News

By Rich Pollack

    Residents of Highland Beach will see the town’s tax rate drop even lower than previously announced, following a Town Commission decision last month to reduce the proposed operating tax rate from $3.28 per $1,000 of assessed property value to $3.25.
    Earlier this year, commissioners agreed to reduce the proposed rate from the previous year’s rate of $3.50 per $1,000 of assessed value to the rollback rate of $3.28, resulting in the second consecutive year the rate would fall.
    The rollback rate would generate the same property tax revenue as was received the previous year. During a public hearing last month, however, commissioners voted unanimously to reduce the tax rate below the rollback rate.
    “I think we can do it without any cut in services,” said Commissioner Carl Feldman, who proposed the reduction.
    As a result of the current changes, the owner of a $550,000 home with a $50,000 homestead exemption would see the amount of taxes paid to Highland Beach drop slightly from about $1,750 last year to an estimated $1,625 in 2016-2017.
    The tax-rate decrease will result in a drop in the revenue in the town’s $10.98 million 2016-2017 fiscal year budget of only about $67,200. Finance Director Cale Curtis said the town will move money from its contingency reserve fund to make up the difference, leaving it with a $220,000 balance.
    “There’s still a significant amount in the contingency reserve fund,” he said.
    Feldman and Commissioner Lou Stern said the town has been able to continue reducing the tax rate thanks to a surplus from previous years.   
    A key factor in the town’s ability to reduce the tax rate has been a significant increase in property values over the last year.
The assessed value of property in Highland Beach increased by about $140 million, which translated into an estimated $455,000 more in property tax revenue for the town.
    Town commissioners said they were pleased with the overall budget and with the chance to reduce the tax rate below the rollback rate.
    “I don’t think we’ve reduced the services we’re providing in any department,” Vice Mayor Bill Weitz said. “The budgets that were submitted from the departments were largely approved in total and I think that’s a credit to our department heads.”