Broward County Budget Workshop - August 26, 2025

This workshop was the final budget workshop before the public hearings on September 4 and September 16, 2025. The County Administrator and budget staff presented the recommended FY2026-30 capital programs and general fund wrap-up. Commissioners discussed revenue challenges, spending priorities, and potential millage rate adjustments. Key topics included the transportation capital program (gas tax), the surtax program, the tourist development tax, general capital projects, and a proposed $50,000 per district funding mechanism.

Discussion Items

Transportation Capital Program (Gas Tax)

• Sunjan Zanker (OMB) presented the FY2026-30 recommended transportation capital program. Gas tax revenues have declined from a peak of $84.1 million in FY2005 to a projected $79.5 million for FY2026, with the five-year total at $378.5 million in recurring revenue plus interest and fund balance, totaling $446 million.
• Commissioner Geller requested an inflation-adjusted chart to show the real decline in purchasing power. Staff noted that since 2005, inflation has been about 86%, meaning the revenue buys roughly 56% of what it used to.
• Commissioner Bogan asked about the break-even point where cuts would be necessary. Staff responded that they are already prioritizing projects due to flat revenues and rising costs, but no critical projects have been cut.
• Commissioner Rich asked about the cause of the decline. Staff cited national statistics on EV adoption and miles traveled, but noted that the decline is primarily due to fewer gallons sold.

Surtax Program (Transportation Surtax)

• Sunjan Zanker presented the FY2026-30 surtax program. A recurring loss of $40 million annually results from the state's elimination of the commercial lease sales tax. To offset, 61 vacant transit positions were eliminated.
• The Oversight Board approved the FY2026 recommended budget on August 22, 2025.
• Total five-year revenues are $2.6 billion, including $1.4 billion in non-local matching funds and $650 million in fund balance. Appropriations total $2.57 billion, including transit capital, PRIMO projects (BRT and LRT), municipal projects ($273 million), and operating support.
• Commissioner Bogan questioned the $75 million in interest earnings, suggesting it indicates money sitting idle. Staff explained that project schedules cause delays, but interest earnings will decline as construction ramps up.
• Commissioner Fisher highlighted the importance of the Third Amendment to the Interlocal Agreement, which provides more flexibility for municipalities.
• Commissioner Geller expressed strong preference for bus system improvements over rail, citing long travel times (e.g., 2.5 hours from Lauderdale Lakes to the beach) and the need for better shelters, signage, and security. He also advocated for transit-oriented development.
• Commissioner McKenzie raised concerns about the lack of progress on commuter rail and the need for a regional approach that serves all areas.
• Commissioner Davis asked about the Miramar Parkway extension. Staff reported it is slightly behind schedule due to environmental permitting but expects construction in FY2026.
• Commissioner Rogers noted the late-night shift connect program has seen a 352% increase in ridership (from 2,000 trips in FY2024 to over 9,600 in FY2025).

Tourist Development Tax Program (TDT)

• Elijah Anderson and Stacy Ritter (Visit Lauderdale) presented the FY2026 recommended TDT program. Total revenues are $123 million, with $269.6 million in total appropriations including debt service, marketing, and capital projects.
• Occupancy and average daily rates are expected to soften due to economic pressures, but TDT collections are projected to be within 0.5% of FY2025.
• The convention center east expansion is expected to be substantially completed in fall 2025, and the headquarters hotel (Omni) is also expected to open in 2025.
• Commissioner McKenzie asked about the Air & Sea Show and Tortuga Music Festival funding. Stacy Ritter clarified that both are funded at the same level, but the city of Fort Lauderdale is considering impact fee changes that could affect Tortuga. The Air & Sea Show deliverables will be tweaked to focus on out-of-market marketing.
• Commissioner Geller raised concerns about the impact of national and state policies on international and LGBTQ+ tourism. Stacy Ritter noted Canadian tourism is down about 1%, but the destination is overwhelmingly domestic.
• Commissioner Udine supported the $1 million sponsorship for the national championship football game at Hard Rock Stadium, citing a strong return on investment.

General Capital Program

• Elijah Anderson presented the FY2026-30 general capital program. Total FY2026 recommended budget is $202.5 million, funded primarily by property taxes ($99.7 million), interest income, fund balance ($64.5 million), and a general fund transfer ($25 million).
• Major projects include $138 million for the Emergency Operations and Communication Center (EOCC), $168.5 million for the Government Center East replacement (out years), $24 million for the Broward County Cultural Center, and $9.6 million for Delavo Park drainage improvements.
• Commissioner Udine proposed reducing the general fund transfer by $2.5 million and cutting various project appropriations to offset, aiming for a millage rate reduction. He also expressed concern about the $600 million total cost estimate for the Government Center East.
• Commissioner Geller requested a realistic view of total capital needs, noting that planned spending exceeds resources. Staff explained that the general capital program is cash funding, not the full project cost, and that bonding or other methods will be used for larger projects.
• Commissioner Bogan advocated for renting or buying existing office space instead of building a new $600 million government center. Several commissioners supported a workshop to explore alternatives.

General Fund Wrap-Up and Commission Priorities

• County Administrator Monica Sapero presented the general fund recommendations. The budget maintains a 5.6690 millage rate, with a 3.1% increase in general fund spending. BSO's budget increase is just over 3%. County general fund agencies are flat (0.07% less than FY2025).
• 159 positions were eliminated across county agencies (72 in the general fund), all vacant, with no layoffs.
• The recommended budget includes $14 million in reserves for emergency preparedness and shelters (up from $8 million due to additional property tax revenue).
• A proposed $50,000 per district funding mechanism was discussed. Commissioners were divided: some supported it for district-specific events (e.g., senior resource fairs, autism walks), while others raised concerns about audit trail, public perception, and timing given recent budget cuts. No consensus was reached; the county attorney will refine the proposal.
• Commissioner Udine and others supported a small millage rate reduction (approximately $500,000 total, or 0.002 mills). Commissioner Geller, Commissioner Rich, Commissioner Rogers, and Commissioner Fisher opposed reduction, citing need for reserves and capital funding. The mayor noted that four commissioners expressed support for reduction, but a majority (six votes) is needed to pass the millage rate.

Key Outcomes

• No final votes were taken; this was a workshop.
• The public hearings are scheduled for Thursday, September 4, 2025, at 5:01 PM, and Tuesday, September 16, 2025.
• The county administrator will prepare a workshop on the Government Center East replacement project, including alternatives and cost estimates, after the design criteria package is completed (expected in about a month).
• The $50,000 per district funding proposal will be revised by the county attorney's office based on commissioner feedback, with a focus on nonprofits and proper audit trails.
• The mayor indicated that a millage rate reduction will be considered at the first public hearing, but it is not certain to pass. At least four commissioners support a reduction, but six votes are required.
• The budget team will produce a simplified tax breakdown brochure for public education.