DEERFIELD BEACH, FL — Deerfield Beach city staff walked commissioners through a $426.2 million proposed fiscal year 2027 budget Tuesday night that holds the operating property tax rate flat for a seventh straight year but adds hundreds of positions as the city stands up its own police and fire rescue departments.
The three-and-a-half-hour budget workshop, held at the Hillsboro Technology Center, was the first public look at how the city plans to fund a public safety transition it has been building toward since January. No votes were taken. The proposed budget is scheduled for two public hearings on September 9 and September 14.
According to the budget presentation Boca Post reported on last week, the proposed operating millage rate would remain at 6.0018 mills, unchanged since 2020. The voted debt millage would drop slightly to 0.1630 mills, bringing the total proposed rate to 6.1648 mills. One mill is projected to generate about $12.1 million based on preliminary taxable values received from the Broward County Property Appraiser on June 1.
Total citywide tax collections are estimated at $74.56 million, with a projected $71.38 million flowing to the general fund after the Community Redevelopment Agency's tax increment allocation.
The overall budget grows 10 percent from the current $386 million. The general fund alone increases 18 percent to $212.8 million, driven by the transition to a city police department and a city fire rescue department.
Citywide personnel costs are projected to jump 62 percent, from $40.3 million to $65.4 million. The city's total employee headcount rises from 551 in the current year to 881 in FY27, including 149 positions in the transitional police department and 183 positions in the transitional fire rescue department. The proposed budget also funds a 4 percent cost-of-living adjustment and a 3 percent merit increase for city employees.
Broward Sheriff's Office contracts, which will continue during the transition, are budgeted at $81.4 million, including $39.5 million for law enforcement and $41.9 million for fire rescue. That represents an 8 percent increase over the current year.
Transitional Police Chief Daniel Morgalo told commissioners the department would operate with 10 patrol zones, down from the 14 zones covered by BSO, with rapid-response units to surge to priority calls. Transitional Fire Chief Chantal Botting said the department would move to a 24-hour on, 72-hour off shift model, up from the 24/48 model currently used, which she said reduces overtime and aligns with a state-recommended schedule.
The city is considering a fire rescue assessment fee increase from $350 to $365 per residential dwelling unit for FY27. According to the presentation, the higher rate would cover about 49 percent of the BSO fire rescue contract. The commission is scheduled to adopt a preliminary fire rescue assessment rate resolution on July 7.
Deputy City Manager Eric Power told commissioners the city is monitoring a proposed state property tax amendment that could reduce Deerfield Beach's tax collections by an estimated $12.5 million, or 16 percent, in fiscal year 2029 if voters approve a $250,000 homestead exemption.
The presentation identified $1.73 million in general fund expenditure reductions through the city's lean budgeting exercise, which began in November 2024.
Municipal advisor Davenport Public Finance presented the city's credit profile. The city holds a Fitch AA+ rating, most recently reaffirmed in February 2026, and an S&P AA rating. Staff and Davenport are working to reestablish a Moody's rating through a confidential rating review.
The five-year capital improvement plan totals $284.3 million, with $62.4 million proposed for FY27. Major FY27 items include $29.4 million in Construction Manager at Risk services for water plant rehabilitation, $5.3 million for the Martin Luther King Jr. Avenue stormwater improvement project, $5 million for city bridge rehabilitation focused on the SE 15th Avenue Bridge replacement, and $2.4 million for the Local Agency Program project covering Crystal Lake Drive and NW 45th Street.
Public comment ran more than an hour and touched on the Southeast 8th Avenue flooding issue, the proposed Cultural and Performing Arts Center at the Deerfield Beach Elementary School auditorium, event funding priorities, and questions about long-term debt capacity for future fire stations. Several speakers questioned whether Black Heritage Banquet and Women's History Brunch funding will hold up under a state anti-DEI law taking effect January 1, 2027. Staff said both events would likely not be allowable under the current law as written.
The proposed budget will be formally submitted to the commission on August 15. Two additional commission workshops are scheduled for July 2 and July 6, followed by the regular commission meeting on July 7.
Boca Post follows City Hall, public meetings, commission votes, and policy discussions through our Deerfield Beach Government coverage.
