- we're talking about crime today, so I think it's important for us to contextualize. Commissioner Gabela: Are we on a budget here or are we talking about crime? What are we talking about here? Chair King: Commissioner Gabela. Commissioner Gabela: Because I was told to stick to the issues, and I want to stick to the issues, but we're going on and on and on. City of Miami Page 39 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Commissioner Gabela. Mayor Suarez: Madam Chair. Chair King: Hold on a second. Mayor Suarez: Sure. Chair King: Commissioner Gabela. Commissioner Gabela: Yes, ma'am. Chair King: I do not let anyone else interrupt you. Please, and I've allowed you to speak, there may be some who have felt that any one of our statements wasn 't at the issues. That's not for me to say. It's not for you to say. I've let everyone speak and say whatever it was that they needed to say. So please, please. Commissioner Gabela: Yes, ma'am. Mayor Suarez: I just think it's important to recognize that the Police Department is a large percentage of our budget. Is that correct or incorrect? Mr. Spring: It is the largest single department, yes. Mayor Suarez: It's the largest single department. So I think it's important to contextualize whether that department is performing well or performing poorly when we budget for that department. So I think it's important to note that we started recording homicide statistics in 1947. That 's the first year that we have recorded homicides. In fact, I asked the police chief can you give me a historical of all of the recorded homicides that we have? And the first year he gave me was 1947. In 1947, you know how many homicides we had, Madam Chair? We had 32. 32 homicides. Now, the highwater mark for homicides, in other words, the year where we had the most homicides since recorded history, was 1980. Does anybody know how many homicides we had in 1980? 220. So, out of every three days, two out of every three days, there was a homicide in the City of Miami. Now, I think everybody would agree that Miami looks a little dyferent in 2023 than it did in 1947. Is that a pretty accurate statement? Well, I find it important to note that in 1947 we had 32 homicides, and in 2023, year-to-date right now, and we are on the 11 th, right? So we have 20 days left in the year. We have 27. That 's five less than we had in 1947, the first year we recorded homicides. In fact, if you look at recorded history, I think there's only a couple of years in the entirety of recorded Miami history where we 've had less homicides than 27. Do you know what the year-to-date reduction in homicides is from last year? In other words, how many homicides we had last year versus how many homicides we have this year? It's important since we're budgeting for police, it 's important to know whether or not that number has gone up or that number has gone down and make sure our police officers are doing their job. Do we know if that number has gone up or down? How much has that number gone down, Mr. Manager? Can you give me a percentage? More than 10 percent? Mr. Noriega: Yes. Mayor Suarez: More than 20 percent? Yes. Mr. Noriega: Yes. Mayor Suarez: More than 30 percent? Yes. More than 40 percent? Yes. The number is down more than 40 percent because last year we ended with 50 homicides and we're City of Miami Page 40 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 at 27. That's about 50 percent. That -- close to 50 percent, it'll be 25 versus 50. So it's a little more than 40 percent. By the way, hopefully for the rest of the next 20 days, we don 't have any more homicides. That would be phenomenal because it would be -- I think we would be, for a city of our size in the United States of America, one of the lowest per capita homicides in the country. And I think the other cities that are above us for a city of our size are cities that -- whose name we wouldn 't recognize. So I think that shows that the police officers in our department are doing a magnificent job. Thank you so much to the men and women in blue. And by the way, our fire department is doing a phenomenal job as well. They get there within four minutes of when there's a call, but there's a lot of calls. And I'm sure that if we were to analyze the call volume of 9-11 calls for fire rescue, that that number has not remained stagnant over the years. That number has gone up significantly. So I just think it 's important to contextualize this information as we make important and serious decisions that impact not just our budget, but certainly our residents and the services that they 're going to receive. So I want it to be clear that if we pass a budget that is out of budget and we do not enter into union negotiations with our employees, we will be left with no other choice based on the decision of this council than to furlough employees to balance our budget because we're not going to go out of balance and we can't use one-time revenues to deal with recurring expenses. Thank you. Thank you. Thank you, Madam Chair. Chair King: Thank you, Mr. Mayor. Commissioner -- wait. Commissioner Pardo: May I ask Larry a quick question? Chair King: Go right ahead, Commissioner Pardo. Commissioner Pardo: Larry, the millage went down this year, right? Mr. Spring: Yes. Commissioner Pardo: It went down by how much? Mr. Spring: It was 0.0696. Commissioner Pardo: Basically 0.07. Mr. Spring: Yeah. Commissioner Pardo: How much on a house of 200,000, more or less, or 500,000? Mr. Spring: Well, the -- we did -- the only calculation -- Commissioner Pardo: On a value, not even a house, yeah. Mr. Spring: -- yeah, yeah, what we did was to look at the average, which was assessed value of $369, which is the average. That yielded about a $25 -- Commissioner Pardo: $25? Mr. Spring: Yes. On just the City operating. Commissioner Pardo: Right. Mr. Spring: Now, there's other taxes. Commissioner Pardo: Last year, last year's millage, did we go up or down? City of Miami Page 41 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Spring: We went down. That one -- Commissioner Pardo: How much did we go down in last year's millage? Mr. Spring: Hold on. Let me get that number. Commissioner Pardo: Okay, sure. Mr. Spring: Thank you. Sorry about that, Commissioner. Commissioner Pardo: It's okay. Mr. Spring: So we went from 7.99 to 7 -- the year before, 7.877. Commissioner Pardo: So about 10? Mr. Spring: Yeah. Commissioner Pardo: 12 basis points. Mr. Spring: A tenth of a mil. Commissioner Pardo: Yeah. Mr. Spring: Yeah. Commissioner Pardo: So in the same two-year period, what happened to real estate values? Mr. Spring: The last year we went up 13 gross -- Commissioner Pardo: 13 gross. Mr. Spring: -- and the year before -- Commissioner Pardo: My point being that it wouldn 't be unusual in seeing very, very high real estate values to see a lowering of a millage. Mr. Spring: Correct, but also include -- Commissioner Pardo: So if we're at all-time highs, it wouldn't be unusual to be at all- time lows for a millage, right? Mr. Spring: Which we've done. Commissioner Pardo: Right, which we've done. Exactly. My point is being, you know, it was raised in a different way. And when we said that one of the relief points, as you mentioned, was furloughing employees, at no moment did you say you were furloughing employees. Mr. Spring: Yeah, we haven 't done any analysis on that. Commissioner Pardo: Right, but you said that that's just an option that 's out there, but -- Mr. Spring: Yeah. City of Miami Page 42 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Pardo: Okay. And we also just mentioned that we had very strong great reserves -- Mr. Spring: Yes, we do. Commissioner Pardo: -- and given all these elements, we probably should be able to manage where we're at. Mr. Spring: Again -- Commissioner Pardo: I mean, that 's my assumption, given the conversation. Mr. Spring: I'm an implementer, sir, so -- Commissioner Pardo: I got it, thank you. Mr. Spring: -- whatever the policy decision is, we do. Commissioner Pardo: I appreciate it. Thank you. Chair King: Madam City Attorney, we don 't have a consensus here. The feeling is that you may move forward with the litigation against the State to accept our vote of the four majority. Is that an issue? Because you looked uncertain. Ms. Mendez: So, we can -- right, so we can obviously move forward with the State and advise them that we disagree with their position. The problem is that because of the vote, they may say that it's not an issue that they can address, that it would be a non - issue because we voted -- have not voted to -- to reduce it just by the four -fifths vote, let's say, we've now gone beyond that and gone to a three -fifths. So we will proceed with the litigation, I just can 't tell you if it -- if they would try to moot it out. So that -- that 's what we would have to try and figure out. Chair King: Okay, so, I believe that our business is concluded here. Ms. Mendez: I believe we may have to take one more vote. Mr. Noriega: No. No, you have to take one more vote. Ms. Mendez: Two more votes. Chair King: For the -- Mr. Noriega: You have to vote on the three. You have to at least get to three -fifths on the budget. Chair King: Okay. So what is remaining is a vote for 6.7931 operating. Do I have a motion? Ms. Mendez: Madam Chair, can I say one more thing just on these issues? Chair King: Yes. Ms. Mendez: I just wanted to remind the two new commissioners that as you said, even if you were to vote for the higher millage, the four -fifths, let 's say, you are able to amend your budget, like in January, like literally. You don 't have to wait. I know that Budget will be upset at me right now. They prefer mid years, but you are able to City of Miami Page 43 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 amend your budget as you see fit at any meeting. So I just wanted to bring that up as well if that would change anything for an appropriate four -fifths vote, maybe, to -- but I just wanted to bring that up. Thank you. Mr. Noriega: Can I offer another alternative because I think that if we're left with a three -two vote at a millage that pretty much dictates a $49 million reduction, because that's really what we're left with, I think we sort of take on Commissioner Gabela's proffer, right, of a somewhere in between some sort of compromise to that for purposes of not initiating such