Palm Beach County approves $4.5B budget

Palm Beach County homeowners will see their property tax bills rise under a $4.5 billion budget commissioners gave final approval to Monday.

The spending plan keeps the tax rate for the operating budget at $4.78 per $1,000 of taxable value for the seventh consecutive year.

But because of rising property values, residents will pay more, particularly those who own second homes, businesses and rental properties.

The budget includes funding to hire more deputies for road patrol, purchase land for preservation and combat the opioid epidemic. The property tax rate will generate $867 million in revenue, about $55 million more than the previous year.

“The taxpayers will get a continued level of quality service,” County Administrator Verdenia Baker said. “They are secure. The sheriff is getting some of what he wants as far as securing public safety.”

The budget covers the start of Sheriff Ric Bradshaw’s plan to hire 100 new patrol deputies over the next three years, adding 15 deputies in 2018. In his proposal, Bradshaw said staffing needs to be increased because of population growth.

Commissioners budgeted $2 million to address the mounting opioid death toll, which is in addition to $1 million pulled out of reserves earlier this year. Nearly 600 people died of overdoses in 2016, according to the Palm Beach County medical examiner’s office.

Owners of second homes, rentals and commercial properties would see their bills rise the most. For the owner of a $350,000 vacation home that grew in value by the average of 5.71 percent, the increase in county property taxes would be about $96, with a bill of $1,769. That does not include taxes paid for school, city and other services.

Residents with a homestead exemption won’t face as much of a jump in bills. Their increase would be capped at 2.1 percent. For the owner of a $350,000 home with a $50,000 homestead exemption, the increase in property taxes would about $35, with a bill $1,708.

The spending plan adds 50 new positions in engineering, airports, water utilities, fire rescue and other county departments. For the fourth consecutive year, employees will get a 3 percent raise.

The budget includes the first installment payment of a three-year $9 million purchase for preservation of the 571-acre McMurrian farm property west of Delray Beach.

The budget picture could darken in coming years, according to county estimates.

Voters will consider an extra $25,000 homestead exemption in November 2018. That would mean an average tax break of $275 for homeowners, but the county would take a $25 million hit to its budget.

Cuts might need to be considered based on the projected impact, Commissioner Hal Valeche said.

“We are up against an intractable set of numbers here,” he said.

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