Riviera Beach reviews $120.5 million tentative FY2026 budget; millage unchanged at 8.35 mills

Riviera Beach city leaders reviewed the proposed fiscal year 2026 tentative budget at a city council budget workshop on Aug. 18, during which staff said the millage rate will remain at 8.35 mills and the tentative general fund revenue total is about $120,500,000.

City Manager Jonathan Evans and Chief Financial Officer Randy Sherman told the council the city’s assessed valuation rose roughly 8.14 percent to about $9.5 billion, producing an estimated $75.4 million in ad valorem (property tax) revenue. “I think we’re in pretty good stead,” Randy Sherman said, describing reserve levels and days-cash-on-hand.

The budget keeps the millage at the FY2025 level and includes recurring transfers the city cannot change: a roughly $9.4 million tax increment (TIF) transfer to the Community Redevelopment Agency (CRA) and an approximately $1.1–$1.3 million transfer to the major disaster fund (transcript references $1.3M by Mr. Evans; Mr. Sherman said $1.1M transferred on day one). City staff also budgeted $4.25 million for pay-as-you-go capital (one-time infrastructure items such as milling and resurfacing).

Why it matters: the tentative budget bundles operating, utility and enterprise funds and frames several near-term policy choices — whether to shift property-related non-ad valorem assessments from utility bills to the property tax bill, how to address pension underfunding, and how to finance a new water treatment plant — that will affect residents’ bills, capital project timing and reserve levels.

Key numbers and context - Millage rate: 8.35 mills (unchanged) - Assessed valuation: cited at about $9,500,000,000 - Ad valorem revenue estimate: $75,400,000 - CRA/TIF transfer: roughly $9,400,000 (budgeted transfer on Jan. 1) - Major disaster fund transfer: $1,100,000–$1,300,000 (transcript contains both figures) - Pay-as-you-go capital: $4,250,000 - Tentative general fund revenues: $120,500,000 - Combined city budgets (all funds): approximately $214,600,000 for FY2026

Reserves, ratings and comparisons Sherman highlighted the city’s general fund reserve (about 39.5 percent of one year’s revenues) and said Riviera Beach carries roughly 155 days of cash on hand at Sept. 30 in his example. He also noted the city holds two double-A credit ratings, a comparative point used to position Riviera Beach against peer cities in South Florida.

Pensions and fiscal pressures Council discussion flagged pension funding as a major budget pressure. CFO Sherman showed the city’s employer contribution rates rising for public safety plans; the police pension’s funded ratio was cited at about 89.4 percent and the employer contribution for police rose to roughly 39.16 percent of payroll. Councilmembers asked about dollar effects; Sherman said a one-time contribution this fiscal year for police is $750,000 and that the city has previously contributed to shore up the funds. The transcript repeatedly described the pension shortfalls as a statutory obligation that increases the city’s contribution when investment returns fall short of assumptions.

Firefighters and House Bill 929 Fire Chief John Kurd told the council that House Bill 929, signed this year and effective July 1, 2025, expands firefighter health and safety requirements and will raise costs. Kurd said about 75 percent of required actions are already underway or completed, but two items stand out: replacement of turnout gear with PFAS-free gear (cost increases) and a statutory move toward shorter average workweeks (the state-level changes could require moving from the current 48-hour to a 42-hour average, which drives staffing needs). The budget includes nine new firefighter positions (staffed as part of a multi-year ramp-up), and Kurd described the law as an unfunded mandate the city will seek grants to offset.

Utility district: water plant financing and staffing Council and staff discussed plans for a new regional water treatment plant and potential borrowing. City staff described a planned borrowing program that could reach up to $400 million depending on the guaranteed maximum price (GMP) for the plant; staff said if the GMP is known by October/November, the city would aim to publish an official bond offering in January and to close financing in March (staff characterized the bond sale as potentially oversubscribed, which can lower interest costs). Staff also told the council they are pursuing SRF and WIFIA financing and other grants to buy down costs. Utility staff recommended adding several specialized positions for the utility district (lead operators, lab technician, electrical/instrumentation roles, capital projects engineer and others) to staff the existing system and prepare for the new plant; the proposed FY2026 utility staffing additions were presented as funded within the utility budget.

Marina, mooring fields and paid parking Staff presented enterprise fund budgets for the marina and for parking. The marina is projected to generate operating surplus and the FY2026 estimates incorporate mooring-field operations; staff said installation of mooring fields is a capital project (submerged-land leases and permitting with Army Corps and other approvals remain pending). For parking, staff said paid parking could go live after a public-notice window; staff suggested delaying a hard launch to provide at least 30 days’ public notice and outreach to businesses and residents. Staff also said the online pass portal for multi-month and annual parking passes could be activated shortly.

Other staffing and classification items The tentative personnel proposals across departments include classification and title changes and several additions: nine firefighters (budgeted), a proposed assistant to the police chief position, reclassifications in human resources (HR analyst, HRIS), a project manager and adjustments in public works and administration. Councilmembers requested itemized departmental budget and position details for review; staff agreed to provide more granular department-level breakdowns to council.

Legislative aides, pay and classification Councilmembers debated whether legislative aides and mayoral chief-of-staff positions should be paid and classified identically and whether council members should have the same discretion as the city manager to adjust starting salaries above standard ranges. The council asked staff and HR to research pay practices in other jurisdictions, the legal constraints, whether legislative aides should be hourly or salaried, and to return with options before the budget’s second hearing.

Internal auditor and audit committee Council and staff discussed the audit committee’s interest in examining whether the internal auditor should report independently to the council/audit committee rather than through the city manager. Staff said the ordinance provides for a dotted-line reporting relationship and that the audit committee planned to discuss the matter further and may present options for a consultant or contractual independent auditor. The city manager also said he would likely request an operational/audit-support position in the administration if the council separates an independent internal-audit function.

Decisions, direction and next steps Staff did not present votes at the workshop; the session functioned as a staff briefing and discussion to prepare for public hearings. The council directed staff to provide the following before upcoming hearings: - Dates and scheduling options so the council can complete required budget hearing hours and first/second readings (city manager Jonathan Evans) - A communications/marketing plan and metrics for outreach on the additional senior exemption (Evans/Sherman) - A department-level, itemized budget breakdown for each councilmember (Evans/Sherman) - A detailed cost breakdown for firefighter PFAS-free gear and the staffing/cost impacts of House Bill 929 (Fire Chief John Kurd/finance) - Options and legal analysis on legislative aide/ chief-of-staff classification, pay ranges, and whether aides should be hourly or salaried (Human Resources and City Attorney Don Nguyen) - Options for an internal auditor structure (audit committee recommendations and legal review) - A plan and timeline for paid parking outreach, including at least a 30-day public-notice period and a portal for multi-month/annual passes (parking staff/finance) - Updates on utility financing: guaranteed maximum price (GMP) for plant, bond offering schedule and grant/loan applications (WIFIA, SRF) (utility director Yasha Neiman and CFO Randy Sherman)

The workshop continues the budget calendar toward a public hearing schedule; staff said the first public hearing (tentatively referenced as Sept. 3) and the final reading (Sept. 17) remain on the timeline. Capital projects and the utility district capital plan were scheduled for a focused discussion at the next workshop day.

Ending: Staff emphasized several items would be revisited at the capital-focused session the next day, and councilmembers asked for further written materials and itemized department documentation ahead of the formal hearings.