a drastic reduction in the millage? Since that 's where we're going to end up anyway. Chair King: Well I -- I don 't want to vote on $49 million deficit. Commissioner Gabela: No, no, I didn't say 49 million, it's 30 million. Chair King: No, no, if we go with the remaining one, the three, the simple majority. Commissioner Gabela: No, but what I think he's alluding to, Art, if I'm wrong, are we talking about the 7.0668, which is equal to about 30 million? Mr. Noriega: Right now, we're left with a vote that at a three -two majority ends up with a $49 million reduction. That's where we're at right now. Vice Chair Carollo: 49 million, or 56 million, or 60 million, we 're basically there, so Commissioner Gabela: But we can do the half. Vice Chair Carollo: -- I don 't see why we need to take any other vote. The one that we took before, when there were four members of this Commission that the State does not want to consider, leaves us with what gap? Chair King: I think -- Vice Chair Carollo: Madam -- Larry, the vote that we took when we had a four member commission, that the State does not want to consider, because even though we only had four members of the commission, they said that a fifth had to come from heaven somewhere, like manna from heaven. And what would that leave us with a gap? Ms. Mendez: Commissioner, you reconsidered that vote, so it doesn 't exist anymore. Mr. Spring: Yeah. Ms. Mendez: That vote occurred already and then was reconsidered until now. So right now, you have to vote on something. Todd, if you would -- Chair King: The best case scenario would be if we have a four -fifth and that would have an $865,000 impact. That is the best case scenario. And then we can -- Commissioner Gabela -- Commissioner Gabela: I'm sorry. Chair King: -- and then we can go January, gives you enough time to look at the budget, and then we have taken some action. I am not in favor of going the simple majority and it having a $49 million impact on this city, nor I am in favor of taking some action that will bring about a $30 million impact to the city. So I'm asking again City of Miami Page 44 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 if we can reconsider the 7.4724 which will have an impact of $865,000. No one is happy. You won't be happy. They won't be happy. But we'd come to a consensus and we can move forward from there. Commissioner Gabela: Can I speak? Chair King: Yes, you may. Commissioner Gabela: Thank you. Look from my perspective, okay, I offered the equal to the 7.0668, which equals roughly $30 million, okay. You guys -- what I don 't understand from this all this is on September 28th, you guys could have done the fourth -fifth vote, you would have only lost 865, and you didn't -- and you chose -- you yourself chose not to do that -- Chair King: No, no, that is not true. Commissioner Gabela: That is not true? Chair King: That is not true. Commissioner Gabela: Okay. Chair King: What we did was passed the budget unanimously with what we had. So -- Commissioner Gabela: I've been told -- Chair King: Commissioner Gabela. Commissioner Gabela: Yeah. Chair King: Commissioner Gabela, irrespective of what you've been told -- Commissioner Gabela: Right. Chair King: -- we did the best with what we had. We had four. We didn 't have five. It was a legal impossibility. Commissioner Gabela: Excuse me. Excuse me. I'd like to ask you up there. Art, I'd like to ask you, Ms. City Attorney. On the 28th, had you taken the 4-5 vote, would you have saved yourself -- would you have lost only $865K or not? Am I incorrect with this or am I correct in this? Mr. Noriega: No, you're spot on, by the way. We would have only lost 800 and some thousand dollars -- Commissioner Gabela: Okay, so what happened that that vote wasn't taken? Mr. Noriega: That vote wasn't taken because we did not agree with the determination Commissioner Gabela: That vote was not taken -- Mr. Noriega: -- by the Department of Revenue. Chair King: Commissioner Gabela. Commissioner Gabela: That vote was not taken -- City of Miami Page 45 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Commissioner -- Commissioner Gabela, don't -- Commissioner Gabela: -- because the City Attorney advised you ill -- Chair King: Commissioner Gabela. Commissioner Gabela: -- and said to you guys that as long as you did the four, you had the (UNINTELLIGIBLE), and that's why we're here -- sitting here today. And now -- Chair King: Commissioner Gabela. Commissioner Gabela: -- somebody -- Chair King: Don 't raise -- Commissioner Gabela: -- they want to use scare tactics, that the police is going to be to defunded and this and that. No, you know what? I don't believe it. That's on you guys. What you did on the 28th, respectfully, I'm willing to negotiate with you guys. That's where I'm at. If you guys don't want -- nobody is going to use scare tactics with me, that we're going to have to cancel here and we're going to -- no, we'll find a way how to cut that budget -- Chair King: Commissioner Gabela -- Commissioner Gabela: -- I'm sure. Chair King: -- I understand. Please don 't raise your voice. Commissioner Gabela: Okay. No, ma'am, I'm not raising my voice. That 's my normal tone of voice. Please -- Chair King: That's what my brother says -- Commissioner Gabela: -- I mean no disrespect. I mean no disrespect. Chair King: -- too. That's what my brother says as well when he's yelling at me. Commissioner Gabela: No, I'm not, but you know I'm just saying what I'm saying. Chair King: It -- it's loud. I'm sorry. Commissioner Gabela: Okay. Chair King: It's loud, because I've -- you've spoken to me -- Commissioner Gabela: Mr. Carollo is loud and nobody says anything about it, ma 'am. Chair King: I do say -- Commissioner Gabela: Okay, and I'm a City Commissioner like everybody else here. Chair King: Commissioner. Commissioner Gabela: So, let's just respect, okay? Let 's respect each other. City of Miami Page 46 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Commissioner Gabela. Commissioner Gabela: And this is my voice. I just said to you, I apologize. This is my tone of voice, okay? This is the only one I've got, okay? And I'm not intending to be rude to you or anybody else, okay? But what I am simply saying, and stating a fact, and Art Noriega just said that I am correct, okay, that you could've taken that vote of four -five, you would've -- you would've only lost 865, but you didn 't choose to do it because your city attorney advised you ill and that's why we're in this predicament today, and since we're in this predicament today, now, certain people want to make me feel bad because the police might be defunded. Well, you know what -- Chair King: No, Commissioner Gabela, no one's trying to make you feel bad -- Commissioner Gabela: Yes, ma'am. Chair King: -- and I've said, repeatedly, that we respect what you 're saying. We respect what you 're saying. Commissioner Gabela: Okay. Chair King: That wasn 't an option -- Commissioner Gabela: That 's all I have to say. Chair King: -- that wasn 't an option on the 28th. (COMMENTS MADE OFF RECORD) Ms. Mendez: It was a business decision -- Commissioner Gabela: No, no, no, no, I'm not asking you that. I know between a business decision -- I'm asking you point blank, on the 20th of September, was the four -fifth vote an option and you would 've only lost 865, yes or no? Ms. Mendez: That was an option, but it was -- Vice Chair Carollo: And the Commission -- Commissioner Gabela: That was an option and you didn't take it, right? Ms. Mendez: -- it was a business decision. Commissioner Gabela: Okay. Ms. Mendez: It was a business decision. Vice Chair Carollo: The Commission didn't take it. Commissioner Gabela: Thank you. Chair King: Hold on. Hold on. Hold on. What I'm saying to you, Commissioner Gabela, is you are right. That was not an option given to us. It was not an option laid out to us that because we didn 't have five, that four didn't constitute unanimous and our option would have been -- that was not available to us. It is available to us today. So if your argument is that she didn't do her job and give us that option, we have the option now and you're not in favor of it. So -- City of Miami Page 47 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 (COMMENTS MADE OFF RECORD) Commissioner Gabela: But again, not in -- Chair King: -- not -- you're not in favor. Commissioner Gabela: -- not in favor of it. Chair King: So, is there an appetite of this body to revisit the four -fifths vote where we would lose 865,000 versus millions, Commissioner Pardo? No, okay. So here we are. That 's it. We don't need to discuss any more. We're going to move forward with the litigation with the City. We're at -- we're at an impasse. There's nothing else that we can do. Mr. Noriega: But you have to take a vote on something because you can 't leave it -- now, we're sort of -- Chair King: Okay. All right. Mr. Noriega: We're open-ended. Chair King: Okay, understand. Understand. If we have to take a vote on something -- Vice Chair Carollo: Well, well, well, look, if we're going to go back to a rollback -- if we're -- if we want to set a bonfire, let's make it big. Let's go back to the rollback rate. Chair King: Let's just -- what is before us? We have a -- Vice Chair Carollo: We want to play Robin Hood? Let 's -- let's bring it back to the rollback rate. Chair King: Okay. We have, before us, the third option, which is the simple majority of 6.7931 operating. Do I have a motion? Mr. Hannon: Chair, I'm sorry, we're just waiting on Commissioner Reyes. We just have -- Mr. Noriega: Mr. Reyes has stepped away for a minute. Chair King: It's okay, Commissioner Reyes. (COMMENTS MADE OFF RECORD) Chair King: Okay, I understand. So, is it -- am I to understand that we do not have a choice? We have to go to the third option? Mr. Noriega: No, you can proffer somewhere in between if you want. I mean, it doesn't require that we go simply at the 6.79. There can be a proposal to do somewhere in between that. Chair King: I believe Commissioner -- Mr. Noriega: I'm just -- because that would -- City of Miami Page 48 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Okay, okay, okay, I got it, I got it. I believe Commissioner Gabela has an option that he would like to proffer. Commissioner Gabela: I would like to present a motion. I'd like to present a motion to vote on the 7.0668, 30 million