A primary highlight of the meeting was the upcoming sewer lining project, which utilizes a method that avoids traditional road excavation by inserting a composite material between manholes to form a new pipe lining. This technology aims to address the issue of saltwater intrusion in the sewer system, which raises treatment costs. By reducing the volume of treated sewage, the town anticipates lower costs per thousand gallons with Delray Beach, where the wastewater is treated. The board discussed a planned 5% rate increase to fund the project and noted that a grant of $230,000 had been acquired to aid in lift station work. Despite the anticipation of increased costs, the project cost is now estimated at around $1.75 million, less than initial projections due to stabilizing inflation and competitive contractor bids.

The board also addressed the broader budgetary concerns, focusing on the preliminary fiscal year 2026 budget presentation, which emphasized capital projects across various sectors. The Finance Director highlighted a capital-focused budget theme, maintaining the millage rate at 3.5875 for the third consecutive year. The board noted a 6.7% increase in taxable values, contributing positively to the town’s fiscal outlook.

The budget presentation also revealed that the town anticipates a 5.6% growth in revenues, partially due to increased property taxes. However, personnel costs are expected to rise by over 5%, while operating expenses are projected to increase by 11.4%, attributed mainly to routine maintenance and improvements. The police budget is expected to see a substantial increase from $3.4 million in 2025 to $5.3 million, primarily due to deferred capital projects scheduled for 2026.

In light of the upcoming expiration of discretionary sales tax funds by the end of 2025, the board discussed reallocating unspent funds for specific capital expenditures, such as a crosswalk and continued funding for police body cameras. The general fund intends to prioritize capital-intensive projects, adjusting to the forthcoming decline in discretionary fund revenue.

Another topic was the building fund’s financial performance, with a proposed rate reduction of over 12% due to excessive cash reserves. The fund, largely supported by charges for services, is performing well above expectations, raising regulatory compliance concerns given the projected operating cash reserves of 513 days by next year. The board discussed increasing transfers from the building fund to the general fund to offset shared costs with Gulf Stream.

The meeting also touched on rising utility rates, with Florida Power & Light rates expected to settle between 6.5% and 7%. A proposal for an energy efficiency project across municipal buildings was suggested to offset these rising costs. The board also noted that the marine patrol division within the police department requested a financial overview, reflecting on its operational costs and the necessity for a new dock, which would support both police and fire department operations on the water.

The board briefly discussed the ongoing litigation with Delray Beach concerning service reconciliation but reported no updates. Additionally, members highlighted the need for a clear policy on managing large capital expenditures, suggesting further education on financing options, especially given the town’s strategy of using reserves for immediate capital improvements instead of leveraging municipal loans.