Village adopts tentative tax rate

The Islamorada Village Council recently adopted a preliminary 2024-2025 millage rate of 3.000 and scheduled budget hearings for Sept. 5 and Sept. 17.

The rate serves as a ceiling for pending discussions about next fiscal year’s budget.

A 3.000 rate — $300 for every $100,000 of taxable property value — is the same rate adopted for the prior two years; however, due to rising total property values, the rate is 18.59% over rollback.

A rollback rate of 2.5297 — $252.97 for every $100,000 of taxable property value — for 2024-2025 would generate the same amount of tax revenue as the 3.000 rate in 2023-2024.

The gross taxable value provided by the Monroe County Property Appraiser’s Office for the next budget year, which begins Oct. 1, is $6.5 billion, an increase of $729 million from the current year’s $5.78 billion.

During public comment, resident Van Cadenhead, citing rising insurance rates and other costs of living, urged the council to shoot for a 2.65 or 2.75 final tax rate.

Village staff, also citing rising costs for the village, recommended the 3.000 rate to ensure enough funds to cover insurance and workers’ comp increases as well as the sunsetting of a SAFER grant, which will add $600,000 annually in costs to retain six firefighters.

Councilman Henry Rosenthal, who has chafed at the reluctance of his colleagues to support his past calls for tax reductions, said, “We’re just raising money to spend.”

But Councilman Mark Gregg and Councilwoman Elizabeth Jolin supported an even higher preliminary rate of 3.2, not knowing yet what additional cost burdens the village may face.

“We don’t have all the information,” Gregg said, describing his proposal as a “gut check.”

Mayor Buddy Pinder and Vice Mayor Sharon Mahoney, however, preferred the staff-recommended 3.000 rate.

“3.2 is going to freak too many people out,” Mahoney said.

Ultimately, the council settled on the 3.000 rate as the tax ceiling with a 5-0 vote.