reduction. We don't lose the 50 mil, we're talking about 30. If you want to bring it just a bit -- tad down, I'm willing to negotiate, but it would hover around there. Is there a second? Chair King: 7.66 -- Commissioner Pardo: I'll second. Chair King: -- 7. -- Commissioner Gabela: 7.0668. Sorry. Chair King: 7.0668. I have a motion, do I have a second? Commissioner Pardo: I'll second. Chair King: All in favor? Vice Chair Carollo: No. Chair King: No, no. Mr. Hannon: So then, for the record, the motion fails 2-3, with Commissioner Reyes, Commissioner Carollo, Commissioner King voting no. Chair King: Commissioner Pardo, do you have a recommendation? Commissioner Pardo: Not at this time. Chair King: Not at this time. I can 't make a motion, but I'd like to come somewhere in between 7.8 and 7.0. Can somebody proffer a motion to come somewhere in between, so we don't go to 6.7? Somewhere between 7.0668 and 7.8078, can we find a middle ground there? Vice Chair Carollo: I'm joining the Liberation Army. I will not vote for anything other than rollback rate if this is where we're going. And then I expect my two esteemed new colleagues and the handful of people that they got here, especially the little one with the funny face, laughing, that don 't live in the City of Miami -- Chair King: Commissioner Carollo, please. Vice Chair Carollo: -- that they're going to ask the same thing -- Chair King: Commissioner Carollo, please. Vice Chair Carollo: -- that they're going to ask the same thing of Miami -Dade County Chair King: Commissioner Carollo, that doesn 't -- Vice Chair Carollo: -- and other governments. Chair King: That doesn 't help. City of Miami Page 49 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 (COMMENTS MADE OFF RECORD) Commissioner Reyes: Come on, Joe, stop that. Leave it alone. (COMMENTS MADE OFF THE RECORD) Chair King: Okay, we are at a difference of 0.741 with the two, what Commissioner Gabela has offered and what the City has offered. That's not a huge difference. Can we come to -- Commissioner Reyes: Madam Chair. Chair King: Commissioner Reyes? Commissioner Reyes: I still want a reduction. That's it. Chair King: I'm sorry? Commissioner Reyes: I still (Comments made in Spanish not translated) -- I still want to lower the millage and lower the -- I mean, the revenues that we are going to receive. But I'm not willing to vote on something that at the moment is going to create, you see, is going to create a big problem now. Now, what -- we have a motion to direct the City Manager to find a reduction of $30 million, minimum $30 million, by mid year, you see, and that $7 million should be passed, whatever it is -- whatever it is should be passed to the taxpayers, particularly homesteaded, in a form of rebate, or whatever form that it is legal, you see. But commit him to finding no less than $30 million at mid year so we can have a reduction in -- it is basically -- basically, it's a reduction in the millage, you see. Ms. Mendez: So that would require a four -fifths vote -- Commissioner Reyes: Okay. Ms. Mendez: -- and which would reduce by the $865, 000, and then the directive that would -- that you 're asking for. Commissioner Reyes: Okay. I would vote for the 800 and -- the loss of $800,000, although I don't like to lose it, but with a directive to the City Manager to find X amount, 35 -- not minimum than $35 million by mid year that will be returned to the taxpayer. Chair King: Commissioner Reyes, we do not have the votes for that. Commissioner Reyes: Well, I -- Chair King: We don 't have the votes for that. Hold on a second. What if we go 7.2? Commissioner Reyes: No. Chair King: We -- 7.4 down to 7.0 in between would be half of that is 7.2. Would 7.2 be acceptable to this body? Commissioner Gabela: Larry, what is 7.2? Chair King: Please. City of Miami Page 50 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: Larry, 7.2 (INAUDIBLE). Mr. Spring: We're calculating it right now. Just a flat 7.2? Chair King: You can add some other numbers, I 'm not -- Ms. Mendez: That also requires four votes. Chair King: I understand. I 'm trying to have a compromise here. Commissioner Reyes: I'm not voting for that. Mr. Spring: Yeah, that 7.2 even on the operating millage would result in a reduction of 20.5 million. So, 20.5 million. Commissioner Reyes: That's less than what I'm proposing. Mr. Spring: But it would still require a four -fifths vote. Chair King: That would require -- Commissioner Reyes: That 's less than what I'm proposing. Chair King: Commissioner Gabela? Commissioner Pardo? Commissioner Pardo: I would sit comfortable with the $30 million, and that was pretty much my angle, where I was willing to go. Chair King: Well, now we're at 20, we're -- Commissioner Pardo: I know, but this isn 't an auction. Chair King: No, no. I understand -- Commissioner Pardo: I mean, this, you know -- Chair King: -- I'm trying to get the two of you -- Commissioner Pardo: I get it, but I mean -- Chair King: -- and the two of them -- Commissioner Pardo: -- we've given our votes -- Chair King: -- in the middle -- Commissioner Pardo: -- we've given our opinions, and I -- there comes a point where we have to respect -- Chair King: Wait, the 7.2, would you agree to that? (COMMENTS MADE OFF RECORD) Chair King: Yes, it's $20 million. (COMMENTS MADE OFF RECORD) City of Miami Page 51 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Is that acceptable? (COMMENTS MADE OFF RECORD) Mr. Hannon: Commissioner Gabela, I'm so sorry, sir, we can't hear you. Chair King: Hear you. Commissioner Gabela: Sorry. How about we go halfway? Not the 30 and not the 20, but the 25? Whatever that equals to. Chair King: I'm amenable to that because I think we need to -- hold on, they're passing, and it's -- Mr. Noriega: He just wants to get the exact millage. Chair King: Okay, and it's not an auction, I'm just trying to get us to a place where we can agree. I don't even know if my colleagues to the right of me will accept that. I'm just trying to find a path forward here for the residents of the City of Miami. Vice Chair Carollo: I'm going to put it straight in the record, I'm not voting for any of these other in between. I would've voted for the first, I would've voted for the second -- Commissioner Reyes: And I -- Vice Chair Carollo:-- unless you want to come with what I said. If we want to light a bonfire, let 's do a big one. Let's do a whole rollback. Commissioner Reyes: I am going to put on the record, you see, I'm most the agreeable person in the world, I'm always trying to find a common ground, but in this case, I -- being part of a budget process, not only here in the City of Miami, also in the school system, when I was principal economic analyst, I -- I see and I know the problem that you can cause by having a cut of that magnitude now -- okay, now, without knowing what our costs are going to be, our expenditures are going to be, and without any further analysis. I want -- what I am agreeing to, it is the second -- losing 800 -- paying 800,000, that we should have taken that. I agree with you, Mr. Gabela, but if you agreed to that at the beginning, you should agree to that now. Commissioner Gabela: No, I don 't agree with that now. Commissioner Reyes: Okay, well, I know, but that is your prerogative, sir. That is your prerogative, you see. I want a reduction, but I want a reduction -- an orderly reduction. I want to commit the City Manager -- committed, to find no less than $30 million -- no less than $30 million by mid year, and that will require savings that they would be analyzed, those savings, and the effect of those savings will have, in our services, and the -- what we provide our citizens. And then, at mid year, we will -- that -- those funds, no less than $30 million, we would return it to the taxpayers in a form of a -- of a -- of a rebate, or whatever it is legal. That is my opinion. I don 't want to throw now $800,000 (UNINTELLIGIBLE) you can get that anyways, but millions and millions of dollars, $25 million, $30 million, it would create a problem with the budget and it will create a problem that we don 't -- I mean -- but the magnitude that we don 't want to create now. I won 't be participant of that. Now, I want to reduce the amount of taxes that people are paying, but I want to do it in an orderly and smart fashion, you see. I want the city -- the Administration to start working and (UNINTELLIGIBLE) also by doing it that way, we will bring the efficiency that we are so much in favor of. That is my opinion based on my experience as a budget City of Miami Page 52 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 analyst, you see, and if I mean, you have commitment that he will have to do it and you, sir, you are responsible for it, and you, Larry, are responsible for it, and I -- I also could add that if you don't come back -- come by with 30 -- over $30 million by mid -year, you please present your resignation, because I'm going to ask for it, okay? Vice Chair Carollo: Commissioner, I would go along with your proposal with the caveat to make it even easier to achieve it, that a million and a half comes out of the budget of each elected official, so you got $9 million right off the bat there. Commissioner Reyes: That's right. Vice Chair Carollo: And all you got to do is find what, another 21? Commissioner Reyes: 21 or $30 million, but I am -- Vice Chair Carollo: Well -- Commissioner Reyes: -- I am not going to do it. Vice Chair Carollo: -- I -- I would go along with that. Commissioner Reyes: And that's -- that is my proposal, I will vote no against any other proposal, you see. And I'm glad -- I'm glad -- I'm really glad that you two -- you two, wants to reduce the millage, and you two wants to return -- you want to return, to the taxpayer, but they haven 't -- what they have -- give them a little help, you see, give them a little help. It's not going to amount to much, but it 's going to amount to something, you see. Because those people that live in my district and your district, those people that are, I mean, having a very hard time to pay their taxes, that little bit will help them, you see, will help them. And that is -- that is my proposal, and I want to do it in an orderly manner, the smart manner, and a professional manner to do it. It's my opinion, okay. No less than $30 million. You can raise it to $35 million, but -- or 40 or 50, I