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DISCUSSION AND POSSIBLE ACTION ON THE COMMISSION REQUESTED REPORT CONCERNING COMMISSIONER JAY D. SCHWARTZ ITEM REGARDING THE CREATION OF A TAXPAYER BILL OF RIGHTS AND AN ORDINANCE LIMITING GROWTH IN CITY OPERATING EXPENDITURES.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. At the October 7, 2026 City Commission meeting, Commissioner Jay D. Schwartz presented Item #1 concerning the creation of a Pembroke Pines Taxpayer Bill of Rights and Fiscal Responsibility Ordinance limiting growth in City operating expenditures. Following discussion, the item was left for consideration at a subsequent meeting, allowing additional time for legal and financial review. No formal action was taken on the item.
2. Commissioner Schwartz’s proposal would generally limit annual growth in covered City operating expenditures to the combined annual percentage increase in the Consumer Price Index (CPI) and the City’s population.
3. Following the October 7 discussion, the City Attorney’s Office and City Administration, in coordination with the Finance Department, reviewed the proposal’s legal and fiscal implications. The following memoranda are attached for the City Commission’s consideration:
a. City Attorney’s memorandum regarding the legal parameters for a municipal operating expenditure limitation.
b. City Administration/Finance memorandum regarding the proposal’s potential budgetary and operational impacts and Administration’s recommendation.
4. The City Attorney’s memorandum concludes that a narrowly crafted operating-expenditure ordinance may be legally permissible, subject to compliance with the Florida Constitution, Florida Statutes, and the City Charter. Any ordinance would need to preserve the City’s lawful taxing authority, comply with applicable budget requirements, and respect the City Manager’s Charter established powers and duties. The memorandum also explains the distinctions between Colorado’s constitutional TABOR framework and a municipal ordinance adopted under Florida law.
5. The Administration/Finance memorandum discusses the importance of defining covered operating expenditures and appropriate exclusions, provides a historical comparison using a potential expenditure definition, and addresses the implications for municipal services and budgetary flexibility.
6. Administration recommends that the City not proceed with an additional expenditure limitation at this time, pending further evaluation and planning for the anticipated effects of property tax changes from Florida’s recently adopted Amendment 3 and other state budget requirements discussed in the memorandum.