News

By Rich Pollack

    Thanks to significant increases in overall property values and several hundred thousand dollars’ worth of cuts to the town’s proposed 2015-2016 budget, Highland Beach residents are likely to see their municipal tax rate drop for the first time since 2011.
    Town commissioners have discussed the possibility of cutting the operating tax rate from $3.95 per $1,000 of assessed value to $3.70 or less per $1,000. The overall tax rate, including debt service, would drop from $4.95 to $4.35 per $1,000 of assessed value.
    The reduction in the municipal tax rate to what is known as the rollback rate — the rate that will generate the same amount of property taxes that the city took in the previous year — will mean some residents could see the actual amount they pay in taxes to the town decrease, depending on their property’s assessed value.
    “We’re able to provide a tax-rate cut to our residents without reducing the overall quality of service we provide,” said Commissioner Lou Stern. “Because of the property value increase, we’re able to reduce our tax rate and still maintain proper reserves.”
    Total assessed value of property in Highland Beach increased from $1.9 billion to just over $2 billion this year.
    Commissioners are continuing to make budget cuts, which could drop the tax rate even lower. The final decision will be made later this month.
    “I want to make it clear there’s no way we’re raising our taxes,” Stern said. “Taxes are going down.”
    The town currently has an $11.37 million budget and town officials had originally proposed a budget that would increase in the upcoming fiscal year to $11.55 million.
    Commissioners, however, have trimmed several hundred thousand dollars from the budget, which if approved in its proposed form would stand at just over $11 million.
    Among the items taken out of the budget were two major capital improvements that have been placed on hold: license plate recognition scanners for the Police Department and enclosures for two terraces at the library.
    A purchase of scanners, with a cost of about $68,000, was placed on hold due to a Florida Department of Transportation ruling that prohibits cameras on state rights of way. The terrace project, with a $150,000 estimated price tag, was delayed while town officials gather data to determine if the terraces are wanted by residents or are needed.
    Commissioners cut another $100,000 that had been earmarked for repairs to the town’s sidewalk, by tentatively agreeing to do those repairs this fiscal year using funds in the current budget to cover the cost.
    Personnel issues were the subject of a lengthy discussion during a budget workshop last month, with commissioners debating salary increases for town employees.
    In a cost-cutting move, the commission eliminated a maintenance position at the town’s library and removed $127,000 from the budget by doing away with a systems analyst position. A full-time library assistant position, with a cost of $67,000, was added to replace the analyst position.
    During discussions of pay increases, commissioners shied away from giving employees 5 percent raises that have been standard in recent years. Instead, they agreed to 3 percent raises at the beginning of the new fiscal year.
    Vice Mayor Bill Weitz expressed concern over salaries paid for certain positions and questioned whether the town could continue to provide pay increases for them. “Are there certain jobs in town deserving of the level of pay they receive?” he asked. “I don’t think so.”
    Commissioners agreed to a 3 percent increase for employees but also expressed interest in rewarding employees who perform well. “I would like to see some kind of merit program for someone who can save the town money,” Commissioner Carl Feldman said.
    The public hearings will be held Sept. 10 and 24.