Boca Raton council adopts tentative 2025–26 budget, sets proposed millage at 3.6649 mills and releases $272 million in CIP projects

Boca Raton — The Boca Raton City Council adopted a tentative budget and proposed millage rates for the fiscal year beginning Oct. 1, 2025, and accepted a six‑year capital improvement program that includes $272 million budgeted for fiscal 2025–26. The council approved the proposed millage rate of 3.6649 mills and the tentative budget by 5–0 votes during a public hearing on Sept. 8.

OMB Director Sharon McGuire told the council the proposed budget “has not really changed” since the workshop and that staff trimmed the general fund to present a balanced budget, noting, “we were able to reduce some expenditures by about $2,000,000 in the general fund.” Financial presenters said the city did not increase the fire assessment and kept user fees largely consistent in the package presented to council.

Why this matters: The council approved a tentative spending plan that does not draw down fund balance and holds the overall millage roughly flat. The city reported a rise in taxable assessed value — hitting about $40 billion, a 7.5% increase — which helped limit pressure to raise the millage. Council and staff framed the budget as balancing recurring operating needs with a multi‑year capital plan.

Major facts and council discussion

- Millage and budget: The council adopted a proposed millage totaling 3.6649 mills (3.6476 mills for operating; 0.0173 mills for debt service). The resolution cites Florida Statutes section 200.065 as the legal basis for the public‑hearing requirement. The staff said the proposed millage represents a slight decrease from the prior year’s rate (3.6734 mills reported by staff earlier in the presentation).

- Operating budget and reserves: Staff reported a net $2,045,000 reduction in citywide operating costs from 2024–25 to 2025–26 and a list of line‑item adjustments that produced about $9,500,000 in reductions to avoid drawing on reserves. The city’s reported current general fund balance was approximately $85,600,000 with available fund balance near $34,000,000 after reserves (including hurricane disaster and 10% fund balance reserves) were held.

- Accounting and timing questions: Finance staff explained differences between audited (full‑accrual) actuals and cash‑basis budgeting for capital projects. As finance staff put it, the apparent jump in year‑over‑year totals reflects capitalization timing, not a sudden one‑year increase in city spending: “the most notable difference between full accrual accounting, and budgeting cash based accounting is when we deal with capital assets and capital projects.”

- New programs and personnel: The proposed budget included several new or converted positions across departments (examples cited by staff included customer service, planners, sanitation and CRA positions), plus new programs such as a traffic infraction enforcement program (school‑zone speed cameras) and a community accessibility assessment program.

Capital improvement program (CIP)

Staff described the CIP as a six‑year plan for infrastructure and major equipment. The total plan cost presented is $1.2 billion, with $272 million proposed for FY2025–26. Major next‑year line items highlighted by staff included a placeholder amount for transit‑oriented community (TOC) redevelopment downtown, $10 million budgeted in FY2026 for initial police headquarters work and a mix of water/sewer, public‑works, fleet, IT and recreation projects.

Council members pressed staff on the TOC placeholder and funding sources. Staff said the TOC amount is a placeholder to permit future infrastructure investments in the redevelopment area and can be reallocated by the CRA board via a budget and plan amendment if a private developer does not advance the project. Staff clarified that the CIP is funded through a mix of sources — existing CIP allocations, utility revenues, CRA tax‑increment, building permit funds, grants and potential borrowing — and that most projects require an identified funding source before being included.

Formal action

- Resolution 130-2025 (proposed millage rates) — adopted 5–0. Roll call recorded: Council member Drucker: yes; Deputy Mayor Nacklis: yes; Council member Thompson: yes; Council member Wachter: yes; Mayor Singer: yes.

- Resolution 131-2025 (tentative budget) — adopted 5–0. Same roll‑call results recorded.

Discussion vs. decision

Staff and council discussed accounting treatment of capital projects, project phasing across years, and funding sources. Council approved the millage and tentative budget; council members reserved any formal amendments until the next meeting, consistent with their stated practice. The council’s approvals were tentative; the final budget and millage will be adopted at a later hearing after any recomputation or amendments.

Ending

Staff said the final budget hearing is scheduled for Thursday, Sept. 25, 2025, at 6 p.m. in the same chamber. The council adjourned the Sept. 8 hearing after completing the public hearing and related votes.