Different Meltdowns in North Miami and North Miami Beach

The ground is shifting fast in North Miami and particularly in North Miami Beach, and the September budget month proves it.

Taxpayers and residents can expect water, sewer and garbage rates – and property taxes – to inch up as fall turns to winter.

As this pandemic wanes and waxes, vibrant municipal art has appeared in public places, recreation and library programs are creeping back, and new restaurants are sprouting up, such as Paradis Books & Bread at 12831 West Dixie Hwy.

The $1.9 billion American Rescue Plan (ARP) for COVID-19 relief is saving the day, giving North Miami and North Miami Beach well over $10 million each for this year, but it’s non-recurring.

Property tax rates will actually remain the same but actual taxes paid will rise slightly, thanks to the 4.2% overall rise in Miami-Dade property values. In North Miami, the rate stays at $7.50 per $1,000 assessed valuation, or 7.5 mils; in North Miami Beach, it’s 6.2 mils; in the unincorporated county, 1.92 mils.

That bland fact masks trouble under the hood, particularly in North Miami, which faces big fiscal challenges for at least the next three years.

For distinct reasons, the examples of the near-twin cities of NoMi and North Miami Beach this month offer scant reassurance.

Precariously Balanced Budget

In North Miami, the city’s reserves are worn to the nub after years of fiscal mismanagement, bloated payrolls, inefficiency and waste. The state will not advance the city the $29 million to replace its 1962 water plant unless it proves it can pay for it, as covered extensively in the Biscayne Times August 2021 cover story. For that, the city must increase water rates, which have been kept artificially low for six years. Consultants estimate that North Miami will need $54 million to improve its water and sewer system in the years just ahead.

On Sept. 22, the council approved a budget balanced by one-time land sales, ARP money and a transfer of its last $5 million in reserve funds. That rainy-day reserve account covers costs from events such as hurricanes. Next, it's poised to consider an increase of 6% for water and 9% for sewer on Oct. 12, with similar annual hikes until 2026 recommended by the Black & Veatch consultancy. In North Miami Beach, water rates are rising 4.5%.

To cover money shortages, North Miami is also cutting sharply into its Community Redevelopment Agency, one of the city government’s recent bright spots, built up over time by funding from new developments to address slum and blight. On Sept. 28, the council voted to transfer about $4 million of its $7.6 million budget to the general fund, which the Miami-Dade County Commission must approve.

‘Kindergarten’ Court

North Miami Beach also has been burning through reserves, although the city remains well north of $20 million. On April 20, North Miami Beach’s City Manager Arthur Sorey III, fresh from six years as North Miami deputy city manager, jumped in and immediately asserted his dominance over the city’s affairs.

The best news in North Miami Beach is the evident $6.5 million in savings in the water budget from a year ago, now that expenses incurred due to the difficult private-to-public conversion are over. Commissioners uniformly hailed Esmond Scott, the last city manager, and staff for finishing the conversion as specified, and Sorey for hiring new professional leadership when he took over.

Such accord is rare. Conflict is seismic and explosive. In an extraordinary move on the evening of Sept. 23, a special NMB commission meeting was delayed nearly 30 minutes because Sorey and the city’s attorney, Hans Ottinot, would not yield the Zoom mic to Mayor Anthony DeFillipo and instead turned it over to Vice Mayor Daniela Jean.

DeFillipo repeatedly banged his gavel amid the pure chaos that followed, with continuous bickering and screaming among the commissioners.

“I am the chair and presiding officer as the mayor,” DeFillipo shouted. “I am not asking. I am being bullied.”

Under the city charter, the mayor is unambiguously tasked with running the meetings, and Sorey and Ottinot report to the seven-member commission, not the other way around. Yet with the current commission, Sorey – with a four-year contract – and Ottinot have the votes.

This didn’t happen in a void. DeFillipo has struggled to keep meetings under control in recent months, getting pushback not only from fellow commissioners but from Sorey, Ottinot and Assistant City Manager Gedel Merzius, whom Sorey has recently dispatched as a civility proctor and occasional enforcer at recent meetings.

Eventually, after DeFillipo regained control and the mic, the meeting calmed down and actual business started. City resident Tricia Hall berated the commission with this scolding: “That is a 100 percent embarrassment for our city and I have never seen anything like that in my life … You are acting like kindergartners.”

Pricey Politics

Deeper differences over governance inform conflicts in both cities, and the new budgets underscore that.

This year, the prevailing discussion is not about potholes, pipes, police and pensions – let alone deficits – but about marketing, outreach and constituent service.

Since COVID-19 hit in March 2020, both cities, with 20% poverty rates, are focusing significantly on helping residents. Rent and mortgage assistance is taking on new prominence as the Surfside Champlain Towers collapse put the spotlight on the dangers of older buildings. The North Miami Beach Commission on Sept. 23 approved $100,000 to assist residents of Crestview Towers, closed and evacuated with little notice on July 2.

In both cities, mayor and city council and commission budgets have risen dramatically, while rank-and-file employees settle for 1% increases, bigger and uneven workloads, and declining morale.

Justifying their expenses, elected officials say it is vital to get the word out and communicate what cities can do for constituents and to promote community cohesion.

They also want to get paid more.

More than two years ago, North Miami city councilmembers gave themselves 20% pay raises. Some are already agitating for another hike. NMB commissioners in June voted to give themselves free health insurance, a longtime practice in the City of North Miami, where, after six years, councilmembers get a supplement equivalent to roughly half their salary in a state pension account.

Under both city charters, council or commission positions were once envisioned as part-time under strong city manager governments. That has evolved. For most NoMi council members and some NMB commissioners, politics is their primary source of income. With full perks, this can easily come to more than $100,000 a year in NoMi.

Aerobics Classes & Publix Gift Cards

Mayoral and council promotional budgets have increased as well, with council members lending their name and likeness to aerobics classes, food giveaways and even Publix gift cards. This is taxpayer-funded and can easily be employed to retain constituent loyalty, either for reelection or as a base for other political office, such as county commission, where District 2 County Commissioner Jean Monestime is term-limited out next year.

Travel budgets are up too, with recent fact-finding trips to Texas and Haiti. Since one-third to 40% of NoMi residents and four of five council members are of Haitian heritage, the island nation’s most recent earthquake, presidential assassination and immigration crisis at the Texas border are of community interest, and have put local politicians in front of TV cameras.

District 4 Councilman Alix Desulme, a national leader among Haitian American elected officials, was on TV from Del Rio, Texas, with CBS4 anchor Elliott Rodriguez days before missing the city council’s final Sept. 22 budget hearing.

Constructive civic engagement was in short supply in both cities’ budget meetings this year. At North Miami's final hearing, not one member of the public spoke. In recent years, the city’s nine homeowners associations had plenty to say and offer. This year, their absence was conspicuous.