Boca Raton City Council Special Workshop on FY 2026-27 Budget - June 18, 2026

The Boca Raton City Council held a special workshop on June 18, 2026, from 1:30 PM to 3:30 PM, to discuss the preliminary proposed budget for fiscal year 2026-27. No decisions were required; the workshop aimed to provide an early overview, discuss key assumptions, and gather council feedback ahead of public hearings in September. Staff emphasized the city's strong financial position and that the budget reflects policy priorities.

Public Comments & Testimony

• Andrea Levine O'Rourke (former council member, 100 SE 5th Ave): Urged that arts and culture be treated as essential assets, not optional amenities, noting their economic impact and role in community identity. Advocated for adding a Department of Cultural Affairs and maintaining nonprofit grants.
• Joanna Marie Kay (executive director, Festival of the Arts Boca, 6325 Las Flores Dr): Requested continued city support at the same level for the past five years, stating that the festival is an economic driver and that artist contracts are stalled pending city funding decisions.
• Brianna Hagquist (with gopher tortoise mascots): Asked for clarification on funding between the Greater Boca Raton Parks and Recreation District and the city, specifically regarding Sugarsand Park and wildlife habitat.
• Mike Liebelson (398 NE 3rd Ct): Stated that property tax collections have grown 49.4% ($46.8M) since FY2022 while population grew only 2% and inflation 9.4%, and general fund expenditures grew 26% ($51M). Argued for expenditure growth tied to population plus inflation and for using EPC contractors instead of separate engineering consultants.
• John Anderson (290 W Palmeadow): Questioned the applicability of the CRA to Boca Raton, called for more boat ramps, criticized privatization trends, and said the fire assessment fee shift means the city is not budgeting properly.
• Jonathan Ungie (6501 Congress Ave): Argued the city should focus on growing revenues through strategic development rather than only cutting budgets, and that development has been limited.
• Martin Bell (761 SW 3rd St): Questioned the timing of real estate purchases, suggested using excess city assets for a dog park, praised the Boca El Rio Trail, and criticized the $150M bond placeholder for Memorial Park as inaccurate. He also urged against subsidizing public companies and requested clarification on the budget deficit figure.

Discussion Items

• Millage Rate and Property Tax Revenue: Staff proposed keeping the operating millage rate unchanged at 3.6476 and decreasing the debt service millage by 0.001, resulting in a total decrease of 0.001. The rolled-back rate (to collect the same revenue as prior year) was calculated preliminarily at 3.5548, based on proposed SB4F legislation. Under the proposed rate, a home valued at $500,000 with a $50,000 exemption would pay $1,648.76 in city taxes. The increase in assessed valuation is approximately $2.48 billion, a 6.19% rise (1.43% from new construction). The difference between the proposed rate and the rollback rate would yield about $4 million in additional revenue. Total ad valorem tax increase from FY26 to FY27 is estimated at $8.2 million (including new construction).
• Fire Assessment Fee: Staff proposed increasing the residential fire assessment fee from $155 to $224 to fund full staffing of Fire Station 8 and additional EMS captains. The increase is partly due to rebalancing costs based on calls for service, resulting in lower fees for many commercial properties. The last fee increase was in 2022 when residential rates went from $145 to $155. Councilmember Grau noted that Boca Raton's fees are lower than comparable cities (e.g., Boynton Beach $365, Fort Lauderdale $365).
• New Positions: The general fund request includes 12 firefighters, 4 lieutenants, 4 EMS captains, and 1 vehicle technician for Fire Station 8 (about $3.8M), plus a budget analyst. Other funds request 4 police officers for the CRA (focus on unhoused population) and 3 positions in water/sewer. Staff noted that many other new position requests were not included to balance the budget.
• Memorial Park Enhancements: A $7.5 million allocation from land proceeds fund is proposed for FY27 to plan, design, and begin work on civic buildings (City Hall, community center), historic buildings, tennis center, and utilities. Councilmember Pearlman questioned the $7.5M figure, calling it outlandish given past spending on police station plans. Staff clarified that the amount includes actual work (e.g., ADA upgrades, climate control) and is a five-year budget placeholder; no spending authorization exists. Councilmember Drucker noted that the preliminary CIP book includes specifics like the Singing Pines assessment ($1.5M) and that the project is not a one-year effort.
• Capital Improvement Program (CIP): Staff highlighted 12 major projects for FY27, including $25.83M for wastewater upgrades, $14M for water treatment improvements, $12M for downtown railroad pedestrian crossing evaluation, $10M for railroad crossings (Jeffrey Street and 28th Street closure), $8M for city services building renovations, $7M for municipal fleet garage, $7M for meter reading technology, $5M for Spanish River underpass, $4M for roof replacements, and $3M for police services facility. Councilmember Pearlman expressed concern that the total capital outlay for FY26 (approved) and FY27 (proposed) is $575 million, with additional bond plans for police station ($120M) and Memorial Park ($150M), potentially nearing $1 billion. He argued that the focus on the general fund is misleading and that the depletion of fund balances ($295M over two years) is irresponsible given the pending property tax reform.
• Fund Balance and Reserves: Staff presented that the general fund budget shows a net increase of $180,900, maintaining a 10% fund balance plus a hurricane disaster reserve. However, across all city funds, the proposed capital plan would reduce total fund balances from $711.8M to $415.9M, a decline of $295M. Councilmember Pearlman emphasized that this is a depletion of rainy day funds while the state tax reform could significantly reduce future revenues.
• Internal Audit: Deputy Mayor Grau suggested establishing an independent internal auditor reporting to the council, noting that Delray Beach has such a position. City Manager Zervis explained that the current internal audit function is within the finance department and not independent. He offered to study the feasibility and cost of a dedicated internal auditor or outsourced firm.
• Other Items: Councilmember Grau asked about recreation cost recovery, beautification spending, economic development fund subsidy, office of emergency management consolidation, and AI use for efficiency. Staff responded that the beautification fund is being folded into public works, economic development fund has sufficient balance, and emergency management moved to fire rescue. Councilmember Sipple questioned the decrease in CDBG and SHIP funds (79.4% drop in housing assistance trust); staff will follow up.

Key Outcomes

• No formal votes were taken. The workshop is the first step in the budget process; staff will incorporate council feedback and return with a refined budget for public hearings in September.
• Staff will provide follow-up information on: recreation cost recovery, library branch costs, beautification spending breakdown, internal auditor feasibility, AI use policy, and CDBG/SHIP funding changes.
• The proposed fire assessment fee increase and new positions will be further discussed with stakeholders, including the fire union and business community, before formal adoption.
• Councilmembers expressed differing views on spending priorities: some emphasized maintaining services and low millage rates, while others called for significant cuts in the CIP and fund balance preservation in light of potential property tax reform.
• The meeting adjourned at 3:30 PM.