wish you got 100. Vice Chair Carollo: Chair, if I may ask the City Attorney a question -- Chair King: Can't hear you. Thank you. Vice Chair Carollo: -- that I'm not quite sure what I heard before is what I heard. Madam City Attorney, we approved a millage rate before, when there were four members here. The fact that we came back to see if we would reconsider it, and we didn't, what stands as law is what we approved before. That doesn't mean we did away with that. Ms. Mendez: Mr. Clerk? Mr. Hannon: The vote that was taken on the 28th? Ms. Mendez: No, today, the motion to reconsider. There was a motion to reconsider the vote that was taken on the 28th, and then it was today -- Chair King: That motion failed. Vice Chair Carollo: Yes, but if it failed, then you go back to the original motion -- Ms. Mendez: Did it -- so it -- City of Miami Page 53 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Vice Chair Carollo: -- that was approved, whatever the day it was, when there were four of us here. Mr. Hannon: So, the motion -- oh, I understand what you 're saying -- Ms. Mendez: Today. Vice Chair Carollo: Yeah. Mr. Hannon: The motion that you took at the beginning of the meeting. No, that 's absolutely -- well, correct me ifI'm wrong, and thank you, Commissioner Carollo, for the clarification. So, essentially, the motion to reconsider, at least from parliamentary procedure standpoint, means that you rescinded the action prior. Now, this is a little different because it pertains to determination of millage and budget, but I can tell you from just Mason's Rules of Procedure, that when you reconsider an item, you're rescinding the action that was previously taken. Ms. Mendez: Did it pass? I guess they're saying -- Mr. Hannon: No -- yes, that's how we were able to go ahead and begin discussing SP.1, 2, and 3. Vice Chair Carollo: Yes, but if it -- Commissioner Reyes: No, I didn 't vote on that. Vice Chair Carollo: -- if it doesn't fail -- if it doesn't pass, you go back to the other one, you don 't keep going and going. Mr. Hannon: No -- Chair King: No, would we have to do another motion to reinstate what we did on the 28th? Vice Chair Carollo: Well, and that would be a majority motion, correct? We could institute it then, back, with a majority motion, a three vote majority motion. Mr. Hannon: For me, the notion of reconsideration means that you have rescinded the action that was previously taken. And so right now, that's why SP.1, 2, 3, are all in play. Chair King: Right, what he's asking is can we -- how could we go back to our original -- can we --? Mr. Hannon: SP.1, 2, and 3 are all in play. Ms. Mendez: So then, I believe what Commissioner Carollo is asking is that if you moved to withdraw the reconsideration -- Vice Chair Carollo: It would take three. Mr. Hannon: Then I guess the -- Ms. Mendez: Then the previous motion -- Vice Chair Carollo: Yes. City of Miami Page 54 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Ms. Mendez: -- would stand. I think that is what he's trying to -- Vice Chair Carollo: Yeah. Commissioner Reyes: Wait, wait, wait, wait, wait. Chair King: So, what would -- what would that require? Mr. Hannon: A motion -- but we've already reconsidered the item, and so that 's why we've been able -- Chair King: So we can't, is what you're saying. We cannot go back. Mr. Hannon: I do not believe so. Chair King: Can we withdraw -- can we withdraw the motion to reconsider? Commissioner Reyes: I didn't vote in any motion to reconsider. Chair King: Yes, we all voted unanimously on the motion to reconsider. That 's why we're here. Commissioner Reyes: Oh, before. Chair King: Yes. Vice Chair Carollo: But -- Commissioner Reyes: Before, okay. Chair King: Yes. Commissioner Reyes: No, no, I was talking about today. Vice Chair Carollo: If the motion doesn 't pass, then -- Chair King: No, no, the motion -- Vice Chair Carollo: -- you have the right -- you have the motion that was reconsidered, the new vote, if that doesn't pass, you have a right to go back to the original motion that was there. Chair King: No, no. We did a motion to reconsider our actions. That motion passed, so our actions -- our previous actions are gone, is what you're saying. Mr. Hannon: Yes, ma'am. Chair King: Is there a way that we can -- is what they're asking -- withdraw our actions now? And what it seems is you 're saying to me is no. Mr. Hannon: Because the motion to reconsider passed, which is -- Chair King: Right. Mr. Hannon: -- why we're even able to discuss -- Chair King: Exactly. City of Miami Page 55 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Hannon: -- SP. 1, 2, 3. Chair King: So, now -- so we have to take some action right now because we don't have anything in play. Mr. Hannon: If you're looking at purely from Mason's, but I don't know with the termination of millage if there is some other rule, state statute or so forth that would apply. Ms. Mendez: This is just procedural. So, if there is a majority vote to rescind the motion for reconsideration, then you would fall back on the vote that was taken back, the 4-4, and then we litigate with the State. Chair King: Is that true, Todd? Ms. Mendez: The only problem with that is that then we're dealing with 56 million versus 49 million, because then -- Chair King: But I think we -- Ms. Mendez: -- they're going to say that we weren 't -- Chair King: -- but I think we came -- I think we came to maybe a consensus at 25. Commissioner Gabela: That 's correct. I still -- I still stand by it. Chair King: I believe we came to a consensus of 25 million. Would that be amenable to my colleagues? I need a four -fifths. Commissioner Reyes: Madam Chair, we can also recess this and meet again (INAUDIBLE) -- we can also -- we can also -- could recess this meeting until before the 18th or during the 18th. We still have time to think this over and do that. I mean, we can -- we can still, you see, recess it and come back and everybody comes with their -- with -- I mean, let's think it over and think what is best for the city. Chair King: Do I have a motion? Do I have a motion? Commissioner Reyes: I move it to -- Chair King: Wait, hold on. Ms. Mendez: We 're checking -- Chair King: Todd has his hand up. Todd has his hand up. Ms. Mendez: -- we're checking on the re -- we have to re -advertise for all that. So we need to check the dates. Commissioner Reyes: Well, so do it. The 17th or the 18th. Ms. Mendez: We won 't make it based on the re -advertising. Give us just one moment to calculate all that. Chair King: Go ahead. Commissioner Reyes: You see. City of Miami Page 56 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 (COMMENTS MADE OFF THE RECORD) Vice Chair Carollo: Chair, I'm leaving. I don't know what's going on here but, you know, I'm done. Chair King: (INAUDIBLE) attorneys and (INAUDIBLE). give us 10 more minutes. Vice Chair Carollo: Well -- Chair King: Ten more minutes. Vice Chair Carollo: I'm really ticked off with -- (COMMENTS MADE OFF THE RECORD) Chair King: Mr. Manager, what are we doing? M. Mendez: Madam Chair, the -- the issue -- we have a couple of things. We have a deadline to the Florida Department of Revenue to tell them what we 're doing. We have to have some type of vote today as well because if not, that could lead to other noncompliance issues. And then, if we were to reset this hearing, we could potentially be in noncompliance pursuant to Florida Statute because this isn't circumstances beyond our control, which requires the recesses. Commissioner Reyes: (INAUDIBLE). Ms. Mendez: Right, the recess. For a recess today. Chair King: So you're saying we cannot recess today, we must take some action today? Ms. Mendez: That could be -- that could be a -- yes. According to the state statute, due to circumstances beyond our control of the taxing authority and we -- today -- Chair King: So we must take some action today? Ms. Mendez: Today, yes. Chair King: So what is left for us is either the simple majority vote, which is a $49 million or the $25 million that was proffered by Commissioner Gabela. We have to take some action today so. Vice Chair Carollo: Which is the additional action that if -- Commissioner Reyes: (INAUDIBLE). Vice Chair Carollo: -- we went with the millage rate that we had before, not having the five votes that they claim, we only had four, that brings it up to $56 million. What is the millage rate on that? Mr. Spring: No, it's not -- the $56 million is the forfeiture associated with not complying without doing anything. Chair King: Without doing anything. Mr. Noriega: That 's the loss of the sales tax. City of Miami Page 57 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Mr. Spring: That's the loss of the sales tax. If we do the simple majority, that millage rate is 6.7931, reduction in our estimated revenue of 49, 000, 666. And Commissioner Gabela, you asked about what was the millage for 25. That number is -- operating millage is 7.1364. Chair King: And that 's at 25 million. Mr. Spring: That will be 25. Chair King: And that requires how many votes? Mr. Spring: And then you need to add the debt millage to that. Chair King: That requires how many votes? Mr. Spring: That would -- no, that would still require four -fifths. Chair King: Four -fifths. Mr. Spring: Everything -- and that's the thing, everything we're discussing above 6.7931 requires -- Chair King: A four -fifths. Mr. Spring: -- a four -fifths vote. Chair King: Do I have a motion to pass the operating budget at 7.1346? Commissioner Reyes: That's a reduction of how much? Chair King: Twenty-five. Commissioner Gabela: I have -- can I make that motion? Chair King: Yes, you can. Commissioner Gabela: That's the same motion that I made, and I make that motion. Is there a second? Chair King: Do I have a second? Commissioner Pardo: I'll second it. Chair King: Requires a four -fifths vote. All in favor? Vice Chair Carollo: No. Commissioner Reyes: No, no. Chair King: Aye. Commissioner Reyes: I'm still -- I still believe that we should do it in a different way. Chair King: So that's a 3-2 -- Mr. Spring: It still don 't pass. City of Miami Page 58 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: -- it fails -- Mr. Hannon: Yes. Chair King: -- because we need a four -fifths vote. Commissioner Reyes: I still believe, and I'm doing out of my conscience and my experience, that we should -- we should pass the -- I mean, four