Delray Beach city officials are grappling with a projected budget shortfall of approximately $26 million for the upcoming fiscal year, as revealed during the City Commission Budget Workshop held on July 8, 2025. The meeting focused on strategies to address this financial gap while maintaining essential city services.

City Manager Moore outlined various measures to mitigate the shortfall, including adjustments to assessed valuations, vacancy management, and reductions in non-personnel expenses. The proposed operating budget for fiscal year 2025-2026 stands at $348,607,002, with a commitment to uphold a fund balance policy of 21% of operating expenses.

Chief Financial Officer Dackiewicz presented several scenarios for adjusting the millage rate, which could potentially increase city revenues. The discussions highlighted the importance of balancing the budget without compromising critical services, particularly in the fire and police departments. The city is considering a drawdown from reserves to help bridge the financial gap, with projections indicating a range of fund balances depending on the chosen budget scenario.

The commission plans to continue these discussions in a follow-up workshop on July 15, where they will further explore the capital improvement program and hear from nonprofit partners. The outcomes of these meetings will be crucial in shaping the city’s financial strategy and ensuring that Delray Beach can continue to meet the needs of its residents while navigating these fiscal challenges.