City Manager Moore asked the Delray Beach City Commission on July 8 to direct staff to prepare a proposed fiscal 2025–26 operating budget using a tentative millage rate of 6.1611, a midpoint of the options presented to the commission.

The request followed a detailed presentation by Henry Dackiewicz, the city’s chief financial officer, and Deputy Chief Financial Officer Carmen Aleman on a projected operating budget of $348,607,002, revenue scenarios tied to assessed-value changes, and a forecasted general-fund shortfall in the low- to mid‑$20 million range. "So we will proceed with a balanced budget consideration of 6.1611," City Manager Moore said near the end of the discussion.

The commission heard four millage scenarios: maintaining the current operating rate (5.9063 mills) and three higher options (6.0563, 6.0611 and 6.2611). Staff said the higher millage options would generate additional ad valorem revenue that, combined with vacancy/attrition assumptions and limited use of reserves, would allow restoration of some cuts and fund a $1.3 million shortfall tied to Fire Department staffing and roughly $927,000 for community redevelopment (CRA) commitments. The presentation noted an audited fund balance on Sept. 30, 2024, of $50,000,007.84 and a fund-balance policy target of about 21 percent.

Commissioners debated trade-offs between raising the millage to protect services and infrastructure and finding internal savings and new local revenues (parking, in-lieu fees, sponsorships, event fees). Vice Mayor Long and Commissioner Cassell urged deeper cuts and pursuit of non‑tax revenue sources before increasing the millage; Commissioner Markert and others said modest millage increases would stabilize police, fire and infrastructure funding. Commissioner Markert argued the highest presented rate still remained below the 2024 rate, and said the estimated difference to the average homeowner under the higher scenario was modest (commissioners cited about $13.24 per month for the largest increase scenario).

Staff flagged next steps and related meetings: a town-hall session Thursday, July 24, at 6 p.m. at the Creative Art School; a capital improvement program discussion scheduled for 3 p.m. on the following Tuesday; and the required tentative/first-and-second public hearings on the millage rate in September (staff gave the first hearing date as Tuesday, Sept. 2; the second hearing date was discussed but not specified on the record). Staff also reiterated planned enterprise fund adjustments (water and sewer rate adjustments effective Oct. 1; a sanitation rate increase effective Oct. 1 tied to franchise agreements).

Rather than a formal roll-call motion, the commission reached a working majority direction: staff will prepare a balanced budget recommendation and associated materials using 6.1611 mills as the tentative operating millage and continue to analyze and pursue operational efficiencies, potential fee adjustments and other revenue opportunities before final hearings. City Manager Moore asked commissioners to provide any additional guidance so staff could refine the proposal before the formal tentative millage is filed with the property appraiser.

The discussion repeatedly distinguished between (a) discussion only and requests for further analysis, (b) staff direction to develop scenarios and public engagement, and (c) formal action — no final adopted budget or millage was passed at the workshop. Public hearings and formal adoption remain to complete the statutory budget process.

Ending: Staff will carry the commission’s direction into the next stages of the budget cycle, with public outreach July 24 and further budget/CIP sessions through August and the September public hearings for final action.