Despite a previously projected deficit, Palm Beach County leaders are now expecting a balanced budget for the upcoming fiscal year. The Palm Beach County Commission voted Tuesday, July 7 to approve a preliminary budget that keeps the maximum countywide property tax rate unchanged for now.
The county’s tentative budget for the 2027 fiscal year is $9.91 billion, a $303 million increase from the previous year. County staff proposed a property tax rate of 4.5 mills, which is the same as the current rate. Libraries and countywide fire-rescue rates will remain at 0.5491 and 3.4581 mills, respectively, while the countywide voted debt service rate will be 0.0210 mills. Property taxes are projected to bring in $2.281 billion, with $1.653 billion going toward the county’s general fund, which funds county operations, and $514 million going toward fire-rescue services.
Taxable property values in the county are continuing to go up.
“Our values continue to increase,” said Sherry Brown, director of the Palm Beach County Office of Financial Management and Budget. “We saw about a seven percent increase for 2027 with the July 1 numbers.”
Staff eliminated a $42.4 million budget deficit from original estimates made at a June workshop through higher-than-expected property values, maintaining the 4.5 millage rate and budget cuts.
Among the largest reductions was a $20 million cut to the Palm Beach County Sheriff’s Office’s proposed $1.07 billion budget. Areas that will see increases include budgets for constitutional officers, community redevelopment agencies and reserves.
If the commissioners were interested in lowering the millage rate to 4.4 mills, it would require an additional $34.9 million reduction in expenses. County staff did suggest some additional areas to cut the budget.
Commissioner Joel Flores said that if the board wants to reduce the millage rate, other county agencies also have to cut their budgets, so officials can continue to provide the same level of services to residents.
“It seems like we are pretty much the only ones having to sacrifice our services to our constituents. Everything else seems to go up except us,” he said. “This can’t be a trend. I think we need to ask our partners out there to do the same. They can’t continue to increase [their budgets] if it’s going to come out of the back of our services.”
Commissioner Gregg Weiss agreed, especially with the threat of losing a large chunk of tax revenue if proposed property tax reforms are passed by Florida voters in November.
“It’s not sustainable,” Weiss said. “We’re going to need help going forward… We’ll need more help if the tax reform package passes.”
Included in the budget is giving residents a 20 percent discount on planned beach parking fees. Commissioners also proposed looking into providing free parking after 4 or 5 p.m.
The board approved the maximum proposed millage rate of 4.5 mills 6-1, with Palm Beach County Mayor Sara Baxter dissenting. Commissioners will approve the finalized budget numbers in September. After this week’s vote, the property tax rates can go down, but not up.
In other business, Baxter announced that she will recuse herself from the upcoming July 15 vote on Project Tango, a proposed hyperscale AI data center just west of the Arden residential community. Baxter previously made comments opposing the project and was subsequently advised to recuse herself from the vote. Commissioners also directed staff to create a moratorium on hyperscale AI data centers for future consideration. The moratorium will not apply to pending applications like Project Tango but would bar future proposals for a limited time while the county addresses its rules. (See related story here.)
