Editorial: Holding Palm Beach tax rate steady a smart move as town looks to future

The Town Council has decided to hold the tax rate steady , and that comes as welcome news.

During the July 11 budget workshop at Town Hall, Mayor Danielle Moore urged her colleagues not to rubber-stamp a proposal from Town Manager Kirk Blouin to lower the tax rate to $2.53 per $1,000 of taxable value. Instead, Moore argued, the current rate of $2.61 should be kept in place.

The mayor was driven by concerns about budget shortfalls the town could face because of expensive capital improvement projects that need to be completed in coming years. Those projects include street paving as part of the town-wide utilities undergrounding project ($4 million); Royal Poinciana Way median improvements ($1 million); and town drainage improvements in the canopy area on North County Road ($4 million).

Mayor Moore's honesty was refreshing.

"Lowering the (tax) rate is optics, and it makes us feel good and our residents feel good," she told council members. "But I think, looking out to the future … the more we put off these projects, the more they cost the next year or the year after, or however long it is. We're going to need those resources, and I'd rather hold the line now rather than getting to next year or the year after and have to significantly increase the millage rate."

The tentative $119.1 million budget for the 2024-25 fiscal year represents a 13% increase over this year’s $104.8 million budget . It includes $11.9 million in major spending increases, with nearly $3.6 million of that amount earmarked for employee pay increases and for 13 additional employee positions.

Last year, the Palm Beach Daily News editorial board opined against the council's decision to reduce the tax rate, noting the importance of building the town's reserves. Officials have generally been careful, so the town's so-called "rainy day fund" is in good shape, but something like a major hurricane could decimate it.

Like Palm Beach, many municipalities in Palm Beach County have seen a windfall because of skyrocketing property values and have been happy to join the bandwagon of cutting tax rates.

But windfalls may not continue forever, so council members are doing the right thing in holding the tax rate steady. In a town like Palm Beach, the additional $79 more per $1 million of taxable value that homesteaded residents will have to pay at the current rate is reasonable, if it means the town can more easily cover upcoming expenses and continue to plan for the future.

The proposed budget and tax rate will be finalized at two state-required public hearings, now scheduled for Sept. 11 and Sept. 19. We urge residents to attend and let their voices be heard.

Kudos to Mayor Moore for leading the council to a decision that we believe is a win for the town.

This article originally appeared on Palm Beach Daily News: Editorial: Holding Palm Beach tax rate steady a smart move as town looks to future