vote and take a hit for $800, 000, and then demand, as we said, more -- Chair King: I understand. Commissioner Reyes: -- it's going to be more, it's going to -- now what we're doing is we are reducing the -- we only are getting $25 million, and that's it. We are trying to - - I don 't want to be tied to 25. Even though that is now -- Chair King: I understand. Commissioner Reyes: -- going to create some problems. Chair King: But Commissioner Reyes -- Commissioner Reyes: I want more than that -- I want 35, more than that. I want commitment that we are going to get there. And that's what I want. Chair King: Commissioner Reyes, we don't -- they're not the votes to do the 7.4 -- Commissioner Reyes: Well, then I vote against it. Chair King: Okay, so we need a four -fifths vote unless we go with the 6.793 operating which is a $49 million deficit. We have to do something today. We have to do something. We don't have the votes for 7.4 with the 865. We don 't have the votes. If we don't do something today, we won't be in compliance with the State, and we're going to lose the -- Unidentified Speaker: Sales tax. Mr. Spring: Sales tax. Chair King: We're going to lose the sales tax. I am trying to mitigate the damage here. Commissioner Reyes: Madam Chair, I want to be clear with it. I want -- I want a reduction. I want a reduction and I want a reduction that will be greater than that. We don't have -- I mean, they can vote in place -- any way they want. I'm going to vote my conscience. Chair King: I understand. Commissioner Reyes: And I'm going to vote what I believe that could be achievable and would benefit the residents more because I don 't want to tie it to $25 million. I don't want to do it. Chair King: I understand. Commissioner Reyes: You see? City of Miami Page 59 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: I'm explaining that we do not have the votes. Commissioner Reyes: Well, I -- Chair King: They are not going to vote -- Commissioner Reyes: I am not going to be forced to vote -- Chair King: So, we -- okay, but if we -- Commissioner Reyes: -- for anything like that. Chair King: -- if we -- Commissioner Reyes: I don 't believe -- the same way that they won 't vote for anything that they don't believe. Chair King: If we do not make a decision today -- Commissioner Reyes: Well, find -- Chair King: -- we're going to jeopardize -- Commissioner Reyes: Okay. Chair King: -- we're going to jeopardize -- Mr. Spring: 56 million. Chair King: -- $56 million. Commissioner Reyes: Let me ask you something. Why -- why do I have to vote in something that I don 't believe? Chair King: No, you don't have to. I am just -- I am merely explaining the ramifications of not doing anything. Commissioner Reyes: Yes, yes, what I want to do, what I want to do, I want to ask -- I want to ask my fellow commissioners just at least consider what I'm saying, which is going to be more than $25 million. We're going to keep track every month about it, and we are committing the Administration to over $30 million in reduction, you see. Commissioner Gabela: Well, why don 't you guys think what we're considering? Commissioner Reyes: Well, you're considering $25 million right now and those $25 million, believe it or not -- Commissioner Gabela: No, I said -- Commissioner Reyes: -- is going to -- is -- hold on a second, sir. Commissioner Gabela: Yeah. Commissioner Reyes: Those $25 million, believe it or not, it's going to create problems. Okay, I mean, you don't care about that? I do. I do. City of Miami Page 60 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: No, no, no, don 't make it that I don 't care about that. Chair King: Stop. Okay, okay. Commissioner Reyes: Well, no, no -- Commissioner Gabela: No, I don 't have to -- you just stated -- Chair King: Okay, everybody -- every -- Commissioner Reyes: Wait, wait, wait, I don't want to argue with you. Commissioner Gabela: You said that you have the right not to vote. [The Chair muted all microphones.] Commissioner Gabela: I have the same right by the same token. Chair King: Commissioners. Commissioners. Commissioners. Commissioner Reyes: I said that because you just went like this, you know, said I don 't care. Chair King: Commissioner Reyes, Commissioner Reyes, body language. Commissioner Reyes: Body language. Chair King: What someone says, please, please just ignore it. Where we are today, the facts, we have to take an action. Most of them require a four -fifths vote. The only action we can take that would require three votes would have a $49 million impact on the City. I understand what you are saying. I agree with you. I would prefer the 7.4724 that will have an $865,000 impact and then we can work. We do not have the votes for that. Commissioner Reyes: Well -- Chair King: We don 't have the votes for that. Ms. Mendez: Madam Chair, there was one vote that floated, but then it wasn 't -- and I don 't know whose it was, it was a potential $9 million reduction at 1.5 each. Commissioner Reyes: That's right. Ms. Mendez: The already million that you would do at a four -fifths, and then maybe -- but it didn't finish, which was maybe you had the $20 million looking in the future, but at least that would give -- Commissioner Reyes: That's right. Ms. Mendez: -- tangible results to the commissioners -- Commissioner Reyes: Right now. Ms. Mendez: -- of a $10 million -- Commissioner Reyes: Yes. City of Miami Page 61 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Ms. Mendez: -- really $11 million hit and then coming back -- Commissioner Reyes: Absolutely. Ms. Mendez: -- I don't know, it wasn't like it didn't come into fruition, but it was discussion amongst -- Commissioner Reyes: But it is -- let's take a smaller hit now, you see, let's take a smaller hit. You see, $9 million from us, from our budget, you know, we have to -- we have to preach by example, you see, we have to preach by example. If we're asking the -- all the departments that they're going to take a hit, somewhere and sometimes if there is a commitment of $30 million, the departments are going to take a hit. If they're going to take a hit, well, we start by taking a hit ourselves, and that would be $10 million, right? $2 million from our budget. And that would be $10 million from our budget, and then the commitment to go right ahead and by mid year, they should have found $30 million more, you see. And that's my proposal. Chair King: Do I have a motion? Commissioner Reyes: I move it. Vice Chair Carollo: I second it. Chair King: All in favor? Wait, what -- the motion is for the 7.4 -- 7.4724? What's your motion, Commissioner Reyes? Commissioner Reyes: My motion is for 7.4, I mean, could be for the four -fifth, that -- the only thing that we need. You see, take a hit from $800, 000, $10 million coming out of -- Vice Chair Carollo: Tier 2. Commissioner Reyes: Tier 2. Chair King: Tier 2. Commissioner Reyes: Tier 2. Chair King: So his motion is for the -- Commissioner Reyes: Tier 2. Wait, with a caveat. Chair King: -- 7.4724. Commissioner Reyes: That 's right, with a caveat. Chair King: I have a motion and a second. Mr. Hannon: Chair, and then that's 7.4724 operating. Chair King: Operating. I have a motion and a second. All in favor? Commissioner Reyes: Aye. Vice Chair Carollo: Aye. Chair King: Aye. City of Miami Page 62 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: No. Chair King: No. Okay. We're not going to do that one again. I just wanted you to -- Mr. Hannon: Sorry, Chair. Sorry, the motion fails -- Commissioner Reyes: Well, you know, it's -- Mr. Hannon: -- 3-2 with Commissioner Gabela and -- Commissioner Reyes: It is -- it is -- Mr. Hannon: -- Commissioner Pardo voting no. Chair King: Correct. Mr. Hannon: Just for record clear. Chair King: Correct. Commissioner Reyes: It is -- I mean, it is what it is. Chair King: But this is --but, yes, this was the second time -- Commissioner Reyes: It's what it is. Chair King: -- that motion was taken up, so we don 't have that on the table. You know, I'd like a legal opinion on if we take no action today, what happens? Ms. Mendez: If you take no action today, it would be potential noncompliance with the State of their 56 million? Yes? 56 million, and then potentially we would still have a -- the hole in the budget because we're not -- Mr. Noriega: Well, well, wait, wait, wait, because this is the one piece we're missing. If we don 't vote today, we automatically go back to the rollback rate. Ms. Mendez: Automatic? And then the State -- Mr. Noriega: No, no, no, because then you're compliant. Ms. Mendez: -- could potentially still say we're in com -- not in compliance. Mr. Noriega: No, you're compliant. If you don't vote, you go back to the rollback rate, you're compliant now. The State can't tell you you're not compliant. You didn't vote. So you automatically went back to the rollback rate. I don't know how you're not compliant at that point. By the way, but that's a $63 million impact. Commissioner Reyes: By no voting today, it's $63 million, City Manager? Ms. Mendez: You have a potential -- unfortunately, since the State is the one that makes these decisions in a vacuum, you could see a potential for a 100 million, our 49 and the 56, technically. So, we can 't -- for not voting -- we have to vote on something. Because now we're out of compliance with the State based on the dates. Chair King: I don 't have the votes either way. I can get three, I can 't get four. City of Miami Page 63 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Ms. Mendez: Right, so the three -- Chair King: So, what happens? I don 't have the votes. Ms. Mendez: On the three, it 's 49 million. Chair King: I don 't have three votes for 49 either. I don 't have the votes. Vice Chair Carollo: Hold on, let's go back on the 49. This is reductions, the State is not taking any monies from us. Ms. Mendez: That's our internal policy. Right. Vice Chair Carollo: And the State is not taking any money from us. Commissioner Reyes: We are not receiving money. I mean, what we 're doing is we are not receiving revenues from the State. Vice Chair Carollo: Well, yeah -- Commissioner Reyes: I mean, it 's just like losing it, you see. Chair King: Right, but -- okay, but we have an alternative from Commissioner Pardo -- I'm sorry, not Commissioner Pardo, Commissioner Gabela, for 7.1346 operating, which will be 25 million. Do I have a motion? Commissioner