R7G - Adopt 5-year Capital Plan, Fy26 Budget

Resolutions - R7 G

COMMISSION MEMORANDUM

5:03 p.m. First Reading Public Hearing

RECOMMENDATION

The Administration recommends that the City Commission approve the attached Resolution adopting the Tentative Capital Improvement Plan (CIP) for Fiscal Years (FY) 2026 – 2030 and adopting the Tentative Capital Budget for FY 2026.

BACKGROUND/HISTORY

The City’s annual Capital Budget contains capital project commitments to be appropriated for FY 2026. Preparation of the Capital Budget occurred simultaneously with the development of the FY 2026 – 2030 CIP and FY 2026 Operating Budget. The Capital Budget represents the budgets for both current and new capital projects necessary to improve, enhance, and maintain public facilities and infrastructure to meet the service demands of residents and visitors to the City of Miami Beach (the City). Capital reserves, debt service payments, and capital purchases found in the Operating Budget are not included in this budget. The Capital Budget for FY 2026 appropriates funding for projects that will require the commitment of funds during the fiscal year.

The CIP is an official statement of public policy regarding the City’s long-range physical development, which specifies and describes the capital project schedules and priorities for the five (5) years immediately following the City Commission’s adoption. The first year of the plan provides the funding to be appropriated in the annual Capital Budget.

The FY 2026 – 2030 CIP of the City is the five (5) year plan for public improvements and capital expenditures by the City. A capital improvement is defined as capital or "in-kind" expenditure of $25,000 or more, resulting in the acquisition, improvement, or addition to fixed assets in the form of land, buildings, or improvements more or less permanent in character, and durable equipment with a life expectancy of at least five (5) years.

The five-year CIP for the City totals approximately $1.4 billion, of which $138.7 million is proposed to be appropriated in FY 2026. The total for all projects included in the comprehensive capital plan is approximately $2.7 billion, which also includes $1.3 billion in appropriations for ongoing projects through FY 2025.

The table below summarizes the total funding requests for the FY 2026 Capital Budget, which totaled $328.1 million, the proposed funding for projects based on available dollars, and the

currently unfunded requests totaling $189.4 million (sorted by unfunded requests from largest to smallest). The unfunded requests from FY 2026 have been rolled into the programmed funding for FY 2027.

Fund

Requested

Utilities (Water/Sewer/Stormwater)

$ 121,638,559

Capital Pay As You Go (PAYGO) 78,191,905

Capital Renewal & Replacement (CRR) 25,109,527

Resort Tax Quality of Life (QOL) 18,695,449

Parking 42,754,256

Transportation

Convention Center 16,380,110

Other 22,765,564

Total

$328,069,402

Projects will address many needs across different areas of the City including neighborhood enhancements such as landscaping and sidewalk restoration, traffic calming, roadway, and bridge resurfacing and reconstruction; water, sewer, and drainage system improvements; park construction, renovations, and upgrades; the renovation of seawalls; parking lot and garage renovations; and the construction/renovation of public facilities. A detailed listing of all capital projects is provided in the FY 2026 – 2030 CIP & FY 2026 Capital Budget documents (Attachments A and B). The Capital Budget for FY 2026 will be appropriated on October 1, 2025.

ANALYSIS

APPROACH TO ADDRESS CAPITAL PROJECT GAPS

The Administration’s approach during this year’s Capital Budget development process is to fund all critical renewal and replacement projects that extend the useful life of existing City facilities and to fund as many key existing projects with budget gaps. This year’s recommendations also took into consideration the need to allocate funding to address improvements to many public- facing assets, including parks and recreation facilities, and enhancements to public safety.

FY 2026 Funding Strategies

At the June 13, 2025 Finance and Economic Resiliency Committee (FERC) Budget Briefing, the Committee accepted the Administration’s recommendation to allocate and transfer $5.0 million to the Capital Pay As You Go (PAYGO) and Capital Renewal and Replacement (CRR) funds based on FY 2025 projections and the preliminary FY 2026 General Fund budget. These transfers were recommended in order to meet the City Commission’s goal of funding 5% of the annual General Fund operating budget for capital needs in accordance with Resolution No. 2006-26341:

Proposed

Unfunded

$ 28,344,040 $ 93,294,519

25,254,398

52,937,507

5,936,384

19,173,143

8,993,715

9,701,734

34,398,256

8,356,000

2,534,032 297,773 2,236,259

16,380,110

-

19,054,564

3,711,000

$138,659,240

$189,410,162

1. General Fund Interest Income for Capital Projects Allocate 30%, or approximately $2.4 million, of the total projected FY 2026 interest income in the General Fund for one-time capital expenditures. Using General Fund interest income for one-time expenditures is a prudent financial strategy for local governments, particularly given the volatility of interest rates. Interest rates can fluctuate significantly due to economic conditions, monetary policy, and market forces. Relying on interest income for recurring expenditures is risky, as a decline in rates could lead to a shortfall in expected revenues and cause an unexpected deficit. By using interest income for one-time expenditures, the City would avoid creating budget gaps if interest income decreases.

