The Hallandale Beach City Commission voted on first reading on Jan. 8 to create an ordinance establishing a Renewal & Replacement (R&R) fund intended to smooth budgeting for capital maintenance and replacement.

City budgeting staff and the city manager explained the proposed ordinance will replace the city’s current ‘‘pay-as-you-go’’ approach with a multi-year planning policy recommended by the Government Finance Officers Association. Natasha Mazze (identified as budgeting/grant monitoring director in the meeting) told commissioners the city has roughly $82 million in aging capital assets and that the R&R fund was launched in 2022 with an initial allocation of $1.5 million. Through fiscal 2025, staff said the fund will total about $3.5 million after additional allocations and investment earnings.

Key features of the ordinance include codifying the R&R fund, requiring 25-year replacement schedules aligned to asset lifecycles, and authorizing that any transfers out of the fund require commission approval by ordinance. Mazze said schedules would be provided for categories including technology, facilities, fire and police equipment, parks and open spaces; the city will transition schedules from a five-year to a 25-year basis and finalize full program integration by October of the fiscal year.

Mayor Joy Cooper and City Manager Dr. Earl described the R&R fund as a measure to reduce future budget volatility and to prevent unfunded maintenance liabilities from being deferred to later administrations. The manager said the policy also limits the ability of future managers to move funds without commission visibility.

On a motion and second, the commission approved first reading; the roll call recorded three commissioners present and voting for the measure and one commissioner absent, with first-reading approval recorded as 4-0 in the transcript. Staff said the ordinance will return for second reading in February and that departments will finalize 25-year schedules for integration into the next budget cycle.

Commissioners asked about replacement-life assumptions and how the city sets a replacement schedule for items such as roofs, playground equipment and HVAC systems; staff replied schedules will start with industry standards and then be adjusted based on local conditions such as saltwater exposure. The commission approved first reading and set a second reading date in February.