Controversy is brewing in the Village of Palmetto Bay, where some residents and councilmembers say a new $400 monthly car allowance offered to elected officials violates the village charter and amounts to an unauthorized pay raise.

The allowance, proposed by the village manager in January, could cost the village up to $24,000 annually if all council members opt in. 

Critics argue it constitutes additional compensation that should require a charter amendment and public input.

Residents say they were left out of the decision

“They’re not listening,” said Palmetto Bay resident Haydee Sanchez.

Sanchez and her longtime neighbor Carol Vega said they were blindsided by the move and believe it’s unfair to taxpayers.

“Basically they’re just giving themselves money,” Vega said. “There’s no need. We’re very disappointed.”

“We don’t approve of that,” Sanchez added. “They didn’t run it by us. We didn’t get a chance to vote on it and it’s our money.”

Split among council members over legality and ethics

The village charter provides a $1,000 monthly stipend for council members and the vice mayor and $2,000 for the mayor. Any increase or decrease in compensation must be made through a charter amendment.

While Councilmembers Patrick Fiore and Steve Cody defended the car allowance during an April meeting, others pushed back.

“It’s an item that will attract people to run for office,” Fiore said during the meeting.

Cody added, “(The) City of Miami, their city commissioners make something on the order of $70,000 or $80,000 plus an unaudited expense account. We’re not looking for that.”

Cody also explained his personal need for transportation assistance: “I have to Uber most places because I don’t have a right foot. I can’t operate a gas pedal.”

But not everyone on the dais agreed. District 3 Councilmember Marsha Matson declined the allowance.

“I thought about it and I said no because that’s compensation,” Matson said. “I don’t think that it’s justified.”

Vice Mayor Mark Merwitzer also strongly opposed the decision.

“I sent (the village manager) an immediate email afterwards saying how unacceptable it is that administration, without any consultation of the public, without any consultation of the council, was able to put forward essentially a 40% pay increase for council members,” Merwitzer said.

Village attorney responds, residents remain frustrated

Councilmember Fiore responded to CBS News Miami via email, referring all questions to the village manager or attorney. The mayor, Councilmember Cody, and the village manager did not respond to inquiries.

Village Attorney John Dellagloria said in a phone interview that the payments are reimbursement-based and allowed, but he plans to introduce an ordinance to address the concerns.

“Well that’s rich,” said Merwitzer, who has called for the allowances to be revoked.

Residents like Vega and Sanchez remain skeptical.

“The point is that we were not consulted,” Sanchez said.

“(Council and the mayor) were hired for a certain amount of money and I don’t think you just pay yourself more and more.”