2. FY 2025 Projected General Fund Golf Course Surplus Based on the FY 2025 Second Quarter Analysis, the Miami Beach and Normandy Shores golf courses are projected to generate a surplus of $2.6 million. It is recommended that this projected surplus be transferred to the Capital Pay-As-You-Go (PAYGO) Fund in order to allow for the partial funding of the Miami Beach Golf Course Renovation project that has a total project budget of $9.2 million, of which $3.3 million has been appropriated as of the current fiscal year.

At the second FERC Budget Briefing, held on July 11, 2025, the Committee accepted the Administration’s additional funding strategy recommendations discussed below:

3. Certified Property Values Based on the 2025 Certified Taxable Property Values provided by the Miami-Dade County Property Appraiser as of July 1, 2025, the $60.3 billion of citywide property values represent an overall increase in property values of $3.9 billion, or 6.9%, over the 2024 Certified Taxable Values of $56.4 billion. This is based on a $2.9 billion, or 5.1%, increase in existing property values and a $1.0 billion increase in new construction values.

This represents an overall increase of approximately $1.7 million over the General Fund property tax revenue projections that were based on the 2025 Preliminary Taxable Property Values provided by the Miami-Dade County Property Appraiser’s Office and reported to the Mayor and City Commission in a Letter to Commission (LTC No. 226-2025) on May 30, 2025.

This increase is comprised of an additional $1.6 million for operating purposes, $29,000 for PAYGO capital funding, and $25,000 for CRR funding for FY 2026. These additional capital funds have been incorporated in the CRR and PAYGO available funds for FY 2026.

4. Realignment of Debt Service Millage Reduction In an effort to meet the City Commission’s 5% goal of (mentioned prior), the Administration recommended realigning the reduction in the required Voted Debt Service millage rate of 0.0114 mills to the City’s dedicated CRR and PAYGO millage rates. This would result in an estimated additional increase in dedicated CRR and PAYGO totaling approximately $0.6 million in FY 2026.

In addition, based on the finalization of the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending September 30, 2024 (FY 2024), approximately $0.3 million in prior year fund balance in the General Obligation (G.O.) Debt Service Fund is available for appropriation. The Administration recommended that this available funding be appropriated in FY 2026, which would further increase the reduction in the Voted Debt Service millage rate for FY 2026 by 0.0066 mills, from 0.0114 mills to 0.0180 mills, and realign this additional decrease in the Voted Debt Service millage rate to the City’s dedicated PAYGO millage. This would result in an estimated additional increase in dedicated PAYGO funding of approximately $0.3 million to fund unfunded capital project needs.

This leads to an additional $0.7 million increase for PAYGO funding, and an additional increase of $0.2 million for CRR funding in FY 2026.

5. General Fund and Resort Tax Reserves & Surplus Based on the results of the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending September 30, 2024 (FY 2024), additional funding over and above the City’s reserve goals in both the General Fund and Resort Tax is available for appropriation in the FY 2026 budget after accounting for funding that has been approved by the Mayor and City Commission to be utilized mid-year during the current fiscal year (FY 2025). As a result, and in accordance with Resolution No. 2006-26341 that provides that one-time non-recurring revenues shall be used for capital expenditures or one-time expenditures rather than to subsidize recurring personnel, operations, and maintenance costs, the Administration recommended that these available funds be utilized in the FY 2026 General Fund and Resort Tax budgets for one-time expenditures and unfunded capital funding needs.

Fund Balance Available as of 09/30/2024 (Over and Above Reserve Goal) FY 2025 Commission-Approved Use of Fund Balance

Remaining Balance Available

After accounting for the one-time enhancements recommended for funding in the FY 2026 General Fund operating budget totaling $1.9 million, the Administration recommended transferring the remaining $2.1 million of available General Fund Reserves over and above the City’s reserve goal to the CRR and PAYGO funds.

Lastly, based on the FY 2026 Operating Budget analysis, the Administration recommended the transfer of approximately $0.6 million of FY 2026 General Fund Surplus funds resulting from the increase in property tax revenues as of July 1, 2025 to the CRR fund.

General Fund

2% Resort Tax

Total

$5,281,000 $3,652,000 $8,933,000

(1,321,000) (2,737,000) (4,058,000)

$3,960,000 $915,000 $4,875,000

The chart below summarizes the recommended transfers presented at the July 11 FERC, which includes strategies to increase transfers from the General Fund for capital funding:

Recommended Transfers to PAYGO and CRR

Transfer projected FY 2025 General Fund Golf Course Surplus (as of Q2) to Capital PAYGO for Miami Beach Golf Course Project

Allocate 30% of projected FY 2026 General Fund Interest Income for one-time capital projects to PAYGO

Additional PAYGO funding based on the July 1 increase over estimated taxable values

Adjust Dedicated CRR and PAYGO Millage Rates (based on recommended realignment of reduction of 0.0180 mills in voted debt service millage for FY 2026)

Additional CRR funding based on the July 1 increase over estimated taxable values

Transfer Excess General Fund Reserves to CRR and PAYGO

Transfer General Fund surplus from property tax revenues to CRR

These recommendations, in addition to other capital transfers included in the table below, would move the budget closer to the City Commission’s goal of funding 5% of the annual General Fund operating budget for capital needs, from approximately $15.0 million, or 3.3% in FY 2025, to $19.8 million, or 4.1%, of the FY 2026 General Fund budget. With these additional capital dollars, the Administration recommended funding the most critical unfunded capital project needs.

