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Home My WebLink AboutFY 2027 City Commission Budget Retreat Presentation1 FY 2027 Commission Budget Retreat May 5, 2026 Purpose Kick off the FY 2027 budget development process with the Mayor and City Commission Cover several budget-related topics and identify areas requiring additional attention Increase the efficiency of the two (2) planned Finance & Economic Resiliency Committee (FERC) Budget Briefings in June and July 1 2 2 Budget Development Timeline Commencement of Budget Development Process Review Budget Submissions with City Departments and City Manager City Commission establishes Budget Priorities at Budget Retreat Finance & Economic Resiliency Committee (FERC) Budget Briefings June 17th (Primarily Capital) July 17th (Primarily Operating) DECEMBER FEB - APR MAY JUN - JUL Departments Submit FY 2027 Budget Requests JANUARY Budget Development Timeline Cont’d Preliminary Taxable Values received from the Property Appraiser Certified Taxable Values received from the Property Appraiser Office of Management & Budget finalizes City’s Proposed Budget Public Hearings held to Adopt Tentative and Final City Budgets September 10 th September 23rd JUNE 1st JULY 1st JULY AUGUST SEPTEMBER City Commission Meets to Set Tentative Millage Rates July 22nd 3 4 3 Preliminary General Fund Budget FY 2027 $487.0 MRevenues 508.4 MExpenditures ($21.4 M)Surplus/(Gap)* 3.7 MPreliminary Increase in Resort Tax Contribution ($17.7 M)Revised Surplus/(Gap)* Property Value Increase Necessary to Balance:**6.2% $2.9 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2026 Values, pending receipt of Preliminary and Certified FY 2027 Values to be provided by Property Appraiser on June 1, 2026, and July 1, 2026, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2027 % Increase in Expenditures from FY 2026 to FY 2027 5.4% Financial Policies 5 6 4 Balancing the Operating Budget The City is responsible for maintaining a balanced budget, which is required by Florida Statute 166.241 A budget is balanced when the sum of estimated net revenues and appropriated fund balances is equal to total expenditure appropriations General Fund Reserves Resolution No. 2026-34162 Requirement: 17%, or 2-month, General Fund Emergency Reserve Minimum of 2 months for use in a public emergency only Requires 6/7th vote by City Commission to utilize Target: Additional 8%, or 1-month, General Fund Contingency Reserve Total Reserve Target: 25%, or 3 months, of Annual General Fund Budget Current: $120.6 million, or 3 months, of FY 2026 General Fund Budget 7 8 5 Resort Tax Reserves Resolution No. 2026-34162 Requirement: Minimum 2-month Reserve based on 2% Resort Tax budget Minimum of 2 months for use in a public emergency only Requires 5/7th vote by City Commission to utilize Target: Additional 4-month Reserve based on 2% Resort Tax budget Total Reserve Target: 50%, or 6 months, of Annual 2% Resort Tax Budget Current: $37.9 million, or 6 months, of FY 2026 2% Resort Tax Budget Use of General Fund Year-End Surplus Resolution No. 2026-34162 All remaining year-end surplus, after fully funding reserves, shall be transferred as follows: •50% to the Capital Reserve Fund •50% to either the Capital Renewal and Replacement Fund, Streets and Sidewalk Renewal and Replacement Fund, or Capital Pay-As-You-Go Fund Note: This policy has been waived in previous years* *At the end of FY 2025, the remaining surplus of $13.4 million was used to implement the Miami Beach Homestead Relief program, as well as the purchase of the 7605 Collins Avenue property from the Building Department. 9 10 6 Use of Non-Recurring Revenues One-time, non-recurring, revenues shall be used for capital expenditures or one-time expenditures rather than to subsidize recurring personnel, operations, and maintenance costs Resolution No. 2026-34162 Note: This policy has been waived in previous years for specific operations such as Sanitation, Building, and Convention Center, when necessary Preliminary Surplus During Budget Process As part of the annual budget development process, the preliminary budget presented by the City Manager shall include a recommended allocation of projected General Fund surplus funds for the following: •50% to support capital project funding needs until the City achieves its goal of dedicating 5% of annual General Fund budget to capital needs •25% to augment the ensuing year's General Fund reserves, until such time as the City establishes and meets an appropriate reserve contribution benchmark aligned with the growth of the General Fund budget Resolution No. 2026-34162 11 12 7 General Fund Where the Money Comes From and Goes…. Where the Money Comes From… Property and Resort Taxes comprise 71% of Total General Fund Revenues Adopted General Fund Revenues By Category $482.5 M Other Revenues - $142.4 M (29%) Other Taxes Licenses & Permits Charges For Services Miscellaneous Non-Operating Revenues Intergovernmental Rents and Leases Interest Use of General Fund Reserves Fines and Forfeits Property Taxes $298.9 M 62% Resort Taxes $41.2 M 9% 13 14 8 Where the