Gazitua: Key Developments Government Contracting for Greater Miami

Yesterday's elections produced several significant developments with direct implications for government operations, public-sector investment, and business opportunities throughout Greater Miami.

Below is a summary of four results particularly relevant to our clients.

1. FLORIDA AMENDMENT 3 PASSES: MAJOR CHANGES TO PROPERTY TAXES AND LOCAL GOVERNMENT REVENUES

Result: Approved with approximately 62% of the statewide vote, exceeding the 60% constitutional threshold.

Amendment 3 represents a significant restructuring of Florida's property tax system.

Key provisions include:

• Increasing the homestead exemption for non-school property taxes from $50,000 to $150,000 in 2027 and $250,000 in 2028, with subsequent inflation adjustments.
• Reducing the annual assessment increase cap on non-homestead properties, including commercial and investment properties, from 10% to 5%.
• Establishing restrictions on the use of local property tax revenues, including specified exceptions and approval mechanisms.

Miami-Dade County's FY 2026-27 budget is approximately $14.3 billion, including approximately $9 billion in net operating expenditures and $5.2 billion in capital spending, based on the County's proposed budget before final amendments. Against this backdrop, the County projects a reduction of approximately $385.8 million in property tax revenue beginning in October 2027, growing to approximately $696.7 million annually beginning in October 2028, based on current tax rates.

These projections represent a significant fiscal adjustment in the short-term for county and municipal governments. Potential implications include increased competition for operating budgets, capital improvement programs, future procurements, and alternative revenue sources.

Implications for Our Clients and County Departments

Importantly, the financial impact will not be uniform across Miami-Dade County departments. Proprietary, revenue-generating departments such as the Miami-Dade Aviation Department, PortMiami, and Miami-Dade Water and Sewer Department operate primarily through dedicated enterprise revenues, including user fees, rates, and other operating revenues, rather than general property tax appropriations.

These departments, where the majority of our client engagements are concentrated, should not experience the same direct revenue reductions resulting from Amendment 3. Their operating and capital programs are supported by distinct revenue structures, although broader County budget pressures may create indirect impacts.

The most immediate financial pressures will fall on departments and services dependent upon property tax revenues. As the County transitions to this new fiscal environment, departments such as Transportation and Public Works and the People and Internal Operations Department (PIOD) will face increasing pressure to identify alternative approaches to financing infrastructure, maintaining public facilities, and delivering essential services.

We anticipate a greater reliance on:

• Public-Private Partnerships (P3s): Leveraging private-sector investment, financing, and operational expertise to deliver major infrastructure and public facilities projects.
• Concessionaire Models: Structuring projects around private investment and revenue-generating arrangements to reduce upfront public capital requirements.
• Energy Service Companies (ESCOs): Utilizing energy savings performance contracts to address energy-related deferred maintenance, modernize aging public facilities, and finance improvements through guaranteed or measurable operational savings.
• User Fees, Market-Rate Fares, and Dynamic Pricing: Greater reliance on user-generated revenues, particularly for transit and transportation services, including market-rate fares and fees that better reflect the actual cost of service delivery. We also anticipate increased consideration and acceptance of demand-based or surge-type pricing, along with higher optional fees for premium services. Similar to dynamically priced express toll lanes on our highways, these models would allow users to pay more for enhanced convenience, priority access, or higher levels of service while generating additional revenues to support public operations and infrastructure.

As traditional funding sources become more constrained, these alternative procurement, financing, and project delivery models will become increasingly important. We expect this transition to create opportunities for private-sector partners capable of delivering infrastructure improvements, operational efficiencies, and measurable long-term savings.

2. CITY OF MIAMI APPROVES $450 MILLION PUBLIC SAFETY BOND PROGRAM

Result: Approved with 60.94% of the vote (57,903 votes in favor).

City of Miami voters approved the Safe and Ready Miami referendum, authorizing up to $450 million in general obligation bonds for public-safety infrastructure.

The authorization includes:

• Construction of a new police and first-responder public safety headquarters.
• Renovation, modernization, and replacement of deteriorating fire and emergency response facilities.
• Construction of new fire stations and related public-safety infrastructure.

The bond program is structured without increasing the existing capital projects debt millage rate of 0.5935 mills and includes independent annual auditing requirements.

Voters also approved a separate charter amendment establishing a permanent advisory general obligation bond oversight committee, with approximately 71.4% support.

Client Implications: The authorization establishes the foundation for a substantial, multiyear capital investment program, creating opportunities in architecture, engineering, construction, technology, facility modernization, and related professional services.

We should anticipate tremendous competition for these procurements. Early positioning, proactive engagement, and regular communication with City staff will be critical to identifying opportunities and understanding anticipated project scopes and procurement schedules.

I have already spoken directly with the City administration and confirmed that, based on favorable polling ahead of the election, the City had begun developing its pipeline of potential projects well before voters approved the referendum. Consequently, we should not assume that project planning will begin only now. We should remain closely engaged with the appropriate departments, monitor the evolving capital program, and position our clients as early as possible, consistent with applicable procurement requirements.

Specific projects and procurements remain subject to subsequent City approvals.

3. COMMISSIONER VICKI LOPEZ WINS MIAMI-DADE COUNTY COMMISSION DISTRICT 5

Result: Commissioner Vicki Lopez defeated Rob Piper, receiving approximately 60.6% of the vote to Piper's 39.4%.

Commissioner Lopez, who was appointed to the County Commission in November 2025, has now secured the District 5 seat through election.

District 5 encompasses important commercial and residential areas, including Downtown Miami, Brickell, Little Havana, and portions of Miami Beach.

Her election provides continuity in representation for a district containing major economic centers, development projects, transportation infrastructure, and public investment priorities.

For clients with interests in District 5, the result provides greater certainty regarding the district's elected representation and continuity of engagement with the Commission office.

We will also closely monitor internal deliberations surrounding the leadership of the Miami-Dade County Commission, particularly the selection of the Commission Chairman. These discussions will have important implications for committee assignments, legislative priorities, and the direction of County policy. We are available to provide additional insight and discuss any questions by phone.

4. DAVID JOLLY CARRIES MIAMI-DADE COUNTY DESPITE BYRON DONALDS' STATEWIDE VICTORY

Although Republican Byron Donalds won Florida's gubernatorial election, Democrat David Jolly carried Miami-Dade County by a substantial margin.

Miami-Dade County Results:

• David Jolly (DEM): 415,100 votes | 52.84%
• Byron Donalds (REP): 360,000 votes | 45.83%
• Jolly's Margin: 55,100 votes, or 7.01 percentage points.

All 768 participating precincts were reporting in the county's election-night results.

The divergence between statewide and Miami-Dade results highlights the distinct political dynamics of South Florida and the importance of understanding both state-level and local government decision-making.

Looking ahead, these numbers demonstrate a substantial Democratic and NPA voting base in Miami-Dade County and will be an important consideration in the next election for Miami-Dade County's Strong Mayor. While the gubernatorial results cannot establish the outcome of a future mayoral contest, they underscore the significance of Democratic support in countywide elections.

LOOKING AHEAD

For our clients, the two most immediate developments are the fiscal implications of Amendment 3 and the City of Miami's newly authorized public-safety capital program.

As local governments prepare their 2027 budgets and capital programs, we will be particularly attentive to evolving funding priorities, implementation schedules, alternative financing strategies, and procurement opportunities.

We look forward to continuing to provide updates as these developments advance.

Results reflect unofficial election-night reporting as of November 4, 2026, and remain subject to certification.