Boynton Beach tax rate drops, but rising property values fuels $4.2M bump in city budget

Jorge Milian, Palm Beach Post
·2 min read

BOYNTON BEACH — An increase in operating expenses for items such as salaries, pensions and contractual services resulted in a $4.2 million bump in Boynton Beach's 2022-23 budget compared to the previous year.

That's a 4.2% increase over 2021-22 to $267 million.

The city's property tax rate dropped to $7.85 per $1,000 of assessed value, from $7.89 in 2021-22 and $7.90 the previous decade, according to Mayor Ty Penserga. But with home values soaring, Penserga pointed out, it's unlikely homeowners will feel the impact of the reduced rate until home prices stabilize.

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At $7.85, the owner of a $309,000 home with a homestead exemption can expect to pay $2,033 in taxes.

The rise in assessed property values will increase ad valorem taxes from just under $53 million last year to a projected $60.8 million for 2022-23.

The largest funding source for the budget are fees charged for water, sewer and stormwater, totaling $56.2 million or about 21% of the budget. Property taxes ($49 million) make up only 18.57% of total funding sources but 40% of the general fund.

The general fund accounts for $106.9 million of the total budget.

A summary prepared by city officials projects city expenses to grow between 4% and 6% over the next few years with its tax base growing about 8%.

Budget breakdown

The city's proposed general fund takes up about 40.5% of the overall budget, or about $106.9 million. That's 4.3% higher than 2021-22. Here's how it is broken down:

  • The largest portion of the genera fund will go to public safety. The combined cost of the city's police and fire departments will total $63.4 million.

  • Overall personnel services total $74.6 million. This category includes salaries and wages, pension costs, health insurance, overtime and holiday pay, and employer FICA payments.

  • The second-largest share of the general fund goes to public works, which receives $9.4 million.

  • Property taxes, which go into the General Fund, have increased 14.9% from 2021-22 ($52.9 million) to 2022-23 ($60.8 million).

  • The City Hall budget of $4.5 million funds its contractual obligations, a 6% raise for general fund employees, property insurance premiums, and transfers to the city's risk management fund.

  • The general fund budget increased by nearly $4.3 million due mainly to personnel and pension adjustments related to the police, fire and other departments.

This article originally appeared on Palm Beach Post: Budget rises $4.2M in Boynton despite lower city property tax rate