Deerfield Council anticipates double code compliance costs amid contract procurement

During the recent budget workshop held by the City of Deerfield Beach, significant discussions centered around personnel costs and anticipated changes in code compliance expenditures for the upcoming fiscal year.

City officials revealed a notable 51% increase in personnel costs within the medical insurance fund, attributed to a realignment of a position from the Human Resources office to the Risk Management office. This shift, along with merit increases and additional personnel costs, has contributed to the overall rise in expenditures. The budget for 2026 is set to include all positions, whether filled or vacant, which is expected to lead to a slight increase in costs compared to the current year.

A key topic of concern was the anticipated doubling of code compliance costs based on a new contract. The city previously conducted a study estimating that bringing code compliance services in-house would cost approximately $2 million, which includes staffing and operational expenses. This figure was presented to the commission as a worst-case scenario, with the understanding that the current procurement process for an external code compliance agency is ongoing. The outcome of this process will determine whether the city will continue with an external contractor or transition to an internal model.

City officials emphasized that the previous contract for code compliance had remained unchanged at $1 million for a decade, despite rising personnel costs. As the contract is set to expire on September 30, the city is preparing to evaluate bids from outside agencies, with a commitment to ensuring that costs remain manageable.

The discussions highlighted the city's proactive approach to budgeting and managing personnel costs while preparing for potential changes in service delivery. As the procurement process unfolds, Deerfield Beach residents can expect updates on the financial implications and service levels related to code compliance in the near future.