DELRAY BEACH, Fla. — Delray Beach commissioners are moving toward a property tax rate increase that would cost the average homeowner about $342 more per year, part of a proposed $219.8 million general fund budget for the fiscal year that begins Oct. 1.
The proposed millage rate of 6.4371 mills, up from the current 6.1611, was outlined during a July 14 budget workshop and would generate about $14 million in additional property tax revenue. Commissioners took no formal vote on the millage rate Tuesday but are scheduled to consider a tentative rate at their July 21 meeting.
City Manager Terrence Moore said the proposed rate reflects a decade of downward pressure on Delray Beach's millage. From 2017 to 2025, the city cut its rate by about 15%, or 2% compounded annually, even as municipal costs climbed roughly 3.75% per year during the same period, according to a presentation delivered by Chief Financial Officer Henry Dakowitz.
Dakowitz told commissioners the increase, combined with rising taxable values, would push property tax revenue from $118 million to $132 million. About $8.5 million of that increase comes from higher taxable values and $5.67 million from the proposed millage adjustment.
Personnel and pension costs drive general fund
The presentation showed personnel services, salaries and benefits climbing 8.8%, from $120.88 million to $131.4 million. Increases include:
- $1.3 million for cost-of-living adjustments for general employees
- $600,000 for retirees
- $589,000 for fire pension contributions
- $723,000 for police pension contributions
- $500,000 to resume the city's asphalt paving program
- $370,000 in fleet fuel and lube cost increases
- $3.3 million in additional tax increment payments to the Community Redevelopment Agency
The proposed budget also draws $8.4 million from the city's unassigned fund balance, reducing reserves from about 22% to 18% of general fund expenditures. That remains above the 16.66% minimum recommended by the Government Finance Officers Association but below the city's current 21% to 25% policy range.
Commissioner Juli Casale said she was concerned about drawing down reserves too quickly, particularly given the city's outstanding bond debt for its new water treatment plant and golf course renovations.
Deputy Vice Mayor Tom Markert echoed those concerns, citing federal disaster response uncertainty. "FEMA has been decimated," Markert said, referencing conversations from recent work in Washington. "We may be very much on our own."
State property tax referendum looms
Much of the workshop centered on the potential impact of House Joint Resolution 1F, a state constitutional amendment on the November 2026 ballot that would expand homestead exemptions. If passed, the amendment would take effect Oct. 1, 2027.
Dakowitz projected the city would lose about $7.35 million in ad valorem revenue in fiscal year 2027–28 and $12.77 million the following year. Because the resolution prohibits municipalities from cutting police and fire budgets to make up the shortfall, the city would need to find those savings from a smaller portion of its overall budget.
Moore said the city would need to consider implementing fire and emergency medical services fees to offset the potential losses, a step neighboring municipalities have already taken. He said such fees are "regressive" but represent one of the few legal avenues available to municipalities.
Vice Mayor Angela Burns pressed for a clearer public case for the millage increase. "What improvements can the residents expect as a result of paying more?" Burns said.
Moore said the increase primarily maintains current service levels, avoids layoffs and resumes previously deferred programs including street paving. He said the city plans to launch a public education campaign on property taxes ahead of the November referendum, including a dedicated web page, brochures, social media outreach and short-form videos.
The city's tentative millage rate is scheduled for adoption at the July 21 meeting. Delray Beach must submit the tentative rate to the Florida Department of Revenue and the Palm Beach County Property Appraiser by Aug. 4. First and second public hearings are scheduled for Sept. 8 and Sept. 22.
Commission denies North Federal Highway condo project
At the regular meeting that followed, commissioners denied a 47-unit condominium project proposed for a long-vacant stretch of North Federal Highway near the Gulf Stream town line.
The applicant sought conditional use approval, four waivers, an internal adjustment and Level 4 site plan approval to build freestanding multifamily housing in a General Commercial zoning district at 2419, 2507, 2515, 2519, 2601, 2605 and 2613 North Federal Highway. The site has been vacant since existing commercial structures were demolished in 2006.
The Planning and Zoning Board recommended approval unanimously on May 18. Gulf Stream Town Manager Trey Nazzaro spoke in support, reading from a written statement by Gulf Stream Commissioner Rob Canfield calling the project a "thoughtful, appropriate, and far better outcome" than the previous automotive commercial proposal that Gulf Stream had opposed.
Mayor Thomas F. Carney, Jr. recused himself from the item. Vice Mayor Burns chaired the hearing.
Casale said she was struggling with the project because of concerns about preserving the city's commercial tax base and questions about whether the proposed waivers were justified. "I think because that area is going to flourish and develop with all the development going around it residentially, that commercial is necessary," Casale said. "I very much worry about not protecting and preserving our commercial tax base."
Commissioner Judy Mollica said she believed the project met the standards for approval and was consistent with the city's comprehensive plan and Land Development Regulations. Markert cited concerns about the loading configuration and low curb heights adjacent to pedestrian paths.
