AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE II THEREOF, ENTITLED "CITY COMMISSION," BY AMENDING SECTION 2-12 THEREOF, ENTITLED "MEETING PROCEDURES AND AGENDAS," TO REQUIRE A FISCAL IMPACT STATEMENT AS PART OF THE ANALYSIS ACCOMPANYING ORDINANCES AND RESOLUTIONS PLACED ON CITY COMMISSION AGENDAS; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.

This proposed ordinance, sponsored by Commissioner Samuelian, was referred to the Finance and Citywide Projects Committee (“Finance Committee”) on July 17, 2019, to require the Administration, as part of the analysis accompanying all ordinances and resolutions placed on City Commission agendas, to specifically disclose the fiscal impact associated with the proposed measure.  On September 20, 2019, the Finance Committee favorably recommended adoption of the proposed ordinance.

The intent of this item is to codify best practices and much of the financial information that the Administration already includes in the commission memoranda that accompaniies resolutions or ordinances. The ordinance amendment would require the Administration to briefly state the fiscal impacts on the revenues or expenditures of the City (in the current fiscal year and the next fiscal year) in connection with any proposed measure, and provides flexibility to the Administration to provide additional information which may be relevant to the item, such as historical data concerning the item at issue, assumptions used in calculating the impact, and other information.

The fiscal impact statement would only be required for items having an impact on revenues or expenditures in excess of $5,000. In addition, with respect to the vast majority of the City’s contracts, which are awarded pursuant to a previously approved budget, and with respect to any other expenditures that are made pursuant to a previously approved budget, the requirement would be satisfied by a statement of the budget code or funding source being used to cover the proposed measure.

Many public entities throughout the U.S. require a fiscal impact statement as part of the required analysis of legislation. Although practices vary, the State of Florida, Miami-Dade County, and Broward County, each require a fiscal impact statement to accompany the analysis of proposed legislation. The proposed ordinance amendment has been reviewed, and reflects input provided by, the City’s Chief Financial Officer.

Changes Since First Reading on October 16, 2019

At first reading, the Mayor and City Commission approved the proposed ordinance, with one amendment to increase the threshold for applicability of the ordinance from $5,000 to $25,000.  Accordingly, the fiscal impact requirement shall only apply to proposed measures with an estimated impact of $25,000 or more. 

In addition, since first reading, on recommendation of the City Attorney, one additional clarification has been made to the proposed ordinance, to provide that the failure to include a fiscal impact statement as part of any City Commission item will not constitute grounds to cancel the City Commission’s consideration of the item, or invalidate or void any action that may be taken by the City Commission at its discretion.