Delray Beach faces a state audit over its contract with Highland Beach to provide fire-rescue services.
But that’s far from the whole story.
On Monday, the Legislature’s Joint Legislative Auditing Committee unanimously approved a request for the Auditor General to examine what Delray Beach has charged the town for the last six budget years. The request came from State Rep. Peggy Gossett-Seidman, whose district includes Highland Beach and Boca Raton. Seidman is a former town commissioner.
Each year, Delray Beach estimates the cost of servicing Highland Beach. After the budget year ends, the city calculates the actual cost in a “true-up.” If Delray Beach overestimated, the city pays Highland Beach the difference. If the city underestimated, Highland Beach pays the city the difference.
For several years, Highland Beach officials have accused the city of overcharging them. In April 2021, the town commission ended the contract, which otherwise would have expired in 2026, by giving three years’ notice. Delray Beach has served the town since 1993. Highland Beach will start its own department next year.
Highland Beach had complained for years about higher costs, citing new contracts with the firefighters union and calls from Delray Beach residents to the town’s fire station. Delray Beach responded that the town was benefiting from the department’s higher ratings, which meant better service.
The dispute over money has continued since the town gave notice. Delray Beach claims that the town owes the city roughly $540,000. Gossett-Seidman countered Monday that the city owes Highland Beach about $750,000.
Highland Beach further alleges that Delray Beach has failed to provide timely and accurate records to support the city’s true-ups. Gossett-Seidman claimed that the town had to spend $12,000 on an auditor.
However contentious, such intercity disputes are common. Why did this one end up before the Legislature?
Gossett-Seidman, who was elected last November, serves on the Joint Legislative Auditing Committee. The committee’s co-chairman is Rep. Mike Caruso. He represented Delray Beach—where he owns a home—for four years as a House member from a district that also included Highland Beach. During that time, Caruso never involved himself in the fire contract.
House members redrew maps for the 2022 election, placing Delray Beach in a more Democratic-friendly district. Caruso, a Republican, chose to run in a GOP-friendly district farther north.
So why does Caruso now care about the contract? Why did he schedule Monday’s hearing with so little notice? An email went to the city last Thursday, then was recalled. Confirmation of the hearing didn’t come until Friday. Delray Beach scrambled to have a lawyer, Mark Herron, present.
More important, why is this a matter for Tallahassee? Highland Beach could have gotten out with just one year’s notice by showing breach of contract. The town didn’t allege that. Even Highland Beach’s town manager acknowledged that the quality of service “has been great.”
In 2021, Caruso’s wife—Tracy Caruso—ran against Mayor Shelly Petrolia. Though many political action committees that supported Michael Caruso also helped his wife, Petrolia prevailed by three percentage points after an ugly campaign.
City Commissioner Juli Casale strongly supported her ally, Petrolia. Casale is on the ballot today for a second term. The staff audit that accompanies Gossett-Seidman’s request notes the $1 million fine against Delray Beach in 2021 by the Florida Department of Health for water-quality violations. Caruso raised that issue on Monday.
Casale and Petrolia are Democrats. Gossett-Seidman, like Caruso, is a Republican. News of the hearing came first on Florida Jolt, a right-wing website that lists Tracy Caruso as part of “our team.”
Sen. Jason Pizzo—the committee’s co-chair and a Democrat—ran Monday’s hearing. After asking and getting confirmation that Delray Beach will hold an election today, Pizzo said he wanted to “make it very, very clear” that the committee’s work amounts to “bookkeeping.”
The issue, Pizzo said, is not about “local politics” or any officeholders. The committee “is not going to be weaponized.” The audit, he said, could take as long as 18 months.
Caruso denied that he was coming “from a political perspective.” He suggested, though, that “controls” in Delray Beach are “very lax.” He noted that there have been five city managers since 2016.
Delray Beach officials have every reason to be worried. What will be the scope of the audit? In her request, Gossett-Seidman said it should cover the last six years “at a minimum.” It could go back farther. What will follow the audit? Even if a report critical of Delray Beach is just “bookkeeping,” what might Caruso and Gossett-Seidman do with it?
