The City Commission of the City of Sunny Isles Beach voted to adopt a tentative millage rate of 1.7 mills per $1,000 of taxable assessed value and advanced the city's fiscal year 2025'26 operating and capital improvement budget on first reading, sending the ordinance to a second hearing on Sept. 11, 2025.

City Manager St. Mager told the commission the budget presented "is the culmination of a tremendous amount of work by our finance department," and said the commission's direction to lower the millage from 1.8 to 1.7 required reductions in operating expenses. St. Mager said the reduced millage yields an estimated $377,000 increase in property tax revenue based on adjusted values, and that other revenue increases include utility taxes (+$200,000), charges for services (+$223,000), fines and forfeitures (+$666,000) and miscellaneous revenues including interest (+$476,900). He said the total budget for all funds is $232,687,882 and that public safety accounts for 34.8% of the general fund while the capital improvement program is 26% of the overall budget.

The manager told commissioners the city faces "no less than a potential $1,000,000 increase in personnel services in the police department alone," tied in part to a pending Police Benevolent Association contract the city expects to present later this month. He recommended approval of the millage resolution on first reading and of the budget ordinance on first reading.

Public comment focused on transparency and budget priorities. Steven Hirsch urged a shift to performance-based budgeting, saying the document "does not provide the commission or the public with clear insight into how well city resources are achieving intended results" and recommending adoption of measurable performance measures in future budgets. Dana Goldman criticized specific capital items, calling it "a total waste of resources" to locate a proposed $2,000,000 fleet services compound on Collins Avenue and questioned a roughly $200,000,000 project cost cited in public remarks as exceeding the city's annual budget.

Commissioners debated specific cuts and program changes made to align the budget with the lower millage. Vice Mayor Mary Lamo asked for clarification on the proposed cuts to the drone program; the city manager said one of three proposed drones was removed with the plan to seek alternate funding to restore it. Commissioners confirmed that a proposed lifeguard tower was a replacement rather than a removal of existing coverage. Several commissioners expressed concern that proposed cuts disproportionately affect resident-facing programs, citing reductions to museum partnerships, public arts events and youth program funding. One commissioner said direction had been given to reduce anticipated new hires, but the manager said vacancies were not reduced because there was not consensus to cut those positions.

Commissioners also questioned project funding and grant risks for Central Island drainage improvements. Staff said several grants cited in the budget are reimbursement grants that require the city to expend funds before reimbursement, the original project estimate had been $53,000,000 and grants would not cover the full amount; a $22,000,000 line item was identified for injection wells.

Votes at a glance: the resolution adopting the tentative millage rate at 1.7 mills passed unanimously, 5'20; the ordinance adopting the operating and capital improvement budget for FY2025'26 passed first reading 3'2, with a second public hearing scheduled for Sept. 11, 2025. The city manager said the PBA contract and other adjustments will return to the commission at upcoming meetings.

The commission and staff indicated they expect to use budget amendments after adoption to restore any programs the commission decides should return and to incorporate the final PBA contract and any awarded reimbursements or grants.