West Palm Beach adopts $783.4 million FY26 budget; holds operating millage at 8.1308 mills

The West Palm Beach City Commission on Sept. 24 approved resolutions adopting the fiscal year 2025–26 citywide budget of $783,389,859 and set the final ad valorem operating millage rate at 8.1308 mills.

The vote approved resolution 234-25F setting the final millage and resolution 235-25F adopting the city’s FY26 annual budget. The clerk recorded “Yay” votes from Commissioners Lambert, Ward, Fox and Perduzzi; the motions were carried by roll call. (The roll call as read in the meeting transcript recorded those names and votes.)

The adopted FY26 general fund budget is balanced at $283,563,050 and the total citywide funds budget—general fund plus special revenue, debt service, capital, enterprise and internal service funds—was presented at $783,389,859. City staff reported that the city’s taxable property value rose by about $2.1 billion (9.4%), of which $614 million was attributable to new construction; the budget reflects a flat operating millage of 8.1308 mills.

City Administrator Faye Johnson summarized the final changes since the preliminary hearing, saying staff completed a review of all funds and corrected several interfund transfers and timing differences. She identified specific adjustments: a $677,490 increase in special revenue (driven by an EMS-related grant that is tied to FY26 personnel costs and was moved to FY26 to avoid timing issues), a $50,000 inclusion for the WPB Go project in the mobility cost center, an approximately $250,000 reduction in debt service due to a payment that had copied forward erroneously, a $1.6 million timing increase in capital funds (parks general obligation bond fund transfers), and an $820,000 correction in enterprise funds. Johnson described the net citywide funds increase as roughly $2.8 million, a 1.8% change versus FY25.

The presentation also listed expenditure drivers: personnel costs rose for cost-of-living adjustments, step pay increases, health insurance and public safety pension contributions, and the general fund added 49 full-time equivalent positions. Materials and services increases were shown for police equipment maintenance, contractual services, operations and facilities repair; capital outlay rose for police vehicle replacements. Staff noted that some transfers for waterfront activities moved from CRA funding into the general budget and that contingency was set to align with city policy. Johnson also noted that the budget summary required by statute was published in the Palm Beach Post as part of the record.

Commission discussion focused on the decision to maintain the millage and on plans to pursue a reduction next year. Commissioner Beduzzi said he appreciated the balanced budget but “I would have liked to have seen at least a modest, you know, a small millage reduction,” and he expressed support for the budget because of added public safety resources. Commissioner Fox said she was “disappointed as well that we’re not able to give a millage rate to our residents this year” and also emphasized the budget’s increases for police and fire. Commissioner Ward urged earlier community outreach and earlier commission engagement in the budget cycle so the commission can consider millage options before late-stage revenue figures are final.

City Administrator Faye Johnson committed to an earlier, two-track process for FY27: staff will continue the normal budget development timeline while working with commissioners on earlier work sessions to identify areas where a millage reduction could be achieved and to build consensus before final valuation figures arrive. Johnson said, “you all have my commitment to work along that line,” and advised that final property valuation information from the appraiser typically arrives on or near June 1, which constrains when a balanced final budget can be prepared.

Formal actions recorded in the meeting were the adoption of the final ad valorem millage rate (8.1308 mills operating; 0.058 mills debt service; total 8.1888 mills) by motion on resolution 234-25F and adoption of the FY26 budget by motion on resolution 235-25F. The clerk’s roll call as read in the record showed “Yay” votes from Commissioners Lambert, Ward, Fox and Perduzzi; the clerk announced that the motion carried.

Why it matters: the adopted FY26 budget funds core services, adds staffing for the general fund, and preserves current tax rates while staff and several commissioners signaled a concerted effort to pursue a possible millage reduction for FY27 by moving engagement earlier in the budget cycle.

Looking ahead, staff said they will schedule earlier work sessions and run parallel tracks—departmental budget work and commission-led budget review—to give commissioners time to consider millage-reduction scenarios once preliminary valuation data are available.