Gabela: I motion. Chair King: Do I have a second? Commissioner Pardo: I second. Chair King: All in favor? Vice Chair Carollo: No. Commissioner Gabela: Yes. Chair King: Commissioner Reyes? Commissioner Reyes: No. Chair King: We have a motion on the table with a $25 million hit versus a $49 million hit? Commissioner Reyes: No, I'm not voting for it. I want to reduce it -- Chair King: Okay, okay. Commissioner Reyes: -- if we are going to go -- if we want to reduce it, let's reduce it now and commit them to a bigger amount. Chair King: Okay, the City Clerk is trying to tell me something. Mr. Hannon: My apologies, just again, for the record, then that motion fails. Was it 3- 2? City of Miami Page 64 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: 3-2. Mr. Hannon: Three, two with Commissioner Reyes, Commissioner Carollo voting no. Understood. Chair King: Correct, correct. So, here we are again. I do not have four -fifths in either direction. It's time to adjourn this meeting. Nothing's getting done. Mr. Noriega: Wait, wait. Can I -- I mean, we're going to keep -- might as well keep going down this rabbit hole. Chair King: Until when? Mr. Noriega: Well, because until when? Ultimately, we could potentially be exposed upwards of over $100 million. Chair King: Well -- Mr. Noriega: I don 't necessarily want -- Chair King: Okay, okay. Mr. Noriega: -- but wait, but let me finish. Chair King: Do I have a motion for 6.7931 operating? Commissioner Pardo: I'll make the motion. Vice Chair Carollo: What -- hold on for a minute. Chair King: I -- Vice Chair Carollo: When you're saying 6.9, this -- Chair King: That's our last option. Simple majority. I only need three. Commissioner Reyes: No, before you do that, ma'am, I want to propose another motion. You see, I propose that we go 7.32312, which is $11 million, and a commitment of $30 more million in midyear. Chair King: 7.3 -- Commissioner Reyes: That's right. Chair King: 7.3 what? Commissioner Reyes: 2312, which is lower -- Chair King: 7.32 -- Commissioner Reyes: -- it's in between, plus a commitment of -- of -- the Administration bringing additional funds, just like -- Chair King: Okay, so -- Commissioner Reyes: -- for example -- City of Miami Page 65 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: -- it's 7.32312? Marie Gouin (Director, Budget) : No, it -- it's 7.3312. Commissioner Reyes: 3312? Ms. Gouin: Yes. Chair King: 7.3312. Do I have a motion for 7.3312 operating? Vice Chair Carollo: Yes. Commissioner Reyes: I second, and with a commitment -- Chair King: With a commitment. Commissioner Reyes: -- of over $30 million by midyear. Chair King: $30 million from Administration -- Commissioner Reyes: In midyear. Chair King: -- to reduce the budget. Vice Chair Carollo: To find. Chair King: I have a motion and a second. Commissioner Gabela: Can you explain that again? What does that equal in dollar amounts? Commissioner Reyes: $11 million. Commissioner Gabela: How much? Commissioner Reyes: $11 million. Commissioner Gabela: No. Commissioner Pardo: No. Commissioner Reyes: Okay. Chair King: Okay, so here we are. Mayor Suarez: Madam Chair, if I may. Vice Chair Carollo: Okay, if I can 't -- Chair King: Well, hold on a second. I vote in favor of that. That 's a 3-2. Vice Chair Carollo: Okay, can I -- Mr. Hannon: So, again, just want to make sure -- Vice Chair Carollo: -- can I ask a question? City of Miami Page 66 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Hold on. Wait a second. Mr. Hannon: -- 3-2 with Commissioner Gabela and Commissioner Pardo voting no on the 7.3312. Vice Chair Carollo: Okay. Mr. Hannon: Thank you. Vice Chair Carollo: Can I ask a question from staff? Chair King: Please. Vice Chair Carollo: Larry, this is finance. The one that we can get passed on a 3-2 vote is what millage rate? Mr. Spring: That millage rate is 6.7931. Vice Chair Carollo: 6 point what? Mr. Spring: 7931. Vice Chair Carollo: 79 -- Mr. Spring: 31. Vice Chair Carollo: -- 31. Okay. Now, -- Mr. Spring: Operating. Vice Chair Carollo: It's operating. Yes. On this operating one, and Mayor, let me explain to you why I'm looking to head this way and I want you to hear me, Commissioner Reyes, because I think you're right on, but the exposure that we have, and then I'm going to tell you something else that you all haven't thought about, of what's going on here. You're not only opening up the door for the State to then hit us a double whammy on the 56 million that they won't give us and on the 49. But then what you're doing is you're opening up the door to someone come up with a great idea to remove them all from office. So, here is what I'm going to propose. I'm going to propose the 6.17931, that's approximately -- Mr. Spring: 6.67. Vice Chair Carollo: 7 -- Mr. Spring: 6 point -- Vice Chair Carollo: 6.7 -- Mr. Spring: -- 7931. Vice Chair Carollo: -- 9 -- Mr. Spring: 6.7931. Vice Chair Carollo: That's what I said. Mr. Spring: Okay. City of Miami Page 67 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Vice Chair Carollo: 6.7931. It's approximately 49 million. Mr. Spring: Correct. Vice Chair Carollo: Out of which I will find you a quick easy $12 million right off the bat, $2 million from each of the elected officials. So, that way you got to find is $37 million more. Chair King: Commissioner. Vice Chair Carollo: Okay, now -- Chair King: Commissioner, hold on a second. There's a motion in play. We have to address that. Vice Chair Carollo: There's not a motion. It was never seconded. Commissioner Gabela: So I don 't get this. Vice Chair Carollo: There was nothing that was second. There was never a second. Commissioner Gabela: You're willing to lose $49 million, but you 're not willing to do 25. I just don 't get it. You say you want to save, you know, this, but then you're willing to do -- you're willing to lose 40 -- Vice Chair Carollo: Because we're going to have a bonfire. We 're going to have a real bonfire. Chair King: Mr. Mayor -- Commissioner Gabela: Okay, so then you don 't care. Chair King: The Mayor is here. Let me hear from the Mayor. Mayor Suarez: Thank you, Madam Chair. I just want to impress upon the Council or Commission that we have two votes to take. The first vote is the millage rate. That's going to set, in essence, the amount of revenue that we generate, more or less. It 's not all the revenue. It's about 45 percent of the revenue of the budget, but it's a significant amount. The second thing we have to do is we have to pass a budget, and we're constitutionally required to pass a balanced budget. And so this is not about boogeyman, this is not about -- you know, there are certain things that we can do and there are certain things we cannot do. I've been here for a long time. Some people would say too long, and that 's fine, they have every right to feel that way. But what I would say is that there are certain things we can do and certain things we can't do. So we would have to leave here today if, let's say, for example, the decision of the body was to roll back the millage to what would be the projected deficit under the rollback? (COMMENTS MADE OFF THE RECORD) Mayor Suarez: $49 million. Today -- (COMMENTS MADE OFF THE RECORD) Mayor Suarez: -- the rollback is 60 something, right? City of Miami Page 68 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 (COMMENTS MADE OFF RECORD) Mayor Suarez: 63. So, you 'd have to find $63 million of savings today to balance the budget and I don't recommend using reserves because that is not a fiscally prudent thing to do, but you don 't take, you know, recurring expenses and peg them against one-time revenue. That's what the federal government has done to build up a $30 trillion deficit and I don 't think we want to go in that direction. We don 't want to be back in 2009 where we were on the verge of bankruptcy and the State was threatening to take over the City of Miami. So, all I'm asking is that whatever decision this body makes, they find the concomitant cuts to balance the budget as we're constitutionally required to do. So, whatever it is, whether it's 9 or 10 or 60 or 40 or 50, whatever the number is, we have to find the cuts tonight to balance our budget. So, I hope everyone's prepared to do that. Vice Chair Carollo: Okay. Commissioner Reyes: That 's what I've been saying. We have to balance the budget anyway. Some place, we have to start cutting it all the way, you see. Vice Chair Carollo: Well, I proposed $12 million. And I made the motion for the 6.7931. If anybody would like to second it, they're welcome to. If they don't want to second it -- Chair King: Is there a second? Commissioner Reyes: That 's a big -- but we lose how much? Chair King: $49 million. Vice Chair Carollo: $49 million with 12 million coming from the six elected officials, 2 million apiece. So, you're left with 37 to look for, 6.7931. Chair King: Todd. Commissioner Reyes: (INAUDIBLE). Vice Chair Carollo: You're right, yeah. Commissioner Reyes: (INAUDIBLE). Chair King: Todd. Mr. Hannon: My apologies, Chair. Vice Chair Carollo: Just about, but you're doing it -- Mr. Hannon: Madam City Attorney -- Vice Chair Carollo: -- in a responsible way. Mr. Hannon: -- can Commissioner Carollo's amendment be included in SP.2 or does that need to be in SP.3, or outside of SP.2? Ms. Mendez: The first vote is just on the millage. The second vote on the budget would have to include whatever budget cuts you do tonight. Vice Chair Carollo: Yeah. City of Miami Page 69 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: Okay. Ms. Mendez: In order to match the millage. (COMMENTS MADE OFF RECORD) Chair King: Okay. Where we are right now is we're considering the worst option, 49 million. There is an option on the table for 25 million, and then we can find the cuts. I don 't think we should go to the 49 million. That is not prudent. Okay. It is not prudent what we are doing here, one. But I understand that we don 't have the votes. It makes more sense for us to pass the rate with the $865, 000. Vice Chair Carollo: They don't want to do it. Chair King: Eight hundred and -- I understand that. But if we don 't have the votes for that, it doesn't make sense to me that we go all the way to the 49 million, if there's a midpoint in there somewhere because we have to consider the residents of the City of Miami -- Commissioner Reyes: Absolutely. Chair King: -- not our personalities, not what