Adopted

FY 2022

General Fund

$354,106,000

5% Goal per Policy

17,706,000

Capital Funding:

Pay-As-You-Go Capital (PayGo)

3,741,000

Capital Renewal and Replacement (CRR)

815,000

Information Technology (IT) Tech

300,000

CRR Under $25,000

332,000

Capital Reserve

-

Sidewalk/Asphalt Renewal and Replacement

-

$5,188,000

Total

1.5%

% of General Fund

$12,518,000

Addt’l Funding Needed to Meet 5% Goal

Millage Rates:

Pay-As-You-Go Capital (PayGo)

0.0755 mills

Capital Renewal and Replacement (CRR)

0.0235 mills

$

2,576,000

2,400,000

29,000

919,000

25,000

1,874,000

554,000

Total $ 8,377,000

Adopted Adopted Adopted Proposed

FY 2023

FY 2024

FY 2025

FY 2026

$382,618,000 $427,648,000 $456,164,000 $483,409,000

19,131,000 21,383,000 22,809,000 24,171,000

3,974,000 11,145,000 8,349,000 11,234,000

1,944,000 2,170,000 4,368,000 5,760,000

300,000 300,000 300,000 300,000

326,000 1,393,000 1,144,000 1,144,000

978,000 978,000 978,000 -

- - - 360,000

$6,544,000 $15,986,000 $15,139,000 $19,776,000

1.7% 3.7% 3.3% 4.1%

$12,587,000 $5,397,000 $7,670,000 $4,395,000

0.1020 mills 0.1020 mills 0.1020 mills 0.1154 mills

0.0499 mills 0.0499 mills 0.0866 mills 0.0912 mills

FUNDING RECOMMENDATIONS

The five-year CIP detailed in Attachment A includes the City’s known capital needs for the next five (5) years. This document includes an overview of funding requests for new and existing projects, as well as available funding by source.

CAPITAL BUDGET REQUESTS SUBSEQUENT TO FERC BUDGET BRIEFINGS

Deauville Development Agreement

Subsequent to the July 11, 2025 FERC meeting, the Administration executed a development agreement, on July 17, 2025, with TMG 67 Communities, LLC, and Deauville Associates LLC regarding the property at 6701 Collins Avenue (the Deauville property) and the garage at 6625 Indian Creek Drive. The agreement memorializes certain additional public benefit commitments made by the developer, which we have since incorporated into the FY 2026 – 2030 CIP. The capital projects benefiting from this agreement are detailed below, based on the payment schedule of the development agreement:

Byron Carlyle Art & Cultural Center - $1,000,000 recommended for funding in the FY 2026 Budget - $6,500,000 programmed for funding in FY 2028

Allison Park Dog Park Improvements - $106,000 removed from FY 2026 request - $500,000 programmed for funding in FY 2027

Parkview Island Entrance Improvements - $500,000 was moved from the PAYGO Fund to the Capital Projects Not Financed by Bonds Fund, and remains programmed in FY 2027

Water & Sewer Projects Split

To enhance transparency and improve project management, the Administration has restructured larger water and sewer initiatives, such as pump stations, water mains, and force mains, into distinct, standalone projects. This approach enables more precise tracking of expenditures, facilitates clearer reporting, and supports the timely closeout of completed work. By delineating these infrastructure efforts individually, the City can better monitor progress, allocate resources efficiently, and ensure accountability throughout the capital improvement process. The projects impacted by this update include Water and Wastewater Mains and Rehabilitation; Wastewater Stations Rehabilitation; and Water Pump Stations Improvements.

OVERVIEW OF THE FY 2026 – FY 2030 FIVE-YEAR CAPITAL IMPROVEMENT PLAN

The FY 2026 – FY 2030 CIP for the City of Miami Beach is an official statement of public policy regarding effective management of capital assets and describes the capital investments in the City of Miami Beach over the next five years. The CIP has been updated to include projects that will be active from FY 2026 through FY 2030.

The CIP has also been updated to include additional funding sources that have become available, changes in project timing, and other adjustments to ongoing projects as they have become better defined, including projects that have been reconfigured, re-titled, combined with or separated from

other projects and/or project groupings. These adjustments have no fiscal or cash impact and are as a result of a comprehensive review of the program to ensure that our plan accurately reflects all project budgets, funding sources, and commitments. The plan also contains information on appropriations prior to FY 2026 for ongoing/active projects.

The following table shows a summary of the five-year CIP, from FY 2026 to FY 2030, by program area, as well as prior year funding for ongoing projects.

The graph which follows shows the major project types with funding proposed and programmed in the FY 2026 – FY 2030 CIP. The largest proposed and programmed investments are in utilities (41%), parks (12%), and street/sidewalks/streetscapes (12%).

