By Coral Gables Gazette staff
Coral Gables ended the third quarter of fiscal year 2025 with overall revenues nearing 89 percent of the amended annual budget, while expenditures across departments and enterprise funds remained well below budgeted levels, according to a financial report released by the city July 31.
The report, which covers the nine months ending June 30, outlines both stability and variation across Coral Gables’ financial operations. Total citywide revenue reached $233.8 million, or 88.66% of the $263.7 million amended annual revenue budget. Total expenditures stood at $162.2 million, or 53.88% of the amended expense plan.
The city’s financial structure includes general operations, special revenue funds, and enterprise funds such as stormwater, sewer, parking, and recreation. Each area showed different trends in both revenue generation and budget execution.
Permit and fee collections remain strong
Revenues tied to development and public safety continued to perform well through the third quarter. Building permits generated $11.6 million, or 108.47% of the $10.7 million budget. Public safety-related fees reached 137.2% of their expected level, while business license revenues were at 104.4% of target.
The city has historically exceeded projections in this category. In FY2024, building permit revenue came in at more than 232% of the original forecast. The current numbers suggest continued interest in construction activity, even as growth rates appear to be moderating.
Enterprise funds post mixed results
The performance of enterprise funds varied significantly. The Stormwater Utility Fund brought in $4.4 million, or 53.5% of the $8.29 million revenue target. However, only 5.2% of the fund’s $39.9 million amended budget had been spent by June 30. The low expenditure figure reflects delays in capital project implementation, including infrastructure and drainage improvements.
The Sanitary Sewer Fund followed a similar pattern, with revenue at 54.7% and expenditures at 33.3% of its amended $20 million budget.
The Venetian Pool, typically a reliable seasonal revenue generator, reported only $26,494 in income through June—2.95% of its $900,000 target. The decline reflects its closure for renovations, which limited operations during the spring and summer.
Departmental spending remains uneven
Among city departments, spending levels varied widely. The Police Department had spent 77.9% of its $53.6 million amended budget by June, while Fire had spent 71.9% of its $48.3 million allocation. These levels were consistent with previous years and reflect full-year staffing and operational demands.
In contrast, the Community Recreation Department had used 55.1% of its $16.6 million amended budget, and Innovation & Technology had used 68.2% of its $8.3 million budget. The Economic Sustainability Department, which received a mid-year increase to $2.4 million, had used 40.6%.
The largest departmental budget increase occurred in Stormwater Utility, which was amended to $39.9 million following additional capital funding allocations. As of the end of the third quarter, the division had spent $2.1 million of that total.
Personnel costs drive mid-year amendments
Budget amendments approved earlier in the year were driven in part by labor cost increases associated with the Teamsters collective bargaining agreement, which included general employee pay raises and benefit enhancements. These changes affected nearly every department’s revised budget, increasing overall expenditures while actual spending remained behind pace.
As of June, personnel costs continued to represent the largest portion of city spending. Several capital and discretionary program budgets remained underutilized.
Parking Fund exceeds expectations
The Parking System Fund continued to be one of Coral Gables’ strongest-performing enterprise operations. It generated $17.8 million in revenue, or 85% of the annual target, while expenditures remained moderate at $6 million, or 57% of the budget. The resulting $11.8 million operating surplus and $4.4 million net income support both reinvestment and general city operations.
Valet parking revenue exceeded forecasts at 133.8% of the $120,000 goal. Multiple garages—including the Museum Garage and Andalusia Garage—also exceeded projections. The city transferred $6.1 million from the Parking Fund to the General Fund through June.
Fourth quarter outlook
Since the start of the fiscal year, the city has amended its original budget to reflect an additional $2.4 million in expected revenue and $58 million in new expenditures, much of it tied to infrastructure and personnel costs. While revenue remains on track to meet or exceed targets in several areas, actual spending on amended projects and programs varies by department.
The final quarter of FY2025 will determine whether amended expenditures are fully executed or carried forward into FY2026. The city’s financial position remains stable, supported by strong revenue collections and conservative spending across multiple departments.
