Delray Beach sets proposed FY2026 millage at 6.1611 mills after divided commission debate

The Delray Beach City Commission on July 22 set a proposed fiscal year 2026 operating millage rate of 6.1611 mills, plus 0.0309 mills for debt service (a combined total of 6.192 mills), at a special meeting called to consider the city’s budget gap and service levels.

City Manager Terrence Moore told the commission the 6.1611 operating rate would increase projected ad valorem revenues and, together with identified efficiencies and use of reserves, would allow staff to submit a balanced proposed budget while maintaining current levels of service. "We were more dependent on any and all opportunities to identify efficiencies and operations to help streamline cost to this extent that we possibly can," Moore said during his summary.

Moore explained staff examined multiple scenarios and identified vacancy savings, attrition estimates and other cuts to reduce a multi‑million dollar shortfall. He said the recommended budget keeps the city’s fund balance within the policy range of 21%–25%, estimating a fund balance position of about 21.2% (roughly $41.5 million) under the proposal.

The commission’s discussion mixed policy and public comments about which programs should be paid from the city general fund. Several residents and business owners urged commissioners to avoid raising the millage or to shift items such as the Freebee ride service, Old School Square operations and certain signature events back to nonprofit sponsors or the downtown development authority. Christina Morrison, a former chair of the city’s financial review board, urged shifting downtown‑specific costs off the general fund: "The freebie started as a pilot program by the CRA ... it benefits only the downtown. So why isn't the downtown paying for it?" she said.

Commission members disagreed about how far cuts could go without reducing services. Vice Mayor Long supported the proposed rate, saying the roughly $10–$20 monthly change for the median assessed home was justified to preserve police, fire and road maintenance. "I would happily pay $20 a month to make sure that my roads are paved and that our police department staffed and that our fire department staffed," Long said. Commissioner Cassell, who supported the request to raise the rate last year, said she would not back deep service reductions and criticized some public messaging for understating the size of the budget gap and the location of planned vacancy savings.

Mayor Kearney proposed a substitute cap — holding the operating rate at 5.9063 mills — and led debate that emphasized shifting specific costs (parades, holiday lighting, teen center operations) out of the general fund. That substitute did not survive the final roll call. The motion to set the proposed operating millage at 6.1611 mills, plus 0.0309 mills for debt service (total 6.192 mills), passed 3–2. The roll call on the adopted rate recorded votes in favor from Vice Mayor Long, Commissioner Cassell and Commissioner Markert; Deputy Vice Mayor Burns and Mayor Kearney voted no.

Speakers raised a range of operational and budget specifics during public comment and commission discussion. Points included: the city’s long‑term commitment to convert Delray Beach Fire Rescue staffing to a 24/72 schedule and maintain three‑person EMS units (a cited cost driver); an estimated vacancy savings calculation and an attrition allowance Moore described; the teen center’s annual operating cost (public commenters and one commissioner referenced a roughly $500,000 city subsidy and said the after‑school attendance was about 13–15 children); and repeatedly stated concerns about preserving reserves for disaster response.

Moore outlined next steps: staff will provide updated proposed budget materials prior to the two required public hearings in September (first hearing Sept. 3, final hearing Sept. 15). The commission also directed attention to capital matters on the August 12 agenda, including the water treatment plant and the municipal golf course, and asked staff to continue seeking efficiencies.

The decision on a proposed millage rate at tonight’s meeting sets the number used by the Palm Beach County property appraiser for TRIM (tax notice) calculations; final adoption of the budget and millage rate remains subject to the September public hearings and any adjustments the commission adopts then.

Ending: Commissioners and staff emphasized the action is a step in the budget process: the rate adopted July 22 is the proposed (TRIM) rate and will be subject to final public hearings in September when the commission must adopt a final millage and budget.