By Rafael Hernandez
As the fiscal year budget vote looms, the Coral Gables City Commission spent two hours Wednesday reviewing the city’s capital projects.
The Capital Workshop pored over a list of projects ranging from repairs to roads and sidewalks to park and playground upgrades and stormwater infrastructure.
However, with property tax revenue growth slowing and recurring funds dropping, city leaders made it clear they were going to have to accomplish more with less.
“It is unsustainable to say that we’re gonna do all these projects,” said Mayor Vince Lago, who left midway through the workshop for a MRI. “You’re only gonna make the noose around your neck tighter and have to make some tough decisions next year if we’re not thoughtful on how we do this this year.”
Assistant Finance Director Paula Rodriguez presented the Five-Year Capital Improvement Plan, outlining funding strategies for over 140 ongoing capital projects, some of which require additional funds to complete.
Rodriguez stressed that, while property tax revenue went up by 5.4% and earned the city $7 million in revenue, amounts dropped from the 11% and 12% of previous years. Recurring revenues available for capital projects have also fallen from $18 to $20 million to just $12.9 million in fiscal year 2025.
“We have to be very mindful of what we build into the budget this year, because I do believe in fiscal year [20]27, we will have a tighter year,” said Rodriguez.
The Capital Matrices category covers existing city assets, with $6.8 million of the $12.9 million in recurring funds allocated for their maintenance.
Proposed key expenditures included upgrades to the city’s IT infrastructure, aging vehicle fleets such as police cars and garbage trucks, and improvements to parking garages and lots. About $2.7 million was requested for IT upgrades, $4 million in fleet funds will go toward vehicle replacements, and over $2 million from parking fees and tolls will fund parking facility improvements.
Improvements to Coral Gables City Hall, which Mayor Lago has pushed for since his reelection, was marked as a priority project within the plan, and will cost the city $19.7 million in requested funds–an amount that already accounts for the shift in funds from Phillips Park approved during the May Commission meeting.
An additional $5.3 million was requested for Phillips Park renovations.
Critical projects were aimed at addressing safety concerns, including sidewalk repairs and replacements, bridge improvements, installing an emergency generator at the Coral Gables Golf & Country Club, and recertifying city facilities. $3.3 million was requested for all four projects combined.
In sum, the total amount of money requested for fiscal year 2026 was $77.7 million, of which Rodriguez said the city will be able to fund approximately 70%.
“A lot of these funds come from one-time money, so when that one-time money reduces or ceases to exist, we won’t be able to fund many of these projects,” Rodriguez said.
City leaders warned that further state-level changes, such as a potential increase in the homestead exemption, could cut city revenues by another $4 to $5 million annually as soon as next year.
