Loxahatchee Groves finance advisers flag large shortfalls; manager proposes $4.5M budget, assessment and cuts to close gap

The Town of Loxahatchee Groves’ finance consultant and staff told the Finance Advisory Committee on Tuesday that the town faces a material budget gap driven by timing of revenues, unpaid FEMA reimbursements and higher-than-expected legal and personnel costs, and they presented a draft FY2026 budget built on conservative revenue assumptions.

The presentation by David Delena, the town’s finance consultant, outlined an estimated $4.53 million in general‑fund sources for 2026 and proposed total town expenditures of roughly $8.89 million across funds. “The farthest column to the right, I’m anticipating revenues to go up by 4.9,” Delena said, summarizing his revenue assumptions, and noted that transfers to capital will be far smaller than in recent years.

The nut graf: The committee learned that the town’s operating picture is affected by three main factors: (1) the timing of ad valorem tax receipts and outstanding FEMA reimbursements that staff say should be recorded as receivables; (2) legal expenses that have exceeded recent budgets and prompted a $231,000 budget amendment; and (3) reduced one‑time revenues such as local option sales tax (LOST) and ARPA/CARES funding. Those factors, staff said, create what they called a structural imbalance that would leave the town with limited funds for capital projects unless revenues are increased or spending cut.

Delena emphasized the difference between a straight‑line comparison and the staff’s year‑end estimate. He told the committee the packet shows “budget to June” (9/12ths) vs. “actuals to June” and that some…