A challenging budget year for the Town of Loxahatchee Groves got all that more difficult on Monday, June 30 when Gov. Ron DeSantis vetoed $750,000 in the state budget that the town was counting on to continue its stormwater capital improvements.
Meeting the next day, the Loxahatchee Groves Town Council set its preliminary tax rates for fiscal year 2026 higher than the current year — but hope to lower them as the budget process continues.
Town staff recommended setting the Truth In Millage (TRIM) rate for property taxes at 4.00 mills, 1 mill more than the adopted 3.00 mills from last year, which would bring in $389,000 in more revenue.
Staff further recommended setting the preliminary Loxahatchee Groves Water Control District (LGWCD) assessment for roads and drainage at $300 per unit, which is an increase of $100 per unit over the rate for the current year. That would bring in $750,000 more.
The assessment for solid waste services was recommended to stay unchanged at $450 per unit.
Special Projects Manager Jeff Kurtz noted that the rates could be lowered later in the process but could not go up.
“We face the same basic issue we faced last year,” he said. “When you look at the operating budget for your road and drainage fund, you are at a $600,000 to $700,000 deficit.”
The extra revenue would allow the town to continue with its capital improvement projects, since it could no longer count on getting extra state and federal money as in previous years. Furthermore, Palm Beach County’s half-cent sales tax that has also helped bring revenue into the town is expiring.
Kurtz said that town staff is working to minimize the issue, but he added that there is no longer extra money in reserves to cover the shortfall.
“We do not have any money to expend on next year’s capital budget at this point in time,” he said, adding that the proposed preliminary rates give the council options for how to put the budget together.
Councilman Todd McLendon said that he was not comfortable raising the property tax rate and made a motion to set it unchanged at 3.00 mills. That motion failed 3-2 with McLendon finding support from Councilwoman Lisa El-Ramey.
However, a motion by Councilman Paul Coleman to go with staff’s recommendation of 4.00 mills also failed 3-2, with Mayor Anita Kane saying she would not support the full suggested increase.
Coleman then made a motion to set the rate at 3.50 mills, which passed 3-2 with McLendon and El-Ramey dissenting.
While the 3-2 vote was enough to set the preliminary TRIM rate, a final vote on raising the millage rate would need to be unanimous due to state law.
After unanimously agreeing to set the solid waste assessment unchanged at $450 per unit, the council turned to the LGWCD assessment.
Town Manager Francine Ramaglia noted that Loxahatchee Groves has one of the lowest drainage assessments in the area.
“We have not kept pace with our needs, and we have artificially kept this rate lower,” she said.
El-Ramey said that she might consider an LGWCD assessment increase, but only after other cost reductions are made. McLendon added that he was more comfortable with a LGWCD increase than a millage rate increase “because that money goes strictly to roads and drainage.” However, he was not comfortable with a $100 increase.
Coleman made a motion to set the preliminary assessment at $300 per acre, which passed 3-2 with McLendon and El-Ramey dissenting.
Earlier in the meeting, the council had a discussion via Zoom with Ron Book, the town’s lobbyist in Tallahassee. He was apologetic about the governor’s veto, which he said was unexpected.
“We did not have any indication until the veto list was published,” he said.
DeSantis vetoed approximately $1.2 billion in funding statewide.
The budget approved by the legislature included $750,000 for “Loxahatchee Groves Stormwater System Rehabilitation.”
Book noted that the project was shovel-ready and a continuation of an existing project with a 50 percent match — exactly the type of project the governor prefers.
