A new budget season in Islamorada is seeing increased property valuations, more costs and a decision over how much to tax village property owners for services.
At a July 7 meeting, village council members unanimously approved a preliminary property tax rate of 2.8 mills, or $280 per $100,000 of a property’s assessed value. The approval kickstarted a budget process in the village, which will see three consecutive days of workshops Aug. 4-6.
Overall, the village’s gross taxable value for 2026 was $7,596,755,151. Compared to last year, the taxable value in Islamorada jumped by a little more than $491 million. By statute, the village has 35 days to provide the property appraiser with the proposed millage rate and the property tax rate that would generate the same revenue as the previous year, which in the village is 2.4756 mills.
Village staff recommended the council start with a preliminary tax rate of 3 mills, with the idea of decreasing the figure by time of final budget approval. Council members, however, elected a lower number to start out.
“I think we spend money like kids at a candy store,” Vice Mayor Sharon Mahoney said. “I think there are areas we can cut, and do things more efficiently that aren’t being done.”
Councilwoman Deb Gillis said costs for everyone, including government, are increasing. She said a property tax rate of 2.65 mills should be something the council should strive for, and believed 2.8 mills was only a starting point.
Tentative public hearings on the budget are scheduled for Sept. 10 and Sept. 17.
The council followed up by approving an amendment to the village’s agreement with the Monroe County Sheriff’s Office for police services for the next fiscal year. The request for $3.8 million is an increase from the current $3.6 million due to staff salary increases.
