Budget Message for the 2026-2027 Fiscal Year

Published on September 16, 2026

In accordance with article IV Section 4.5 of the charter of the City of Sunny Isles Beach, we are pleased to present to you the proposed comprehensive budget and the 5-year Capital Improvement Program for FY 2026-2027.

Development of this budget reflects several months of coordinated analysis and consultation among the City Commission, City Administration, and Sunny Isles Beach residents. Consistent with the Commission’s policy direction for the upcoming fiscal year, each department evaluated the programs, service levels, staffing, and operating and capital resources required to implement that direction. The resulting budget balances community priorities with projected revenues, expenditure requirements, and long-term fiscal stability.

Our tax base saw a modest increase in value of approximately $383 million from last year, the lowest increase since 2018. Despite this slow growth, similar to the past 13 years, this year the City Commission again voted to reduce the millage rate from 1.7 to 1.6514 mils per $1,000 of assessed value. To accommodate this rate reduction while addressing higher recurring operating costs, the proposed budget prioritizes core expenditures and defers some new initiatives.

Public safety remains a primary funding priority. The budget maintains the personnel, training, equipment, and technology resources required for the Police Department to sustain accreditation standards, expand operational coverage, and enhance officer safety.

The budget also maintains high-priority community programs and events identified through resident input and service-demand analysis. Funding is concentrated on programs with the greatest community value, while program scope and delivery methods are managed to control costs.

The Comprehensive Plan and Zoning Code continues to be a work in progress with the State legislature limiting our ability to make certain changes.  Following extensive community engagement and public meetings, the City Commission approved the Vision Document for the Town Center North and the Neighborhood Business Districts.  

We will continue to monitor state directives to be ready to present future amendments to address the long-term vision for the west side of Collins Avenue when permissible.

The City continues to face external cost pressures, including construction-price escalation, limited contractor availability for maintenance and capital projects, and employee recruitment and retention challenges associated with the regional cost of living. The budget addresses these constraints by protecting essential service levels, sequencing capital and operating commitments, and reducing discretionary expenditures where operationally feasible.

For these reasons, the Capital Improvement Program (CIP) Fund includes allocations for the Central Island Drainage Project and the Bella Vista Bay Park Seawall as high-priority projects. Committed projects are a priority as well including the Atlantic Isles Bridge Rehabilitation, Citywide Security, Entrance and Monument Sign Replacements, Town Center Park renovations and the Lehman Under Park. While other projects are either deferred for future years due to phasing and funding or, like the Senator Gwen Margolis Park turf replacement, a future planned project based on the timing of the actual need, in this case, the life expectancy of the field

General Fund

The General Fund budget incorporates a property-tax millage rate of 1.6514 mills per $1,000 of taxable value, reduced from the prior rate of 1.7000 mills. The reduction is supported by a modest 3.56% increase in the City’s taxable property value, the lowest percentage increase since 2018.

This includes $288 million of property value decrease after value adjustment board changes through appeal, $554 million increase of property values due to reassessments and over $117 million of new construction added to the tax rolls in our city this year.

The revenue for the fiscal year 2026-2027 in the General Fund is $55,999,114, which represents a decrease of $988,535, or -1.7%, from the fiscal year 2025-2026 adopted budget.

The changes in various revenue categories are outlined below:

At 1.6514 mils, property tax revenues reflect a decrease of $281,160. The City’s assessed value as reported by the Property Appraiser is $19,497,738,379, which is a $383,313,011 increase over 2025-2026. The recent history of the City’s taxable values is provided below:

Franchise fees are estimated to increase by $137,000. Utility tax revenues are estimated to increase slightly by $12,000. Communications Services’ Tax revenues are expected to increase slightly by $10,000. Revenues from licenses/permits are expected to decrease by $67,000 primarily related to lower revenues for short-term property registrations to better align projected with actual revenue.

Intergovernmental revenues are expected to decrease from the prior year by $35,537 due to the state revenue sharing and local government half-cent sales taxes being lower. Charges for services are expected to decrease by $299,098 over the prior year. This is primarily due to a decrease in administrative charges of $775,353, offset by increases in parking fees of $32,633, recreational programs of $227,000, and public safety overtime reimbursements and special duty assignments of $216,622.

Fines and forfeitures are estimated to increase by $209,060 primarily due to the implementation of the red-light camera program of $284,940 and code compliance citations of $50,000 offset by reductions in parking, school crossing, school zone speeding and court fines of $125,880. Miscellaneous revenues are expected to decrease by $673,800 primarily due to the anticipated interest rate reduction for investment interest earnings and the lease expiration for the Navarro property in December 2026

The proposed General Fund budget expenditures (not including transfers out to other funds) increased to $66,744,746, which represents an increase of $4,512,197, or 7.3%, from fiscal year 2025-2026.