FY 2026 - FY 2030 CAPITAL IMPROVEMENT PLAN: $1.4 BILLION

UTILITIES

6%

7%

4%

PARKS

STREETS/SIDEWALKS/STREETSCAPES

4%

GENERAL PUBLIC BUILDINGS

12%

4%

EQUIPMENT

SEAWALLS

3%

TRANSIT/TRANSPORTATION

3%

CULTURAL SERVICES

CONVENTION CENTER

4%

12%

PARKING

BRIDGES

ENVIRONMENTAL

STREET LIGHTING

COMMUNITY CENTER

GOLF COURSES

HOUSNG & URBAN DEVELOPMENT

41%

MONUMENTS

ART IN PUBLIC PLACES

OVERVIEW OF THE FY 2026 CAPITAL BUDGET (ONE-YEAR CAPITAL BUDGET)

At the June 13, 2025 and July 11, 2025 FERC Budget Briefings, the Mayor and City Commission were briefed regarding the preliminary list of projects which were being requested, including projects that the Administration proposed for funding, subject to the availability of funds. A summary of projects recommended for funding in the FY 2026 Capital Budget based on direction given by the FERC is presented below (sorted by funding source):

Capital Renewal and Replacement Fund (CRR) (Fund 125)

The proposed dedicated CRR millage of 0.0912 mills for FY 2026 reflects an increase of 0.0046 mills over the prior year’s adopted millage rate of 0.0866 mills. The proposed millage rate is estimated to generate approximately $4.7 million for the General Fund Capital Renewal and Replacement Fund based on an overall 6.9 percent increase in the City’s property values compared to the previous year’s values. This reflects a $0.5 million increase in CRR dollars available for capital projects over last year.

In addition to the revenues generated by the dedicated millage for CRR projects, the FERC accepted the Administration’s recommendation for additional transfers (previously discussed) in FY 2026 to help fund capital project gaps.

The proposed General Fund Renewal and Replacement projects for FY 2026 that are listed below, in priority order, are recommended for funding.

• • •

• • • • • • •

• • • • • • •

• • • •

Historic City Hall 90-Year Recertification - $750,000 Miami Beach Police Athletic League (PAL) Building 40-Year Certification - $100,000 210 2 nd Street Building (former Police Criminal Investigations Division Annex) 40-Year Certification (split-funded) - $201,224 Citywide Building Recertification - $300,000 Scott Rakow Youth Center (SRYC) Fire Alarm Replacement (split-funded) - $286,989 City Hall new Fire Jockey Pump - $100,000 Ocean Rescue Headquarters – new Stand-by Generator - $150,000 Fire Station # 2 - Restroom/Plumbing Renovation - $255,000 Fire Station #4 - Roof Replacement - $357,000 North Beach Oceanfront Building Shoring/Structural Repairs (UNIDAD)(additional funding – GOB) - $66,711 Fire Station #2 - Vehicle Awning Replacement - $237,357 1755 Building Chiller Repairs - $250,000 Fire Station #1 - Replace Exhaust System - $285,000 Fire Station #2 - Replace Exhaust System - $200,000 Fire Station #3 - Replace Exhaust System - $228,000 Fire Station #4 - Replace Exhaust System (split-funded) - $177,054 Miami Beach Police Department (MBPD) Firing Range Filtration System/HVAC improvements - $300,000 MBPD Headquarters Exterior Waterproofing and Paint - $500,000 Historic City Hall Exterior Windows Sealing - $250,000 Historic City Hall Energy Efficient Windows (split-funded/partial funding) - $937,128 MBPD Training Unit Tenant Improvements (South Shore Community Center) (split- funded) - $4,921

Pay-As-You-Go (PAYGO) (Fund 302)

PAYGO funds help ensure adequate ongoing reinvestment in the City’s capital assets. This funding can be used for any general government purpose and is the most flexible funding source in the Capital Budget.

During the development of the FY 2019 budget, the Commission approved a dedicated millage rate for PAYGO funding. This dedicated millage allows for the growth of this fund over time as property values increase. Prior to FY 2019, the PAYGO fund had been historically funded by the General Fund at $2.4 million annually.

The FY 2026 proposed dedicated millage of 0.1154 mills has increased from the prior year’s adopted millage rate. The proposed millage rate is estimated to generate approximately $5.9 million for the General Fund PAYGO Fund based on an overall 6.9 percent increase in the City’s property values compared to the previous year. This represents a $1.0 million increase in PAYGO dollars available for capital projects over last year.

In addition to the revenues generated by the dedicated millage for PAYGO projects, the FERC accepted the Administration’s recommendation for additional transfers (previously discussed) in FY 2026 to help fund capital project gaps. After incorporating the various funding sources/transfers, as well as $13.1 million in available PAYGO funds from prior years, the total available for Capital PAYGO projects is $25.3 million, as compared to $78.2 million in funding requested for new and existing projects. Funding recommendations represent 32.3% of funding requests in PAYGO.

The proposed capital projects recommended for funding for FY 2026 are listed below.

