Boca Raton staff present preliminary FY2026–27 budget; operating millage held flat

City staff on June 18 laid out a preliminary FY2026–27 budget for Boca Raton, telling the City Council they are proposing no increase in the operating millage and seeking feedback before formal hearings this fall.

Deputy director Mike Middleman said the staff proposal keeps the operating millage at 3.6476 and shows a small overall decrease in the debt-service millage, adding that the rollback rate, as preliminarily calculated under draft guidance for state bill SB4F, would be 3.5548. "We are proposing no increase to the operating millage, keeping it at 3.6476," Middleman said during the presentation.

Why it matters: preliminary county valuation numbers show roughly a 6.19% increase in assessed value, which staff said would translate into additional ad valorem revenue if the council maintains the proposed millage. Staff also stressed these are draft figures and some inputs — including final tax-roll numbers from the county and the state interpretation of SB4F — remain pending.

The staff package shows a roughly $19.8 million difference between the FY2026 approved and FY2027 proposed general-fund totals, driven by multiple items: a compensation study already implemented ($3.2M), COLA/step increases (~$6.48M), pension contributions (just under $1M), requests for new positions (~$3.9M) and organizational changes (~$6.5M). Middleman said the apparent large year-over-year increase is partly an accounting effect from folding the beautification fund back into the general fund — an $8.5M shift that staff described as a reclassification rather than a net new recurring general-fund obligation.

Staff emphasized reserves and fund balance. The preliminary statement of fund balance shows an available general-fund balance of about $34.47M, with targeted reserves for hurricane response and other commitments. Middleman said the budget was presented with a small projected surplus ($180,900) in part because revenue numbers are preliminary and staff preferred to show a modest surplus rather than a deficit while working toward a balanced final package.

Capital spending and next steps: staff highlighted a reduced citywide CIP request for FY27 relative to prior years because of timing shifts and showed the largest single FY27 non-utility asks (wastewater upgrades, water-treatment improvements, railroad crossing/underpass work and initial Memorial Park planning). Council members pressed staff for more detail on multi-year capital plans and fund-balance impacts; several asked staff to prioritize cuts or rephasing in light of the pending state property-tax amendment. Mr. Zervis told the council staff will take questions and either return for another workshop or move into the September hearing schedule depending on council feedback.

Council action: none. The presentation was informational; staff expects to refine the numbers and return with a formal budget for public hearings and adoption this fall.