Palm Beach Town Council to review proposed $94.7 million budget at Town Hall workshop
The Town Council will review a proposed $94.7 million operating budget for the upcoming fiscal year Thursday at a workshop at Town Hall.
Released earlier this month, the budget represents a $5.5 million increase from the current fiscal year's budget, which was approved last September.
Most of that increase is due to additional personnel, salary increases, contractual increases related to sewage treatment, and other inflationary increases, said Jane Le Clainche, the town's finance director.
The town's three largest departments — Police, Fire‐Rescue and Public Works — account for 58.1% of the proposed budget, town documents show, with transfers from other funds accounting for another 26.6%. All other general government and administrative departments make up the balance of 15.3%.
Town financial report: New financial report released by Palm Beach reveals budget surplus, record golf course revenue
Palm Beach real estate values: Palm Beach real estate values vaulted 46% in 2021, property appraiser’s new estimates show
The town's new taxable value total is $25.6 billion, an increase of $4 billion from last year.
Le Clainche and her staff have factored in the new taxable value figures into millage rate options that will be presented at the workshop. Last year's property tax rate was $2.89 per $1,000 of taxable value. The tentative rate has been set at $2.59 for the upcoming fiscal year.
That rate represents a 10.57% reduction from the current fiscal year, a $214 reduction in taxes per $1 million for homesteaded properties, and a $48 reduction for non‐homestead properties based on the 10% cap, as defined by state law.
Another option council members will be asked to consider includes a $2.81 millage rate, which represents a 3.05% reduction from the current fiscal year and a $0 change for homesteaded properties.
With this rate, the town would generate an additional $8.5 million in property tax revenue, some or all of which could be used to fund resiliency efforts and capital projects, accelerate the reduction in the return assumption for the retirement fund, and still provide a tax decrease, according to staff.
Council members also could suggest other options at the budget workshop.
Other highlights of the proposed budget include:
• More than $9 million from the town's Capital Improvement Fund has been earmarked for a handful of projects, including pavement management; drainage, sanitary sewer system and town facility improvements; and general engineering services.
• The revenue budget for the new Town Marina is projected to be 31%, or $3.02 million, higher than the current fiscal year budget. Between November and May, revenues at the marina have exceeded budget estimates by more than $1.5 million.
• Resiliency projects such as the Midtown seawall will be funded through the Coastal Management Fund. Cost estimates for this project have increased to $18.5 million. An additional $7 million per year for the next two years has been added to the program. Also included in the budget is annual funding of $1 million per year for the next 10 years for seawall or bulkhead repair or replacement.
The proposed budget and tax rate will be reviewed and likely modified at Thursday's workshop, and then will be finalized at two state-required public hearings, which are tentatively set for Sept. 14 and Sept. 22.
The budget will take effect Oct. 1.
Thursday's budget workshop will be held in person at 9:30 a.m. at Town Hall. To join virtually, go to us06web.zoom.us/j/85412970300 or phone: 1-301-715-8592, Webinar ID: 854 1297 0300.
Jodie Wagner is a journalist at the Palm Beach Daily News, part of the USA TODAY Florida Network. You can reach her at jwagner@pbdailynews.com. Help support our journalism. Subscribe today.
This article originally appeared on Palm Beach Daily News: Palm Beach to review proposed operating budget at Town Hall Thursday
