PALM BEACH COUNTY, Fla. — WPTV is tracking the budget decisions that shape the services people rely on every day, and Palm Beach County commissioners spent Thursday wrestling with some tough choices.
On Thursday, Palm Beach County commissioners gave tentative approval to an $8.26 billion budget, but not before sparring over whether the county should set aside another $26.7 million in reserves, restore funding for community programs and take a closer look at the Palm Beach County Sheriff's Office budget.
WATCH BELOW: Palm Beach County advances $8.26B budget
The board ultimately moved forward with a tentative spending plan that includes increasing reserves to roughly $392 million, while also signaling support for keeping the Jim Brandon Equestrian Center open through next year and restoring funding for a Soil and Water Conservation District position.
One of the biggest debates centered on the county's reserve fund.
County administrators said the proposed budget would add about $26.7 million to reserves, bringing the total to about $392 million. Staff told commissioners the recommendation was driven largely by concerns from bond rating agencies and uncertainty surrounding Amendment 3, a proposed constitutional amendment that could reduce future property tax revenue growth.
"We have been told by our credit rating agencies the reserves are important," County Administrator Joe Abruzzo told commissioners.
Later in the discussion, Abruzzo warned about the potential financial impact if Amendment 3 passes.
"Rule of thumb, let's say we received $100 million in extra revenue because property taxes went up, that would be cut in half," Abruzzo said. "We would only be receiving $50 (million)."
Abruzzo said rating agencies repeatedly stressed the importance of maintaining reserves.
"They are very concerned about the drop to the revenue in the bottom line on Amendment Three," Abruzzo said. "It was said multiple times you need to keep your reserves where it's at."
County officials also cited hurricane preparedness as a reason to maintain reserves.
"If we have a hurricane, natural disaster or horrific event that we may be on our own more than years past, those reserves would be vitally important for that," Abruzzo said.
Vice Mayor Marci Woodward strongly supported leaving the reserve increase intact.
She warned that South Florida has been fortunate to avoid a major storm in recent years.
"We have been blessed to not have a true natural disaster hit us," Woodward said. "It's Florida. It feels like we are on borrowed time."
Woodward called the reserve fund a necessity.
"We call it a rainy day fund," she said. "That fund needs to be secured. That is sacred. Don't touch it."
Woodward also argued that strong reserves help protect Palm Beach County's coveted AAA bond rating.
"We actually get more bang for our buck because we have the highest bond rating," she said. "Nothing we do should jeopardize that."
Not everyone agreed.
Mayor Sara Baxter questioned whether the county should continue adding money to reserves while residents struggle with rising costs.
"I feel it's a scare tactic. We were $100 million less when I took office, and we were still AAA," Baxter said. "We're talking almost four years later, we're still AAA but a $100 million more."
She later added: "Why could not put less on reserves and give residents a break and reduce at the same time."
Baxter also pointed to everyday affordability concerns.
"Yes, there might be a natural disaster, but we have people who can't afford groceries and can't afford the day-to-day expenses," she said.
The reserve debate became intertwined with discussions about whether the county should restore funding for programs facing cuts.
Commissioner Joel Flores advocated for the Jim Brandon Equestrian Center, arguing that the facility serves far more than wealthy horse owners.
"I think the biggest misconception when you talk about equestrian is that everybody that participates in this sport is wealthy," Flores said. "That could be the biggest misconception out there."
After touring the facility, Flores said he was struck by the number of children and families who benefit from the county-owned venue.
"I think children have an opportunity, and they currently have an opportunity to participate in this equestrian world where if this is not open to the public in the manner it is today, I don't know that they could participate."
Flores asked commissioners to fund the center through the next fiscal year, a move estimated to cost approximately $427,000.
"What I would love the board today was find a way to fund them through the next year," he said.
He also urged commissioners to restore approximately $79,000 for the Palm Beach Soil and Water Conservation District and consider putting new money into affordable housing programs.
"I strongly consider and urge the board to consider putting dollars into our affordable workforce housing program," Flores said.
Commissioner Maria Sachs backed restoring funding for both the equestrian center and Soil and Water Conservation District.
"We are not operating in a vacuum with these cuts. People's lives that we're sworn to protect," Sachs said. "That's why I would support funding these two projects."
By the end of the discussion, a majority of commissioners indicated support for funding both items, with amendments expected to return at the next budget hearing.
Another major topic was the Palm Beach County Sheriff's Office budget.
Flores questioned why PBSO received a significant increase last year and is seeking additional funding this year while also requesting to carry forward about $21 million in unspent capital funds.
According to staff, PBSO received about $124 million in additional funding last year, followed by another $10 million during a midyear budget amendment. This year, the agency originally requested an additional $94 million before negotiations reduced the request to approximately $74 million.
"What has caused the department to increase so drastically over the last years?" Flores asked. "These are totaling $200 million within two years."
When staff said they did not know the answer because the county receives only a high-level budget from PBSO, Flores pushed for more transparency.
Commissioners unanimously voted to request a more detailed Sheriff's Office budget, including spending broken down into individual categories and jail-related expenditures.
Flores wasn't done.
"How do we know that increasing his budget this year ... that he actually needs it and he is going to utilize the entire amount when last year he did not utilize the entire amount?" he asked.
Then he delivered another pointed criticism.
"We gutted departments. We made major cuts to our departments but yet we are funding another constitutional officer," Flores said. "How do we ensure these dollars are going to be actually needed?"
Despite the disagreements, commissioners ultimately approved a tentative countywide millage rate of 4.5 mills, which is 5.44% above the rollback rate, and a tentative countywide budget of approximately $8.26 billion.
WPTV reached out to PBSO who released this statement:
"Unlike a County, which has multiple mechanisms to move funding across fiscal years for a project or purchase, Florida Sheriff’s are not authorized to hold a reserve. Instead, Sheriff’s use the carry forward, a standard accounting transaction to move obligated funding from one fiscal year to the next. The $21 million represents funding that is already obligated, contracted and encumbered for vehicles, radios and other essential equipment. The use of a carry forward is primarily related to delivery timing as many products, such as vehicles, have timelines that preclude them from being delivered prior to the end of a fiscal year. It is inappropriate to characterize this simply as unspent money or a reserve, the funds are committed. The Sheriff produces his budget in accordance with Florida State Statute 30.49 and upon request of the BCC has provided and will continue to provide sub-object level detail as prescribed by said statute. Additionally, every year during the audit process, all PBSO annual expenditures are also provided at a sub-object level detail to the County. This information is readily available to them at any time."
The budget is not final.
Commissioners are expected to revisit the spending plan, including amendments for the Jim Brandon Equestrian Center and Soil and Water Conservation District, at a future public hearing before final adoption.
