Increases in land values bring more tax money to Boca, Delray
By Dale King
Boca Raton and Delray Beach are neighboring communities, but they do not have a lot in common. And neither do their municipal budgets.
However, they are alike in two financial respects. The governing boards in both communities have approved spending packages for the 2020-21 fiscal year with tax rates that didn’t increase from last year. And the two municipalities report increases in property values from 2019-20 – something that helps bring more tax bucks into city coffers, though it does raise tax bills for local homeowners. Companies specializing in land surveys and Zoning Services can help those who are planning to purchase land properties.
In Boca Raton, City Manager Leif Ahnell said the tax rate there for the fiscal year that began Oct. 1 sports a tax rate of $3.6786 per $1,000 valuation – “slightly less than last year.”
On the other hand, property values increased 4.75% in the city. “The net increase is composed of a 3.85% increase from reassessments of existing properties and an increase of .90% from new construction.”
The owner of a home with a taxable value of $300,000 in Boca would pay $1,103.58 in property taxes were it not for the hike in property values, which will push the tax bill up slightly.
In Delray, Interim City Manager Jennifer Alvarez reports a similar situation. She noted that “the city’s assessed property value is at its highest level at $11.9 billion, or a 7.62 percent increase over the previous year’s valuation.”
It’s a good thing Delray Beach is collecting more from the hike in property values because coronavirus has driven revenue down. This forced the City Commission to cut the proposed 2020-2021 budget and increase the amount of money being transferred out of the 2019-2020 spending package.
When the discussion ended at the second budget hearing on Sept. 22, commissioners decided to pull $5.24 million in surplus revenue from the 2019-2020 spending plan and make $2.76 million in additional budget cuts in the budget that went into effect Oct. 1.
With all the funding finagling, city officials were able to keep the tax rate at its current figure of $6.6611 per $1,000 valuation.
Officials hope the added cash along with an anticipated increase in revenue as COVID-19 winds down will do the trick. However, if it does not, more budget cuts may be needed later in the year.
Delray took the following steps to make the figures work:
- Parking – The department is under budget by 15 percent. The city has reinstated metered parking on downtown streets and in municipal garages after 6 p.m.
- Beach decals – These may end up costing more to help raise cash for the city.
Cuts in the budget for 20-21 include a $421,411 reduction in police overtime. Chief Javaro Sims said he can make this work because coronavirus has cancelled to many activities that police are not being called for security at events.
Delray will save about a half-million by cutting out the free trolley service along Atlantic Avenue from the Tri-Rail station to State Road A1A and the shuttle services through the downtown CRA area.
The city is also raising the cost of emergency medical transport and hiking the cost of Fire-Rescue inspection fees.
The mayor and city commissioners have also voted themselves pay raises this year. The mayor will see a hike from $12,000 to $30,000 a year while the other four commissioners will see their wages slide upward from $9,000 to $24,000.
The new Boca Raton city budget that went into effect, Oct. 1 got unanimous approval Sept. 22 from the City Council following the second of two public hearings.
As usual, in the moments just before voting for City Manager Leif Ahnell’s spending package, council members added a couple of programs to the overall financial sheet. The amendments added a scant $35,000 to this fiscal year’s proposal which Ahnell said would not impact the tax rate or any other figures.
The budget was adopted with unanimous approval from Mayor Scott Singer, Deputy Mayor Andrea Levine O’Rourke, Councilwoman Monica Mayotte, and Councilman Andy Thomson. Councilman Jeremy Rodgers was absent as he is serving in the Naval Reserve and is assigned overseas.
Because of coronavirus regulations, the council meetings are held “virtually” on the internet or via the city’s TV channel.
O’Rourke, who has headed the Art in Public Places since the program was adopted, suggested adding $25,000 to beef up the effort, pointing out that the figure was “a paltry sum.”
“We have done some spiffing up at Mizner Park,” she said. “We can bring some things to the community. Down the road, we’d like to have a master plan.”
She initially suggested adding a line item for public art to the budget, but, in the end, pulled that suggestion back.
Also, Mayotte got the council’s OK to add $10,000 to the spending proposal to launch a recycling plan, which may begin as a pilot effort. She suggested it could begin along beaches, in parks and downtown, though, by the end of discussion, council members felt the shoreline should get the first shot.
The councilwoman offered a list of “solutions” to the problem of errant trash, including a “twin the bin” proposal to place two clearly labeled trash containers in various spots, one to collect bottles, the other for cans. Council members suggested limiting the program to the removal of those items, which would still clean some of the street-scattered debris.
Mayotte said decorated trash containers could be created as a tie-in to the public art program.
Councilman Thomson said he “loved” both ideas and said the effort should concentrate on beaches first.
Ahnell said the fire assessment fee to help pay the $26 million annual cost of operating the Boca Raton Fire Rescue Department remains the same in fiscal 2020-21. Residents will continue to pay $145. Commercial users are charged on a sliding scale.
The city manager estimated a slight increase in the cost for providing sanitation service because the Boca council last year voted to retain municipal trash pickup rather than farm it out to a private contractor.
