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2025-09-03 First Budget Hearing Minutes FIRST BUDGET HEARING MINUTES SEPTEMBER 3, 2025 6:00 PM COUNCIL CHAMBERS 1. CALL TO ORDER Vice Mayor Neil Cantor called the Tentative Budget Hearing to order 6:03 PM. 2. MOMENT OF SILENCE / PLEDGE OF ALLEGIANCE 3. ROLL CALL Present: Mayor Jerome Charles via Zoom Vice Mayor Neil Cantor Councilmember George Burch Councilmember Patrick B. Devaney Councilmember Jesse Valinsky Also Present: Village Manager Esmond Scott Village Attorney Chanae Wood Village Clerk Ysabely Rodriguez 4. PUBLIC COMMENTS 3-Minute Time Limit Ms. Cindy Herbst addressed the Council. She stated she has been a resident since 2016 and while she has been pleased with Village services, she expressed concerns about police coverage and code enforcement. Ms. Herbst noted the Village has seen significant turnover of homes during the pandemic with an increase in rental properties at high monthly rates. She questioned how the proposed millage rate increase would be allocated to support police and code enforcement, expressing concern about having enough "boots on the ground" to handle safety issues in impacted neighborhoods. Councilmember Burch informed Ms. Herbst that budget information is available in the library in printed form and online, where she could compare current and previous years' allocations. 5. RESOLUTIONS- PUBLIC HEARINGS 5.A A RESOLUTION OF THE VILLAGE COUNCIL OF MIAMI SHORES VILLAGE, FLORIDA, ADOPTING THE TENTATIVE MILLAGE RATE OF 7.8000 MILLS FOR FISCAL YEAR 2025/2026, THE CALCULATED ROLLED-BACK RATE IS 7.1791 MILLS, OR 8.65% HIGHER THAN THE ROLLED-BACK RATE FOR FISCAL YEAR 2025/2026; ESTABLISHING THE DEBT SERVICE MILLAGE RATE AT 0.1331 MILLS, REAFFIRMING THE SECOND PUBLIC BUDGET TO SET THE FINAL MILLAGE RATE ON SEPTEMBER 16, 2025, AT 6:00 P.M.; AND PROVIDING FOR AN EFFECTIVE DATE (STAFF: VILLAGE MANAGER). Village Clerk Ysabely Rodriguez read the millage rate resolution into the record. The resolution established a tentative millage rate of 7.8 mills for fiscal year 2025/2026, which is 8.65% higher than the calculated rollback rate of 7.1791 mills, and set the debt service millage rate at 0.1331 mills. Vice Mayor Cantor opened the public hearing for comments on the tentative millage rate. With no speakers coming forward, he closed the hearing. Following the reading, Council discussion began. Councilmember Burch expressed concern about the increasing expenses while the Village's population remains stable at around 11,000 residents. He emphasized the importance of allocating funds for infrastructure projects like a community center, golf course improvements, and septic-to-sewer conversion while financial conditions are favorable. He cautioned that property values and income may not always continue their upward trajectory, and urged fiscal prudence in hiring additional staff. Councilmember Valinsky acknowledged Councilmember Burch's concerns but noted the budget reflects necessary catch-up work on infrastructure projects that previous councils couldn't address due to COVID and financial constraints. He pointed out that staffing had only increased by one position (a code compliance officer) from 154 to 155 positions. He encouraged residents to review the new budget summary book available on the Village website. Councilmember Devaney echoed his colleagues' concerns about recurring costs growing too quickly and emphasized the importance of long-term budget sustainability. Mayor Charles, participating via Zoom, stated that the budget reflects aggressive infrastructure investment while holding the millage rate steady. He noted that revenue growth is primarily from increased property values, with enterprise services seeing rate increases. He highlighted police technology upgrades, IT centralization, and professionalized capital planning. The Mayor also mentioned the Village has secured approximately $28 million in grants, which typically require matching funds, necessitating some of the budget increases. Vice Mayor Cantor explained that