Miami Beach reports roughly $100 million unfunded water/sewer projects; officials flag future rate and bond implications

City staff told the Finance and Economic Resiliency Committee that FY26 requests for water and sewer projects total about $105 million, with roughly $5.3 million available (largely earned interest on bond proceeds), leaving on the order of $100 million in unfunded water and sewer projects. Staff said FY27 needs are larger: water and sewer requests of about $116.3 million and stormwater needs of about $123.7 million were discussed as coming in the next fiscal year.

Jason (budget staff) and other presenters said staff recommended tapping $14.9 million of a $15.7 million water and sewer capital replacement reserve in FY26 to fund the most critical public works priorities while the city prepares rate and bond discussions. The administration explained that water, sewer and stormwater capital programs are typically funded through revenue bonds tied to utility rates; therefore advancing those projects will likely require rate adjustments and bond issuance.

Staff also identified high‑priority utility projects to fund in FY26: utility relocations associated with FDOT work on Alton Road/First Street corridors, consent degree obligations, and rehabilitation of several high‑priority pump stations (Mount Sinai wastewater pump station; Terminal Island and Bell Island water pump stations).

Why it matters: unfunded utility needs affect resiliency and service reliability. Staff said decisions about these projects have near‑term financial consequences because bond financing and utility rate policy are closely linked.

Next steps: staff said they will return with a utility rate and bond discussion in coming months and that additional projects could be funded if FY26 year‑end surpluses become available or if commissioners direct different priorities.