we're thinking. We have to think about the residents of the City of Miami. And if we were truly thinking about the residents of the City of Miami, we would go with the 865. Not a million dollars, less than a million dollars. We are talking about now the difference between $49 million and $25 million. That is not good governance. We could fix everything else in time. To not take the option of the $865,000 is shameful. But this is where we are. But it's worse if we go all the way to the $49 million. I'm willing to go somewhere in between, but be clear, the most prudent action for us to take is for us to go with the $865,000 hit and then we address whatever fiscal concerns that you have and not be forced by the State to lose revenue. I don't have the consensus for that. I am willing to come somewhere in between. I think 25 million is a middle ground. It 's still shameful, but it 's a middle ground. $49 million is -- should not be our option. It should not be our option. We should go with the four -fifths for the $865,000, and then we move forward and do the things that the two of you are asking. If I don 't have the votes for that, then let's go forward, because I need four -fifths on each side. Vice Chair Carollo: Madam Chair. Chair King: I need a four -fifths for here and I need a four -fifths for here. Vice Chair Carollo: Madam Chair, I have put $12 million on the table that would come from the elected officials that should be the ones that lead on this. We could approve whatever the millage rate would be, minus those 12 million, and the request from the Administration that they will look to, by mid year, see where we could find another 30 million from. At least it would give us some four months or so, because the fiscal year started October 1st, three and a half months, to go about this in the most responsible way to see where the cuts are coming from, like you were taught, like you used to do. And whether it 's 25 million or whether it's 49 million, the Mayor is right, we have to give the State a balanced budget, and we're going to have to make cuts percentage -wise across the board so that we can give the State a balanced budget in whatever we approve. That 's why by only taking a millage rate that would take the $12 million that we identified from the elected officials and then go on about it in a prudent way, where the Administration will look to see where we could find another $30 million. And then that is brought up in six months fiscal year review. It's a prudent way of doing this. To begin with, you 've had most of your people that have City of Miami Page 70 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 paid their taxes already to get the 4 percent. You're going to create even more expenses in trying to get that money back to them in this fashion. And then how do you do it with some and not others? I mean, it 's a mess that would be created on top of another mess. This is not like if we're starting before people had not paid their taxes. The vast majority of our residents in November paid their taxes already, for the 4 percent savings. So, this is the easiest way that we could do it for everyone. Chair King: Commissioner Pardo. Commissioner Pardo: Madam Chair, I trust that staff knows the budget better than anyone. So, I'm not sure whether it 's 2 million from each. I would rather leave those decisions, what expenses can be deferred, what things can be timed to create that sum of money. In my case, I feel like I've done the most I can go in Commissioner Gabela's proposal, and I'm willing to support that as a compromise in spirit of collaboration. Chair King: At $25 million? Commissioner Pardo: At 25 million. Commissioner Reyes: Madam Chair, Madam Chair, you know that if we cut the $25 million, we have to look at every project, at every item, where are we going to cut, you see. Because that's going to be our budget. It's going to be our budget minus $25 million, you see. We have to find, tonight, but to pass the budget, you see -- what we're doing now is passing the millage. But once we pass the millage, we have to pass the budget in order -- and it is required that we pass a balanced budget, okay. Now, but we have to do the cuts tonight. Chair King: I understand that. Commissioner Reyes: What are -- what are the projects that you guys -- I mean, you have studied the budget. What do you propose? I'm willing to do it and I'm proposing where we can cut, you see? Commissioner Gabela: But don't you think it's worth the 25 mil to the 49 mil? And you know, we're compromising. Commissioner Reyes: Listen. Commissioner Gabela: You know, it's half of that. I mean, you know. Commissioner Reyes: Listen, listen. I know where you 're going. I know where you're going. And we are doing the same thing. We 're talking the same language. You see? You want to cut the -- you want a tax cut, I want a tax cut. I want to do it in an orderly manner, you see. I want to do it in an orderly manner. And we have to -- we can identf projects that we don't need. And I know, I know for a fact, that there are projects there and there are funds there that are funded that we can cut it. I know it. Everybody knows that there are certain expenditures that they should be -- do away with because they are unnecessary. And maybe we can get more than $25 million. Maybe we can get $50 million. You see? And that is my -- I mean, let's do it a small -- not small, I'd say $50 million now so we can -- it's be easy for us to find the projects that we can cut, it gives you time to each one of you, or each one of us, to look at the project, at the budget, with a magnfing glass and say, listen, why do you have this here, you see? Let 's cut this. I propose that we don't do this. And we can find consensus on that because we'll be saving money. And those savings are going to be passed into -- I mean, to the residents. City of Miami Page 71 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: Manolo. Commissioner Reyes: That's the only thing that I am saying, man. Chair King: Hold on, hold on. Commissioner Reyes, we have to have a four -fifths vote Commissioner Reyes: I know. I know that, but I want -- Chair King: -- to either accept his motion -- Commissioner Reyes: Okay. Chair King: -- or we have to go with the simple majority. Commissioner Reyes: Madam Chair, I do understand. The only thing that I'm asking my colleagues, you see, is to do it in a different way. Because we need to cut now and we don't have -- I don't want, you see what I don't want? I don't want Larry to go back there and then start just, what, take this off take this off, take this off, no. I want -- you see, I'll go as high as $15 million because we can do it just -- but $15 million, and then what we do -- we make the commitment that we have to find another $30, whatever million dollars you want and I want. And you can -- you, and you, and you, and you and I, we can go -- I mean, through the budget, identy the expenditures that we don't want, you see, and then we work on it and we'll bring it over and we start cutting this. That 's what I want. That's a way that I think that it will be -- Chair King: Commissioner Reyes, we don 't have the four -fifths. If we don 't -- Commissioner Reyes: No, I -- Chair King: They're not going to give -- they are not going to vote for the $865, 000. It seems as if you 're not going to vote for the $25 million. So, our only option left -- Commissioner Reyes: Well, I'm doing -- I'm proposing $15 million. Chair King: They're not going to accept that. Commissioner Reyes: Well, how do you know? Chair King: Go make the motion. Make the motion. Commissioner Reyes: Okay. Come on, guys. Commissioner Gabela: Can I speak, Madam Chair? Can I speak? Manolo, listen, I like you, man, and I respect you. We're just from -- Commissioner Reyes: Listen, listen, let me do -- I'm sorry. I'm going to mention -- I'm going to make a motion for $27 million, and we'll find it today. That's it, okay? $27 million, a -- I mean, a motion that we, instead of 25, we go with $27 million. I know that we go through the budget, and we will find $27 million. But that is not what I wanted. Chair King: He's offering 25. Commissioner Reyes: I'm offering 27 because I know where it can be cut. Chair King: But 25 is less than -- City of Miami Page 72 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Reyes: Well, I have a motion for $27 million. Chair King: But 25 is less. Commissioner Gabela: First you're fighting for less money, now you 're fighting for more money. If you want to fight, okay -- Chair King: 25 is less. Commissioner Reyes: No, no, no, no, no. Commissioner Gabela: All right, let 's go. 27 mil. Commissioner Reyes: Okay, I make a motion for $27 million because we know the budget. We know the budget. We studied the budget. And I know there are certain items that I didn't agree with it but we can just do away with it. So, my motion is $27 million, and that's it, okay? And then I (UNINTELLIGIBLE) $27 million, now it would be easy. And then the commitment to find another $25 million. Chair King: Commissioner -- Ms. Mendez: I wanted to confirm that that includes the 864,000? Commissioner Reyes: The millage -- Chair King: He's -- the millage rate for -- but Commissioner Reyes, he's offering a millage rate for 25 million. That's less than -- Commissioner Gabela: I'm offering 2 million less than you are. Chair King: That's 2 million less. Commissioner Reyes: Okay. Commissioner Gabela: It's I think what you wanted, but listen, if the problem here is that you guys don't want to go with my motion because it 's me -- Commissioner Reyes: Okay, no, no, no, no, no. Commissioner Gabela: -- no problem. I'll vote for your 27 mil. I'll vote for your 27 mil. How about that? Commissioner Reyes: Gabela. Gabela, I'm saying that because we identified already 27 mil. Commissioner Gabela: No, no, but first you were fighting about 10 or 11 and now you go up to 27. Commissioner Reyes: Okay, we identified -- I'm going to -- I'm going to offer a 7.1085 millage. Okay. It's not because -- and don 't take it personal. It 's not personal. Commissioner Gabela: No, I'm not taking it personal, but I'm saying that -- Commissioner Reyes: No, no. City of Miami Page 73 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Gabela: -- first you were coming down to 11 mil, you were fighting for less money. Commissioner Reyes: