Highland Beach commissioners late last month agreed to set their maximum tax rate at $3.58 per $1,000 of taxable value, including operating and debt service funds, the same rate as in the previous two years.
While the commissioners can lower the tax rate between now and when the budget is finalized, they cannot increase the rate once they officially set it no later than early this month.
The town’s proposed $27 million FY 2025 budget, which begins Oct. 1, includes a slight increase of 18.5 cents per $1,000 of taxable value in the operating tax rate due largely to the increase in staffing associated with the town’s new fire department.
That is offset by a reduction in the town’s debt service tax rate due to the elimination of its water fund debt and a reduction in its fire service debt.
“Our ability to keep the tax rate low for a third consecutive year is a reflection of our commitment to making financial decisions strategically,” Town Manager Marshall Labadie said.
If the tax rate remains unchanged, the owner of a home with a taxable value of $450,000 will pay about $1,611 in taxes to Highland Beach.
One factor enabling the town to maintain its low tax rate is an increase in taxable property value — now estimated at $317.4 million. The 9% increase is less than the 13% increase the previous tax year.
Property tax revenues account for about 76% of the town’s general fund revenues. They will increase about 7.7%, or just shy of $1 million.
While the town’s total tax rate will not be higher than the previous tax year, many property owners will still see a tax bump due to the increase in property values.
— Rich Pollack
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