West Palm Beach administrator unveils $282.8 million FY26 general fund balanced budget and urges no millage cut

City Administrator Faye Johnson presented a proposed FY26 general fund balanced budget of $282,847,804 at the July 22 budget work session, and asked the commission to retain the current millage rate of 8.1308 rather than enact a millage reduction.

Johnson told the commission the proposed budget is balanced on paper and complies with “Florida statute requirements section 166-2412,” but that the city faces a gap between new recurring revenues and new recurring expenditures. She said FY26 includes $18.8 million in new general-fund revenue and $23.2 million in new expenditures, producing a $4.3 million gap between recurring revenue and recurring obligations.

The nut of Johnson’s presentation was that the budget prioritizes public safety while preserving quality-of-life services and strengthening internal governance. She said the city will use a mix of recurring revenue and one-time funds to reconcile above-base requests: $8.0 million of above-base items are proposed for the operating budget and Johnson proposed funding $4.3 million of remaining above-base operating requests from one-time dollars rather than layoffs.

Johnson described the city’s revenue picture, noting an estimated $42 million in property-tax–related revenue generated within city boundaries but explaining that 72% of that goes to other taxing authorities and only about 28%—roughly $11.6 million—flows to the city’s General Fund. She identified four major General Fund revenue categories: property tax (the largest share), charges for services (19.2%), other taxes/licenses/permits (15%), and intergovernmental (11.2%). She also cited a 9.4% growth in property values on the current roll that underlies the $11.6 million property-tax revenue estimate.

To close the operating gap, Johnson outlined several operational adjustments and offsets: reallocating $1.0 million in the road-paving partnership with the Community Redevelopment Agency (CRA), reducing police overtime from $4.0 million to $2.0 million (see separate article on police), and using $5.0 million of unobligated revenue along with $3.0 million of operational adjustments to cover part of the above-base requests. She proposed that vehicle purchases tied to police collective bargaining requirements and one fire vehicle—about $4.3 million—be funded from one-time dollars so they do not add to recurring operating costs.

Johnson also asked the commission to retain the current millage rate (8.1308), arguing it provides flexibility if state or legislative changes affect property-tax revenues. Staff presented a millage-reduction scenario table showing that a 0.11-mill reduction would reduce city revenue by about $2.0 million and lower the tax bill on a $500,000 home by approximately $55.

Johnson outlined the schedule and process: the presentation will be followed by community budget meetings, an Aug. 11 mayor/commission workshop on infrastructure and CIP matters, the first public hearing on Sept. 8 (an evening meeting covering all funds), a second adoption hearing later in September, and an effective date of Oct. 1 for FY26.

Commissioners asked for more line‑item detail on quality‑of‑life and economic development programs and asked staff to circulate the slide deck and any follow-up analysis in advance of future work sessions. Johnson agreed to provide written follow-ups and to distribute requested details to all commissioners.

The city administrator closed the presentation by formally requesting the commission (1) retain the current millage rate, (2) support the proposed FY26 general fund balanced budget, and (3) authorize the one-time funding plan for the $4.3 million in police vehicle and related costs.