• • • •

MBPD Garage Flood Mitigation Improvements (grant-funded) - $1,500,000 UNIDAD Elevator – New Vestibule Area - $100,000 Normandy Shores Clubhouse Molding Façade Replacement - $255,000 North Shore Park Youth Center (NSPYC) Roof Parapet Painting/Repairs (split-funded) - $52,657 Citywide Bonded Aggregate - $350,000 Citywide Bridges - $600,000 West Avenue Phase III – (grant applied for/split-funded) - $3,977,472 FDOT Alton Road Utilities Relocation (split-funded) - $43,242 Miami Beach Golf Course Renovation (partial funding) - $2,996,000 Miami Beach Golf Clubhouse Carpet Replacement - $93,000 Normandy Shores Golf Club Range Tee Shade - $150,000 Fire Station #1 - New Facility (grant-funded/additional funding - GOB) - $13,801,948 MBPD Training Unit Tenant Improvements (South Shore Community Center) - $595,079 Marine Park (Design/Permitting/Planning) - $250,000 Alton Court Alley - $400,000 Meridian Avenue Traffic Calming (42 nd – 47 th Street) - $90,000

• • • • • • • • • • • •

Quality of Life Funds

Quality of Life funding is provided by the one percent Resort Tax on room rents, which was approved by referendum on November 3, 1992. This additional tax became effective on October 1, 1996. As part of the FY 2014 budget adoption, a fifth category for Transportation was created from the Quality of Life resort tax funds in addition to the existing allocations for the Arts, and tourism-related capital projects in North, Middle, and South Beach.

Prior to FY 2015, 50% of the third penny of Resort Tax funded the five categories above and 50% funded debt service on Redevelopment Agency (RDA) bonds as a supplemental pledge until RDA funds became available as taxable values increased over time. During FY 2015, the Resort Tax pledge from the RDA bonds was released resulting in an additional $6.1 million becoming available for funding the five (5) Quality of Life categories.

During FY 2015 the allocations were revised to provide additional funding for Transportation (45%) to increase the capacity of the trolley system and provide additional funding for capital projects in North (15%), Middle (15%), and South Beach (15%). The allocation for Arts remained at 10%.

During the FY 2019 budget process, the Finance and Economic Resiliency Committee recommended, and the City Commission approved, the revision of the allocations with an increase in the distribution to the Transportation Fund to help support the cost of the City’s trolley program.

The Transportation Fund now receives 60% of Quality of Life funds with the remaining 40% being distributed evenly among North Beach, Middle Beach, South Beach, and the Arts. These allocations have remained the same since FY 2019.

Based on the projected FY 2026 Resort Tax revenues, it is estimated that the dollars allocated to each of these funds will increase compared to last year as outlined below.

FY 2025 Adopted

North Beach Quality of Life

1,761,000

Mid Beach Quality of Life

1,761,000

South Beach Quality of Life

1,761,000

The proposed capital projects recommended for funding for FY 2026 are listed below.

Quality of Life – South Beach (Fund 305) • Ocean Rescue Headquarters 40-Year Certification - $153,000 • Botanical Gardens 60-Year Certification - $200,000 • Beachwalk Bollards Citywide (split-funded/partial funding) - $493,272 • Lifeguard Towers Cross Braces Replacement (Citywide) (split-funded) - $250,000 • Beach Showers Improvements (Citywide) - $250,000 • Mermaid Sculpture Restoration - $133,000 • South Pointe Park Community Center - $100,000 • South Pointe Park Splash Pad - $500,000 • South Pointe Park Paver Pathways - $200,000 • Citywide Park Landscaping Improvements (partial funding) - $56,064 • Citywide Street Lighting Improvements (split-funded/funding swap) - $1,000 • Smart Lighting Master Plan (split-funded/funding swap) – ($1,000)

Quality of Life – Mid Beach (Fund 306) • Citywide Street Lighting Improvements (split-funded/funding swap) - $601,000 • 41 st Street Corridor (additional funding - GOB/partial funding) - $3,170,115 • Smart Lighting Master Plan (split-funded/funding swap) – ($601,000)

FY 2026 Proposed

$ Variance

% Variance

1,791,000 30,000 1.7%

1,791,000 30,000 1.7%

1,791,000 30,000 1.7%

Quality of Life – North Beach (Fund 307) • Shane Rowing Center 40-Year Certification - $150,000 • Beachwalk Bollards Citywide (split-funded/partial funding) - $1,011,219 • Lifeguard Towers Cross Braces Replacement (Citywide/split-funded) - $250,000 • 72 nd Street Community Complex (additional funding-GOB/split-funded) - $1,955,045 • Citywide Street Lighting Improvements (split-funded/funding swap) - $601,000 • Smart Lighting Master Plan (split-funded/funding swap) – ($601,000) • Miami Beach Bandshell Stage Deck Replacement - $87,000 • Miami Beach Bandshell Restroom Renovation - $35,000

OTHER FUNDING SOURCES

The FY 2026 Capital Budget includes the following recommended projects from various funding sources as shown below.

