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Cocoa Beach staff warn FY27 budget still needs cuts after capital fund closure reduced reserves
Summary
City staff told commissioners that closing the capital projects fund and absorbing its $6.9M shortfall lowered general-fund reserves from about $18M to roughly $12M; staff reported an $800,000 operating gap for FY27 (about $1.4M if a pending golf-cart lease is included) and outlined further CIP deferrals and grant-dependent projects.
Cocoa Beach officials on Tuesday outlined the scale of work needed to deliver a responsible fiscal-year 2027 budget after the city closed a capital projects fund that carried a roughly $6.9 million deficit.
Hannah, the staff presenter, said the 310 capital projects fund was closed under resolution 2025-21 and that the closure required the general fund to absorb the shortfall. That accounting change reduced the city’s general-fund reserve from about $18 million to roughly $12 million, she said, and triggered reserve calculations tied to ordinance 1681 (adopted 2023) that require annual commitments of 19% for emergency reserves and 4% for non‑committed reserves.
Staff told commissioners that after several rounds of internal cuts—about $5 million across capital and operating requests—projected reserves for FY27 are roughly $10–10.5 million, which meets the ordinance thresholds but leaves an operating gap. Hannah said current department inputs show expenses exceed revenues by about $800,000; commissioners noted a separate golf‑cart lease under rebid could add roughly $550,000–$600,000 to the tally if awarded, bringing the gap near $1.4 million.
Commissioners pressed staff for more detail on items that had been deferred and where additional cuts could be made. Staff said some capital projects were pushed to FY28 to preserve reserves. Commissioners also questioned prior management decisions that had allowed capital funds to be used in ways one commissioner described as contrary to commission direction; that speaker said the situation was not the fault of current staff.
The workshop included a department-by-department review of the five-year capital improvement plan, with staff noting which projects have partial grant funding flagged in the CIP slides and the Naviline reports on the agenda. Projects discussed included seawall and street paving phases, park designs, fire station replacement planning, generator replacements, and fleet refreshes.
The next formal step is a second budget workshop; staff said they will return with updated numbers after additional commissioner direction and the outcome of the golf-cart RFP. The commission also expects to set the tentative millage and related budget actions at a July 16 meeting.
