Coconut Creek outlines FY2026 priorities and signals up to 9% water rate increase

Coconut Creek city staff told a small group of residents at a budget town hall that the city plans to propose a cautious fiscal year 2026 budget that keeps the current millage rate steady while advancing major capital projects and addressing rising utility costs.

The presentation, led by Veronica Munoz, budget and grants manager, and Petey (Petey) Gay Lake, director of finance and administrative services, summarized revenues and expenses, recent grant awards, major upcoming capital projects and a potential water and wastewater rate increase of up to 9% driven by higher costs charged to the city by Broward County. "Coconut Creek continues to provide exceptional, responsive, and sustainable services for the Coconut Creek community," Munoz said during the town hall.

Why it matters: the city’s budget choices determine funding for police, fire, parks and public works and affect household bills through assessments and utility rates. Staff said residents will have an opportunity to comment before the commission votes on an ordinance authorizing the water and wastewater rate adjustment at an upcoming commission meeting.

Key fiscal points - Property values and millage: Staff reported a 7.22% increase in taxable home values for fiscal year 2025 and said the city's current millage rate is 6.8988. Based on information available at the town hall, staff did not anticipate recommending an increase to the millage rate for fiscal year 2026. The city noted property taxes account for roughly 32% of general fund revenue. - Revenue mix and trends: Demand-driven revenues such as sales taxes and some fees have stabilized or declined for fiscal year 2025, in part because of recent state sales tax exemptions and holidays. Intergovernmental revenue (grants and surtax) and charges for services make up other meaningful shares of the general fund, and the city is using appropriated fund balance as one stabilization source. - Grants and outside funding: Staff said the city received approximately $963,000 to support a body-worn camera program and $75,000 toward a wastewater infrastructure project, along with state and federal grants for traffic safety and impaired-driving prevention programs. - Seminole Tribe agreements: Staff said the city has two agreements with the Seminole Tribe of Florida — a municipal services agreement and a mitigation agreement — that together yield about $7,600,000 annually; those funds are used for capital improvements, professional services related to the Main Street area and as a debt service repayment source.

Capital and program priorities - Major projects on the planning horizon include Fire Station 113, police department improvements, the Main Street civic space (including a Village Green Park and Lakeside Plaza) and phases of the parks and recreation master plan. The parks plan was estimated at about $42,000,000 over a 10–15 year timeframe. - Neighborhood and transportation projects highlighted include the South Creek neighborhood improvements (traffic calming, roadway resurfacing, bridge and drainage work) and Sample Road pathway construction tied to Broward County surtax funding. Design for South Creek was slated for fiscal year 2026 with construction anticipated in fiscal year 2028.

Utility rates and timing - Water and wastewater: Staff said Broward County raised rates charged to municipalities last year (a blended increase staff described at about 9%) because of higher electric, flood removal and chemical costs. To recoup those costs, the city is considering an ordinance that would allow up to a 9% increase to water and wastewater rates; staff said the commission is scheduled to vote on that ordinance at a meeting on Thursday evening (date not specified at the town hall). Staff also said the effective ordinance date is being pushed from the usual April 1 to June 1 for additional resident notice. - Fire assessment and stormwater: Under the city’s current ordinance, the annual fire assessment may be increased by up to 10% per year (the actual recommended amount will be determined during the budget process). The city’s stormwater charge is currently $5.08 per month and increases annually by CPI.

Budget calendar and public input - Staff said the county property appraiser certifies taxable value by July 1; the proposed budget must be presented to the commission in August (staff referenced an August 12 workshop to review the proposed budget); first and second public hearings were scheduled for Sept. 15 and Sept. 20 at 6 p.m.; and the new fiscal year would begin Oct. 1. Staff emphasized that the town hall was informational and that the commission will vote on any ordinance changes. - Staff invited residents to submit input via forms available at the meeting, to stay for follow-up questions after the event, or to attend the commission meeting where the formal vote will occur.

What staff did not decide at the meeting - Staff did not adopt the FY2026 budget at the town hall. No formal votes were taken during the meeting. Specific rate and fee increases (exact percentage for the fire assessment, final solid-waste adjustments tied to a contract CPI clause, and the final water/wastewater percentage up to 9%) were described as proposals that staff will evaluate and bring to the commission for action.

For more information: staff provided contact details at the meeting and said budget documents and the public hearing schedule will be published before the commission hearings.