Capital Reserve (Fund 304) • Marine Patrol Facility Replacement (additional funding - GOB) - $4,270,928

Convention Center

2015 Resort Tax Bonds (Fund 308) • Miami Beach Convention Center South Wall Repairs (split-funded) - $2,040,000 • Convention Center Roof Replacement (split-funded) - $573,583

2015 RDA Bonds (Fund 309) • Convention Center Renovation Punch List Items (funding swap) - $500,000 • Convention Center Roof Replacement (split-funded) - $504,788

Convention Center Operating (Fund 440) • Convention Center Attic Stock of Carpet for Venue - $200,000 • Convention Center Permanent/Portable Cafe 2 nd Floor - $100,000 • Convention Center Permanent/Portable Cafés Lobby - $200,000 • Convention Center Replace Exhibit Hall Light Fixtures - $2,500,000 • Convention Center Replace/Upgrade East Kitchen Equipment - $450,000 • Convention Center Additional Classroom Tables - $44,000 • Convention Center Additional 6’ Tables - $45,000 • Convention Center Digital Signage/Workstations - $688,110 • Convention Center Roof Replacement (split-funded) - $7,081,629

Convention Center Renewal & Replacement (Fund 443) • Convention Center Outside Dampers HVAC Replacement - $1,000,000 • Convention Center Restroom Partitions - $153,000 • Convention Center Point of Sale (POS) Terminals Replacement - $300,000

City Center RDA Funds

RDA City Center Renewal & Replacement (Fund 164) • City Hall Restroom Renovations (split-funded/partial funding) - $360,627

RDA City Center Capital (Fund 365) • Collins Canal Enhancement Project - $1,022,374

Parking Funds

RDA Anchor Garage (Fund 463) • 16 th Street Garage Waterproofing Traffic Coat Sealer - $500,000

RDA Penn Garage (Fund 467) via transfer from RDA Anchor Garage (Fund 463) • Pennsylvania Garage-Fire Sprinkler Renewal - $900,000

RDA Collins Park Garage (Fund 468) • Collins Park Garage Deck Waterproof Coating - $500,000

7th Street Garage (Fund 142) • 7 th Street Garage Façade Beautification - $1,020,000

Fees in Lieu of Parking (North Beach)(Fund 155) • 72 nd Street Community Complex (additional funding-GOB/split-funded) - $2,022,197

1998 Parking Debt Service (Fund 485) • Stairwell Railing Replacement (split-funded) - $122,430

2010 Parking Bonds (Fund 486) • 1755 Meridian Garage Fire Sprinkler (split-funded) - $366,000 • 17th Street Garage Bathroom Drain Repair - $50,000 • Parking Garages Stairwell Railing Replacement (split-funded) - $129,935

2015 Parking Bonds (Fund 488) • Convention Center Parking Deck Expansion Joints (split-funded) - $113,256

Parking Capital (Fund 490) • 1755 Meridian Garage Fire Sprinkler (split-funded) - $534,000 • Convention Center Parking Deck Expansion Joints (split-funded) - $3,888,480 • 1755 Meridian Garage Elevator - $640,500 • 17 th Street Garage Restroom Expansion/Upgrade - $50,000 • Parking Garages Stairwell Railing Replacement (split-funded) - $2,635 • 1755 Meridian Garage Exterior Metal Frame Restoration - $500,000 • Citywide Parking Lots Improvements Phase II - $750,000 • 72 nd Street Community Complex (additional funding-GOB/split-funded) - $21,957,823 • 5 th & Alton CCTV Camera Upgrades - $34,000 • 5 th & Alton Elevator/Escalator Replacement - $207,000 • Underground Infrastructure (Trees) (funding swap/split-funded) - $110,000

Transportation Funds

Concurrency Management & Mobility Fee (Fund 157) • West Ave Bicycle Lanes Phase II - $140,000 • Bicycle Lanes/Shared Use Path Improvements (grant-funded/split-funded/partial funding swap) - $1,118,773

Concurrency Mitigation (Fund 158) • South Pointe Drive Protected Bike Lane (this project’s scope will be completed as a part of the South of Fifth Traffic Calming project) – ($161,000)

Local Option Gas Tax (Fund 171) • Bicycle Lanes/Shared Use Path Improvements (grant-funded/split-funded/funding swap) – ($800,000)

Water & Sewer Funds

2025 Water & Sewer Bond (Fund 417) • Wastewater Station Rehabilitation (available balance redistribution to individual project) – ($2,976,415) o Sewer Pump Station 1 Rehabilitation (split-funded) - $2,976,415 • Water Pump Stations Improvements (available balance redistribution to individual project) – ($2,202,314) o Water Booster Station - 25 th Street (split-funded) - $2,202,314 • Water and Wastewater Mains Rehabilitation (available balance redistribution to individual projects) – ($25,000,000) o Force Main Replacement - Dade Boulevard micro tunnel - $4,967,295 o Fire Flow Project 14 - 65 th – 72 nd Water Main - $4,352,260 o Fire Flow Project 9-Hospital - 41 st - $4,999,458 o Water Main Replacement - Dade Boulevard - $6,491,228 o Water Main Replacement - Collins 4 th – 15 th - $4,189,759