Money Goes By Department… Police $166.7 M 35% Fire $132.5 M 27% Homeless Services $3.7 M 1% Park Ranger Program $5.5 M 1% Code Compliance $7.6 M 2% Municipal Prosecution $733.0 K 0% Other $165.8 M 34% FY 2026 General Fund Expenditures By Department $482.5 M Enhanced Public Safety Police, Fire, Park Rangers, Homeless Services, Municipal Prosecution, and Code Compliance represents $316.7 M, or 66%, of Total Budgeted General Fund Expenditures, which exceeds Property Taxes levied for FY 2026 Other - $165.8 M (34%) Parks & Recreation Citywide Accounts Public Works Finance City Attorney CIP Planning City Manager Facilities Management Tourism & Culture Mayor & Commission Human Resources Procurement Marketing & Communications City Clerk Economic Development Housing & Community Services Environment & Sustainability Management & Budget Where the Money Goes By Category… FY 2026 General Fund Expenditures By Category $482.5 M Of the $346.1 million in Salaries and Benefits budgeted, Enhanced Public Safety (Police, Fire, Park Rangers, Homeless Services, Municipal Prosecution, and Code Compliance represent $266.7 M, or 77%, of salaries and benefits Salaries and Benefits $346.1 M 72% Operating Expenditures $63.4 M 13% Internal Services $51.7 M 11% Transfers & Other $21.3 M 4% 15 16 9 Budgetary Trends Total Combined City Millage *Increase in FY 2020 millage attributed to issuance of Tranche 1 (Series 2019) of General Obligation (G.O.) Bonds approved by the voters on November 6, 2018 **Increase in FY 2024 millage attributed to issuance of Tranche 1 (Series 2023A&B) of Arts and Culture (G.O.) Bonds approved by the voters on November 8, 2022 6.0572 5.9826 5.7551 5.6859 5.6009 5.6857 5.6989 5.6298 5.6298 5.6298 5.6636 5.6636 5.6636 5.6636 5.6494 0.1083 0.1083 0.1083 0.1083 0.1083 0.0235 0.0235 0.0990 0.0990 0.0990 0.0990 0.1519 0.1519 0.1886 0.2066 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 0.2889 0.2360 0.3326 0.2959 0.2779 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 6.0515 6.1481 6.1481 6.1339 5.0000 5.2000 5.4000 5.6000 5.8000 6.0000 6.2000 6.4000 6.6000 Adopted FY 2012 Adopted FY 2013 Adopted FY 2014 Adopted FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted FY 2018 Adopted FY 2019 Adopted FY 2020* Adopted FY 2021 Adopted FY 2022 Adopted FY 2023 Adopted FY 2024** Adopted FY 2025 Adopted FY 2026 Operating Millage Capital Millage (PayGo & CRR)Voted Debt Service (G.O. Bonds) The current total combined millage rate for FY 2026 is 5.0% less than in FY 2012 The current operating millage rate for FY 2026 is 6.7% less than in FY 2012 The current capital millage rate for FY 2026 is 90.8% higher than in FY 2012 17 18 10 Overall Budget – All Funds *Adopted Capital Budget for FY 2016 included funding from multiple bond issuances for the Convention Center facility renovation and expansion project $576.4 M $605.0 M $611.0 M $631.4 M $669.3 M $627.1 M $675.9 M $733.1 M $829.1 M $872.4 M $910.8 M $755.4 M $88.3 M $59.8 M $48.7 M $88.4 M $60.2 M $70.4 M $73.7 M $115.7 M $74.3 M $138.7 M $1.3 B $693.3 M $670.8 M $680.0 M $757.6 M $687.3 M $746.3 M $806.8 M $944.8 M $946.7 M $1.0 B $0.0 K $300.0 M $600.0 M $900.0 M $1.2 B $1.5 B Adopted FY 2016* Adopted FY 2017 Adopted FY 2018 Adopted FY 2019 Adopted FY 2020 Adopted FY 2021 Adopted FY 2022 Adopted FY 2023 Adopted FY 2024 Adopted FY 2025 Adopted FY 2026 Total Operating Budget Total Capital Budget The Overall FY 2026 Budget increased by 10.9% over FY 2025. Within the Overall FY 2026 Budget, the Total Operating Budget increased by 4.4%, while the Total Capital Budget increased by 87% Overall Position Trend – All Funds *Position counts reflected above exclude positions in the Office of the Mayor and City Commission Since FY 2018, the City’s “Enhanced” Full-Time Public Safety position count (Police, Fire, Code, Park Rangers, Homeless Services, and Municipal Prosecution) has increased by 160 full-time positions, or 16.1%,compared to the City’s Non-Public Safety Full-Time position count which has increased by 32 full-time positions, or 2.8% 1,140 1,139 1,109 1,067 1,072 1,106 1,122 1,152 1,172 996 998 999 997 1,005 1,093 1,133 1,140 1,156 2,136 2,137 2,108 2,064 2,077 2,199 2,255 2,292 2,328 0 500 1,000 1,500 2,000 2,500 Adopted FY 2018 Adopted FY 2019 Adopted FY 2020 Adopted FY 2021 Adopted FY 2022 Adopted FY 2023 Adopted FY 2024 Adopted FY 2025 Adopted FY 2026 Total Non-Public Safety Positions*Total Enhanced Public Safety Positions 19 20 11 General Fund Expenditure Trend The General Fund budget for Enhanced Public Safety has increased by $16.7 million, or 7.7%, per year since FY 2020 while Non- Enhanced Public Safety has increased by $4.5 million, or 4.0%, per year. Inflation over the same period has averaged 4.9% per year since FY 2020 *Above excludes budgeted expenditures and positions in the Office of the Mayor and City Commission **For purposes of this analysis, FY 2020 excludes the Building Department and Office of the Inspector General that were part of the General Fund prior to FY 2021 $216.2M $216.6M $228.2M $243.5M $275.5M $290.4M $316.7M $111.5M $108.9M $118.1M $129.8M $130.1M $143.7M $138.5M $4.3M $936.0K $5.2M $6.5M $19.2M $18.3M $23.0M $0.0K $50.0M $100.0M $150.0M $200.0M $250.0M $300.0M $350.0M $400.0M $450.0M $500.0M Adopted FY 2020 Adopted FY 2021 Adopted FY 2022 Adopted FY 2023 Adopted FY 2024 Adopted FY 2025 Adopted FY 2026 Enhanced Public Safety Non-Enhanced Public Safety Capital/Reserves 950 FT + 89 PT 458 FT + 190 PT 948 FT + 89 PT 974 FT + 95 PT 1048 FT + 74 PT 1086 FT + 48 PT 1094 FT + 48 PT 1111 FT + 46 PT 458 FT + 188 PT 459 FT + 190 PT 468 FT + 190 PT 479 FT + 193 PT 488 FT + 185 PT 481 FT + 187 PT FY 2026 Update as of Q1 21 22 12 FY 2026 Update as of Q1* Resort TaxGeneral FundProjections $1.5 M$4.4 MQ1 Projected Surplus/(Gap) -(0.4 M)Set aside of Additional Projected Golf Courses Surplus for Miami Beach Golf Course Renovation Project -(4.0 M)Set aside for FY 2027 Capital Projects (1.5 M)-Additional Contribution from 2% Resort Tax to General Fund for Tourism-Eligible Expenditures in General Fund $ -$ -Remaining Q1 Surplus/(Gap) *As reflected in Letter to Commission (LTC 097-2026) dated March 11, 2026 Critical Factors Impacting General Fund Budget The City’s increasing unfunded CIP*,which totals over $1.3 billion and includes: Capital Pay-As-You-Go (PayGo) - $79.8 million Capital Renewal and Replacement (CRR) - $16.7 million Resort Tax Quality of Life (1%) - $20.4 million Long-term General Fund financial projections indicating budget shortfalls in upcoming fiscal years The passage of Amendment 5 in November 2024, which increased the homestead exemption and further constrains the growth of taxable property values *FY 2027 – FY 2031 23 24 13 Critical Factors Impacting General Fund Budget The approval of Resolution No. 2025-34056 directing the City Administration to prepare the City’s operating budget based on the projected “rolled-back” millage rate as part of the fiscal year 2027 budget process Potential legislative actions at the State level, which could impact property tax revenues Miami Beach Millage Rates and Property Taxes 25 26 14 City Taxes Levied by Property Type Homestead properties benefit from the Save Our Homes cap, which limits annual increases in assessed value—this contributes to their smaller share of the overall tax levy. Non-homestead properties, including commercial, second homes and investment properties,play a critical role in supporting the General Fund. *Other category is comprised of industrial, institutional, and other miscellaneous property types. FY 2026 Rolled Back Millage Rate Impact Greater Than $10.0 M Between $1.01 M-$10.0 M Less Than or Equal to $1.0 M City Taxable Value $ Value# of Parcels$ Value# of Parcels$ Value# of Parcels $2.8 B168 $6.6 B2,553 $3.4 B 11,274 Homesteaded 15.1 B690 20.1 B7,553 11.5 B 33,980 Non-Homesteaded $17.9 B858 $26.7 B10,106 $14.9 B45,254 Total 30%2%45%18%25%80% $109.8 M$163.6 M$91.3 MTotal Tax Levy (Adopted Millage Rate) 103.6 M154.4 M86.2 MTotal Tax Levy (Rolled-Back Millage Rate) ($6.2 M)($9.2 M)($5.1 M)Property Tax Savings Approval of a "Rolled-Back" millage rate would provide approximately $1.2 million in property tax savings to homesteaded properties in the City with a taxable value of less than or equal to $1.0 million, which make up 6%of the tax cut. In comparison, approval of a "Rolled-Back" millage rate would provide approximately $15.4 million in property tax savings to properties with a taxable value above $1.0 million, which make up 75%of the City’s tax base. 27 28 15 Rolled Back Millage Rate Impact Increase/ (Decrease) Rolled-Back FY 2026 Millage Levy Adopted FY 2026 Millage Levy FY 2026 ValueCity Taxable Value ($135,962) $2,284,168$2,420,130$394,550,080Fontainebleau Hotel (105,034)1,764,573 1,869,607 304,799,000 Loews Miami Beach (312)5,2365,548904,470Average Homesteaded Property Value* (106)1,7761,882306,842 Median Homesteaded Property Value* *Source: Miami-Dade County Property Appraiser's 2025-average-median-homestead-residential-values file Approval of a "Rolled-Back" millage rate would deliver $15.4 million in property-tax savings to properties with taxable values above $1.0 million, which make up 75%of the City’s tax base. Risk of Reducing Property Taxes 29 30 16 Current service costs are increasing due to inflationary pressures A reduced tax rate effectively lowers current and future revenue capacity This could create a future structural budget imbalance A flat budget while ignoring inflation is effectively a budget cut Will lead to deferred maintenance, leading to higher future maintenance costs Will lead to service reductions Will impact residents through longer response times, delayed repairs, and less programs Risks of Reducing Property Taxes Recommended FY 2027 Budget Strategy 31 32 17 Continued Pathway to Fiscal Balance without Service Loss Maintain current tax rate, while pursuing revenue enhancements and efficiencies Minimize recurring enhancements –focus on One-Time Support long-term fiscal sustainability Protect service sustainability Preserve essential services Protect reserves for emergencies Avoid future abrupt tax increases Maintain the City’s trajectory of increasing funding for capital