Fort Lauderdale City Commission Conference Meeting – Budget Workshop and Auditor Review - August 18, 2026

The City Commission held a joint workshop with the Budget Advisory Board (BAB) to review the tentative FY2027 budget. Staff presented updated revenue figures and a series of strategic reductions totaling $10.9 million to structurally balance the budget. The BAB unanimously endorsed the budget as presented. The City Auditor then delivered his annual review, noting the budget is balanced but highlighting concerns over police overtime, capital project delays, and ongoing union negotiations.

Consent Calendar

• No consent calendar items were discussed during this portion of the meeting.

Public Comments & Testimony

• Budget Advisory Board (BAB) Chair Bill Brown presented five key areas for future consideration: affordability, millage rate/fees, development slowdown, business‑friendly environment, and property tax reform. He noted the board unanimously endorsed the FY2027 budget as presented by staff, describing it as "realistic, responsible, balanced" with public safety and city hall costs priority.
• BAB member Olivia (unable to vote at last meeting due to travel) urged deeper structural reforms, suggesting the city should have brought more concrete savings ideas this year rather than waiting. She cautioned that city hall timing is poor and that affordability must be central. She also questioned the value of AI training without demonstrable savings.

Discussion Items

• Taxable Value Growth & Revenue Update (Laura Reese, OMB): The July 1 taxable value increased to $67.3 billion from the June estimate, providing an additional $756,000 in general fund revenue. Net new construction ($1.75 billion) was the highest in five years. For a $640,000 homestead, the city’s portion of the tax bill would increase by $180 (5.2%) due to CPI growth, voter‑approved debt reduction, stormwater assessment (+$75), and fire assessment true‑up (+$41).
• Strategic Reductions ($10.9 million): Ms. Reese detailed eight balancing strategies: revenue enhancements ($3.2 M from fire ambulance fees, interest earnings, business tax), elimination of six vacant positions ($767,000), attrition budgeting ($550,000), shifting pension bond payment timing ($2.1 M), budgeting capital interest ($2 M), ending health insurance administrative subsidy ($850,000), reducing fleet replacement charge ($882,000), cutting fire rescue overtime ($350,000), and reducing grant writing services ($250,000). These are recurring savings that prepare the city for 2028.
• Property Tax Reform & Affordability (BAB and Commissioners): Chair Brown warned that if the proposed state constitutional amendment passes (raising homestead exemption to $150,000 in 2028 and $250,000 by 2029, plus reducing non‑homestead cap), the city could lose $17 million in 2028 and $27.3 million in 2029. He noted the city’s millage rate has been flat for 20 years while other communities raised rates 36%; however, fees (fire, stormwater, utility) have increased significantly. Commissioner Herbst urged a focus on efficiency and AI rather than simply cutting services or raising fees. Commissioner Glassman asked for detailed departmental analysis to identify bloat, and Vice Mayor Sorensen emphasized the need for a robust staffing study. Mayor Trantalis noted the city’s diverse revenue sources provide some insulation compared to smaller communities.
• City Auditor’s Review (Pat Riley): The auditor confirmed the budget is balanced, priorities are funded, and the proposed millage rate complies with Florida law. He raised three areas of concern:
  1. Overtime: Police overtime is projected at $13 million in FY26, underfunded by $1.9 million; total FY27 overtime across all departments is projected at ~$26 million including FICA. The budgeted amounts may not reflect actual expenditures.
  2. Capital Improvement Plan (CIP): Delays and change orders continue to increase project costs; some park bond projects appear underfunded.
  3. General Fund Reserves: Unrestricted fund balance is 9.7% above the 25% target ($9.7 million excess), which could be used for debt reduction, pension costs, or new fire station to lower future fire assessments.
• Police Overtime & Staffing (Chief Bill Schultz): The department has 31 sworn vacancies, plus 20–30 on FMLA leave. Overtime is currently cheaper than hiring additional full‑time officers, but Chief Schultz agreed to perform a comparative analysis with similar cities (e.g., St. Petersburg) to determine if the city is understaffed. He noted the department handled FIFA World Cup events effectively despite cancelling days off.

Key Outcomes

• BAB Unanimous Endorsement: The Budget Advisory Board voted unanimously to endorse the FY2027 tentative budget as presented by staff.
• Commission Direction: The Commission acknowledged the budget and the strategic reductions. No formal vote was taken (this meeting was a workshop). The Commission will vote on the final budget at two public hearings in September.
• Ongoing Concerns: The City Manager agreed to provide the Commission with the previous exercise of a 5% across‑the‑board departmental cut scenario. Chief Schultz will deliver a sworn staffing comparison with peer cities. Union negotiations continue, with only the police union remaining; the auditor noted delays could lead to retroactive pay increases.
• Next Steps: The BAB will resume meetings in December or January after the November election determines the fate of property tax reform. The Commission’s next priority workshop is scheduled for January 2027.