Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Boynton Beach city manager warns of $18–34 million revenue loss if state homestead tax changes pass
Summary
City Manager Dan told the Boynton Beach City Commission that a proposed state homestead tax rollback and a required 60% referendum could cut the city's ad valorem revenue by an estimated $18–22 million in the first year and $32–34 million later, forcing cuts to parks, libraries and discretionary services unless alternatives (districts, referendums, mergers) are pursued.
City Manager Dan briefed the Boynton Beach City Commission on June 2 about a newly passed state measure and a related referendum that would phase out homestead property taxes and sharply lower municipal ad valorem revenue if voters approve the constitutional amendment.
Dan said the city could face “about 18–22 million loss in ad valorem revenue off the start” and that losses could grow to “32–34 million” in a later year, creating a shortfall that could force cuts to leisure services, libraries, pools, cultural programs and other quality-of-life services. He said existing protections for public safety were unclear in the legislation and that no dedicated state backfill for municipalities remains in the final language passed by the Legislature.
The presentation framed several policy options the commission may consider, including creating special taxing districts (for parks or libraries), placing local referendums before voters to raise restricted funds, operational efficiency and consolidation studies, and a possible transfer or merger of fire and emergency medical services with Palm Beach County to preserve core services. Dan also described potential one-time revenue strategies such as creating an endowment by transferring enterprise funds, and emphasized that many choices would require voter approval or further state guidance.
Commission members asked for a rapid public-education campaign and a series of workshops. Vice Mayor Turkin and Commissioner Kelley both urged efficiency and budget studies for large departments (police, fire, utilities) and suggested exercises to identify cuts or revenue options before the next budget cycle. Commissioner McCray said outreach must explain what services residents would lose—citing pools, senior programs and community events—as a result of revenue reductions.
Next steps: staff recommended scheduling workshops with department directors to model potential reductions (Dan suggested exercises that could include a 10% departmental reduction scenario), to prepare referral language and to develop outreach materials for residents. The commission scheduled follow-up budget work sessions to examine options and potential referendum items.
