City Commission Grapples with Proposed Budget

City Commission Grapples with Proposed Budget

The Key West City Commission held its second budget workshop this morning, exploring ways to establish the fiscal year 2020-2021 budget under the economic constraints of the pandemic, an impending cruise ship vote and a looming hurricane season.

City staff proposed, and the commission approved a tentative property tax increase of 3 percent over rollback with another 5 percent as a buffer to allow a more informed decision at the first budget hearing in September.

The 8 percent millage rate of 2.2527 must be certified with the Monroe County Tax Assessor for inclusion in the Truth in Millage notices that go to property owners.

Finance Director Mark Finigan, in a virtual presentation to the commission, explained that a 3 percent increase over rollback is necessary to cover the extreme shortfalls due to the county shutdown from mid-March until June 1st. He explained that the extra 5 percent buffer will allow time for more accurate revenue assessments and possible adjustments based on continuing economic uncertainty.

The commission directed staff to continue working toward ensuring that the actual rate will be 3 percent over rollback.

The millage rate the City will be certifying is 2.2527. However, the proposed millage that City staff hopes to bring to the first September budget hearing is 2.1484, or three percent over rollback. A homesteaded residential property with an appraised assessed value of a $460,000 in 2020 (with a 2.3 percent capped increase to property value due to the3 homestead exemption) would have a $20 increase in the property tax for the 2021 year with a three percent increase over rollback, which is $1.67 per month.

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