Delray Beach outlines proposed 6.1611 millage rate, cites public-safety and inflation-driven costs

City Manager Terrence Moore and Chief Financial Officer Henry Dacouis told residents at a July 24 town hall that the City of Delray Beach plans to propose a city millage rate of 6.1611 for fiscal year 2025-26, a change from the current rate near 5.9063. The proposal is part of a draft operating plan that forecasts about $201 million in general fund resources.

Moore said the city—s proposed millage "only represent[s] about 1 third of the aggregate property tax bill," noting that the Palm Beach County School District and the county account for larger shares of most residents— total property-tax bills. The city—s general-fund forecast relies heavily on ad valorem taxes; staff estimated about $131 million of the general fund—s revenue will come from property taxes.

Why it matters: The millage affects the city portion of property tax bills and underpins funding for core services including police, fire, parks and basic operations. Moore and Dacouis framed the recommendation around rising municipal costs and efforts to identify efficiencies while maintaining service levels.

Key details from the town hall: - Proposed city millage: 6.1611 mills (city manager and CFO). Moore said this equates to $6.16 per $1,000 of assessed value. The current rate cited during the session was about 5.9063 mills. The city described last year—s position as a rollback (keeping the same revenue as the prior year). - General fund forecast: roughly $201,000,000 for FY2025-26; ad valorem taxes estimated at about $131,000,000 of that total. - Example household impact: Using an average property valuation of $447,000, staff estimated an average city share of about $2,754 for property owners (variable by exemptions and individual valuations). - Tax-bill breakdown: presenters said the Palm Beach County School District represents roughly 35% of a typical Delray Beach property-tax bill, Delray Beach about 33%, and Palm Beach County about 25%; remaining amounts go to special districts. - Public-safety and personnel costs: Moore and staff identified a planned operational change in the Fire Rescue Department: a move from a 24-on/48-off schedule to a 24-on/72-off schedule effective Oct. 1. Staff also said requirements to maintain three-person emergency medical service positions increase expenditures by more than $1 million. - Expenditure composition: Commissioners and staff noted that police and fire together account for the largest shares of the general fund (presenters cited roughly $57 million for police and $50 million for fire in budget-highlighting slides).

Staff emphasized inflationary pressures they called a "municipal rate of inflation," including personnel, equipment and capital costs. CFO Henry Dacouis described long-term assessed-value growth and how the city has sought operational efficiencies: "When assessed values go up uniformly, it doesn't matter...we work very hard to keep the expenses in line," he said.

Process and next steps: Moore said the proposed millage and budget will go before the city commission with a first public hearing scheduled Sept. 3, 2025, and a second hearing to adopt the final millage and budget on Sept. 15, 2025. TRIM notices will advise property owners of the proposed tax structure in advance.

No formal vote was taken during the town hall; staff presented the proposal and outlined steps to bring the millage and budget to the commission for formal consideration.