News

By Rich Pollack

As Highland Beach moves forward with plans to create its own fire department and split from neighboring Delray Beach, the two municipalities continue to squabble over money.
The newest disagreement is centered on a Nov. 29 notice Delray Beach sent saying that Highland Beach owed the city $121,514 as a result of a “true-up,” which compares actual costs to projected costs.
The town pays Delray Beach to staff a town-owned fire station on State Road A1A within the town limits, but that arrangement is set to expire in May 2025.
In a letter to Highland Beach, Delray Finance Director John Lege noted that the projected cost for fiscal year 2021 was $4,657,148 but when all the numbers were in, the bill came to $4,778,662, meaning Highland Beach owes the $121,514 difference.
Highland Beach leaders disagree and are questioning the methodology Delray Beach used to calculate the true-up, which they say is different from the methodology Highland Beach used.
Town leaders hope the issue can be resolved.
“Our people are meeting with Delray Beach to get a better understanding of the details that comprise the calculation of the true-up,” Mayor Doug Hillman said.
Town Manager Marshall Labadie called it “a minor impasse” and said “hopefully we can come to some understanding.”
Most of the difference between the projected and actual costs comes in the areas of salaries and overtime. Salaries, according to the true-up, were just shy of $79,000 more than projected, while overtime was about $37,300 more than projected.
The true-up also showed that pension costs were higher than projected by about $52,000 while actual operating costs were $62,000 lower than expected.
Overall, with the true-up included, Highland Beach has been billed $4.78 million, or about $306,000 more than in the previous fiscal year.
A comparison of true-up statements from Delray Beach show that Highland Beach was charged $3.72 million for fire service in fiscal 2017, about $1 million less than it is being charged now, four years later.
Delray Beach officials say the increase is a reflection of higher costs, especially when it comes to pension costs and health insurance premiums.
The substantial increase in costs, and a concern that prices would continue to rise, were among the reasons Highland Beach commissioners voted to break away from Delray Beach and start their own department.
While charges from Delray continue to be examined, Highland Beach is moving ahead quickly in the process of starting its own fire department.
Last month commissioners heard an update from Labadie and two consultants on the progress the town is making.
“Everything is going as well as we had hoped and in some cases even better,” he said.
Commissioners also had a chance to review the plans for renovation of the fire station. Town leaders say the expansion is needed because they intend to have two fire trucks and two rescue wagons housed in the station as opposed to the one of each currently there.
The renovations, expected to cost about $5 million, are part of an overall estimated $10 million start-up expense voters overwhelmingly approved in November.
Commissioners appear to be pleased with how the overall plan is unfolding.
“I’m really happy with the progress we’re making with the fire department,” Commissioner Evalyn David said.