Because of the short notice, Delray Beach was unable to send a delegation that might have offered a defense. Herron said the city “will cooperate fully.” Herron joked that he’s a “defense lawyer” who usually represents clients facing criminal ethics charges. “So, we’ll see what happens.”
Boylston weighs in on Delray’s election
About that Delray Beach election:
Last week, City Commissioner Ryan Boylston sent an email to the campaigns of Rob Long, who is challenging Casale for Seat 2, and Angela Burns, who is running against former Commissioner Angie Gray for the open Seat 4. Petrolia supports Casale and Gray and is campaigning for them.
Boylston cited “an underlying issue that has been eating at the fabric of our community in recent years.” Framing the election as a “choice,” Boylston described Casale and Gray as candidates “backed by the mayor, but not by our police, fire-rescue, teacher or city worker unions.” By putting them in office, voters would get “more of the same. More destruction, more toxicity, more Facebook squabbles, more headlines, more distractions and more instability.”
Boylston called Long and Burns “proven community leaders who will serve ALL residents, not just the ones who voted for them. Two adults who spend their time working with constituents in the real world rather than battling with them on social media … Two brave residents who stepped forward to serve our city and have been relentlessly attacked by a sitting Mayor, her candidates, and her close political allies.”
On Monday, Boylston said he told the campaign that they could do with the email “whatever they wanted.” Long and Burns are using it as an endorsement. Though Boylston’s differences with Petrolia and Casale are no secret, going on the record this way was unusual for him. “I just felt that it had to be said.” Boylston told me Monday.
Delray bond proposals on the ballot
For all the deserved focus on the commission races, the bigger long-term issues on Delray Beach’s ballot are the two property tax bond proposals. To review:
The $100 million public safety bond would finance a new police station and improvements to the city’s fire stations. That second item is especially important, with Delray Beach losing its station in Highland Beach when the contract ends. The $20 million parks bond would finance improvements at several city facilities, most notably Catherine Strong Park.
According to the city’s estimate, the public safety bond would cost the owner of a home valued at $250,000 about $107 for one year and $90 each year after that, because the city would have finished paying off previous bond issues. The parks proposal would cost the same homeowner about $22 annually. Each bond would last 30 years.
Singer’s campaign for longer term limits
Boca Raton Mayor Scott Singer continues to campaign hard for a change to the city’s charter that would allow him to serve another year.
In a Sunday email, Singer again asked voters to approve extending mayor and council term limits from three years to four years. The issue, Singer said, “isn’t about me,” though he led the effort to put it on the ballot and would benefit. His current, second term would expire in 2025, not 2024. Singer sent another email on Monday.
Council members Yvette Drucker and Monica Mayotte voted with Singer to spend what could be $250,000 on the single-issue election after the contested races were decided without opposition. Mayotte’s second term would go to 2025. Drucker’s first term also would extend to 2025.
A second mailer in support of the change arrived over the weekend. Like the first, it comes from a group called All For One. Records through Feb. 28 show no contributions or expenditures related to Boca Raton’s election. Two more mailers came Monday from the same source.
Opposition comes from residents who consider the proposal self-serving while offering no benefit to the public. I’ve heard comment that the longer terms should apply only when a seat turns over. Social media posts reflect suspicion that developers are behind the change.
Singer said again that only Boca Raton among the state’s 25 largest cities has three-year terms. He accused opponents of “sending out confusing posts and emails.”
Another donation to Boca Regional—with a twist
There’s an historical twist behind the latest seven-figure gift to Boca Raton Regional Hospital’s capital campaign.
The $1 million donation comes from Matthew and Hilary Rosenthal. A news release points out that Hilary Rosenthal’s great-great uncle was Arthur Vining Davis, who started Arvida, the company that built much of Boca Raton.
Davis donated land and money for the hospital. He also asked for a pineapple fountain at the front door. A pineapple remains part of the hospital’s logo.
