Deerfield Beach budget cuts $60M with grant reductions and operational adjustments

In a recent budget workshop held by the City of Deerfield Beach, officials discussed significant changes to the fiscal year 2026 budget, highlighting a projected reduction of approximately $60 million compared to the previous year. This reduction stems from a combination of factors, including a decrease in grant funding, cuts to capital projects, and operational personnel adjustments.

The budget for fiscal year 2026 is set at $3.25 billion, down from $3.85 billion in fiscal year 2025. A notable contributor to this decrease is a reduction of about $5.3 million in grant funding from federal and state sources, which has forced city departments to adjust their spending plans accordingly. Additionally, the city has reorganized its capital improvement plan, resulting in a further $40 million cut from capital projects deemed unnecessary for the upcoming fiscal year.

On the operational side, the budget reflects a reduction of approximately $15 million, primarily achieved through personnel adjustments. The city plans to add one full-time performance management specialist to oversee fiscal responsibility across departments while eliminating three part-time positions, resulting in a net decrease of half a full-time equivalent position compared to the previous year.

The workshop also addressed rising costs that could impact the budget, including increases in contract services, personnel expenses, and utility costs. Notably, the Broward Sheriff's Office has proposed a budget increase of $7.25 million, which will need to be accommodated within the overall budget framework.

City officials emphasized the importance of understanding the budget's structure, particularly regarding property taxes. The proposed operating millage rate remains unchanged at 6.0018 mills, which has been consistent since 2020. However, the city only controls a small portion of the overall tax burden, with the majority allocated to other entities, such as the Broward County School District.

As the city prepares for the upcoming fiscal year, officials are focused on balancing the budget while ensuring essential services remain intact. The discussions from this workshop will guide future budget hearings and decisions, as the city navigates the challenges of reduced funding and rising operational costs.