Water & Sewer Capital (Fund 418) • FDOT Alton Rd. Utilities Relocation (split-funded) - $3,375,659 • Wastewater Stations Rehabilitation (grant-funded/split-funded)(available balance and FY 2026 proposed funding redistribution to individual projects) – ($5,008) o Sewer Pump Station 1 Rehabilitation (split-funded) - $205,008 o Sewer Pump Station 9 Rehabilitation - Mt Sinai - $4,120,000 • Water Pump Stations Improvements (grant-funded/split-funded) (available balance and FY 2026 proposed funding redistribution to individual projects) – ($52,995) o Water Booster Station - 25 th Street (split-funded) - $52,995 o Water Booster Station - Terminal Isle - $2,354,929 o Water Booster Station - Belle Isle - $3,430,000 • Wastewater Manhole Rehabilitation (split-funded) - $1,500,000 • DERM & EPA Consent Decree (split-funded) - $1,000,000 • 17 th Street Improvements Phase I – ($800,000) (project to be defunded as the City will not be moving forward with the 17 th Street road project at this time)

2017 Water & Sewer Bonds (Fund 419) • FDOT Alton Road Utilities Relocation (split-funded) - $3,717,721 • Wastewater Station Rehabilitation (available balance redistribution to individual project) – ($40,410) o Sewer Pump Station 1 Rehabilitation (split-funded) - $40,410 • Water Pump Stations Improvements (available balance redistribution to individual project) – ($3,535,243) o Water Booster Station - 75 th Street - $3,030,984 o Water Booster Station - 25 th Street (split-funded) - $504,259

2010 Water & Sewer Bonds (Fund 420) • FDOT Alton Road Utilities Relocation (split-funded) - $835

Water & Sewer Impact Fees (Fund 422) • FDOT Alton Road Utilities Relocation (split-funded) - $353,777

2006 Gulf Breeze Bond (Fund 423) • FDOT Alton Road Utilities Relocation (split-funded) - $5,227

2000 Water & Sewer Bonds (Fund 424) • FDOT Alton Road Utilities Relocation (split-funded) - $21,610

Stormwater Funds

Resiliency (Fund 112) • West Avenue Phase III (grant applied for/split-funded) - $1,578,030 • Citywide Seawall Rehab (grant-funded/split-funded) - $5,900,000

Stormwater Projects – MDC ILA Bonds (Fund 433) • West Ave Phase II (grant-funded) - $88,952 • North Shore Neighborhood Improvements (funding swap) – ($450,000) • North Shore D - Town Center (grant-funded/split-funded/funding swap) - $450,000 • Nuisance Flooding Mitigation (split-funded) - $200,000

Stormwater Capital (Fund 434) • Collins Park Ancillary Improvements (split-funded) - $1,097,300 • 17 th Street Improvements Phase I – ($1,200,000) (the utility portion of this project is to be defunded as the City will not be moving forward with the 17 th Street road project at this time) • Shane Rowing Watersport Seawall - $1,400,000

Bonds/Miscellaneous/Mixed-Use Funds

Tree Preservation Trust (Fund 127) • Underground Infrastructure (Trees) (funding swap/split-funded) - $110,000

North Beach Public Benefits (Fund 141) • North Shore Park & Youth Center (NSPYC) Roof Parapet Painting/Repairs (split-funded) - $147,343

Art In Public Places (AiPP) (Fund 147) • AiPP Annual Restoration - $75,000

Capital Projects (Non-Bond) (Fund 301) • Historic City Hall Energy Efficient Windows (split-funded/partial funding) - $62,872 • Byron Carlyle Art & Cultural Center (funded from the Deauville Development Agreement (“DA”)) - $1,000,000

1999 General Obligation Bonds – Neighborhood (Fund 376) • FDOT Alton Road Utilities Relocation (split-funded) - $465

2003 General Obligation Bonds – Fire Safety (Fund 382) • Fire Station #4 – Replacement of Exhaust System (split-funded) - $22,946

2003 General Obligation Bonds – Parks & Beaches (Fund 383) • Scott Rakow Youth Center (SRYC) Fire Alarm Replacement (split-funded) - $13,011

2003 General Obligation Bonds – Neighborhood (Fund 384) • FDOT Alton Rd. Utilities Relocation (split-funded) - $16,885

South Pointe Capital (Fund 389) • 210 2 nd Street Building (former Police Criminal Investigations Division Annex) 40-Year Certification (split-funded) - $2,776

2019 General Obligation Bonds – Neighborhood (Fund 393) • GO#40: 41 st Street Corridor (split-funded) - $76,748

2023A General Obligation Bonds – Arts & Culture (Fund 394) • ACGO#11: North Beach Oceanfront Center (split-funded) - $1,845,789

2023B General Obligation Bonds – Arts & Culture (Fund 395) • ACGO#1: Bass Museum of Art (split-funded) - $400,000

Other Enterprise and Internal Service Funds

Fleet Management (Fund 510) • FY 2026 Vehicle/Equipment Replacement - $9,587,800

IT Communications (Fund 550) • Fire Admin Building UPS System Renewal (funding swap) - $39,000

The FY 2026 - 2030 Capital Improvement Plan by Funding Summary sorts the projects in the FY 2026-2030 CIP and FY 2026 Capital Budget by funding source (revenue). As seen in the following graph, the Parking dollars not financed by bonds fund the largest portion, for parking-related capital projects, ($28.7 million, or 21%) of projects in FY 2026, followed by PAYGO dollars ($25.3 million, or 18%).

