Only six minutes were needed for the Islamorada Village Council to approve a spending plan and property tax rate.
No public comment or lengthy debates were witnessed at the Founders Park Community Center during a final budget hearing on Sept. 16. The village council swiftly voted in favor of a 2.65 millage rate, or $265 per $100,000 of a property’s assessed value, and a $65.4 million budget for the upcoming 2025-26 fiscal year.
In total, the village will receive $18.2 million in property taxes in addition to other revenues from permits and fees, fines and forfeitures and charges for service, to fund day-to-day expenses.
Total day-to-day expenses in the village are $23.2 million, of which fire rescue and law enforcement services account for $12.6 million.
The village has expenses in other accounts, including capital projects at $17 million; enterprise, $17.7 million; debt service, $840,000; and special revenue, $6.6 million.
Council members maintained the same property tax rate from last year of 2.65, as recommended by Village Manager Ron Saunders. They had agreed ahead of budget workshops that they wouldn’t approve a millage rate beyond 3.00.
Compared to last year, the village’s total taxable value increased by roughly $500 million. With a total taxable value of $7.1 billion, the village will receive $1.5 million more in property tax dollars this fiscal year.
In maintaining a 2.65 millage, the village drew down from its fund balance by roughly by $1.2 million. The village has set aside nearly $7 million for hurricane response. The total unassigned fund balance is $5.1 million.
Councilwoman Deb Gillis expressed her desire to see more funds in the village’s reserves.
“So far, we’re extremely lucky with storms, but it only takes one or two to use it all up,” she said.
There were several meetings of a new citizen’s budget task force, which was convened by Saunders. The five-member group scrutinized past spending while recommending the village seek savings by reducing the taxpayer burden related to employee health insurance. Saunders said the village taxpayer will now foot 80% of the health insurance cost for an employee’s family member. Previously, the village was paying for 97% of the health care expenses.
They also recommended cutting back on overtime. Saunders said overtime was axed for management of the Fills, a string of three islands connecting Upper and Lower Matecumbe Keys. The area once saw all sorts of activity and chaos during weekends and holidays.
Saunders also said any overtime within the village would need to be approved by him.
“I really did want to go to zero overtime, but I was convinced by staff that it’s not realistic. There are times you have to have overtime but we want to limit it as much as possible,” Saunders said during the first budget hearing on Sept. 4.
And no pay increases were budgeted for the village’s employees.
During budget workshops, discussion ensued over outsourcing services such as landscaping and potentially selling the former Island Community Church property to recoup the millions spent by a previous council on the property.
Discussions also included the village’s wastewater budget, an enterprise fund that’s supposed to be paying for its expenses with revenues like user fees. Village officials say it’s been running in the red, and a rate study is warranted to correct the issue.