projects Minimize lost revenues from fee waivers (per financial policy adopted via Resolution No. 2026-34162) Minimize fee abatements (e.g., sidewalk concessions) Small disciplined decisions now prevent larger financial corrections later Strategic Expenditure Adjustments for Fiscal Stability Prioritize funding of the City’s core governmental functions Evaluate programs and expenditures that fall outside the City’s primary governmental purpose for potential reduction, restructuring, or alternative funding sources Review existing programs to identify overlapping services supported by other levels of government or external partners Assess discretionary initiatives and non-mandated activities to ensure alignment with strategic priorities Fund what is fundamental; reassess what is optional 33 34 18 Preliminary FY 2027 General Fund Budget Preliminary General Fund Budget Assumptions: Assumes no change in the operating millage rate Does not include any enhancements and/or reductions to be considered during the FY 2027 budget development process Assumes 0% increase in the City’s health insurance premiums for all groups, except 10% increase for Police and Fire (Actives and Retirees) Includes average 2.0% merit increases for all groups, except 5.0% and 4.0% Step increases (where applicable) for Police and Fire Includes 3.0% cost-of-living adjustments and/or changes in pays/benefits based on the City’s approved collective bargaining agreements Includes 2.6% increase in applicable City fees that are indexed to the Consumer Price Index (CPI) per Ordinance Nos. 2019-4299 and 2024-4657 35 36 19 Preliminary General Fund Budget Assumptions Cont'd: Includes $20.2 million in funding allocated for Capital Projects (PayGo, CRR, Capital Reserves, etc.) Capital PayGo - $12.7 million Capital Renewal and Replacement - $5.8 million Capital Reserve - $1.0 million Streets and Sidewalks Renewal and Replacement - $0.4 million IT Tech - $0.3 million Includes $10.0 million for the replacement of General Fund vehicles using cash instead of debt financing (approximately 95% is for replacement of Police/Fire vehicles and equipment) Includes $3.1 million in funding allocated for General Fund reserves Includes $1.8 million in funding for Education Initiatives Preliminary General Fund Budget FY 2027 $487.0 MRevenues 508.4 MExpenditures ($21.4 M)Surplus/(Gap)* 3.7 MPreliminary Increase in Resort Tax Contribution ($17.7 M)Revised Surplus/(Gap)* Property Value Increase Necessary to Balance:**6.2% $2.9 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2026 Values, pending receipt of Preliminary and Certified FY 2027 Values to be provided by Property Appraiser on June 1, 2026, and July 1, 2026, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2027 % Increase in Expenditures from FY 2026 to FY 2027 5.4% 37 38 20 Preliminary General Fund Budget $$ Variances in Revenues from FY 2026 Adopted to FY 2027 Preliminary $482,497,000FY 2026 Adopted: 3,679,000Preliminary increase in 2% Resort Tax Contribution from $41.2 million to $44.9 million for Tourism-Eligible Expenditures based on Preliminary 2% Resort Tax Projections (Based on January 2025 study $194.4 million in tourism-eligible expenditures in General Fund) 2,307,000Increase in Charges for Services (includes Miami Beach and Normandy Shores Golf Courses)* 2,212,000Increase in General Fund Franchise and Utility Tax revenues from electricity, gas, etc.* 1,604,000 Increase in General Fund Licenses and Permit revenues from Fire, Planning, Public Works, and Finance* 1,221,000Increase in General Fund revenues from Fines and Violations, Rents and Leases, and Interest Income* 1,100,000Increase in Intergovernmental and Other Miscellaneous General Fund revenues* (3,960,000)Decrease in Use of General Fund Reserves (Reserves in Excess of 25% Goal based on FY 2026 General Fund budget) $8,163,000$ Variance $490,660,000FY 2027 Preliminary: 1.7%% Increase/(Decrease) *Based on prior year trends and current year projections Preliminary General Fund Budget $$ Variances in Expenditures from FY 2026 Adopted to FY 2027 Preliminary $482,497,000FY 2026 Adopted: $6,371,000Police/Fire CBA Impact (5%/4% Step Increases, 3% COLA, etc.) 4,757,000 Police/Fire Pension Impact (General Fund Portion) 3,909,000Non-Police/Fire CBA Impact (Average 2% Merit Increases, 3% COLA, etc.) 3,901,00010% Increase in City’s Premium for Health Insurance for Police/Fire and 0% for Non-Fire/Police (Actives and Retirees) 2,769,000Additional Contribution to Pay-As-You-Go (PayGo) Capital based on 35% of projected FY 2027 General Fund interest income (per City’s financial policies) and Miami Beach and Normandy Shores Golf Course Surplus for MB Golf Course Project 2,751,000 Estimated Internal Services Expenditures Impact (Fleet Mgmt., Risk Mgmt., Information Technology, Central Services, etc.) 2,144,000Police/Fire Overtime (General Fund Portion) 449,000Increase in Citywide Grounds Maintenance Agreement Expenditures (General Fund Portion) 392,000Increase in Elections Expenditures (512,000)General Employee (MBERP) Pension Impact (General Fund Portion) (1,010,000)Adjustments