HomeMy WebLinkAboutLTC 242-2026 Fiscal Year 2026 Second Quarter AnalysisMIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC#242-2026
TO:
FROM:
DATE:
SUBJECT:
LETTER TO COMMISSION
Honorable Mayor Steven Mein�;nd ()��y Commission
Eric Carpenter, City Manager l,/'t(£ vU/r-41/�
June 4, 2026
Fiscal Year 2026 Second Quarter Analysis
The purpose of this Letter to the Commission (L TC) is to provide the Mayor and City Commission with an update on the status of the Fiscal Year (FY) 2026 operating budget as of the second quarter, which ended March 31, 2026, and to provide projections through the end of the current fiscal year ending September 30, 2026.
It is important to emphasize that this analysis is a preliminary projection based on actual data for the first six (6) months of the current fiscal year, as well as any more recent data and information that may be available. While these projections are not a definitive representation of trends for the remainder of the current fiscal year, they do provide an initial indication of potential areas of opportunity and/or concern. Assumptions have been made relating to both revenues and expenditures that continue to be further refined as the current fiscal year progresses and more data and information become available.
SUMMARY
As of the second quarter of the current fiscal year (FY 2026), revenue and expenditure projections for the General Fund through September 30, 2026 reflect a projected year-end surplus of approximately $9.5 million, while the Resort Tax budget reflects a projected year-end surplus of approximately $3.0 million.
On December 17, 2025, the City Commission adopted Resolution No. 2025-34056, directing the Administration to develop the FY 2027 operating budget using the projected rolled-back millage rate. Based on the data presented to the City Commission at the May 5, 2026 Budget Retreat, the FY 2027 Preliminary Budget estimates a General Fund deficit of approximately $17.7 million. In addition, several proposals currently being considered by the Florida Legislature may further reduce property tax revenues.
Given the foregoing, it is essential that the City plan carefully and make thoughtful financial choices. To support a stable and balanced FY 2027 budget, the Administration recommends that any excess funds remaining at the end of FY 2026 be reserved for one-time uses in accordance with the City's current financial policies. This will allow the City to address emerging needs, while maintaining the City's long-term fiscal health and avoiding new recurring commitments during a year of anticipated revenue constraints.
Of the $9.5 million General Fund surplus projected as of the second quarter of the current fiscal year, it is recommended that approximately $1.1 million, which is based on the additional combined FY 2026 projected surplus from the Miami Beach and Normandy Shores Golf Courses' operations, be set aside and transferred to the Capital Pay-As-You-Go (PayGo) Fund to fund a portion of the Miami Beach Golf