Listen. Commissioner Gabela: I proposed a 25, we went around the table, we had three votes, and now all of a sudden you pop up with 27. But you know what? I 'll go with you because it's more money. Commissioner Reyes: Okay, and let me -- let me ask you -- Commissioner Gabela: And so be it. Commissioner Reyes: -- let me tell you why. It 's not that it came out of that. We were - - we were analyzing the budget and we found where the money is. You see? Okay? We found that much, $2 million more. But ifyou want to reduce it, I'd reduce it. Chair King: But he offered 25 million. Commissioner Gabela: I said 25 mil. Manolo, 7.1364, very close to you. Chair King: He offered 25 million. Commissioner Reyes: Okay. Chair King: It's $2 million less than what you 're offering. Commissioner Gabela: We're almost there. I mean, it's the same thing. You know, we're almost there. Chair King: So, are you willing to accept his $25 million, the millage rate that will impact us 25 million versus 27? Commissioner Reyes: Well, yes -- Chair King: Okay, okay, he said yes. Commissioner Gabela: Tell you what, tell you what, Manolo. Chair King: He said -- Commissioner Gabela: I'll do the $27. Chair King: No, no, no, no. He said yes. Commissioner Gabela: I'll tell you what. Is that ok with you? Chair King: Commissioner Gabela, he said yes. Commissioner Gabela: He said yes? Chair King: He said yes. He said yes to the 25. Commissioner Reyes: Okay. Commissioner Gabela: Alright, so I motion -- City of Miami Page 74 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: So -- Commissioner Gabela: -- I motion for the -- Commissioner Reyes: 27. Chair King: The millage rate that will impact with 25 million. Mr. Hannon: Chair. Chair King: CFO (Chief Financial Officer), I'm going to get him to say it. What would be the millage rate for 25 million? What is the millage rate? Ms. Gouin: 7.1364. Chair King: So, I have a motion to set the millage rate at 7.1364. Do I have a second? Do I have a second? Commissioner Pardo: I'll second. Chair King: All in favor? Commissioner Gabela: Aye. Commissioner Reyes: Aye. Chair King: Aye. Vice Chair Carollo: No. No, because if we're going to have a bonfire, it should be a bonfire. Chair King: But we have a four -fifths vote, and that's what we needed. Ms. Gouin: And then it's 8.04 percent over rollback. Commissioner Reyes: Okay, that's it. Mr. Hannon: As amended. Chair King: As amended. Mr. Hannon: SP.2 as amended. Chair King: As amended. As amended. Commissioner Reyes: For the record -- for the record, I went along with this because it was very easy to find expenditures that could add up to $27 million. Commissioner Gabela: Thank you. Commissioner Reyes: And because we analyze the budget, we don 't come with figures that come out of the air. Chair King: And now we have to take SP.1 and SP.3. Vice Chair Carollo: What was the final amount that we came up with? 25 or 27? City of Miami Page 75 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Chair King: 25. The millage rate is 7.1346. Mr. Hannon: No, no, no. Chair King: With a $25 million impact. Ms. Mendez: Madam Chair? Commissioner Reyes: Can I have -- Chair King: Yes. Commissioner Reyes: -- you see I'm an old man, I need a recess. Ms. Mendez: I think -- Chair King: Todd? Ms. Mendez: -- he's going to say it again. Chair King: So that -- Mr. Hannon: Madam Budget Director, please correct me if I 'm wrong, but I thought I heard 7.1364. Chair King: Is that correct? Ms. Gouin: 25 million reduction, 7.1364 mills at a -- over rollback rate, 8.04 percent over rollback rate. Chair King: As amended. Mr. Hannon: 7.1364 operating -- Chair King: Operating. Mr. Hannon: -- and then whatever you had to say as amended, it passed 4-1, Commissioner Carollo voting no. Chair King: Now we have SP.1. Mr. Hannon: SP.1. SP.1 is taken care of through the earlier discussion and public comment. City of Miami Page 76 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 SP.3 RESOLUTION 14645 Office of Management and Budget A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ADOPTING A FINAL BUDGET AND MAKING APPROPRIATIONS RELATING TO OPERATIONAL AND BUDGETARY REQUIREMENTS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023, AND ENDING SEPTEMBER 30, 2024; RATIFYING, APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS OF THE CITY MANAGER AND DESIGNATED CITY OFFICIALS IN ORDER TO UPDATE THE RELEVANT FINANCIAL CONTROLS, PROJECT CLOSE-OUTS, ACCOUNTING ENTRIES, AND COMPUTER SYSTEMS IN CONNECTION THEREWITH AND FOR GRANTS IN PROGRESS AND OTHER FUNDING SOURCES IN PROGRESS AND FOR NECESSARY RELATED DOCUMENT NEGOTIATIONS AND EXECUTIONS; PROVIDING FOR AN EFFECTIVE DATE. ENACTMENT NUMBER: R-23-0448 MOTION TO: Adopt with Modification(s) RESULT: ADOPTED WITH MODIFICATION(S) MOVER: Manolo Reyes, Commissioner SECONDER: Miguel Angel Gabela, Commissioner AYES: King, Gabela, Pardo, Reyes NAYS: Carollo Note for the Record: For additional minutes referencing Item Number SP.3, please see "Public Comment for "SP" Item(s)" and Item Number SP.2. Todd B. Hannon (City Clerk): So, now SP.3. Chair King: SP. 3. Larry Spring (Assistant City Manager/Chief Financial Officer): For the record, the budget appropriation total for SP.3 would be amended to -- from the general fund, would be -- Commissioner Reyes: Minus 25. Mr. Spring: -- would be $1, 043, 066, 000 -- Commissioner Reyes: Minus 25. Mr. Spring: -- that would be the balanced appropriation. Commissioner Reyes: Absolutely. Mr. Spring: From the -- Marie Gouin (Director, Budget): One billion sixty-eight. Mr. Spring: -- yeah, from the one billion sixty-eight (UNINTELLIGIBLE) well, categories that are in your budget item, we're modiing the revenues, the ad valorum, by the 27 million -- Ms. Gouin: 25. Mr. Spring: -- excuse me, 25 million. I'll give you the number on the record for Todd. City of Miami Page 77 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 (COMMENTS MADE OFF THE RECORD) Vice Chair Carollo: If I may. If I may, Mr. Manager -- Mr. Spring: The property tax new number would be $529, 682, 000. The -- the line items -- the offset to the 25 million would be recorded for now in our non - departmental expense side, so that would reduce it to $50,167,000 for a total budget, as stated before, $1, 043, 066, 000 balanced budget. Chair King: Do I have a motion for SP.3? As amended. Commissioner Reyes: Move it. Mr. Spring: As amended. Commissioner Reyes: Move it. Chair King: I have a motion. Do I have a second? Commissioner Gabela: Who 's making the motion? Chair King: Commissioner Reyes. Commissioner Gabela: Second. Chair King: I have a second. All in favor? Commissioner Reyes: Aye. Commissioner Pardo: Aye. Commissioner Gabela: Aye. Chair King: Aye. Aye. Vice Chair Carollo: Nay. Commissioner Reyes: Okay. Vice Chair Carollo: Mr. Manager, since we have to present the State a balanced budget, by when are you going to have that balanced budget that you're going to present the State on this millage rate that we approved and budget that we approved? Arthur Noriega (City Manager): We'll send it -- Chair King: He just -- Mr. Noriega: -- immediately. Chair King: -- did that. Commissioner Reyes: Immediate. Chair King: He just did that. Mr. Spring: Once we certJ the vote -- City of Miami Page 78 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Reyes: Okay. Mr. Spring: -- as Todd does -- Vice Chair Carollo: I don 't mean that, you're going to have to show -- Commissioner Reyes: Where you got the money from. Mr. Spring: That's what I just read into the record -- Vice Chair Carollo: -- where you got the money. Mr. Spring: -- the balanced budget. Commissioner Reyes: Okay. Mr. Spring: I just -- Vice Chair Carollo: The balanced budget. Mr. Spring: -- I made the changes here. Vice Chair Carollo: When are you going to show us -- Mr. Spring: The detail? Vice Chair Carollo: -- where the cuts are coming from? The details. Mr. Spring: So, what I -- what -- Vice Chair Carollo: You can put whatever you want to the State, but you've got to have the details you added. Mr. Spring: Right. So, our plan always was, Commissioner Carollo, is to bring in another budget amendment that would still be equal to this appropriation, but with detail -- a more detailed cut which we will speak with and consense [sic] with each of you. Vice Chair Carollo: And when will that be? Mr. Spring: Our plan would be the January -- by the January meeting. Mr. Noriega: Sometime in January. Mr. Spring: Yeah. Commissioner Reyes: I want -- I want -- I want to be part, I mean, I want a meeting with you so we can submit to the rest of the Commission where do I think -- Mr. Spring: Okay. Commissioner Reyes: -- where did I find -- found -- what we did found the $27 million that could be cut without hurting the City, as it would have hurt 50 million or 49 million, okay? Mr. Spring: Absolutely. City of Miami Page 79 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 Commissioner Reyes: Okay. Thank you. Chair King: Mr. City Clerk? Mr. Spring: I need to -- Todd B. Hannon (City Clerk): And it was just so I could put it on the record, SP.3 as amended, 4-1. Mr. Spring: What are you putting -- the document? Mr. Noriega: Yes, yes. Mr. Spring: And for the record, we are adding an amended exhibit for record for the budget. Chair King: Thank you, everyone. This meeting is adjourned. City of Miami Page 80 Printed on 02/12/2024 City Commission Meeting Minutes December 11, 2023 NA.1 15253 City Commission ADJOURNMENT NA - NON -AGENDA ITEM(S) MOTION A MOTION TO RECONSIDER AGENDA ITEMS SP.1 (FILE NO. 14644), SP.2 (FILE NO. 14477) AND SP.3 (FILE NO. 14645) PREVIOUSLY ADOPTED ON SEPTEMBER 28, 2023, FOR THE PURPOSES OF FIXING THE FINAL MILLAGE RATE AND ADOPTING A BUDGET PURSUANT TO SECTION 200.065, FLORIDA STATUTES. MOTION TO: Pass RESULT: PASSED MOVER: Joe Carollo, Commissioner SECONDER: Damian Pardo, Commissioner AYES: King, Carollo, Gabela, Pardo, Reyes Chair King: At this time, I'm going to ask for a motion for reconsideration for agenda items SP.1, file number 14644, SP.2, file number 14477, and SP.3, file number 14645. Do I have a -- I have a motion. Do I have a second? Unidentified Speaker: Second. Chair King: I have a motion and a second. All in favor? The Commission (Collectively): Aye. Chair King: Motion carries unanimously. Thank you. END OF SPECIAL MEETING The meeting was adjourned at 8: 40 p.m. City of Miami Page 81 Printed on 02/12/2024