in Other Operating Expenditures based on prior year and current trends, and anticipated department needs $25,921,000$ Variance $508,418,000FY 2027 Preliminary: 5.4%% Increase/(Decrease) 39 40 21 Preliminary FY 2027 Resort Tax Budget Total Resort Tax Collection Trends Source: Monthly Collections Reports Published by the Finance Department *FY 2019 (Pre-COVID) monthly collections included for comparison purposes $0.0 K $2.0 M $4.0 M $6.0 M $8.0 M $10.0 M $12.0 M $14.0 M Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2019 FY 2023 FY 2024 FY 2025 FY 2026 41 42 22 Preliminary 2% Resort Tax Budget Assumptions: Revenues to remain flat over FY 2026 projections, which are based on actual collections reported as of March 2026, with revenues projected through the remainder of FY 2026 at approximately 100% of collections for the trailing 12 months Does not include funding for March 2027 activations since funding budgeted in FY 2026 was approved on a one-time basis Includes: $44.9 million contribution to the General Fund for Tourism-Eligible Expenditures in General Fund $9.3 million contribution to the Greater Miami Convention & Visitors Bureau (GMCVB) $5.4 million in enhanced City services during High Impact Periods (Police, Fire, Code, Parks, etc.) $3.7 million contribution to the Miami Beach Visitor and Convention Authority (VCA) $3.4 million contribution to the Sanitation Enterprise Fund for Sanitation services provided in the City's Tourism-areas $3.1 million for Sponsorships, Activations, and Programming $1.0 million contribution to Mount Sinai for 15-year Emergency Room Grant $0.6 million for holiday lighting Preliminary 2% Resort Tax Budget FY 2027 $78.8 MRevenues 75.1 MExpenditures $3.7 MSurplus/(Gap)* 3.7 MPreliminary Increase in General Fund Contribution $ -Revised Surplus/(Gap)* *Preliminary 2% Resort Tax Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2027 43 44 23 Preliminary 2% Resort Tax Budget $$ Variances in Revenues from FY 2026 Adopted to FY 2027 Preliminary $75,791,000FY 2026 Adopted: 3,708,000Increase in 2% Resort Tax Collections based on projected FY 2026 2% collections* 253,000Increase in Other Miscellaneous 2% Resort Tax Revenues (Interest Income, Registration Fees, etc.)** (915,000)Decrease in Use of 2% Resort Tax Reserves (Reserves in Excess of 50% Goal based on FY 2026 2% Resort Tax budget) $3,046,000$ Variance $78,837,000FY 2027 Preliminary: 4.0%% Increase/(Decrease) *Projected FY 2026 2% collections are based on actual collections through March 2026 with revenues projected through September 2026 at approximately 100% of collections for the trailing 12 months **Based on prior year trends and current year projections $$ Variances in Expenditures from FY 2026 Adopted to FY 2027 Preliminary $75,791,000FY 2026 Adopted: 3,679,000 Preliminary increase in 2% Resort Tax Contribution to General Fund from $41.2 million to $44.9 million for Tourism-Eligible Expenditures based on Preliminary 2% Resort Tax Projections (Based on January 2025 study $194.4 million in tourism-eligible expenditures in General Fund) 356,000Increase in Greater Miami Convention & Visitors Bureau (GMCVB) contribution based on current agreement and projected 2% Resort Tax Revenues 178,000Increase in Miami Beah Visitor and Convention Authority (MBVCA) contribution based on legislated formula and projected 2% Resort Tax Revenues 97,000 Increase in Other Miscellaneous 2% Resort Tax Expenditures (includes merit and step increases budgeted for all groups, plus 3.0% COLA for all groups, and adjustments in operating expenditures based on prior year and current year trends) (1,264,000)Decrease in Sponsorships, Activations, and Programming based on the elimination of several one-time enhancements that were approved in FY 2026 $3,046,000$ Variance $78,837,000FY 2027 Preliminary: 4.0%% Increase/(Decrease) Preliminary 2% Resort Tax Budget 45 46 24 SPOTLIGHT Grants, Sponsorships, and Fee Waivers* *Pursuant to Resolution No. 2026-34162, the City Administration is directed to identify all City Commission sponsored grants every three (3) years that contemplate recurring funding as part of the annual budget process to allow for periodic review and approval to ensure that grants align with the City Commission’s evolving budget priorities. Recurring Grants & Sponsorships General & Resort Tax Funds FY 2027 Preliminary FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedFunding SourceGrant/Sponsorship $606,000 $556,000 $406,000 $606,000 Resort TaxCommunity Events 400,000400,000400,000400,000Resort TaxSpecial Events Sponsorships 360,000 350,000 280,000 230,000 General FundUNIDAD 350,000 350,000 350,000 350,000 Resort TaxMiami Beach Air & Sea Show 250,000 250,000 250,000 250,000 Resort TaxMiami Beach Pride Contribution 184,000 184,000 184,000 175,000 Resort TaxSOBE Wine and Food Festival 152,000 152,000 152,000 152,000 General FundMiami Beach Garden Conservancy, Inc 150,000 150,000 150,000 150,000 Resort TaxMDPL Art Deco Weekend 101,000 101,000 101,000 101,000 Resort TaxOcean Drive Promenade Programming 90,000 90,000 90,000 35,000 Resort TaxNormandy