By Mary Hladky
The city’s tax rate will hold steady for the fiscal year that starts on Oct. 1, in keeping with City Council members’ longstanding emphasis on keeping the rate low.
The rate they unanimously approved on Sept. 19 is $3.68 per $1,000 of taxable property value, the same as last fiscal year.
Even so, property owners will see higher tax bills because of soaring property values fueled by a strong real estate market. Boca’s taxable values surged by 14.5% this year, up from the previous year’s 3.8%.
The city would have had to lower its millage to $3.20 per $1,000 of taxable property value to bring in the same amount of tax revenue as the previous year. Keeping the tax rate unchanged translates to a 14% tax increase.
Yet most homeowners are shielded from the brunt of that because state law caps the taxable value increase for homesteaded properties at 3%. Non-homesteaded properties are capped at 10%.
Only two residents spoke against the proposed tax rate at a Sept. 12 budget meeting, and no one objected during the final budget hearing.
The taxable value increase was welcome news to city leaders, who are facing rising costs for materials, equipment and building projects due to price increases and supply chain issues.
The growing city also needs to hire more employees to keep service standards high and retain existing employees who have other job opportunities due to the strong labor market.
The city has less employee turnover than many other cities, City Manager Leif Ahnell has told council members. Even so, there is employee churn and it now takes more time to fill vacant positions.
While many residents will feel a modest impact because the tax rate was not reduced, the city is taking in more revenue in other ways.
The amount that homeowners will pay for fire protection will rise to $155 in the new fiscal year, up from last year’s $145. The hike is the result of the increased cost of providing the services, the city said.
The increase in the annual assessment for commercial and industrial properties is based on the class and size of the buildings.
Garbage collection fees will increase by 3%, or 73 cents, to $25.02 per month for single-family residences and jump 44 cents to $15.14 per month for multi-family buildings.
Water and sewer rates will increase an average of $3 per month, or just under 6%. Boca Raton has one of the lowest water and sewer rates in the state, according to the city.
Daily beach entry fees will increase to $35 from $25; annual fees will rise to $75 from $65.
The boat launch annual permit fees will rise to $200 from $60 for city residents, while non-residents will pay $675, up from $480, at the new Silver Palm Park downtown.
The Recreation Services Department also is increasing fees for dog park, dog beach and special event permits as well as camp program, tennis center permit and clay court fees.
Developers will pay higher fees for three routine matters and will see new fees, such as $1,300 for a master plan review.
At their Sept. 19 meeting, council members also approved a $614.9 million operating budget, up from $559.4 million.
The $208.8 million general fund portion increased by $11 million, or 5.7%, due to salary increases for city employees, rising pension and health care costs and replacing vehicles.
City employee ranks will increase by 16 in the new fiscal year, including adding four fire battalion chief positions, up from the current one battalion chief, a parking manager and four employees for the new Wildflower/Silver Palm Park.
The city continues to invest heavily in the Boca Raton Golf & Racquet Club property that was donated to the city by The Boca Raton in 2020 and features an 18-hole championship golf course, tennis and aquatic facilities and a clubhouse.
The city will spend $3.5 million for renovations and improvements, such as replacement of the clubhouse and cart barn roofs. Other renovations and improvements are funded by the proceeds of the sale of the city’s municipal golf course.
The city’s decision in 2019 to continue to keep garbage collection and recycling services in-house rather than contracting with a private company also puts pressure on the city’s budget. The city is embarking on a $23.3 million bond-funded project to construct a new fleet maintenance building.
In related news, the Greater Boca Raton Beach and Park District approved a tax rate of $1.08 per $1,000 of taxable value, up 15% from the rollback rate of 94 cents per $1,000.
Only one person spoke against the tax increase at the district’s final budget hearing, also on Sept. 19, and no one opposed it at the tentative budget hearing on Sept. 6.
Property taxes form the bulk of the district’s $67.7 million budget, which is up 27.9% from the previous year’s expenses. The budget includes $7.3 million to develop the Ocean Breeze property, which used to be the golf course at the Boca Teeca condominiums, and $1.6 million in debt payback for the purchase of the property.
The district also earmarked $5 million to build a tennis and pickleball center at Patch Reef Park.
In other business, the City Council on Sept. 13 approved Reve Del Mizner, five luxury townhomes on the southeast corner of East Boca Raton Road and Northeast Mizner Boulevard. The townhomes, developed by Reve Del Mizner LLC, will be approximately 8,000 square feet, with four bedrooms, six and one-half bathrooms, and four garaged parking spaces each.
The council, sitting as the Community Redevelopment Agency on Aug. 22, approved a 144-room extended-stay hotel for Royal Palm Place. Investments Limited, the largest commercial property owner in the downtown, proposed the 12-story project with two parking garages. The hotel is intended for visitors seeking two- or three-month stays.
Steve Plunkett contributed to this story.
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