A motion to approve Resolution No. 96-26 failed on a 2-2 tie, with Mollica and Burns in favor and Casale and Markert opposed. A subsequent motion to deny the application passed 3-1, with Mollica opposed. City Attorney Lynn Gelin advised the commission to formally deny the application to preserve the applicant's appeal rights.
Cemetery crisis draws lengthy public comment
More than a dozen speakers used public comment to raise concerns about the Delray Beach Municipal Cemetery, including lack of available plots, staffing, maintenance and communication with grieving families.
Parks and Recreation Director Sam Metelus opened the meeting with a presentation on cemetery operations. He said the more-than-century-old cemetery has averaged 250 burials per year in recent years, up from a historical average of 150, and that the city has added roughly 1,100 new plots over the last five years to keep pace. He said new plots for pre-need purchases are no longer available.
Metelus said the city has hired a full-time cemetery manager, launched a respectful cleanup initiative, added perimeter fencing, and is preparing to build two new mausoleum structures adding more than 2,000 tombs and niches. He said the city is also seeking a specialized contractor to trim vegetation around headstones.
Multiple residents said those steps have not resolved deeper problems. Kevin Mitchell said his mother was diagnosed with end-stage dementia in September 2025 and placed in hospice, and that the cemetery manager declined to allow a pre-need purchase. Mitchell said his mother died June 6, 2026, and he was told no plots would be available for six months.
"Mr. Moore, we have a problem," Mitchell said. He called for an independent audit of grave records going back five years and the formation of an advisory committee.
Sandra Owens told commissioners she purchased a plot beside her mother's grave in 2005 and finished paying for it in 2006, but has been told the plot may not be available. "All I want from the city is my burial plot," Owens said.
Wesley Schuler of Schuler's Memorial Chapel Funeral Home said the cemetery lacks a working water supply and that funeral directors have had to redirect Delray Beach families to cemeteries in other cities at significantly higher cost. Randy Strong of Strong and Son Tri City Funeral Home said families are paying $6,895 or more per grave at private cemeteries because Delray Beach has no space.
Moore committed to a "path forward" agenda item on Aug. 18 that will address operational and maintenance considerations at the cemetery, including possible external professional services. Burns said she would support formation of an advisory board or committee for the cemetery.
Fireworks vendor faulted for holiday failure
Moore delivered a formal update on the July 4 fireworks display, which was moved from an offshore barge to a close-proximity beach launch after the city was notified one day before the holiday that the barge was unavailable.
Moore said the city's contracted vendor, Zambelli Fireworks International, told the city on July 1 that its barge subcontractor, Beitel Brothers, was no longer available. Moore said Zambelli Vice President of Sales Tony Saudi confirmed in a written statement that Zambelli's sales representative had learned of the cancellation the same day.
"We were treated god awful and poorly," Moore said, complimenting Parks and Recreation, Public Works, Fire Rescue and Police for executing a same-week backup plan.
City Attorney Lynn Gelin said the city's contract is with Zambelli, not the subcontractor, and does not include penalty clauses or performance-tied refund provisions. Markert asked staff to evaluate alternative venues for the 2027 celebration, including land-based sites and potentially a drone show.
Other actions
Commissioners also took the following actions during the July 14 regular meeting:
- Approved Resolution No. 109-26, a Zoning in Progress ordinance that pauses processing of applications for workforce housing in-lieu payments while the city considers revised Land Development Regulations. The pause does not affect on-site or off-site workforce housing applications.
- Approved Resolution No. 111-26, amending the fiscal year 2025–26 budget, including a $23 million increase for the Pompey Park Recreation Center project for a new total of $48 million and a $3.76 million decrease for the Northwest Neighborhood Project.
- Adopted Ordinance No. 11-26 on second reading, changing pet grooming from a conditional use to a permitted use in most commercial districts and reclassifying pet hotels, animal training and daytime boarding as permitted uses in industrial districts.
- Adopted Ordinances No. 01-26 and No. 02-26 on second reading, implementing pension changes from the firefighters' and police officers' collective bargaining agreements.
- Approved a 3.5% merit increase for the city's internal auditor.
- Received consensus on a proposed 4.8% stormwater assessment rate increase for fiscal year 2027, raising the per-unit rate from $23.17 to $24.28. About 80% of Delray Beach properties fall into the two lowest impervious-area tiers.
- Approved appointments to the Delray Beach Housing Authority, Police Advisory Board, Affordable Housing Advisory Committee, Public Art Advisory Board and Green Implementation Advancement Board.
- Directed staff to draft an ebike ordinance imposing age and helmet requirements permitted under state law, and to prepare a draft lobbyist registration ordinance modeled in part on Boca Raton's.
What happens next
The commission is scheduled to consider a tentative millage rate at its July 21 meeting. The city's annual town hall on the budget is planned before the first budget public hearing on Sept. 8. The cemetery path forward will be presented at the Aug. 18 regular meeting. Palm Beach County is expected to introduce its ebike ordinance for first reading Aug. 18.
City budget votes, tax rate decisions, and capital spending are documented in our Delray Beach budget coverage.
