Highland Beach previews capital‑focused FY 2026 budget; millage held at 3.5875 mills

Town of Highland Beach staff presented a preliminary Fiscal Year 2026 operating budget at the Finance Advisory Board meeting, proposing to hold the millage rate at 3.5875 mills and directing revenue growth toward capital projects rather than a lower tax rate. The presentation framed the budget as “capital focused,” with water and sewer work, a marine docking facility, crosswalk lighting and building‑fund improvements among the priorities.

The town’s taxable values rose about 6.7 percent in the update staff presented. Because roughly 73–75 percent of the town’s revenue comes from property taxes, staff said that maintaining the millage at 3.5875 mills keeps the town’s tax burden steady while capturing that assessed‑value growth to fund capital needs. Staff described the FY 2026 plan as preliminary and said several line items — notably health insurance and final personnel compensation — remain subject to change.

Why it matters: staff proposed drawing on accumulated reserves to pay for several major capital projects rather than increasing the millage. That approach affects current ratepayers and the timing of future capital work; it also prompted discussion about the building fund’s unusually large reserves and how the town should respond to state expectations for funds that “charge for services.”

Key budget assumptions and priorities - Millage: staff proposed maintaining the overall millage rate at 3.5875 mills (operating portion 3.4159 mills plus debt service for the fire department). The presenter noted that the town has kept that millage level since FY 2023. - Personnel and operating assumptions: staff used a baseline assumption of roughly a 5 percent increase in staff compensation and flagged collective bargaining for police and an anticipated bargaining request from fire personnel in 2026. - Utility rates: preliminary planning assumes a 5 percent increase for water and sewer rates (down from an earlier estimate of about 8 percent). - Theme: capital investment. The budget shifts some prior transfers-to-reserves into capital outlays to advance a list of projects identified by the board.

Major capital items highlighted - Sanitary sewer…