By Rich Pollack
Highland Beach leaders appear to be on track to keep the property tax rate for the coming fiscal year at the same level it has been for the last three years, even though they plan to spend more than $6.6 million on capital projects including a town-wide sewer lining initiative.
“This year’s theme is a focus on capital projects,” said Finance Director David DiLena.
The proposed budget for fiscal year 2026 that starts Oct. 1 will come in at just more than $32.5 million, an increase of about $4.5 million over the current year’s estimated $28 million.
About 75% of the town’s revenue will come from property tax dollars, an expected $14.1 million or a 6.8% increase over the current year. The town’s proposed budget holds its tax rate at a combined rate of $3.58 per $1,000 of assessed value.
If that rate is approved, a home with a taxable value of $500,000 would pay about $1,790 in property taxes to Highland Beach. The proposed tax rate includes an operating millage of $3.41 per $1,000 and a debt service millage of 17.1 cents per $1,000.
Overall property values in the town increased from about $3.8 billion last fiscal year to $4.1 billion, according to preliminary figures from the Palm Beach County Property Appraiser’s Office. That means that while the tax rate remains stable, most property owners could see an increase in the amount of tax money paid to the town.
To help cover the cost of the capital projects, which also include building a dock for the town’s police boat and reconstruction of the old fire station, the town is pledging more than $428,000 from reserves.
But Town Manager Marshall Labadie said he anticipates not having to take all of those funds from reserves and may even be able to cover all capital costs without taking any money from the reserves, depending on a few outstanding variables including health care costs.
The town’s overall reserve funds remain strong at more than $8.7 million, with an unassigned reserve fund of more than $2.8 million. Helping to bolster the reserves is the addition of $833,000 unspent from the current year’s budget.
The town’s general fund, which covers the cost of running the town’s departments including police and fire rescue, is expected to increase by about 5.6% in the next fiscal year, or about $1 million, and will come in at about $19.5 million.
Public safety makes up about 63% of the general fund expenses, with fire and police each costing just over $6 million.
The proposed budget also reflects an increase in water and sewer rates of about 5%, while the building department fund anticipates a reduction in permit fees of about 12%.
An estimated $675,000 from the water fund will be used for capital improvements while another $2.15 million from the sewer fund will be used for capital projects, including the sewer lining.
An estimated $706,000 from the building fund will cover capital projects including roof repairs.
Labadie said the proposed budget includes capital projects that the commission has identified as priorities during its strategic planning.
“It’s a true reflection of our values as a commission,” he said.
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