Delray Beach is weighing raising the millage rate for homeowners by 4.5% for next year.
The hike would be the second consecutive increase after millage rates were slashed to 5.91 from 6.36 for 2025. Mayor Tom Carney, along with a commission majority that included Commissioners Juli Casale and Tom Markert, voted to reduce the rate at that time to provide relief to taxpayers. Circumstances outside of the commission’s control, however, are pushing the rate higher.
According to the Municipal Cost Index, which measures the inflation of costs in municipal government, the average cost of operations for local governments has risen by nearly 4% year over year. The increase is reflected in Delray’s expenditures, which have increased by nearly 71% since 2017—just over 6% year over year—as a result of a variety of factors including rising inflation, labor costs, and costs for contract renewals.
Expenditures for 2026-27 are expected to rise from $201 million to nearly $220 million. The largest increases by department are for the fire department, public works and engineering, and development services. Personnel costs will also contribute to the tentative budget, with fire and police pensions increasing $589,000 and $723,000, respectively. The City is currently in negotiations with the firefighter union.
With the proposed increase in millage rate, it would cost the average homeowner $342 per year. The city commission will review the proposed budget and millage rate at next week’s budget workshop meeting.
Looking ahead
The Delray Beach City Commission also discussed the proposed property tax reform bill that the electorate will vote on in November. The bill would take effect for the 2027-28 fiscal year.
The proposed bill would prevent local governments from making cuts to fire and police, which in Delray Beach account for about 60% of the budget. To continue funding fire-rescue without a drop in services, the City could implement a fire and EMS fee for residents.
The downside to a fee-based system is that for a flat fee, low-income households would have a proportionally higher cost burden compared to high-income households. Landlords could also pass the fee off to tenants with higher rents.
City Manager Terrence Moore said during the workshop meeting he would provide an update in the coming weeks on how the City could conduct a study to determine the best path forward.
Delray Beach City Commission rejects townhome proposal
The Delray Beach City Commission this week rejected a proposed townhome development at 2419 North Federal Highway.
The property became the subject of controversy after Mayor Carney reached out to the Delray Beach Planning and Zoning Board to voice support for the development, which his brother, Peter, stood to benefit from. The Planning and Zoning Board unanimously recommended approval.
The project was rejected following a 2-2 vote after Carney recused himself. Commissioners Markert and Casale voted against it, while Commissioners Judy Mollica and Angela Burns supported it. Without a majority approval, the project couldn’t move forward.
The proposed development contained 47 luxury townhomes in a gated community on a 4.4-acre lot that would abut a Gulf Stream neighborhood. A representative from the Town of Gulf Stream voiced support for the project, with neighbors preferring residential to commercial development.
Delray to defer to County for e-bike legislation
Delray Beach, like many municipalities, is facing difficulties with e-bikes. With no legislation to govern them, the electronic, motor-powered bicycles are ridden on sidewalks at high speeds, creating at worst a safety risk and at best a nuisance for pedestrians.
Instead of the City drafting its own ordinance, it plans to wait until the Aug. 18 meeting of the Palm Beach County Commission, when the County’s legislation will be introduced. It will then adopt the County’s legislation, making tweaks if needed.
One of these tweaks would be eliminating a potential provision that would mandate e-bike riders to carry ID. The commission agreed this would be an excessive step considering many e-bike riders are kids.
Just this year, Gov. Ron DeSantis vetoed a bill that would have limited the speed limit of e-bikes to 10 miles per hour within 50 feet of pedestrians. Because Florida statutes treat e-bikes as bicycles, the legislation that municipalities can adopt is limited to age restrictions, helmet mandates, and training.
Delray to draft lobbying ordinance
Like Boca Raton, Delray Beach is looking to pass its own lobbying disclosure ordinance.
Boca Raton’s ordinance mandates that a lobbyist fill out a lobbyist certification form and disclose lobbying ties when making presentations. Casale, who asked for a similar ordinance last month, said, “It’s a good thing for the taxpayers to know who’s lobbying for what projects. It gives us transparency.”
The ordinance would only apply to paid lobbyists, not citizens who advocate in favor of a project. City staff will examine other municipalities’ lobbying ordinances in the coming weeks prior to drafting one for Delray.
