Amid accusations of overcharging and abuse of power, Miami lives up to its reputation | Opinion
One of the great dangers of government is that it’s got an unending source of cash. Facing financial headwinds? Charge taxpayers more. Need extra dollars to balance the budget? Hike, or create, new fees.
But the city of Miami is being forced to reckon with some of its past financial practices, as the people footing the bill push back with a string of lawsuits. Some are accusing City Hall of, essentially, fee gouging. Meanwhile, other plaintiffs are going after an individual city commissioner for allegedly using city resources for personal vendettas.
These allegations are still going through the courts. If they are proven right, no one who’s been following Miami politics will be surprised. The city has been something of a perpetual spectacle, with power-hungry politicians, corruption investigations and highly-publicized debacles, like the firing of its last police chief — who on his way out asked for an FBI investigation into alleged misconduct at City Hall.
A lawsuit filed this month by a property owner is demanding the city refund more than $76 million in “excessive” building permit fees, the Herald reported. The complaint alleges Miami violated a Florida law that requires local governments collect “reasonable fees” to pay for the cost of reviewing and issuing building permits and conducting related inspections.
The City Commission hiked the fees in the aftermath of the Great Recession in 2010, when it faced a $105 million budget shortfall. The new schedule bases the fees on the cost of construction, instead of square footage, and created a financial bonanza during Miami’s condo boom in recent years. The lawsuit states that, as of the end of the 2019-2020 fiscal year, surplus building funds totaled approximately $90 million.
A different class-action lawsuit accuses the city of charging an “illegal” 15% parking tax. The plaintiffs ask for a $50 million reimbursement and that the city stop charging the tax.
Local governments get sued all the time — for reasons valid or not. But these allegations fit a pattern.
A previous debacle cost Miami $15.55 million after a judge found that a “fire rescue” fee levied on property owners was partially illegal. The city commission approved the fee in 1998 to fill budget holes and help avert bankruptcy. Miami collected more than $100 million over about four years before the courts stepped in.
Troubled commissioners
Miami’s problems transcend administrations, but its current elected officials have done little to build trust with its citizens.
Miami-Dade’s ethics commission accused Commissioner Alex Diaz De la Portilla in October of abusing his official position by allowing a friend to use a city-owned car to run personal errands for him. He’s called the charges “politically motivated,” the Herald reported.
Commissioner Joe Carollo is mentioned in another lawsuit alleging that City Hall “deployed a deliberate policy” of harassing and shutting down a group of Little Havana establishments over perceived code enforcement violations. A former city manager recently testified, under oath, that he witnessed Carollo target those businesses in order to shut them down, WLRN reported last month. Among those establishments is Ball & Chain on Calle Ocho, whose owner supported Carollo’s opponent in the 2017 elections. Carollo in the past has denied any wrongdoing.
The owners of Ball & Chain filed a separate lawsuit seeking to hold Carollo personally liable for financial damages. Taxpayers have paid for more than $400,000 in legal fees to argue he should be given legal immunity because of his official position. The courts have denied the request and a federal trial is scheduled to begin in April.
Until a verdict in reached in all these lawsuits, allegations are just allegations. But given the volume of accusations facing the city, and its past, it’s impossible not to wonder how high taxpayers and rate payers rank on Miami’s list of priorities.
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This story was originally published December 2, 2022 at 9:08 AM.