Budget & Finance Committee chair Chance Rivera urges caution on debt and warns of property-tax reform risks

Chance Rivera, chairman of the City of South Miami’s Budget & Finance Committee, presented the committee’s review of the proposed FY27 capital and operating plans and urged the Commission to be cautious about new debt and unfunded ongoing expenses. “We’re recommending [the millage] stays the same,” Rivera said, and added the committee’s theme was to monitor revenue risk and limit exposure to debt.

The committee highlighted three recurring concerns: the potential effect of statewide property tax reform on local ad valorem revenue, ongoing maintenance obligations the city may inherit, and the timing of borrowing for capital projects. Rivera said the committee saw the need for “funding tracking mechanisms” to improve transparency and to let commissioners ask targeted questions about how specific line items flow through the budget.

Rivera pointed to a $300,000 maintenance commitment tied to the Underline project for a partial fiscal year in 2027 and told commissioners the committee would prefer the city consider using its own maintenance crews rather than accepting an open-ended external maintenance obligation. He also flagged a $3.8 million building in the general obligation bond program — a project the committee recommended deferring because of unresolved issues including fire-lane requirements and incomplete financial information. “The project doesn’t seem to be ready,” Rivera said, recommending a delay until plans and costs are clearer.

Several commissioners pressed Rivera on when the committee met with the developer for the City Hall redevelopment (the transcript referenced a meeting with the developer described as “13th Floor”). Rivera said the committee reviewed the proposal after the CIP meeting but found the financial analysis incomplete and therefore advised the Commission to treat major financing decisions cautiously and to bring the committee back in as terms solidify.

Why it matters: Rivera and the committee framed the recommendations to preserve fiscal flexibility if state tax changes reduce ad valorem revenue. The committee’s advice — keep millage steady, defer readiness-dependent capital spending and track funds — is meant to protect reserves and reduce the city’s exposure if revenue falls.

Next steps: Rivera asked to be involved in future reviews of the City Hall redevelopment and other debt-funded projects as the Commission and staff refine the financial assumptions. The workshop concluded with no formal vote on the committee’s recommendations; the budget process will continue with public hearings and scheduled budget readings in September.