FY 2026 Tentative Budget Workshop with Budget Advisory Board - August 19, 2025
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FY 2026 Tentative Budget Workshop with Budget Advisory Board
The City Commission of Fort Lauderdale held a joint workshop with the Budget Advisory Board (BAB) on August 19, 2025, to review the Fiscal Year 2025/2026 Tentative Budget. The meeting featured presentations from the BAB Chair, City Manager, Office of Management and Budget (OMB), and City Auditor. Key topics included the 8.5% increase in ad valorem revenue, the proposed reorganization creating six new departments, and an audit review identifying several areas of concern. Commissioner Herbst was absent. The BAB Chair recognized outgoing member Pratik Patel for six and a half years of service.
Public Comments & Testimony
- No members of the public spoke during the workshop. BAB Chair Brown noted that public engagement during the budget process remains low, with only three attendees from Sailboat Bend at one meeting, despite outreach efforts such as the Balancing Act online tool.
Discussion Items
- FY 2026 Tentative Budget Highlights (BUS-1): OMB Director Laura Reese presented the all-funds operating budget of $1.2 billion (0.1% increase), with the general fund at $520.5 million. Ad valorem revenue increased to 8.5% ($18 million), driven by $1.12 billion in new construction. The average single-family home will see a $183 total increase ($74 for millage, -$15 for voter-approved debt, $49 for stormwater, $75 for fire assessment) equating to $15 per month. The budget maintains the current millage rate and uses one-time revenues (including PFAS settlement) for capital projects. A $4.8 million emergency reserve from the PFAS settlement will be proposed as a budget amendment in October.
- Reorganization: Assistant City Manager Yvette Matthews presented the reorganization, creating six new departments: Capital Projects, Community Services, Procurement Services, Utility Services, Strategic Communications, and Executive Airport. The Capital Projects Department will initially oversee parks, bond, and transportation projects, with plans to absorb public works project management later. The structure aims to improve accountability and project delivery. The BAB expressed support for the reorganization, praising efficiency and accountability.
- City Manager Comments: City Manager Williams emphasized the budget as the key policy document, noted tentative agreements with Teamsters and Federation unions, and highlighted that the reorganization reallocates existing resources without salary increases for new department heads.
- City Auditor Review (BUS-2): City Auditor Patrick Reilly presented six areas of concern: 1) ERP system (Infor) cost escalation and incomplete implementation; 2) Overtime underfunding (police underfunded by $5.4M in FY25, only $2M added for FY26); 3) Capital project delays increasing costs; 4) Reserve fund balance (approximately $14M over the 25% threshold); 5) Union negotiation delays leading to retroactive pay; 6) Unexplained budget balance related to FIFA World Cup funds reallocated to homeless initiatives. Management responses were accepted by the auditor.
- Nonprofit Funding: Commissioner Beasley-Pittman requested a detailed list of nonprofit allocations. OMB Director Reese listed 18 organizations, including $500,000 for NSU Art Museum, $330,000 for Miami Rescue Mission, $309,000 for Riverwalk activation, and $135,000 for Fort Lauderdale Historic Society. Funding levels are similar to previous years.
- Huizenga Park Contribution: The Mayor questioned the $100,000 annual contribution to Huizenga Park while construction is ongoing. OMB Director Reese explained it is part of a multi-year agreement. The Mayor requested a review of how funds were used and future plans, and the city manager agreed to follow up with the DDA.
- Property Tax Elimination Concern: Commissioner Glassman raised concerns about a potential statewide ballot initiative to eliminate property taxes, noting it would create a severe budget gap. The city manager confirmed the public affairs team is monitoring the issue.
Key Outcomes
- The BAB passed a motion in support of the city manager's tentative budget on August 13, 2025, and reaffirmed that support during the workshop.
- The BAB requested continued involvement in: 1) setting policy for the emergency reserve, 2) enhancing revenues and reducing expenses for FY2027, 3) identifying alternatives for balancing future budgets, and 4) improving public engagement on the budget.
- The city auditor concluded the FY2026 proposed budget is balanced, complies with Florida statutes, and funds the commission's annual action plan priorities.
- Three BAB vacancies (District 1, 3, and 4) will need appointments due to term limits and a resignation.
- The next joint workshop with the Commission and BAB is scheduled for spring 2026.
Meeting Transcript
Good morning, everybody, and uh thank you for your patience. I was uh unexpected. The first uh first appearance of the commission and the community together since our summer break, and I want to thank you all. I hope you all had a great uh uh summer so far. And uh, and I know today we um have a lot to talk about, and I want to appreciate all the members of the budget advisory board for being here and uh for taking time out of your day and throughout the the year for making um the effort to try to come to terms with the budget that we all try to um make sure that uh we all work in the best interest of the community. Um before we begin, I just want to announce that Commissioner Herbst has indicated he will not be attending today's budget hearing, nor will he be attending today's conference meeting, nor will he be attending tonight's evening meeting. Uh so he will not be uh here today to participate. Um so if I could please ask the clerk to please call the role with regard to the budget advisory board. Chair Brown, Vice Chair Milroy, uh Norbert Bells, Ross Camarada, uh Levier Call. Kelly Rich Dirolamo, Deser H. I. Smith. Probably Patel. Melinda Booker. Thank you. And would you please call the role of the city commission? Commissioner Glassman? Here. Commissioner Beasley Pittman? Yeah. Commissioner Sorensen? Here, Mayor Trentos. Here. So we have a uh quorum for the city commission. I believe we have a quorum for the budget advisory board, and uh so I'll now turn it over to the budget advisory board for a further presentation. Mr. Brown. Good morning, uh Mayor, Vice uh members of the Commission. Uh, thank you for the opportunity to allow us to become come before you today. Um before we get started, though, I just wanted to inform the commission that we will have two members uh coming off the board. They're they're termed out. Say it isn't so. And I understand that there's a presentation that yes to be made. There is a presentation. I believe Ross Camarada and uh Mr. Patel are both uh uh ending their term on the budget advisory board. Um I can only say that I know that the work has been intense, and I know that uh um that um you know you're we the city commission and the people of our community truly appreciate all the work that you've done. Um I understand that Mr. Camarado is not here today, so we do have a presentation we'd like to make for Mr. Patel. Mr. Patel, you want to join me at the podium? You're fine, Mr. Zalinski. You're fine, Mr. Zelensky. Oh, I'm sorry. Yes. So um on behalf of the city commission, and how many years did you serve on the board now? Six and a half.
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