Page 21 - CityofLakeWorthFY26AdoptedBudget

2. Addressing Revenue Limitations from State Legislation

Recent property tax legislation at the state level has imposed limitations on

how cities can generate revenue through local property taxes. The adopted
rate accounts for these constraints while striving to preserve the City’s

financial health and ability to respond to inflationary pressures, rising costs of

goods and services, and population demands.

3. Funding for Debt Obligations and Capital Projects
A portion of the tax rate is dedicated to the Interest and Sinking (I&S) Fund,

which supports the City’s outstanding debt service obligations, including

recent bond-funded capital improvement projects. These projects—ranging
from infrastructure improvements and utility upgrades to the construction of

Fire Station #1 and enhancements at Lake Worth Park—are critical to ensuring
long-term resiliency and quality of life for the community.

The FY 2026 tax rate reflects a careful balance between fiscal responsibility and
community investment. It underscores the City’s ongoing commitment to transparent,

strategic budgeting and long-term financial planning that supports a vibrant and

thriving Lake Worth.

Tax Rate Allocation and Impact on the Average Homeowner – FY 2026

Of the total adopted property tax rate of $0.494737 per $100 of assessed valuation,

$0.187471 is allocated to the Maintenance and Operations (M&O) Fund, which
supports the City’s general governmental services, including police and fire protection,

park maintenance, street repair, and general administration. The remaining $0.307266

is allocated to the Interest and Sinking (I&S) Fund, which is used to make annual debt
service payments on the City’s outstanding bonds and certificates.