Fountain Business Association $2,643,000$2,583,000$2,363,000$2,449,000Sub-Total 47 48 25 FY 2027 Preliminary FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedFunding SourceGrant/Sponsorship $2,643,000$2,583,000$2,363,000$2,449,000Sub-Total (from previous slide) 85,000 85,000 85,000 85,000 General FundShane Rowing Center 80,000 200,000 80,000 180,000 General FundJob Creation Incentive Program 80,000 80,000 120,000 120,000 General FundCommercial Lease Subsidy 75,000 75,000 75,000 75,000 Resort TaxMiami International Piano Festival Academy 75,000 75,000 25,000 25,000 Resort TaxCollins Park Neighborhood Association Programming 60,000 60,000 --General FundStyle Saves Grant 50,000 50,000 50,000 50,000 General FundJewish Museum - FIU 50,000 50,000 50,000 50,000 General FundOcean Drive Association - July 4th/New Years Eve 47,000 47,000 47,000 47,000 General FundJewish Community Services of South Florida 38,000 38,000 38,000 38,000 Resort TaxLincoln Road BID Programming 36,000 36,000 36,000 36,000 General FundMiami Beach Chamber/Visitor Center 25,000 25,000 25,000 25,000 General FundMiami Dade Gay & Lesbian Chamber of Commerce $3,344,000$3,404,000$2,994,000$3,180,000Sub-Total Recurring Grants & Sponsorships General & Resort Tax Funds FY 2027 Preliminary FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedFunding SourceGrant/Sponsorship $3,344,000$3,404,000$2,994,000$3,180,000Sub-Total (from previous slide) 24,000 24,000 24,000 24,000 General FundSouth Florida Hispanic Chamber of Commerce 23,000 23,000 23,000 23,000 General FundMiami Design Preservation League 22,000 22,000 22,000 22,000 General FundMiami Beach Community Health Center 22,000 22,000 22,000 22,000 General FundDouglas Gardens Community Mental Health Center 17,000 17,000 17,000 17,000 General FundBoys & Girls Club 17,000 17,000 17,000 17,000 General FundOrange Bowl 15,000 15,000 15,000 15,000 General FundRhythm Foundation "North Beach Social" 10,000 10,000 10,000 10,000 General FundMBLIFE Grant -25,000-3,800 General FundClean Miami Beach -200,000200,000 97,000 Resort TaxAmerican Black Film Festival -25,0005,000 10,000 Resort TaxSouth Beach Seafood Festival $3,494,000$3,804,000$3,349,000$3,440,800Total (General Fund & Resort Tax) Recurring Grants & Sponsorships General & Resort Tax Funds 49 50 26 Recurring Grants & Sponsorships FY 2027 Preliminary FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedFunding SourceGrant/Sponsorship $50,000 $50,000 $50,000 $ -Education Initiatives Pridelines Youth Safe Space Grant 50,000 50,000 50,000 50,000 Cultural Arts CouncilSouth Beach Jazz Festival Sponsorship 45,000 45,000 45,000 45,000 Beachfront Concessions/ SustainabilityMiami Beach Rising Above Grants 25,000 25,000 25,000-Education Initiatives Pridelines Miami Beach Project SAFE Grant $170,000$170,000$170,000$95,000Total (All Other Funds) FY 2027 Preliminary FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedSummary by Funding Source $3,494,000$3,804,000$3,349,000$3,440,800General Fund & Resort Tax 170,000170,000170,00095,000All Other Funds $3,664,000$3,974,000$3,519,000$3,535,800Total FY 2027 Preliminary* FY 2026 Adopted FY 2025 Adopted FY 2024 AdoptedCategory TBD$443,955$446,475$397,755Miami Beach Cultural Anchors Miami Beach Cultural Presenters: TBD$240,192 $224,021 $325,391 Music TBD139,940 136,590 76,288 Multi-Discipline/Visual Arts TBD88,809 91,143 80,946 Dance TBD74,448 86,371 97,728 Film TBD53,080 55,945 69,099 Opera/Theatre TBD$596,469$594,070$649,452Sub-Total TBD$1,040,424$1,040,545$1,047,207Total Cultural Arts Council (CAC) Grants *The Preliminary FY 2027 budget includes $1.1 million allocated for Cultural Arts Council (CAC) Grants to be awarded through the CAC’s grant application and review process conducted annually. 51 52 27 FY 2027 Actuals FY 2026 Actuals* FY 2025 Actuals FY 2024 ActualsFundingEvent TBD$250,000$ -$ -General FundCollege Football Playoff TBD120,000--General FundAdidas ATHX TBD120,000120,000-General FundWodapalooza TBD68,33366,68473,791General FundSouth Beach Seafood Festival TBD51,82341,36825,060General FundMiami Beach Pride TBD21,58138,57552,725General FundArt Deco Weekend TBD3,808--General FundSouth Beach Jazz TBD953--General FundDoors to Freedom TBD-8,5557,991General FundCollins Park Neighborhood Association TBD--20,041General FundFleet Week – Miami Beach Top Gun Olympics TBD--5,150General FundGroundUP Music Festival TBD--4,264General FundHoop Madness “Beat The 3” TBDTBD131,209176,375General FundMiami Beach Air & Sea Show TBD-23,84120,210General FundModel Volleyball TBD-196,471215,479General FundSouth Beach Wine & Food Festival TBD--7,663General FundThe Bass Art Outside Annual Picnic 2024 TBD-38,17820,436General FundWinter Party Festival Beach Party TBD-864-General FundMiami Beach Cancer Walk TBD-2,693-General FundPride Family Picnic TBD-3,333-General Fund World Footvolley Open TBD$636,498$671,770$629,184Total Special Events - Fee Waivers *FY 2026 actuals is as of 3/4/2026 Reminder that per current City policy, waiver of Special Event Fees shall be limited to the first three years of an event (starting from June 25, 