Miami Gardens Won a $9 Million Settlement Over Illegal Water Surcharges. Here's What Happened and When You'll Get Paid.
For years, Miami Gardens residents paid an illegal 25% surcharge on their water bills. The city fought back, won, and $9 million in refunds is on the way.
If you've lived in Miami Gardens and paid a water bill to NMB Water at any point over the last several years, you might be owed money. The City of Miami Gardens filed a class action lawsuit against the City of North Miami Beach, alleging that NMB illegally charged a 25% surcharge on water bills sent to Miami Gardens customers. The court agreed. The settlement is worth $9 million. And if you filed a claim before the January 12, 2026 deadline, your refund check is on its way.
Here's the full story, in plain language, because the legal notices they mailed out read like they were written to confuse you.
What happened: the short version
North Miami Beach operates a water utility that serves not just NMB residents but also customers in surrounding cities, including Miami Gardens. Under Florida law (Section 180.191), a city that operates its own water utility outside its boundaries can charge out-of-city customers a surcharge of up to 25% above the rates it charges its own residents. That surcharge is meant to compensate the city for the cost of operating and maintaining the system.
The key word in that law is "operates." In 2017, North Miami Beach signed a contract with a private company (CH2M, now Jacobs Engineering) to run the entire water operation. NMB handed over operational responsibility to a private contractor. Miami Gardens argued that once NMB stopped operating the system itself, it lost the legal right to charge the 25% surcharge. NMB kept charging it anyway.
The City of Miami Gardens, through the law firm Stearns Weaver Miller, filed a class action in 2018 on behalf of all Miami Gardens water customers. After years of litigation and appeals (NMB tried to get the case thrown out on sovereign immunity grounds; the Third District Court of Appeal said no), the two sides reached a $9 million settlement through a court-appointed mediator.
The court granted final approval of the settlement on December 12, 2024.
The $9 million: what it represents
The settlement amount, $9 million, represents approximately 92% of the total surcharges that NMB illegally collected from Miami Gardens customers during the period in question. That's a remarkably high recovery rate for a class action settlement. Most class actions settle for pennies on the dollar. This one returned the vast majority of what was taken.
After attorney fees (capped at 30% by the court) and claims administration costs, the remaining funds will be distributed to Miami Gardens residents and businesses who filed valid claims.
Who qualifies and what to expect
If you filed a claim before January 12, 2026: Your claim is being processed. The Claims Administrator (Strategic Settlement Intelligence) is verifying claims against NMB Water billing records. Once verification is complete and any appeals are resolved, checks will be mailed to the address on your claim form. The exact timeline depends on the number of claims filed and whether any objections or appeals were raised. Expect payment in 2026, but the court has not announced a specific distribution date.
How much will each person get? Individual payments depend on how much surcharge you paid during the class period and how many total claims were filed. The settlement doesn't specify a flat per-person amount. Instead, each claimant receives a proportional share based on their verified surcharge payments. Customers who lived in Miami Gardens longer and paid higher water bills will receive larger refunds.
Why this matters beyond the money
This case set a precedent. NMB was told by legal experts that privatizing their water operations would cost them the right to charge the surcharge. They privatized anyway and kept billing Miami Gardens customers as if nothing changed. The city of Miami Gardens called it out, took it to court, won on appeal, and recovered 92 cents of every dollar that was illegally collected.
For a city that was only incorporated in 2003, this is a meaningful demonstration of what having your own municipal government can accomplish. Before incorporation, these neighborhoods were unincorporated Miami-Dade County. There was no "City of Miami Gardens" to file a lawsuit on residents' behalf. No city attorney to review water billing practices. No council to authorize legal action. The surcharge would have continued indefinitely, and nobody would have had standing to challenge it.
That's the practical value of incorporation. It's not just about parks and police. It's about having an entity that can stand up in court and say: you've been overcharging our residents, and we're going to make you pay it back.
What's happening with NMB Water going forward
The surcharge issue has been a source of friction between Miami Gardens and North Miami Beach for years. NMB Water currently serves approximately 175,000 people across multiple cities. The settlement resolved the past illegal surcharges, but the broader relationship between the two cities regarding water service continues to evolve.
NMB has proposed various alternatives, including Miami Gardens transitioning entirely to Miami-Dade County Water and Sewer service. However, as Community Newspapers reported, NMB's own bond covenants may prevent such a transition because their revenue bonds are secured by rates charged to all customers, including those in Miami Gardens. The water relationship, in other words, is complicated and ongoing.
For now, Miami Gardens residents continue to receive water from NMB Water, but without the illegal 25% surcharge. If you notice any unexplained charges on your water bill, contact the City of Miami Gardens at (305) 622-8000 or the NMB Water customer service line.
Frequently asked questions
How much money will I get from the NMB Water settlement?
Individual payment amounts depend on how much surcharge you paid during the class period and the total number of claims filed. The $9 million settlement (minus attorney fees capped at 30% and administration costs) will be divided proportionally among all verified claimants. Customers with longer residency and higher water bills will receive larger refunds.
When will NMB Water settlement checks be mailed?
The court approved the settlement on December 12, 2024. Claims closed January 12, 2026. The Claims Administrator is currently verifying claims. Checks are expected to be mailed in 2026, but no specific distribution date has been announced. Payments will be sent to the address on your claim form.
Can I still file a claim for the NMB Water settlement?
No. The claim deadline was January 12, 2026. Claims not received or postmarked by that date are forfeited. There is no extension or late filing mechanism under the settlement terms.
What was the NMB Water lawsuit about?
The City of Miami Gardens sued North Miami Beach in 2018, alleging that NMB illegally charged a 25% surcharge on water bills to Miami Gardens customers. Under Florida law, NMB lost the right to charge the surcharge when it privatized its water operations in 2017 by contracting with CH2M (now Jacobs Engineering). The court agreed, and the case settled for $9 million, representing 92% of all surcharges collected.
Settlement information sourced from the Circuit Court of the Eleventh Judicial Circuit (Case No. 18-042450-CA-01), MiamiGardensWaterBillSettlement.com, City of Miami Gardens official notices, and Community Newspapers. For questions about your claim, contact the Claims Administrator at claims@ssiclaims.com or call 850-385-xxxx. See also: cost of living guide and living in Miami Gardens. Published: May 20, 2026.