a tenth of a mill reduction in the rate would save residents only $50-70 on their tax bills while costing the Village a six-figure amount in revenue. He described the budget as "historic," addressing items that had been "swept under the rug for decades." He assured residents that the Council has carefully reviewed the budget to ensure responsible allocation of funds. Councilmember Burch encouraged residents to speak up if they feel taxes are too high or if they desire additional services. There being no further discussion, Vice Mayor Cantor asked for a motion: Vice Mayor Neil Cantor moved to adopt the resolution establishing the tentative millage rate of 7.8 mills for fiscal year 2025/2026, with a calculated rollback rate of 7.1791 mills and a debt service millage of 0.1331 mills and Councilmember Valinsky seconded the motion which carried a 5-0 roll call vote. Councilmember George Burch- Aye Councilmember Patrick Devaney- Aye Councilmember Jesse Valinky- Aye Vice Mayor Neil Cantor- Aye Mayor Jerome Charles- Aye 5.B A RESOLUTION OF THE VILLAGE COUNCIL OF MIAMI SHORES VILLAGE, FLORIDA, ADOPTING THE TENTATIVE OPERATING AND CAPITAL OUTLAY BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2025, THROUGH SEPTEMBER 30, 2026, PURSUANT TO SECTION 200.065, FLORIDA STATUTES; AUTHORIZING EXPENDITURES CONSISTENT THEREWITH AND AUTHORIZING CERTAIN BUDGET AMENDMENTS WITHIN A DEPARTMENT PROVIDED THAT THE TOTAL OF THE APPROPRIATIONS IS NOT CHANGED; AND PROVIDING FOR AN EFFECTIVE DATE (STAFF: VILLAGE MANAGER). Village Clerk Ysabely Rodriguez read the caption of the resolution into the record. Village Manager Esmond Scott presented the fiscal year 2025/2026 proposed budget totaling $46,930,873, which is approximately $5 million higher than the current year's budget. He explained that about $1.3 million comes from increased ad valorem taxes, while approximately $4 million was transferred from reserves in various funds. The budget includes $6 million for capital improvement projects. Key budget highlights included: ● 6% increase in FPL costs ● 21% increase in health insurance (reduced from initial 25% projection) ● Stormwater fee increase of 2.75% ● Solid waste overall 20% increase in revenue ● Wastewater maintenance fee increase by 3% ● Fund balance transfers from general fund Manager Scott emphasized the budget's focus on infrastructure investment, including seawall, stormwater, septic-to-sewer, fleet, and IT upgrades, while maintaining the millage rate. He noted the Village has secured approximately $28 million in grants since his arrival, which typically require matching funds. Following the presentation, the Council discussed two personnel-related matters requiring decisions: ● Health Insurance Coverage for Dependents: The Council discussed a proposal to provide some coverage for general employees' family health insurance plans. Currently, the Village pays 100% for individual employee coverage but 0% for dependents of general employees, while police department employees receive 60% coverage for dependents under their collective bargaining agreement. Human Resources Director Yamileth Slate- McCloud presented three options to help close this gap. After extensive discussion about costs and potential participation rates, the Council approved Option 2, which provides a $750 monthly employer contribution toward family coverage, reducing employee weekly payments from $415 to $242. ● Cost of Living Adjustment (COLA): After brief discussion, the Council approved a 3% cost of living adjustment for Village employees. There being no further discussion, Vice Mayor Neil Cantor moved to adopt the resolution approving the tentative operating and capital outlay budget for fiscal year 2025/2026 and Councilmember Burch seconded the motion which carried a 5-0 roll call vote. Councilmember George Burch- Aye Councilmember Patrick Devaney- Aye Councilmember Jesse Valinky- Aye Vice Mayor Neil Cantor- Aye Mayor Jerome Charles- Aye 6. ADJOURNMENT There being no further business before the Council, the hearing adjourned at 7:26 PM. 5