2025) SPOTLIGHT Transportation Update 53 54 28 Preliminary Transportation Budget FY 2027 $18.8 MRevenues 19.2 MExpenditures ($0.4 M)Surplus / (Gap)* *Preliminary Transportation Surplus/(Gap) above does not take into account any enhancements and/or reductions/efficiencies to be considered for FY 2027 Current Transportation Fund Balance Trend $8.8 M$5.0 M$1.1 M-$3.1 M-$7.4 M -$10.0 M -$5.0 M $0.0 K $5.0 M $10.0 M 9/30/2027 9/30/2028 9/30/2029 9/30/2030 9/30/2031 Assumes Full Deployment of New Trolleys and ITS 55 56 29 FY 2027 Transportation Recommended Refinements $Transportation Revenue Adjustment 0.9 millionCiti Bike – Transfer Operations from Parking Fund $0.9 millionTotal $Transportation Expenditure Adjustments (2.4 million)Partial Transfer of funding for the South Beach Trolley Route to the Parking Fund (0.7 million)Reduce ITS Operating Hours (0.5 million) Eliminate Funding for Miscellaneous Traffic Studies and One-time Studies and Reduce Funding for Traffic Operations/Data Collection (0.2 million)Eliminate Rebecca Tower – Publix Freebee (duplicated service with Trolley) (0.2 million)Eliminate Funding for new Beachwalk Bicycle Counters/Speed Feedback Signs (0.1 million)Eliminate Employee/Committee Transit Subsidies (0.1 million)Transfer of Art Week Transportation to the Convention Center Fund (0.06 million)Transition the budgeted vacant Bicycle Pedestrian Coordinator Position to a contracted service (0.04 million)Transfer of Citywide Special Events to the Parking Fund 0.8 millionAdd Recurring Funding for the Water Taxi ($3.5 million)Total Updated Transportation Fund Balance Trend $13.2 M$13.8 M$14.4 M$14.9 M$15.3 M $12.0 M $13.0 M $14.0 M $15.0 M 9/30/2027 9/30/2028 9/30/2029 9/30/2030 9/30/2031 Assumes Full Deployment of New Trolleys and ITS 57 58 30 Potential FY 2027 Commission & Committee Priorities Enhancements Commission One-Time Enhancements Resolution #/Meeting Year 2 $ FY 2028 Year 1 $ FY 2027 Funding SourceCommission Items Reso. 2025-33970$ -$120,000General FundIncrease Job Creation Program Annual Budget Reso. 2026-34219-15,000General FundEarly Morning Off-Leash Hours for Small Dogs $ -$135,000Total Commission One-Time Enhancements A comprehensive list of all enhancement requests to be considered in the FY 2027 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefing in July 2026. 59 60 31 Committee One-Time Enhancements Committee Year 2 $ FY 2028 Year 1 $ FY 2027 Funding SourceCommittee Items PSNQLC$ -$250,000General FundCrisis Intervention Response Program (One-Year Pilot Program) FERC-138,000General FundInstallation of Enhanced Lighting at 201 2nd St – Dog Park PSNQLC-17,000General FundInformational Plaque for the Banyan Tree at Bayshore Park PSNQLC-14,000General FundAddition of Benches in Shaded Areas of Bayshore Park PSNQLC-5,000General FundHistorical Marker at 1801 Bay Road – Former Site of Middle Ear Studio $ -$424,000Total Committee One-Time Enhancements A comprehensive list of all enhancement requests to be considered in the FY 2027 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefing in July 2026. Commission Recurring Enhancements Resolution #/Meeting Year 2 $ FY 2028 Year 1 $ FY 2027 Funding SourceCommission Items Reso. 2026-34013$650,000$650,000 Medical/DentalFertility Benefits for Employees Reso. 2026-34228100,000100,000Resort TaxAdditional Funding for Holiday Lighting Reso. 2026-34118114,000114,000 General FundAdditional Funding for Prekindergarten Scholarship Program Reso. 2026-3408014,00014,000General FundAnnual Miami Beach Police and Fire Department Calendar – Creation, Marketing, and Sales $878,000$878,000Total Commission Recurring Enhancements A comprehensive list of all enhancement requests to be considered in the FY 2027 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefing in July 2026. 61 62 32 Year 2 $ FY 2028 Year 1 $ FY 2027 Funding Source $128,000$687,000General Fund 650,000650,000Internal Service (Medical/Dental) 100,000100,000Resort Tax $878,000$1,437,000Total Commission and Committee Enhancements A comprehensive list of all enhancement requests to be considered in the FY 2027 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefing in July 2026. Total Commission and Committee Enhancements Preliminary FY 2027 Capital Budget 63 64 33 FY 2027-2031 Capital Improvement Plan TOTALFY 2031FY 2030FY 2029FY 2028FY 2027FUND TYPE (in millions) $346.5$31.8$65.0$28.5$116.3$104.9Water & Sewer 323.6--78.0243.22.4General Obligation (GO) Bonds* 253.825.454.432.6123.717.7Stormwater 186.78.89.642.145.780.5Pay As You Go (PAYGO) 56.70.83.41.08.742.8Parking/Garages 52.613.46.89.510.612.3Fleet Management 41.4-3.44.019.614.4Convention Center 38.90.33.03.47.025.2Capital Renewal & Replacement (CRR) 35.70.21.15.310.418.7Resort Tax Quality of Life (1%) 27.3--2.523.11.7Transportation 8.10.10.30.30.37.1Other Capital (incl. RDA Funds & Capital Reserves) $1,371.3$80.8$147.0$207.2$608.6$327.7TOTAL *FY 2027 G.O. Bond Projects include requests which would expend old G.O. Bond funds/interest TOTALFY 2031 FY 2030 FY 2029 FY 2028 FY 2027FUND TYPE (in millions) $164.7$14.7$18.9$11.1$40.2$79.8Pay As You Go (PAYGO) 390.465.7126.848.382.866.8Water & Sewer 313.277.561.072.679.822.3Stormwater 29.00.20.52.35.620.4Resort Tax Quality of Life (1%) 34.90.8-4.712.417.0Convention Center 44.46.28.45.37.816.7Capital Renewal & Replacement (CRR) 63.619.115.07.99.711.9Fleet Management 10.5----10.5Building 24.12.42.17.33.98.4Parking/Garages 5.1---2.62.5Transportation 19.0--0.26.71.6Other Capital 205.9---205.9-General Obligation (GO) Bonds $1,294.3$186.6$232.7$159.7$457.4$257.9TOTAL FY 2027-2031 Capital Improvement Plan Budget Gap Summary (General Fund & Resort Tax) Est. Millage Impact ($) Est. Millage Impact Difference ($M) Available Funding ($M) Total Request ($M) Fund $9411.2087($57.5)$23.0$80.5PAYGO 3430.4398(20.9)4.325.2CRR 1600.2060(9.8)8.918.7Resort Tax Quality of Life (1%) $1,4441.8545($88.2)$36.2$124.4Total FY 2027 Requests Average value of Homesteaded Property - $778,877 Source: Miami-Dade County Property Appraiser's average-median-homestead-residential-values file Resolution #$Commission Items Resolution #2025-34015$11,462,070Citywide Seawall Rehabilitation – “First Flush” Stormwater Run-off Infrastructure Resolution #2025-3401510,780,000Stormwater Critical Needs - “First Flush” Stormwater Run-off Infrastructure Resolution #2025-340552,528,436Quiet Zones Waterway Markers and Signs Resolution #2026-341882,040,000Star Island Water Tower Restoration Resolution #2026-340811,400,000Flamingo Park Football Stadium Returfing Resolution #2025-33983600,000Green Roof Pilot for City Buildings Resolution #2026-34138315,000Polo Park Basketball Courts Lighting Resolution #2026-34089255,000Bayshore Park Artificial Turf Resolution #2026-34160112,534Convention Center Aeroponic Garden Resolution #2026-3418085,000Fire Station #2 Fuel Tank Dispenser Resolution #2026-3411635,000Bust of General Jose de San Martin $29,613,040TOTAL Commission Capital Project Requests 65 66 34 Budget Gap Summary (General Fund & Resort Tax) Est. Millage Impact ($) Est. Millage Impact Difference ($M) Available Funding ($M) Total Request ($M) Fund $9411.2087($57.5)$23.0$80.5PAYGO 3430.4398(20.9)4.325.2CRR 1600.2060(9.8)8.918.7Resort Tax Quality of Life (1%) $1,4441.8545($88.2)$36.2$124.4Total FY 2027 Requests Average value of Homesteaded Property - $778,877 Source: Miami-Dade County Property Appraiser's average-median-homestead-residential-values file Committee$Committee Items FERC$808,000Bayshore Park Lighted Pickleball Courts FERC300,000Muscle Beach – North Beach FERC203,000Installation of Artificial Grass at the South Pointe Park’s Dog Park FERC 151,116Installation of Artificial Grass at the Maurice Gibb Park’s Dog Park PSNQLC TBDNormandy Isle Neighborhood Entrance Signs $1,462,116COMMITTEE REQUEST TOTAL $29,613,040COMMISSION REQUEST TOTAL $31,075,156GRAND TOTAL Committee Capital Project Requests Budget Gap Summary (General Fund & Resort Tax) Est. Millage Impact ($) Est. Millage Impact Difference ($M) Available Funding ($M) Total Request ($M) Fund $9411.2087($57.5)$23.0$80.5PAYGO 3430.4398(20.9)4.325.2CRR 1600.2060(9.8)8.918.7Resort Tax Quality of Life (1%) $1,4441.8545($88.2)$36.2$124.4Total FY 2027 Requests Average value of Homesteaded Property - $778,877 Source: Miami-Dade County Property Appraiser's average-median-homestead-residential-values file Revenue Based on FY 2026 Rolled-Back* Millage Rate ($) Revenue Based on FY 2026 Millage Rate ($) Total Request ($M)Fund $5.6$5.9$79.8PAYGO 4.44.716.7CRR $10.0$10.6$96.5Total FY 2027 Requests IMPACT OF ROLLED-BACK RATE ON PAYGO & CRR FUNDS *Rolled-back rate applied proportionately to all operating millage rates At the end of FY 2025, the remaining surplus of $13.4 million was used to implement the Miami Beach Homestead Relief program, as well as the purchase the 7605 Collins Avenue property from the Building Department. 67 68 35 Preliminary FY 2027 Budget Recap Preliminary General Fund Budget FY 2027 $487.0 MRevenues 508.4 MExpenditures ($21.4 M)Surplus/(Gap)* 3.7 MPreliminary Increase in Resort Tax Contribution ($17.7 M)Revised Surplus/(Gap)* Property Value Increase Necessary to Balance:**6.2% $2.9 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2026 Values, pending receipt of Preliminary and Certified FY 2027 Values to be provided by Property Appraiser on June 1, 2026, and July 1, 2026, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2027 % Increase in Expenditures from FY 2026 to FY 2027 5.4% 69 70 36 Preliminary 2% Resort Tax Budget FY 2027 $78.8 MRevenues 75.1 MExpenditures $3.7 MSurplus/(Gap)* 3.7 MPreliminary Increase in General Fund Contribution $ -Revised Surplus/(Gap)* *Preliminary 2% Resort Tax Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2027 Next Steps in FY 2027 Budget Process 71 72 37 Next Steps in FY 2027 Budget Process 1st FERC Budget Briefing June 17th (Primarily Capital) 2nd FERC Budget Briefing July 17th (Primarily Operating) Set Maximum Millage Rates per Truth-In- Millage (TRIM) July 22nd Office of Management & Budget Finalizes Proposed Budget August Two (2) Public Hearings Held to Adopt Millage Rates & Budgets September 10th September 23rd New Fiscal Year 2027 October 1st Thank you!!! 73 74