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Highland Beach rolls out preliminary FY2026 budget, holds millage and prioritizes capital projects
Summary
Town staff presented a preliminary fiscal 2026 budget that keeps the millage rate at 3.5875 while shifting more cash to capital projects including a marine dock, police security improvements and sanitary sewer lining; staff proposed a 5% water/sewer rate increase and a 12.3% cut in building-permit fees.
Town of Highland Beach staff presented a preliminary fiscal year 2026 operating budget on June 17, saying the town would keep its millage rate at 3.5875 while funding a slate of capital projects and modest rate changes.
The finance presentation, led by David (staff member, finance), framed FY2026 as “about capital,” listing a $2.6 million general-fund capital program that includes a marine dock facility, security and entrance work for the police facility, repairs and work on the old fire station, and bridge/road repairs on Bellido. Town staff also proposed a 5% across‑the‑board water and sewer rate increase and a 12.3% reduction in building-permit fees to bring the building fund into a statutorily compliant balance.
Why it matters: Staff said the town’s financial position is strong after a 6.7% increase in property values from the county property appraiser, allowing the commission to fund near-term capital needs without raising the millage. Staff presented a multi‑fund package that combined general, building, water and sewer funds; across all funds staff gave an “all‑in” budget total in the low $30‑million range and said the plan would require drawing on some reserves in FY2026 to accelerate projects that otherwise would be phased later.
Most important facts first: David told the commission that maintaining the current millage level was feasible because property valuations rose more than staff had estimated. The proposed general‑fund budget showed a roughly $1 million increase in total general‑fund spending (staff’s preliminary figure) driven largely by capital outlays; staff plan to use a portion of reserves to pay cash for projects rather than issue new debt. Specific amounts cited included a $2.6 million capital outlay line for the marine dock and related projects and a planned sewer‑lining program financed through the water/sewer fund.
Other details and background: Staff walked commissioners through fund balances and days of cash on hand. The water fund’s net position was described as dropping from about 144 days to an estimated 54 days of cash in FY2026 while still being supported operationally; the sewer fund was shown falling from roughly 417 days to about 125 days in the proposed plan as lining and lift‑station work proceeds. Staff proposed increasing the fire sinking fund from $250,000 toward $500,000 over time to cover future apparatus purchases. Building‑department reserves, which had grown over several years, will be partially spent on capital (roofs, chillers, IT upgrades and entrance work) while permit fees would be reduced 12.3% to meet state expectations on fund balances.
Process, timing and next steps: Staff described the schedule and legal deadlines: the town will transmit a proposed maximum millage to the state by July 15, present the budget to the Financial Advisory Board on June 25, and hold public hearings in September (staff cited public hearings on Sept. 2 and Sept. 18) before a final adoption. David repeatedly described the budget as “preliminary” and said assumptions (insurance, health care and negotiated labor changes) will be revisited as more information arrives. Staff also told the commission they expect to bring a sewer‑lining contract for commission consideration in mid‑July.
What commissioners said: Commissioners praised the presentation’s conservatism and the commission’s ability to fund capital from reserves rather than borrowing. Several commissioners asked clarifying questions about the reserve projections, the calculation of fund‑balance percentages and timing for capital work; staff responded that some projects may require mid‑year budget amendments as designs complete and bids return.
Ending: Staff recommended the commission keep the millage steady and proceed with the preliminary budget process; the commission did not vote on the budget that night but directed staff to continue the public review and to present the formal maximum‑millage resolution and public‑hearing schedule in July.
