By Rich Pollack
Barring last-minute changes, Highland Beach town leaders will keep their tax rate for the next fiscal year the same as it has been for the past four years.
Town commissioners in July approved a maximum tax rate of $3.58 per $1,000 of taxable value, a rate that has been the same since 2023.
That rate will generate $14.7 million in property taxes, about $900,000 more than for the current fiscal year, or just shy of a 5% increase. Those tax revenues cover about 73% of the town’s $20 million general fund budget,
The total proposed budget of $30.3 million includes the water and sewer funds as well as the building fund.
Town Manager Marshall Labadie said that he and the town staff kept in mind the possibility of revenues falling in the beginning of the 2028 fiscal year, should a proposed increase in the homestead exemption get 60% statewide voter approval this November.
“The preliminary FY 2027 budget reflects a balanced and conservative financial approach focused on maintaining service levels, preserving reserves and preparing for potential legislative changes that may impact municipal revenues in future years,” he wrote in his monthly communication with residents.
While the town’s tax rate remains the same, most property owners will likely see an increase in their municipal taxes due to an increase in property values, with the town seeing a 4.1% increase in total property values.
Labadie said that the town’s tax rate is the third lowest in Palm Beach County.
He also pointed out that a large portion of the town’s overall costs go toward staffing and maintaining the police and fire departments.
“The budget prioritizes public safety, employee retention, infrastructure maintenance and long-term financial sustainability,” he wrote. “Public safety, including police and fire rescue, represent about 67% of the general fund expenditures, reflecting the town’s continued commitment to resident safety and emergency services. The town continues to keep a mindful eye on the increasing costs of providing public safety services.”
The proposed budget shows the Police Department expenditures at $5.55 million, a slight decrease from the current year, while the Fire Rescue Department budget is $530,409 over the current year’s $6.93 million in expenditures, or up about 7.6%.
The town continues to maintain a significant amount in reserves, with a total fund balance in the general fund projected to be a little more than $12 million, an increase of about $500,000.
In his budget message to residents, Labadie explained that should the proposed constitutional amendment — Amendment 3 — get 60% voter approval, the town would lose about $1 million a year in 2028 and $1.5 million beginning in 2029. The legislation would increase the homestead exemption — currently at a little more than $50,000 of a property’s assessed value— to $150,000 in the 2028 fiscal year budget and $250,000 in 2029.
He said the town’s “strong reserves, conservative budgeting practices and five-year financial forecast place the town in an excellent position to adapt to these changes while continuing to protect the quality of life our residents enjoy.”
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