The Town of Miami Lakes will be reimbursed $56,000 from its insurance carrier for the back pay Mayor Michael Pizzi was entitled to while he was suspended from political office fighting his public corruption charges last year.
But instead of using the money for services in the town’s tight budget for next year, Miami Lakes will use the reimbursement fund to cover a $50,000 insurance rate increase stemming from the mayor’s two lawsuits demanding the town pay his attorneys for defending him during his federal bribery trial and reinstatement cases, according to Town Manager Alex Rey.
“We were also notified that there is an increase in Public Officials Insurance of $50,000 due to the current events,” Rey said in a memo to council members. “The Public Officials and Employment Practices policy increased from $28,463 to $78,472.”
Rey said for next year's budget, Miami Lakes will use the reimbursement to cover the increase for the insurance, however, the hike will be recurring on
The insurance rate increase is the latest chapter of an ongoing dispute over Pizzi’s attorney fees, which has left Miami Lakes with less money to work with in trying to render the same level of municipal services residents have embraced since incorporation.
Miami Lakes’ $20 million budget has already taken a hit resulting from Pizzi’s lawsuits in which his attorneys are seeking $3.2 million in legal costs.
The town set aside $400,000 to settle the matter but is banking on its insurance company to pay the bulk of the legal fees, Rey indicated.
The town wasn’t able to add two police officers or increase the town’s committees’ budgets for special events, including the town’s 15th anniversary celebration in December.
Miami Lakes also has to put on hold new beautification projects, some capital improvement projects for parks and recreation and a portion of the town’s tree removal and replacement program.
At the town’s final budget hearing on Monday, council members voted to keep the same rate of 2.3518 for property taxes, which is expected to generate about $6 million in revenue.
Three amendments were made to the budget including the insurance reimbursement, the $15,000 contribution from Commissioner Esteban Bovo Jr., and the insurance rate increase.
The town’s general fund revenues total is $16,307,201 and the total budget for all the funds is $27,095,080. Bovo was able to secure $15,000 from his county budget to fund the town’s adult classes for the next six month while the town seeks other resources.
The majority of the town’s general revenue is derived from commercial and multi-family ad valorem taxes, half cent sales tax, communications services tax, state revenue sharing, franchise fees, utility services tax and licenses and permits.
The town’s police services is the largest expense, $7,344,504, which represents 45 percent of Miami Lakes’ budget for 2015-2016.
The remaining $8,962,697 is utilized for neighborhood services, planning, building department, community and leisure services, special events committees, public works, and other departments that help ensure that Miami Lakes continues growing beautifully.
During the next fiscal year, the town’s new youth center at Picnic Park East is expected to finally open along with the new Optimist clubhouse at Miami Lakes Optimist Park.
Also in the town’s budget for capital improvement projects in 2016 are roadway and drainage upgrades in West Lakes, Lake Martha, Lake Sarah, Lake Adele and Royal Oaks, and the new dog park.
Based on direction from the Department of Labor and advice from the Town Attorney, two contractor positions were converted to full-time employee status with no budget impact. On the rights-of-way landscape maintenance contracts, Rey said the town has four agreements set to expire next year and will need to be rebid. They include Superior Landscape’s FDOT contracts, SFM Services’ canal surface debris cleaning and mowing, Brickman Group’s right-of-way maintenance services, and Miami-Dade County Solid Waste Managment’s storm water/canal maintenance.