2014 Delray Budget Observations
Content
Observations of the Delray General Fund 2014 Budget and Resulting Millage Rate
1)- First and foremost, Delray property owners pay an elevated/premium millage rate compared to surrounding/contiguous municipalities. Delray property owners pay 7.8 mills and Property owners within its Downtown Development Authority (DDA) pay an additional mill for a total of 8.8 mills. 2)- The comparable present millage for our contiguous neighbors with Delray’s higher percentage rate (not including the DDA) in parentheses is—Boca 4.7 (66%), Boynton 7.6(3%), Unincorporated County (municipal portion only) 4.06 (92%), Gulf Stream 3.1 (152%), and Highland beach 4.87 (60%). 3)- Do Delray taxpayers receive “premium” police, fire/rescue, and administrative service s compared to our neighbors? If so, does it warrant the higher percentage in millage? 4)- Delray’s 2014 Proposed General fund only Budget is proposed to increase from $96,574,063 to $99,671,880-- $3,097,817 or 3.21%. The revenue source is almost entirely from property taxes which are proposed to increase from $57,450,210 to $60,522,130-- $3,071,920 or 5.35%. 5)- The property tax increase is the result of an increase in taxable values from $6.2B to $6.6B, or 6.5%. This allows for the proposed “total” millage rate to remain unchanged at 7.8 mills. 6)- Sounds okay until you dig deeper down into the millage rate ’s two components—Operating and Debt Service (Actually, a misnomer. It is only General Obligation debt service and does not include Revenue Bonds and other long-term debt). 7)- Delray’s Debt Service millage rate will decline from .60 to .35 mills. So, its Operating millage rate is increasing from 7.2 to 7.45 mills—3.5%. Given the aforementioned Taxable value increase of 6.5% in #5 above, the portion of property taxes need to pay for increases in operations is 10.2%! 8)- Are taxpayers receiving a 10.2% increase in the overall value of Delray municipal services? For comparison, Boca only had a 4.2% increase in Taxable Values, slightly lowered its debt Service millage, but kept its proposed 2014 Operating millage virtually the same ( increased from 3.41 to 3.42 mills). 9)- Of the $99,671,880 General Fund only Budget, Police and Fire expenditures total $53,105,220 or 53% of the Total Budget. Unfortunately, the City’s reporting does not credit these two departments with the revenue they generate. So, the net and true cost of these functions is not readily available. I assume though the net cost is at least $50M or half of the Total Budget. This means about 4 mills of the 7.8 total is attributable to police and fire services. 10)- That 4 mills alone is “hefty” when compared with our surrounding neighbors total millage (See #2 above). I have never heard a realtor tell me prospective buyers want to move to Delray because of its “premium” police and fire service. I have heard realtors tell me some prospective buyers reject Delray because of its elevated millage rate! 11)- Here are alarming numbers. On Page 1 of the 2014 Budget presentation, total police and fire expenditures will increase 15.7% and 10.4%, respectively in just two years (2012 Actuals vs. 2014 Budget)!
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Observations of the Delray General Fund 2014 Budget and Resulting Millage Rate
12)- Let’s not just single out police and fire. City Attorney costs will rise 16.2% and Parking Facilities a whopping 62.4% over the two years! Has Delray’s legal service and parking improved that much? Based on the comments at public meetings the last 6 months, it certainly does not appear so!
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1)- First and foremost, Delray property owners pay an elevated/premium millage rate compared to surrounding/contiguous municipalities. Delray property owners pay 7.8 mills and Property owners within its Downtown Development Authority (DDA) pay an additional mill for a total of 8.8 mills. 2)- The comparable present millage for our contiguous neighbors with Delray’s higher percentage rate (not including the DDA) in parentheses is—Boca 4.7 (66%), Boynton 7.6(3%), Unincorporated County (municipal portion only) 4.06 (92%), Gulf Stream 3.1 (152%), and Highland beach 4.87 (60%). 3)- Do Delray taxpayers receive “premium” police, fire/rescue, and administrative service s compared to our neighbors? If so, does it warrant the higher percentage in millage? 4)- Delray’s 2014 Proposed General fund only Budget is proposed to increase from $96,574,063 to $99,671,880-- $3,097,817 or 3.21%. The revenue source is almost entirely from property taxes which are proposed to increase from $57,450,210 to $60,522,130-- $3,071,920 or 5.35%. 5)- The property tax increase is the result of an increase in taxable values from $6.2B to $6.6B, or 6.5%. This allows for the proposed “total” millage rate to remain unchanged at 7.8 mills. 6)- Sounds okay until you dig deeper down into the millage rate ’s two components—Operating and Debt Service (Actually, a misnomer. It is only General Obligation debt service and does not include Revenue Bonds and other long-term debt). 7)- Delray’s Debt Service millage rate will decline from .60 to .35 mills. So, its Operating millage rate is increasing from 7.2 to 7.45 mills—3.5%. Given the aforementioned Taxable value increase of 6.5% in #5 above, the portion of property taxes need to pay for increases in operations is 10.2%! 8)- Are taxpayers receiving a 10.2% increase in the overall value of Delray municipal services? For comparison, Boca only had a 4.2% increase in Taxable Values, slightly lowered its debt Service millage, but kept its proposed 2014 Operating millage virtually the same ( increased from 3.41 to 3.42 mills). 9)- Of the $99,671,880 General Fund only Budget, Police and Fire expenditures total $53,105,220 or 53% of the Total Budget. Unfortunately, the City’s reporting does not credit these two departments with the revenue they generate. So, the net and true cost of these functions is not readily available. I assume though the net cost is at least $50M or half of the Total Budget. This means about 4 mills of the 7.8 total is attributable to police and fire services. 10)- That 4 mills alone is “hefty” when compared with our surrounding neighbors total millage (See #2 above). I have never heard a realtor tell me prospective buyers want to move to Delray because of its “premium” police and fire service. I have heard realtors tell me some prospective buyers reject Delray because of its elevated millage rate! 11)- Here are alarming numbers. On Page 1 of the 2014 Budget presentation, total police and fire expenditures will increase 15.7% and 10.4%, respectively in just two years (2012 Actuals vs. 2014 Budget)!
Page 1 of 2
Observations of the Delray General Fund 2014 Budget and Resulting Millage Rate
12)- Let’s not just single out police and fire. City Attorney costs will rise 16.2% and Parking Facilities a whopping 62.4% over the two years! Has Delray’s legal service and parking improved that much? Based on the comments at public meetings the last 6 months, it certainly does not appear so!
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