The committee’s conversation on the preliminary operating budget revealed a positive fiscal outlook due to the surplus. However, the discussion quickly shifted to matters of the city’s capital projects and their funding. The committee’s support for the proposed policy changes to address capital needs highlighted the urgency of finding solutions for the city’s unfunded capital projects, which include various infrastructure and improvement initiatives.

A major part of the meeting revolved around the unfunded capital projects, which pose a challenge to the city’s finance department. The committee examined the capital program’s unfunded needs, which stem primarily from restricted funding sources. Efforts to blend departmental priorities and allocate available funding were discussed, with an emphasis on prioritizing high-need projects and matching funds for projects with grants. There was mention of an additional allocation of $3.3 million for four projects that were not initially recommended for funding.

The committee also evaluated the prospect of the Convention Center Hotel and its potential impact on future city funding, with more updates expected in July. The resort tax budget was another topic of concern, showing a decline of $4.6 million from the previous year’s budget. In anticipation of next year’s surplus, the committee stressed the importance of preparing for union contract renegotiations and the financial implications of potential compensation and benefits increases for union employees.

The meeting delved into discussions about specific capital projects, including a Pedestrian compact at the East of Dunes and capital veneer replacement projects. A feasibility study was recommended for the former, while the latter showed a significant funding gap, with $7.9 million requested but only $3.9 million recommended. The committee also reviewed Pigo funding, which generated revenues and had several projects recommended for funding, including the Lincoln Road Street end railings, water quality improvements around Park View Island, and Miami Beach Drive improvements.

The capital replacement program, which had been allocated $3.9 million, became a subject of analysis, along with the Resort tax quality of life funds, which had specific projects recommended in South Beach and Mid Beach. The surplus generated by the golf course was proposed to be kept for its own capital project, with discussions on whether this could become a policy decision for future years.

Further topics included budget recommendations for lifeguard stands, landscape areas, and parking facility renewals. The parking fund was reported to have over $6 million in surpluses, with a substantial amount recommended for the renewal and replacement of existing assets. Transportation-related projects were also on the agenda, with recommendations for funding bike lanes and pedestrian paths. The committee addressed resiliency projects, focusing on water, sewer, and stormwater, and acknowledged the need for a Declaration of Intent to issue $85 million for a large Pump Station.

Public comments injected additional concerns into the meeting, with residents voicing unease over declining resort tax revenue and increasing utility billing rates. Issues were raised regarding the allocation of funds for police roll-up garage doors and AC replacements at historic City Hall. A community concern was the unauthorized construction of additional docks at The Ritz Carlton Residences, prompting discussions on budget allocation for additional marine patrol and the consideration of litigation to resolve the covenant breach.