BOCA RATON, FL - Boca Raton residents would see no increase in the city’s operating millage rate under an early fiscal year 2026-27 budget proposal, but homeowners could see a higher fire assessment fee as the city looks to fully staff Fire Station 8 and add emergency medical leadership positions.
The Boca Raton City Council reviewed the preliminary budget during a special meeting Thursday, June 18. No vote was required. City Manager Mark Sohaney told council members the workshop was meant to begin the budget conversation earlier than usual, ahead of formal hearings expected later in the process.
The proposed total millage rate is 3.6639 mills, slightly below the current 3.6649 rate because of a small decrease in debt service millage. The operating millage would remain unchanged at 3.6476.
| Item | FY 2025-26 | FY 2026-27 Proposed | Difference |
|---|---|---|---|
| Operating Millage Rate | 3.6476 | 3.6476 | No change |
| Debt Service Millage | 0.0173 | 0.0163 | -0.0010 |
| Total Millage Rate | 3.6649 | 3.6639 | -0.0010 |
| City Tax On $450,000 Taxable Value | $1,649.21 | $1,648.76 | -$0.45 |
| Residential Fire Assessment Fee | $155 | $224 | +$69 |
For a home with a taxable value of $450,000, the city said that would equal $1,648.76 in city ad valorem taxes.
Staff said Boca Raton’s preliminary assessed value is projected at $42.5 billion, up 6.19% from the prior year. That includes about $573.2 million in new construction and about $1.9 billion in reassessments.
The city’s proposed General Fund budget is about $276.4 million, up from about $256.4 million in the current approved budget. Staff attributed the increase to compensation changes, cost-of-living and step increases, pension costs, new positions, department reorganizations and other adjustments.
Fire/Rescue Services would become the largest General Fund department at about $87.7 million, followed by Police Services at about $84.5 million.
A major budget driver is public safety staffing. The proposal includes 22 new General Fund positions, including 12 firefighters, four lieutenants and four EMS captains tied to Fire Station 8 and emergency medical coverage. The plan also includes a fire/rescue vehicle technician and a budget analyst.
To help fund the fire staffing, staff presented a preliminary fire assessment increase for residential properties from $155 to $224. Commercial and industrial properties would move from flat square-footage categories to per-square-foot charges, with commercial property preliminarily proposed at 19 cents per square foot and industrial property at 10 cents per square foot.
Deputy City Manager and CFO Jim Zervis said the proposed fire assessment structure reflects both the added service level and a required rebalancing of costs based on calls for service. He said some commercial properties could pay less under the revised structure, though the numbers are not final.
The citywide budget proposal totals about $747.6 million in revenues and expenditures, down 11.8% from the current approved budget. Staff said the decrease is largely tied to transfers, reserve use and the timing of capital projects, not a broad reduction in operating activity.
| Budget Area | FY 2025-26 Approved | FY 2026-27 Proposed | Difference | Percent Change |
|---|---|---|---|---|
| Citywide Budget | $847,346,800 | $747,593,400 | -$99,753,400 | -11.8% |
| General Fund | $256,385,600 | $276,239,200 | +$19,853,600 | +7.7% |
| Police Services - General Fund | $81,339,800 | $84,547,300 | +$3,207,500 | +3.9% |
| Fire/Rescue - General Fund | $76,396,800 | $87,691,600 | +$11,294,800 | +14.8% |
| Public Works & Engineering - General Fund | $20,973,500 | $31,348,200 | +$10,374,700 | +49.5% |
| Recreation Services - General Fund | $34,350,200 | $31,648,700 | -$2,701,500 | -7.9% |
| General Fund Revenue | $254,851,300 | $276,420,100 | +$21,568,800 | +8.5% |
| Ad Valorem Taxes - General Fund | $135,586,900 | $144,526,200 | +$8,939,300 | +6.6% |
| Citywide Capital Outlay | $331,913,200 | $243,718,200 | -$88,195,000 | -26.6% |
| Transfers Out - Citywide | $51,913,500 | $14,287,200 | -$37,626,300 | -72.5% |
| Use of Reserves - Citywide Revenue Source | $235,616,300 | $166,440,300 | -$69,176,000 | -29.4% |
Capital spending drew some of the sharpest discussion.
The proposed capital plan includes major FY 2027 projects such as $25.8 million for wastewater upgrades, $14 million for water treatment facility improvements, $12 million for downtown railroad pedestrian crossing evaluation and safety enhancements, $11.5 million for critical infrastructure improvements, $10 million for railroad crossings, and $7.5 million for resident-led Memorial Park enhancements.
That Memorial Park item became a point of debate. The project is listed for City Hall, the Community Center, Singing Pines and related civic building improvements, with funding from the Land Proceeds Fund.
Council Member Jon Pearlman questioned whether $7.5 million would be spent before construction begins, calling the number troubling in light of possible property tax changes and broader spending pressures. Staff said the amount is an early planning figure and does not authorize spending by itself.
Public Works and Engineering Director Zach Bihr said the number was developed as a high-level budget estimate for a large downtown civic area that includes aging buildings, historic structures, the tennis center, shuffleboard courts, utilities and other infrastructure. Staff said the project could later be split into separate capital projects as the scope becomes clearer.
Deputy Mayor Michelle Grau asked whether CRA money could be used for Memorial Park-related work. Zervis said CRA money would be preferred where eligible once the city knows which pieces qualify.
Pearlman also raised broader concerns about capital outlay, reserve use and future bond-funded projects, arguing the city needs to distinguish between projects it must have and projects that are “nice to have.”
Several residents echoed concerns about spending, capital planning and transparency. Public commenters questioned the pace of tax revenue growth, the use of consultants, CRA funding, Beach and Park District funding, real estate purchases, green space priorities and the city’s long-term capital commitments.
Other council discussion touched on whether Boca Raton should consider an independent internal auditor, whether artificial intelligence could help reduce costs or improve efficiency, and whether the city has proper policies in place for AI use and public records retention.
Staff said council feedback from the workshop will be used as the budget moves toward the formal adoption process. The city is expected to return to the budget in later hearings before the fiscal year begins Oct. 1.
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