$82.4M budget gets initial council OK

PALM BEACH — The Town Council gave an initial nod Thursday to an $82.4 million spending plan for the year that begins Oct. 1.

Final approval is scheduled to come at a second public hearing next week.

The proposed budget would be nearly 2.5 percent larger than this year’s $80.5 million budget. It calls for a leaner workforce and for reductions in discretionary spending. Much of the increase will go toward stepping up payments into the town’s retirement fund in an effort to drive down long-term pension costs.

At Thursday’s public hearing, the council unanimously voted for the budget and for a 5.3 percent increase in property taxes. The second public hearing is set for 5:01 p.m. Sept. 20 in Town Hall.

The new tax rate is $3.13 per $1,000 of taxable value, about 2 percent smaller than the current $3.20 per $1,000. But taxes will climb because of a 7.75 percent average increase in property values forecast by Palm Beach County Property Appraiser Dorothy Jacks.

Also Thursday, the town issued $60 million in bonds to finance a large portion of the cost of burying all overhead power, phone and cable television lines on the island. The town “locked in” a 3.64 percent interest rate on the bonds, smaller than the 3.81 percent rate it had expected. The lower rate will save about $100,000 in debt cost over the 30-year payback period, Finance Director Jane Le Clainche said.

S&P and Moody’s have assigned AAA and Aaa ratings, respectively, to the bonds — the highest rating classification given by each agency. S&P cited the town’s strong economy and financial management and low overall debt among the reasons for the rating.