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Boynton Beach workshop keeps budget flat but flags deep shortfalls if state property‑tax change passes
Summary
City officials approved a preliminary millage of 7.75 mills and reviewed a zero‑based proposed budget that trims one‑time capital outlays, preserves fund balance, and delays pay raises. Staff warned of a $9.5M near‑term shortfall and up to $16M in later years if pending state measures reduce ad valorem revenue.
Boynton Beach commissioners on June 30 approved a preliminary millage rate of 7.75 mills and spent much of a daylong budget workshop probing a proposed zero‑based budget that keeps next year’s general‑fund spending essentially flat.
Alan Lawson, the city’s chief financial officer, said the proposed budget removes one‑time capital purchases and holds overall fund balance steady: “We are committing a zero impact to the fund balance,” he told the commission. Lawson and budget staff emphasized that the city’s new annual operating plan and zero‑based process are intended to simplify budgeting and preserve reserves.
Why this matters: staff said a combination of factors — the sunset of a county/state surtax program and pending state property‑tax legislation — threaten future revenues. City projections presented at the workshop show a potential $9.5 million shortfall next year and a roughly $16 million exposure in a later year if proposed statewide changes to property assessments and exemptions take effect.
Budget details: Budget Division Director Fabio Baka said the city’s general fund shows a net decrease of roughly $1.1 million (about 0.8%) versus the amended FY25‑26 budget, mainly because capital outlays (one‑time vehicle, equipment and technology purchases) were removed from the proposed base. Baka also explained line items that rose: health‑insurance costs rose about $500,000 and pension contributions about $1 million, while the city’s headcount increased from 854 to about 1,020 FTEs since FY21‑22 — an increase of 148 positions across funds.
Public safety tradeoffs: Commissioners pressed staff to explain that roughly half of the headcount growth concentrated in public safety — Baka said 94 of the new positions are in the general fund, including about 30 in fire and 24 in police. Several commissioners said contractually required pay raises for public‑safety unions are not currently built into the base budget and urged clear options and tradeoffs before adoption.
Capital outlook: staff warned that the one‑cent surtax that historically funded capital projects will sunset Dec. 31, 2026, removing roughly $4.5 million a year from capital capacity and reducing CIP budgets; the proposed FY26‑27 general‑fund CIP request totals about $6.588 million and focuses on ERP implementation, parks, information‑technology refreshes and modest transportation and golf‑facility work.
What commissioners asked for: more transparent public communications. Vice Mayor Turkin and others urged staff to lead a public education effort before any rate or service changes so residents understand regulatory drivers, the city’s options and the timing of potential utility or assessment increases.
What happens next: staff will bring the budget back for the statutory September public hearings; the commission set the preliminary millage today and may lower it at the final hearing after further discussion. The commission adjourned the workshop at 1:34 p.m.
