By John Pacenti
After proposing deep cuts to support a rolled-back property tax rate, Delray Beach City Manager Terrence Moore found the needed money in the city’s couch cushions — though the new budget won’t be completely without pain.
Under the rollback rate, the city will reduce its contribution to the Community Redevelopment Agency by $1.3 million. It will also reduce its contribution to the CRA’s grant program, called A.-G.U.I.D.E., by $200,000.
“The CRA revenue is based on the millage rate set by the city of Delray Beach, and so we have to take that into consideration,” Moore said at the Aug. 13 workshop. “So it’s just an accounting adjustment.”
Moore went on to say he has had discussions with CRA Executive Director Renee Jadusingh. “Fortunately, they do well financially. Yep, it’s pretty solid.”
The commission in July approved the rollback millage rate of just over $5.90 for each $1,000 of taxable value. Mayor Tom Carney led the charge to decrease taxes for the upcoming fiscal year as the commission adopted a rate that would save a homesteaded property with a taxable value of $1 million last year about $278 in city property taxes.
At the rollback rate, Moore said property taxes collected would fall $6.2 million from his originally proposed tax rate. He initially had department managers propose various cuts, such as reducing the number of firefighters on a shift, decreasing police patrols and curtailing events, such as the Christmas village.
Carney sent Moore back to find ways to make the rollback rate work without cutting significant services in the $187 million budget for FY 2025, which starts Oct. 1. Moore was able to make adjustments, taking into account the reduced CRA payment and other expenditure and revenue adjustments.
The city can expect conservatively at least $900,000 more from the Federal Emergency Management Agency. Chief Financial Officer Hugh Dunkley said various projects are in different stages of closeout, with FEMA owing the city $1.4 million for Hurricane Irma damage in 2017 and another $500,000 for damage from Hurricane Dorian in 2019.
“So it’s various events, hurricanes over the years,” Dunkley said. “FEMA usually takes a while.”
Other revenue funding adjustments included course fees from the new Creative Arts School ($291,000), which is expected to start in the fall; a reimbursement for EMS transport fees ($165,000) due to a vendor billing mistake; and additional revenues from boat launch and park fees ($277,659).
On the expenditure side of the equation, besides the CRA reduction, there was a $2 million reduction from the general fund to the beach renourishment project. Moore said this is allocation magic as the project will still be fully funded through the capital improvement program.
An additional $788,000 will be saved through department attrition by not filling current open positions or new openings as employees leave for various reasons, Moore said. The
Police Department led all departments with $236,468 through position attrition.
The new budget even found $97,989 more for library services, as requested by the commission.
“Delray Beach appears to be the only taxing authority in all of South Florida to support and embrace the rollback rate in this regard,” Moore said. “There was a great deal of work accomplished over the last couple of weeks to bring back these considerations.”
Commissioner Tom Markert praised Moore and the staff. “This was not fun, this was not easy, but you got it done, and I’m really comfortable with how you got it done and what the final work product looks like,” he said.
Commissioner Rob Long, who voted against the rollback rate along with Commissioner Angela Burns, said, “I do feel like we’re wrestling with our shoulders pretty close to the mat right now. So I could see budget amendments coming up down the road.”
At its Sept. 3 budget hearing, the commission tentatively approved of the proposed tax rate by a 4-1 vote, with Long voting no.
The commission also supported the proposed budget 3-2, with Long and Vice Mayor Juli Casale opposed.
The final vote on the budget and tax rate will take place at a Sept. 16 public hearing.
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