The Royal Palm Beach Village Council is leaning toward maintaining the same property tax rate for the upcoming fiscal year. The council approved setting the rate at 1.92 mills at a meeting Thursday, Sept. 10, instead of an alternative rate of 2.15 mills proposed by village staff.
With the 1.92 millage rate, Royal Palm Beach staff estimated a total budget of $47.8 million — a 21 percent decrease from the 2026 fiscal year budget of $60.5 million. Staff explained that the decrease in budget is due to a reduction in capital projects from the last fiscal year. Even with the same tax rate, residents will likely see a slight increase in their bills because taxable property values in the village are projected to increase by 8.24 percent.
The council heard two presentations for a budget with the millage rate of 2.15 and an alternative with a rate of 1.92. Council members were more in favor of the budget keeping the current rate unchanged.
“The primary difference in the first budget at 2.15 mills, and this budget at 1.92 mills, is the reduction in the property tax revenue and excess reserves of $1,167,284,” Finance Director Sharon Almeida said.
The alternative proposed budget also contains a 2.24 percent reduction in general revenues to total $31.5 million, which is the result of the loss of funding from the American Rescue Plan Act and the countywide one-cent sales surtax.
General Fund expenditures will increase to $31.5 million, a 0.56 percent increase, with personnel and contractual services being the primary cost drivers. But overall expenditures have decreased due to updated costs from the village’s medical insurance provider, removal of costs associated with holding West Fest and other minor modifications.
Other general fund expenditure changes include employee merit increases to average 3.5 percent across all staff, a cost-of-living adjustment budgeted at 2.68 percent, departmental capital expenditures under $10,000 were reduced by 10 percent, and public works maintenance contracts were moved from repairs and maintenance to contractual services. Village staff projects that the general fund will generate a surplus over expenditures of $67,549. Included in the capital improvement budget is $14.4 million, with $4.2 million set aside for new projects.
The village’s stormwater fee will increase from $6.50 to $7.50. The money will be used to invest more into the stormwater utility fund for unexpected expenses.
“This additional reserve will help ensure adequate resources are available to support the long-term maintenance, rehabilitation and resiliency of the village’s stormwater system,” Almeida said.
At the village’s last budget workshop, the council was divided on whether to raise the tax rate, with Vice Mayor Sylvia Sharps and Councilwoman Jan Rodusky supporting an increase. Staff proposed a higher millage rate to stop officials from needing to use reserves to cover some expenses.
Village Manager Ray Liggins explained that the village has been funding capital projects and replacements with utility sale proceeds, federal funding and the additional sales tax revenue. Those revenue streams have ceased, but the village has reserves to cover the lost revenue until about 2033.
“When we discussed this in strategic planning, there was an agreement to fund half of the capital replacement and bring in the millage [rate] to 2.15,” he said. “The millage [rate] of 1.92 does fund the operating budget. It does not fund any of the capital replacement or capital.”
Amendment 3 on the ballot in November, which seeks to raise homestead exemptions, could further strain local officials in funding municipal operations. Residents who attended the meeting agreed that it could significantly impact Royal Palm Beach.
“A vote of yes on [Amendment] 3 is a step in the wrong direction,” Michael Axelberd said. “By passing [Amendment] 3, we will voluntarily surrender our local self-determination. We’ll lose the power inside exactly how our local tax dollars are harvested and spent, handing over guidelines to the control of higher levels of government that have already proven they do not understand the community’s day-to-day realities.”
The council unanimously approved a proposed operating property tax rate of 1.92 mills and tentatively adopted the budget. The village’s second and final budget hearing was set to be held on Thursday, Sept. 17.
