A citizens budget task force scrutinized the Village of Islamorada’s overtime spending and benefits package for employees, which included the taxpayer footing 97% of their dependents’ health coverage.
Meanwhile, Village Manager Ron Saunders announced a hiring freeze and no overtime going forward within departments without his approval.
And three budget workshops among village council members last week explored spending cuts, in addition to selling a former church building that a previous council agreed to acquire for millions of dollars.
Village budget discussions over the last month put the microscope on past spending, in addition to some concerns coming to the forefront on possible changes related to federal reimbursement for storm cleanup.
Day three of the village council’s budget workshop on Aug. 7 concluded with Saunders proposing the council proceed with a 2.65 millage rate — the same as the 2024-25 fiscal year — for the upcoming 2025-26 budget cycle. The council previously voted 4-1 to set a tentative millage rate of 3.00 with the goal of decreasing it by the first budget hearing on Sept. 9.
A 2.65 millage rate equates to $265 per $100,000 in taxable home value. In instances where a home’s assessed value increased by $10,000 over the last year, the owner would pay an additional $26.50 per year in property taxes to the village, according to Saunders.
Nonhomesteaded properties, such as secondary residences and commercial properties, would see a larger increase.
Overall, the taxable value on properties throughout the village increased by roughly $500 million. As a result, a 2.65 millage will bring more property tax revenue to the village next budget cycle, $18.2 million, compared to $16.7 million in the 2024-25 adopted budget.
Maintaining the same millage rate from last year would draw down the village’s unassigned fund balance in order to cover an estimated $2 million gap between budgeted expenses and revenues for the coming fiscal year. Lowering the fund balance by that amount didn’t sit well with councilwoman Deb Gillis.
“The fund balance is in a dangerous place,” she said. “To take the fund balance to $4 million, I’m just not comfortable with it.”
As for village operations, public safety is the No. 1 expense within the budget at roughly $12.7 million. The budget for the Monroe County Sheriff’s Office is expected to be $3.6 million for 2025-26 — up from $3 million the year before. On the first day of budget workshops, Sheriff Rick Ramsay told council members the spending increase is due to salary increases and the associated benefits, in addition to overtime costs.
“We’re trying to provide top level services at the most economic availability we can,” Ramsay said. “Police, fire and rescue aren’t cheap. … 24/7 for police and fire rescue does cost money.”
The budget for fire rescue and EMS is up $464,789 from the previous year to $8.8 million for 2025-26.
Funds weren’t budgeted for village employee pay increases come next budget cycle. But council members elected to keep their benefits packages in place as opposed to placing some financial burden on them. A citizens budget task force that Saunders convened criticized the $1 million expense to the taxpayer for health care costs for employees and their dependents. It was revealed that 40 of the village’s 115 employees have dependent health coverage.
Council members also supported efforts for the village to sell the former Island Community Church property that a previous council purchased for nearly $4 million. In addition, the council directed $1 million be removed from the public works capital outlay and equipment.
Vice Mayor Don Horton and council members Anna Richards and Steve Friedman said they were pleased with the proposed budget. Changes to the spending plan can be made ahead of the first public hearing on Sept. 4 at the Founders Park Community Center. The final public hearing is set for Sept. 16 at the community center.