Expenditures have increased primarily due to: (1) additional positions and reclassifications ($1,406,030), compensation adjustments for Police raises, cost of living and merit increases ($977,893), overtime ($127,400), FICA ($169,469), retirement system contributions ($784,993), and health and other insurances ($471,308), (2) additional needs for Public Safety and Cultural & Community Services ($882,027), (3) a decrease in capital outlay needs (-$645,423), (4) an increase in debt service due to additional subscription-based IT arrangements ($266,000), and (5) an increase in other disbursements for election expenses ($72,500).

Street Maintenance and Construction Fund

Major revenue sources in the Street Maintenance and Construction Fund include intergovernmental revenues such as State Revenue Sharing, Transportation Surtax, and Local Option Fuel Tax. The fund accounts for the costs related to transportation, street construction and maintenance programs including improvements to pedestrian safety. The total budget is $10,262,836.

Building Fund

Major revenue sources in the Building Fund include fees generated from building permits and inspections. This fund accounts for the costs related to the administration and enforcement of the Building Code. Revenues, not including appropriated fund balance, are $5,424,000, a decrease of $555,499 from the prior year. Expenditures are $6,215,611, a decrease of $2,857,497 from the prior year which is due to reductions in personnel, operating and capital outlay needs. The excess of expenditures over revenues this fiscal year is funded by the carryover (fund balance) of the previous year’s revenues.

Public Art Trust Fund

This fund was created in 2014-2015 for the benefit of segregating the use of Public Art Trust Fund revenues to purchase and maintain art within the City. The total budget is $1,615,560.

Through this fund, the City has established a long-term venue for resident artwork to be displayed and shared with the community at the Gateway Artway, with new pieces added annually.

Art Uncorked, an on-going cultural initiative focuses on more cultured and curated art inspired events such as a gallery showing during Art Basel and Poetry in the Park. These initiatives continue to be funded in the coming year.

Enterprise Funds

The City has a Stormwater Operating Fund and a Stormwater Capital Projects Fund. The Stormwater Operating Fund is primarily self-supporting and has budgeted revenues of $1,411,000, which is $133,000 lower than the prior year.

This fund incurs costs to ensure compliance with the National Pollutant Discharge Elimination System Permit. Stormwater capital projects are funded by the Local Option Fuel Tax, and transfers in from the Stormwater Operating Fund, as available.

Accumulated fund balance (carryover) will be utilized for major drainage projects. The City is finalizing the design for bidding the Central Island Drainage Project to improve its stormwater pumping capacity while pursuing a Stormwater Master Plan to guide future infrastructure investments.

Capital Improvement Program

The Capital Improvement Program concentrates on the development of parks, infrastructure, and rehabilitation of our facilities including major road resurfacing, sidewalk improvements, and pedestrian safety. A capital improvement project generally exceeds $25,000 and has a useful life of five years or more. The City has been successful in leveraging City dollars to obtain grant awards and legislative appropriations for some capital projects and will continue to seek these where possible to account for the lower millage rate.

The Capital Improvement Program Fund is funded by a transfer from the General Fund, grants, impact fees, other development fees and contributions/donations.

Capital projects, which total $42,048,649 (including $29,102,134 carryover from the 2025-2026 fiscal year), are recommended, and funded by the Capital Improvement Program Fund.  All of the capital improvement projects requested and proposed for this year are fully detailed in our proposed Five-Year Capital Improvement Plan (CIP) located in the CIP section of this document. Please note that many capital projects are multi-year endeavors.

Conclusion

In closing, the Fiscal Year 2026–2027 Budget presents a comprehensive and transparent financial plan encompassing all City funds, including operating, special revenue, capital, debt service, and enterprise activities. Together, these funds support the City’s programs, services, infrastructure, and long-term obligations while advancing the priorities established through discussions with the Mayor, Vice Mayor, Commissioners, Department Directors and residents. This proposed budget reflects our continued commitment to prudent financial stewardship, responsible use of public resources, appropriate reserve levels, and a right-sized government capable of delivering the high-quality services our residents and visitors expect. We extend our sincere appreciation to the Mayor, Vice Mayor, and Commissioners for their vision and guidance, to the Finance Director Tiffany Neely and the Finance Department team for their professionalism and diligence; and to the Department Directors, staff members, and all others whose time, expertise, and collaboration made this document possible.