BOYNTON BEACH, FL — Boynton Beach is looking at a much different version of city government.
Lower property taxes. A possible municipal endowment fund. A potential shift in fire rescue and utility operations. And a hurricane-season rebate program aimed at helping homeowners harden their properties before the next storm.
Those were among the items highlighted in a city community update covering the May 19 and June 2 Boynton Beach City Commission meetings.
The biggest item came May 19, when City Manager Daniel Dugger presented what the city described as eight “transformative initiatives” intended to strengthen Boynton Beach’s long-term financial future.
During the May 19th meeting, Dugger told commissioners the ideas were preliminary and tentative, with discussions still taking place between city and county entities. He asked the commission for direction on whether staff should continue exploring the plan.
The initiatives included a possible merger between Boynton Beach Fire Rescue and Palm Beach County Fire Rescue, a potential transfer of the city’s utility system, millage rate reductions, pension risk reduction, CRA restructuring, land acquisition options and the creation of a municipal endowment fund.
Dugger said the target size of the municipal endowment fund would be $400 million to $500 million, using proceeds from the potential fire rescue and utility changes. He said the city could use passive income from that fund to reduce reliance on property tax revenue.
The proposal is not final.
During the presentation, Dugger said the city remains one of the higher-millage municipalities in Palm Beach County and said expenses are continuing to outpace revenue under the current model. He said the city’s “status quo” path would mean continued pressure from fees, millage rates and unfunded liabilities.
Under the fire rescue concept described at the meeting, Dugger said city appraisals and analysis of fire rescue equipment, real estate, buildings and infrastructure showed a potential lump-sum payment to Boynton Beach of approximately $95 million to $115 million if a merger moved forward.
He also said a utility transfer was in a second phase of negotiations, with an estimated valuation between $375 million and $470 million.
Dugger described a proposed millage timeline that would reduce the city millage rate from 7.75 to 7.65 in the first year. In the second year, he said the city’s millage could drop to 4.19, paired with a fire MSTU rate of 3.458, while eliminating the fire assessment fee. He said the fire assessment fee elimination would save about $145 per single-family household.
Commissioners did not take a final vote on the larger restructuring plan during the May 19 discussion. Instead, they gave general support for staff to continue researching and negotiating, while several commissioners said more details and public discussion would be needed.
Commissioner Aimee Kelley said she expected “lots of conversations with the residents” and raised concerns about long-term effects, particularly related to utilities and the city giving up control.
Commissioner Angela Cruz said she supported the broader goal of reducing property taxes, but wanted more details and actual numbers before moving forward. She also said future town halls could help educate residents if negotiations continue.
The city update also highlighted several public safety-related items approved by the commission, including acceptance of an Emergency Medical Services grant agreement, authorization of a local law enforcement immigration grant application totaling more than $1.3 million, and an application for the Presidential Residence Protection Assistance Grant Program.
Commissioners also approved agreements supporting landscape improvements and authorized roadway resurfacing improvements in the Chapel Hill neighborhood, according to the city update.
Another item centered on the city’s Art in Public Places program.
During the May 19th meeting, staff asked commissioners for direction on whether to create a commission-approved waiver option for qualifying nonprofit organizations. The discussion focused on projects that may otherwise be required to participate in the public art program.
Staff said projects over $500,000 are generally required to participate in the program by installing public art or paying a fee based on 1% of the construction budget. Staff also said a blanket exemption for nonprofits was not recommended because it could reduce the public art fund.
Commissioners discussed creating criteria for qualifying nonprofits rather than eliminating the requirement across the board. The city update says the commission approved a waiver option within the Art in Public Places program for qualifying nonprofit organizations.
The city also approved a temporary building permit fee rebate program for storm-hardening improvements to residential homestead properties, according to the update. The program runs through September 15, 2026, and is intended to encourage residents to strengthen homes ahead of severe weather.
The city update did not include the rebate amount or a detailed list of qualifying improvements.
Readers can follow city updates and planning decisions in Boynton Beach News.
