South Palm Beach council members found themselves in an unusual situation this budget year: For the town to go to the state’s “no new taxes” rolled-back rate, they would actually have to raise the town’s property tax rate, not lower it.
They voted to stick with the same rate that the town has had for the past two years, actually going under the rolled-back rate. The difference was almost infinitesimal — $3.40 for every $1,000 of taxable property value vs. the $3.4073 per $1,000 rolled-back rate.
Council members faced this situation because total property values in the town dropped 0.21% this year — a drop attributed to declining values of many of its older condominium units. The town was the only municipality in Palm Beach County to see its taxable value decline this year.
The last time a county municipality faced a drop in its taxable value was 12 years ago. In 2013, values dropped in four municipalities that were still experiencing the lingering effects of the Great Recession of 2008.
Some residents may still see a town tax increase — if the taxable value of their condominium units increased despite the town’s overall drop in values.
Council members approved keeping the property tax rate the same at their Sept. 15 budget meeting.
At the meeting, they also approved a $3.078 million operating budget, which is about $13,000 less than the last budget — a drop of 0.4%. The new tax rate and budget are for the 2026 fiscal year that began Oct. 1.
The town’s separate capital project fund has quintupled, going to $5.4 million as the town prepares to begin construction on a new Town Hall.
In the building fund, Town Manager Jamie Titcomb plans to replace in-house staffing with contract service providers. The fund reduces in-house staffing costs from $71,350 to $15,000, while increasing its budget for contracted services from $87,500 to $137,500. The town’s contracted service providers will pick up the difference in assignment and customer service support under existing agreements.
— Larry Barszewski and Hannah Spence
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