Lauderhill outlines lean FY2027 budget and warns homestead-exemption referendum could force staff cuts

City Manager Kenny Hobbs presented the proposed FY2027 budget at the commission'9s July workshop, telling commissioners the administration has already started trimming costs but still faces a significant gap between projected revenues and required expenditures.

"We've already started making adjustments to our expenditures in light of revenues actually slowing down over the last year or two," Hobbs said, outlining measures that include ending some contracts and bringing services such as landscaping and LPAC management in‑house. The proposal includes a 0.10‑mill rollback, lowering the city'9s proposed millage from 7.4998 to 7.3998.

Hobbs and finance staff said built‑in cost increases — including contractual pay steps, a projected $2.5 million rise in pension costs and higher insurance and maintenance contracts — total roughly $8.8 million. Finance staff Sean and Don described how one‑time revenues (including PFAS settlement proceeds) help this fiscal year but are not recurring.

"We see about $2,300,000 in salary increases, close to $2,500,000 in pension costs, and roughly $2,500,000 tied to health insurance and benefits," Sean said. Don added that while property values produced an estimated $2.0 million in new revenue this year, the millage rollback eats most of that gain and leaves the city with a shortfall.

Staff gave commissioners a range of options to close the gap: raising rates and fees that are within local control (for example, fire protection or user fees), freezing or reducing salaries, eliminating positions (Hobbs identified 16 administrative positions proposed for elimination with the possibility of that number rising to 20), or raising the property tax rate on non‑homestead properties within statutory limits. Hobbs said the administration must present a plan to show a possible 10% budget reduction in January 2027 under legislative direction regardless of the referendum outcome.

The workshop focused heavily on a state homestead‑exemption measure that staff said would have a disproportionate effect on Lauderhill. Don summarized Broward County appraiser estimates showing a possible 16.8% reduction in Lauderhill'9s property tax base in 2027 and 7.2% in 2028, which staff quantified as about $8.8 million over two years.

"If that passes, cities will either increase non‑homestead rates, raise fees, or cut staffing and services," Don said. "Given that public safety accounts for roughly 40% of the general fund, it will be very difficult — if not impossible — to make up this revenue shortfall without affecting public safety."

Commissioners pressed staff about reserve levels, Tyler Munis implementation delays and how the city would balance competing priorities. Vice Mayor Campbell urged that if sacrifices are required, elected officials should lead by example; several commissioners signaled they would consider reducing elected officials'9 pay if staff COLAs were cut.

What happens next: staff said departments will continue line‑by‑line reviews and return with more detailed options during the September budget reconciliation and a required midyear review. The commission did not take a final vote at the workshop; formal budget adoption will follow the public hearings required by the charter.

(Reporting note: quotations and numerical figures are taken from the July 1 budget workshop presentation and are attributed to the speakers who made them.)