Delray Beach commissioners pass budget with no tax hike

By Palm Beach Business.com

DELRAY BEACH — There will be no tax hike this year for Delray Beach property owners.

Delray Beach city commissioners approved the 2010 – 2011 tax rate and budget Tuesday evening, holding the line on property tax rate at $7.19 per $1,000 of assessed value, same as this year, while cutting expenditures by $6 million to $93.4 million.

Garbage rates will fall slightly for residential customers but rise slightly for most commercial customers because of higher rates charged by the county Solid Waste Authority. Water and sewer rates will remain the same.

Property owners in the downtown will pay $1 per $1,000 in assessed value above the regular tax rate to fund the Downtown Development Authority, again the same as this year. The DDA is charged with the task of promoting the downtown.

Commissioners held a public hearing on the budget matters but only one resident commented, and that was more of a question about the function of the DDA.

In a related matter, commissioners approved first reading of an ordinance that would rework pensions for city employees and save about $1 million in the process. The changes, which including higher minimum retirement ages, greater employee contributions and a new formula for calculating pension benefits, would go into effect when commissioners pass the second reading of the ordinance.

Employees nearing retirement would be less affected by the changes than those more than 10 years away from retirement. New hires would be most affected.

“We’ve done everything we can to minimize the impact on our employees,” said city Finance Director Joseph Safford.