Stantec presents Fort Lauderdale fiscal outlook: long‑term pressure on general fund, rising utility and stormwater costs
Loading...
Summary
Consultants from Stantec updated the Board on updated modeling incorporating the adopted FY2026 budget and CIP, forecasting near‑term general‑fund deficits, large future water/sewer costs tied to the Prospect Lake plant, and multi‑hundred‑million‑dollar stormwater bond plans.
Kyle Stevens, a partner with Stantec Consulting, presented a multi‑fund forecast for Fort Lauderdale that incorporated the adopted FY2026 budget and the capital‑improvement plan. He told the board the diagnostic baseline shows a near‑term general‑fund deficit for FY2027 and larger, recurring deficits beginning in FY2028 driven by expiring grants, pension and COLA increases, and planned new costs.
On the general fund, Stevens said the city implemented a fire‑assessment true‑up last year (roughly a $10.2 million or ~19% increase in FY2026 revenue) and is modeling periodic assessment updates. He called attention to one‑time and ongoing cost drivers, including SAFER grant expirations (about $4.6M), added expenditures tied to the new city hall (roughly $6.5M to the general fund in out‑years), and placeholders for service‑capacity growth and FTEs.
On utilities, Stevens described key water and sewer items: the Prospect Lake Water Treatment Plant will add operating costs (chemical, power, personnel) and subordinate debt/availability payments (roughly $29M starting in 2027, rising in later years). Stantec assumes continued periodic rate increases (9% near term on adopted schedule, then moving toward a long‑term 5% annual average) and anticipates the cash flow to support future debt issues.
On stormwater, Stevens summarized a master‑plan financing approach that includes a $230M Phase‑1 bond and additional planning funds, with repeated future bond issuances (examples cited for 2029, 2032, 2035) and projected annual non‑ad valorem assessment increases (15% in 2026 and double‑digit increases in several early years) to sustain debt service and operations. He said the city’s residential stormwater assessment (about $375.75 annually in the current snapshot) is in line with peer communities but noted many Florida localities are pursuing double‑digit increases to fund generational investments.
Board members asked about timing for AMI (advanced metering infrastructure) effects on revenue; staff said about 1,000 meters are installed, full rollout is expected by mid‑2027, and the model assumes modest revenue capture (1.75%) and contractual savings (~$1.4M from meter‑reader elimination) once fully implemented. Stevens said the interactive model and scenario tooling will be available for the June meeting so the board can test levers such as operating savings or different rate paths.
What happens next: Stantec and staff will return in June with an interactive model update that includes recent settlements and fund‑balance adjustments and will show scenario runs the board can use in workshop planning.
