City Borrowed $142 Million Last Year, Pushing Debt Near $1 Billion

With city commissioners set to consider a series of bond-related measures next week — possible groundwork for a proposed $450 million public safety bond — the city’s own audited financial statements show last year’s borrowing increased debt and borrowing costs while new fiscal pressures continue to mount.

As Miami commissioners prepare next week to consider a series of bond-related measures — while a proposed $450 million public safety bond remains under consideration — the city’s own audited financial statements show Miami issued $142.2 million in new bonds during the last fiscal year, raising its overall debt to about $1 billion.

According to the City’s Annual Comprehensive Financial Report for the fiscal year ended Sept. 30, 2025, the additional borrowing came primarily through a bond issue tied to the Southeast Overtown/Park West Community Redevelopment Agency.

Unlike the proposed public safety bond, last year’s borrowing did not require voter approval because it was backed by an existing revenue source rather than a new voter-approved property tax.

After scheduled principal repayments, the city’s total outstanding debt increased by approximately $104.9 million, or 11.4%, during the fiscal year.

As a result, interest on long-term debt rose by approximately $7.6 million, or 22.4%, during the fiscal year.

The additional borrowing comes as city leaders continue debating how to finance major capital improvements amid growing uncertainty over Miami’s long-term finances. City officials have warned that a statewide property-tax amendment on the November ballot could significantly reduce city revenues.

Officials have told the Spotlight that the state property tax amendment could cost the city an estimated $37.1 million annually if the homestead exemption is increased to $150,000 and by $53.9 million annually if it eventually rises to $250,000.

Backers of the proposal, championed by Gov. Ron DeSantis and approved by the Florida Legislature, argue it would provide meaningful tax relief for homeowners, while critics contend it could force cities and counties to reduce services or identify new revenue sources.

The uncertainty surrounding the proposed tax overhaul also clouds the city’s proposed $450 million public safety bond, which would authorize borrowing for a new public safety headquarters, new fire stations and renovations to existing facilities.

The measure, initially considered by the commission last May, was deferred pending additional information about its long-term impact on city finances.

Read more: Miami Delays Vote on $450-Million Bond Proposal 

Some of that impact was detailed by City Manager James Reyes in response to questions submitted by Miami District 3 Commissioner Rolando Escalona, who shared the documents with the Spotlight.

According to Reyes, the proposed bond would ultimately cost taxpayers an estimated $795 million once principal, interest and issuance costs are included — $345 million more than the amount borrowed.

He also acknowledged that the long-term operating costs of the new facilities built with the bond proceeds remain unknown. While additional personnel will be needed to staff new fire stations, those costs have not been incorporated into the city’s long-term operating budget forecast.

Read more: Internal Q&A Reveals Miami’s $450 Million Public Safety Bond Could Cost Taxpayers Nearly $800 Million 

While commissioners will not vote on the public safety bond proposal at next Thursday’s meeting, the agenda includes several related measures addressing the city’s long-term capital needs, borrowing capacity and maintenance planning.

One resolution, sponsored by Miami District 2 Commissioner Damian Pardo, would direct the city manager to analyze the city’s capital funding needs, project priorities and bonding capacity before preparing a future citywide general obligation bond referendum. 

A Finance Department presentation prepared in support of the measure identifies approximately $994 million in capital needs, including the remaining unissued Miami Forever Bond projects, cost overruns on existing Miami Forever Bond projects, the fire station repairs and replacements, a new public safety headquarters and other police infrastructure.

Two additional proposals on next week’s commission agenda — both sponsored by Miami District 4 Commissioner Ralph Rosado — would establish a more systematic approach to maintaining public safety facilities after years of deferred repairs that city officials say have contributed to the need for the proposed bond.

One measure directs the city manager to develop a permanent maintenance reserve fund for police and fire facilities, while the other would require a comprehensive condition assessment of every city-owned police and fire building, including documentation of deferred maintenance and capital repair needs.

The city’s financial report also contains a long-term budget projection that may bear on the broader borrowing debate. While General Fund revenues are projected to grow 15.8% over the next five years, General Fund expenditures are expected to increase 18.2%.

That forecast does not account for the additional operating costs associated with the proposed public safety facilities, nor does it reflect the potential loss of revenue if voters approve the statewide property tax amendment on the November ballot.