Miami Beach committee hears FY27 capital recommendations, warned of multi‑million dollar operating gap

Miami Beach’s Finance and Economic Resiliency Committee on June 1 held a public budget workshop that focused on preliminary capital recommendations for FY27 and the scale of reductions the city may face if property‑tax reform at the state level or a rollback millage are enacted.

Commissioner Magazine, chair of the committee, opened the meeting by saying the commission is focused on “how to spend taxpayer dollars” efficiently and asked staff for clear, public transparency about each line of spending. Jason, the city’s chief financial officer, told the committee the preliminary June 1 valuations showed a 3.5% increase in taxable values citywide and that new construction contributed roughly $500,000,000 to the total. Jason said staff will deliver certified July 1 numbers but that, under a rollback‑rate assumption with property tax revenue held flat, the city faces a baseline need to reduce expenditures by about $7.9 million to balance the budget.

Tamika, a member of the administration who presented the staff capital slides, said the retreat estimate and early modeling produced a preliminary gap near $17.7 million before June valuations; she also flagged a possible statewide constitutional amendment staff estimates could reduce city homestead property‑tax revenue by about $5.5 million in FY28 and another $4.3 million in FY29 (a roughly $10 million multi‑year impact).

The workshop concentrated on the capital program — staff said the capital request package totaled about $256 million across funds and that they recommended funding just under half of requested projects. Staff explained prioritization criteria emphasized life‑safety, critical operations and projects eligible for grants; utilities and consent‑decree obligations were singled out as high priorities.

Flamingo Park turf and drainage

The commission spent substantial time on Flamingo Park after several commissioners raised a concern: would spending roughly $1.4 million to re‑turf the stadium be wasted if the field’s underlying drainage problems remained? A commissioner asked that staff not install turf only to have to rip it up later for infrastructure work. City staff responded that this resurfacing is essentially a carpet‑style replacement that can be rolled back to allow future underground work and that typical warranties run six to seven years given heavy use.

Wilkie Perez, who identified himself as the Miami Beach head football coach, told commissioners he has trained athletes on the field for 20 years and that flooding has caused the cancellation of three games this year. "I don't have the heart to see a kid have an injury because we didn't do our part," Perez said, urging funding for a safer playing surface and expedited work. The chair asked staff to return with options and sequencing — including whether a temporary pump, staged maintenance, or a combined drainage and turf scope would be prudent — and staff committed to follow up.

Nano‑bubble pilot for water quality

Commissioners also pressed staff on a nano‑bubble pilot to address recurring nutrient and water‑quality problems in the Parkview Canal. Staff confirmed the capital allocation for the pilot is included in the stormwater program (about $1,000,000 on the capital side) and said a county permit application is pending; staff said there will be an associated operating cost and that both sides will be considered in a July update.

Conventions campus cameras and funding swap

The committee reviewed a proposed public‑safety CCTV installation in Pride Park to support event safety; staff estimated the infrastructure and camera package at about $125,000 for 13 cameras (the final scope would drive costs). Commissioners debated whether the convention center enterprise fund — which benefits when the park is packaged as a convention amenity — should pay for the system rather than PECO/PAYGO funds. Staff proposed transferring the camera allocation to the convention center fund and reassigning the prior PECO dollars to an underfunded bridge project, with a formal recommendation to return at the July 17 meeting.

AI permitting: pilot vs. full replacement

Frank Kingdon, the city’s IT director, briefed the committee on an RFQ and pilot plans for AI‑assisted permitting. Staff inserted a conservative placeholder of $9.5 million for a worst‑case full enterprise replacement (migration, licensing, custom development and multiyear support), but emphasized pilots or “wrap” solutions that augment the existing system are possible and that the RFQ responses are under technical review. Commissioners urged urgency on pilot work to deliver time savings for applicants; staff expects the evaluation committee to report back in the coming weeks and offered to return with a more defined recommendation in July or September depending on procurement timing.

Next steps and political context

Staff outlined schedule and public steps: a July 17 capital update, an operating workshop in July, a July 22 vote to set the maximum millage, two public hearings in September (first and second readings) and an October 1 fiscal‑year start. Several commissioners urged additional high‑level sessions before July to begin identifying where to find $8–18 million in savings should the constitutional amendment and rollback scenarios both materialize. The administration said it will bring a menu of options — reductions, efficiency proposals, and potential funding swaps — so the commission can make informed choices.

No formal votes were taken during the workshop; staff will return with refined July 1 valuations, follow‑up analyses on Flamingo Park drainage and turf sequencing, a recommendation on the Pride Park camera funding shift, and an update on the AI permitting RFQ process.

Ending

The chair thanked staff and the public and adjourned the workshop. The commission scheduled a July capital update and an expanded operating discussion later in July to consider rollback scenarios and policy direction.