DELRAY BEACH, Fla. — Delray Beach is at a crossroads, and residents are voicing their concerns as the city grapples with significant financial challenges.
WATCH BELOW: 'I thought it was the right thing to do,' Mayor Tom Carney tells WPTV's Joel Lopez
Following a reduction in the millage rate last year—an effort to ease the tax burden for residents—city leaders are now confronting the harsh realities of a financial landscape that appears to be on the brink of crisis.
WPTV’s Joel Lopez is crunching the numbers, investigating the current status of Delray Beach’s finances, highlighting the potential repercussions of the lowered millage rate, which plummeted to 5.9063, significantly below the staff-recommended 6.0611.
While the intention behind this reduction was to save taxpayers money, the subsequent budgetary implications have left city dollars in a precarious position.
"Find ways to save money, but also deliver a number that’s great for the city of Delray Beach," said resident Byron Jones, echoing sentiments of frustration shared by many.
With continual rising costs, including property taxes and water rates due to new facility developments, residents are worried about maintaining a reasonable cost of living in the city they call home. Jones is pressing city commissioners to work together and collaborate with the city manager to devise a budget that reflects the community’s needs.
WATCH PREVIOUS COVERAGE: New millage rate saves residents money but could come at a cost
"At this rate, how would you classify the city of Delray Beach’s financial status?" Lopez asked Jones, who bluntly stated, "I call it a crisis."
City officials, including Vice Mayor Rob Long, corroborated these concerns, stating that the lower millage rate has indeed led to a budgetary crisis.
“It may have been well intentioned, but we knew the numbers before we went in,” Long said, noting that he had voted against the reduction. "We're reaping what we sowed here. There was no sustainable plan to try and maintain that rate, and now we are seeing what happens."
WPTV has previously reported on the contentious issues surrounding police contracts.
During the budget workshop, the city manager highlighted that the city's fire department faces a staggering $1.4 million shortfall.
WATCH PREVIOUS COVERAGE BELOW: Delray Beach Fire Department talks possible staffing cuts
Long shared that the new fire chief has already made extensive cuts, leaving little room for further reductions without compromising public safety.
When asked about solutions, Long suggested reinstating a more responsible millage rate that could address the current budget deficits.
He proposed increasing the millage rate up to 6.0611 as a means to alleviate the fire department's financial woes and ensure public safety measures remain intact.
"I would recommend that we adopt a much more responsible millage rate going forward in the new budget and we can do that and still see a reduction in the 2023 millage rate," said Long.
Lopez pressed Mayor Tom Carney on the topic.
"Would you support raising it if we need to catch up on the money?" he inquired.
WATCH PREVIOUS COVERAGE BELOW: What's stopping Delray Beach Police from getting paid more money?
"I don’t think we’re going to have to; I think we have enough money here to get our budget done the way we want it," Carney responded confidently.
He emphasized the need to evaluate all departments for potential savings while acknowledging the structural costs associated with salary increases for city employees.
"Police, fire, public works and parks and rec all spoke up worried the impacts it’ll have on their departments by lowering the millage rate. You still went through with it. Tell me why," said Lopez.
"Because I thought it was the right thing to do. I thought the tax payers deserved a break for once," said Carney.
Despite the current millage rate allowing residents to save approximately $67 a year per $300,000 in taxable property value, the long-term sustainability of this approach raises concerns.
"We're not saying we're pulling from anywhere yet, we're going to look where are the numbers are," said Carney. "We have to maintain that we keep the level of service for the citizens of Delray Beach."
Tuesday is the first of a series of budget workshops, with final decisions expected to be made by September.
Read more of WPTV's previous coverage below:
Delray Beach
How much would new millage rate save Delray Beach residents?
Region S Palm Beach County
GRIDLOCK: What's stopping Delray Beach Police from getting paid more money?
Delray Beach
