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Delray Beach sets preliminary budget, tax rate for 2013

By Palm Beach Business.com

DELRAY BEACH — A bit of accounting sleight of hand is allowing Delray Beach to balance its budget without raising taxes or creating new ones.

Delray Beach city commissioners on Tuesday tentatively approved a $96 million budget, up about $3 million from the current year’s and set the property tax rate at $7.1992 per thousand dollars of taxable value, same as this year. Words not found anywhere in the budget document: fire service fee.

Commissioners filed the gap in part by using a $1.6 million surplus from this year’s budget and transferring some funds that had been collected and set aside in previous years for specific purposes but never spent.

City Manager David Harden said while it balances the upcoming budget, the approach is not sustainable long term.

Commissioners are scheduled to give final approval to both the budget and the tax rate during their Sept. 20 meeting.

In other matters, commissioners agreed to pursue the sale of the 10,000-square-foot retail space on the ground floor of the Old School Square Parking Garage. The city has leased the space to the Community Redevelopment Agency for $150,000 a year. The CRA in turned converted the space into a venue for live music and theater known as The Arts Garage.

Recently, however, Delray has received letters of interest from two potential buyers — commercial real estate brokers Marcus & Millichap is offering $1.7 million, and accident law firm Kanner & Pintagula is offering $2 million. The city has in the vicinity of $2.3 million in debt outstanding on the property, and accepting either deal would leave it having to cut a check to pay off the remainder of the loan.

Commissioner Tom Carney said that’s a concern particularly since the city isn’t in a position of having to sell the space. But Carney and Commissioner Angeleta Gray said there’s no harm in talking a deal.

Said Mayor Woodie McDuffie, “If we don’t get an acceptable offer at the end, we can certainly turn it down.”

McDuffie informed commissioners that the city’s Digital Divide project should go live some time around December. The city, in cooperation with the Community Redevelopment Agency, the TED Center, Palm Beach County Schools, Florida Power & Light and others, is providing wireless internet service to families in the Northwest and Southwest neighborhoods. Families with children participating in the free lunch program at school will be eligible to receive a refurbished computer, training on how to use it and free internet service.

The goal is to give economically disadvantaged kids the same learning tools as their more affluent classmates.

McDuffie said the first transponder used to transmit the wireless signal is to be installed on an FPL power pole on Oct. 1. It will take about 60 days there after to complete installation of the system and get the service live.

“This has been a long time coming,” said McDuffie, who has been working for several years to get the Digital Divide project off the ground.

In other matters, commissioners:

— OK’d first reading of an ordinance raising garbage pickup rates by about 3.7 percent.  The increase is dictated by a rise the consumer price index and higher fuel prices. Homeowners who now pay $11.42 a month will see the higher rates with their bill for October. Commercial customers are also affected. Waste Management provides garbage service in the city under an agreement recently renewed.

— Declined to pursue a bid to bring a Women’s Tennis Association championship tournament to Delray Beach because of the steep financial commitments it would require. The city would have had to pay a $20,000 fee just to submit a bid; if accepted the city would have to shell out $15 million annually to market the tournament and for other expenses.

— Approved a move of the city’s Green Market to Old School Square Park from SE 4th Avenue south of Atlantic. The Green Market is conducted by the CRA and is held on Saturday mornings, this year beginning on Oct. 13. A spokeswoman for the CRA said the move will give the Green Market room to expand and add vendors.

— Allowed the annual Garlic Festival to expand eastward from Old School Square and the Old School Square Park to include a portion of NE 2nd Avenue despite some opposition from local businesses. Event organizer Nancy Stewart said the additional space is needed for the festival and NE 2nd is the only viable option; she said efforts will be made to accommodate concerns of the affected businesses.

— Approved a waiver from landscaping requirements for the Dollar General Store to be built on SW 10th Avenue.

 

 

 

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