SOURCES AND USES SUMMARY

The tables which follow, summarize the proposed FY 2026 Capital Budget by funding (source) and program (use).

The FY 2026-2030 Capital Improvement Plan by Program sorts the projects in the FY 2026-2030 CIP and FY 2026 Capital Budget by program (expenditure). The largest investments in FY 2026 are in parks projects ($27.6 million, or 20%), followed by general public buildings, ($24.4 million, or 18%), and utilities ($24.0 million, or 17%).

As reflected in the table below, the City has made strides toward addressing its capital budget needs, with a goal toward mitigating future costs that can result from deferred maintenance of existing assets and improving/maintaining levels of services provided for the community.

FY 2026 proposed funding represents the highest recommended capital budget since 2017. This reflects the priority of leadership and their efforts to address the unfunded capital needs of the City. It is also important to note that mid-year FY 2024 $84.1 million of Water and Sewer funds were appropriated (excluding issuance costs) and $19.8 million in Tranche 2 Neighborhoods & Infrastructure G.O. bond projects were issued.

Total Capital Budget by Year

$88,375,796

$88,286,702

$60,181,145

$59,812,155

$48,692,422

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

GENERAL OBLIGATION BOND (2019) PROJECTS

On November 6, 2018, the citizens of the City of Miami Beach voted in favor of issuing $439 million in General Obligation bonds (G.O. Bonds) to 57 projects which would:

• •

Improve the City’s police, fire, and public safety facilities, in addition to equipment, technology, and lighting to improve security throughout the City – 11 projects totaling $36.4 million have already been issued Improve the City’s parks, recreational and cultural facilities, inclusive of playgrounds, baywalks, beachwalks, waterways, landscaping, equipment, lighting, security, and parking related to such facilities – 19 projects totaling $86.7 million have already been issued Improve the City’s neighborhoods and infrastructure, including storm water and flooding mitigation projects, sidewalk and street renovation and repairs, protected bicycle lanes, pedestrian paths, landscaping, and lighting – 8 projects totaling $28.0 million have already been issued

• •

• •

On June 26, 2024, the City Commission approved Resolution #2024-33148 accepting the FERC’s recommendation to execute a Declaration of Intent to issue the second tranche of the G.O. Bond approved by the voters.

The City Commission also approved appropriation of funding for five (5) of the Tranche 2 Neighborhood and Infrastructure G.O. Bond projects totaling $19.8 million.

$138,659,240

$115,717,202

$74,314,465

$70,413,737 $73,657,820

FY 2022

FY 2023

FY 2024

FY 2025

FY 2026 Proposed

ARTS & CULTURE GENERAL OBLIGATION BOND (2023) PROJECTS

On November 8, 2022, the voters of the City of Miami Beach approved the issuance of a not to exceed amount of $159 million in Arts & Culture General Obligation Bonds (ACGOB) for improving facilities for resiliency of arts and cultural institutions throughout the City, including museums, performance venues, artistic playgrounds, senior/cultural centers, botanical garden, aquatic sculpture park, and related artist/workforce housing (21 projects in total). At the March 31, 2023 Finance and Economic Resiliency Committee (FERC) meeting, the Committee heard input from staff and various grantees. The Committee approved a recommendation for the Arts & Culture GOB Tranche 1 of $101.7 million. At the June 28, 2023 Commission meeting, the Commission approved the issuance of Tranche 1 not to exceed the amount approved by the FERC. Tranche 1 includes both tax-exempt Series 2023A (Fund 394) and taxable Series 2023B (Fund 395) debt. Appropriation of the funds for Tranche 1 was approved at the July 26, 2023 City Commission meeting.

For more information, go to https://www.gombinfo.com/.

FISCAL IMPACT STATEMENT

See information provided above.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

See information provided above.

CONCLUSION

The Administration recommends that the Mayor and City Commission adopt the tentative Capital Improvement Plan for FY 2026 – 2030 and adopt the City of Miami Beach’s tentative Capital Budget for FY 2026, subject to a second and final public hearing on September 30, 2025, at 5:03 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3 rd Floor, Miami Beach, Florida 33139.

Attachment A – FY 2026 - 2030 Capital Improvement Plan Funding Summary Attachment B – FY 2026 - 2030 Capital Improvement Plan by Program

EC/JDG/TOS

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Management and Budget

Sponsor(s)

Co-sponsor(s)

Condensed Title

5:03 p.m. 1st Rdg PH, Adopt Tentative FY 26-30 Capital Improv Plan/Capital Budget. OMB

Previous Action (For City Clerk Use Only)