Coral Gables’ proposed budget has grown by $4.86 million since commissioners first saw it in July, reaching $323.3 million as the city heads into the first of two public budget hearings Tuesday.
The 1.5 percent increase comes largely from new capital funding and higher sanitary sewer costs. The city’s property-tax rate, meanwhile, would remain at 5.559 mills, unchanged for a 12th consecutive year.
The first hearing begins Sept. 15 at 5:01 p.m. at the Police and Fire Headquarters Community Meeting Room, 2151 Salzedo St. Commissioners will hear from residents before taking first-reading votes on the tax rate and the full fiscal 2027 budget.
Why a flat rate still counts as an increase
The millage rate itself is not changing. But because property values have risen, keeping the rate at 5.559 mills would generate more tax revenue than the city collected from the existing tax base last year.
Under Florida’s Truth in Millage law, the city must measure the proposed levy against the “rolled-back rate” — the rate calculated to produce roughly the same property-tax revenue as the prior year, excluding new construction and certain other adjustments. This year, Coral Gables’ rolled-back rate is 5.1982 mills.
The city’s proposed tax ordinance therefore describes 5.559 mills as a 6.94 percent increase over the rolled-back rate, even though the actual millage rate would remain unchanged.
Property-tax revenue is projected at $146.59 million for fiscal 2027, up about $9.06 million from the $137.53 million budgeted this year.
The Gazette reported in July that Coral Gables’ total taxable value had risen 6.5 percent, from $26.01 billion to $27.70 billion. Existing property accounted for 5.5 percent growth, while new construction added another $261 million to the tax roll.
Where the extra $4.9 million comes from
The budget City Manager Peter Iglesias submitted July 1 totaled $318.45 million. The version before commissioners Tuesday adds $4.86 million on both sides of the ledger.
Most of the added spending — $3.39 million — is capital funding. It includes $900,000 each for gravity sanitary sewer pipe rehabilitation, Ponce Corridor waterway flood mitigation and dredging, and environmental remediation at 72nd Avenue, plus $690,684 toward a park land purchase.
The revisions also add $447,498 for salary and benefit adjustments, $74,748 for professional services and $1.78 million in sanitary sewer wastewater and disposal costs. Some of those increases are offset by reductions elsewhere in the sewer fund.
On the revenue side, the largest additions are $1.58 million in state appropriations for capital projects, $1.23 million tied to the sanitary sewer rate increase and $384,400 in additional parking revenue. Those gains are partly offset by lower state and county estimates for the communications services tax, half-cent sales tax, revenue sharing and transportation surtax.
The revised budget also draws $21.16 million from reserves and fund balances. That is well below the $32.36 million included in the current fiscal year’s adopted budget, continuing a shift the Gazette reported in July toward paying more recurring capital costs from recurring revenue rather than accumulated surpluses.
The size of the September adjustment is not unprecedented. Last year, the city’s budget grew by about $5.4 million, or 1.75 percent, between the initial July proposal and the first public hearing.
Among the projects in the broader capital budget is $419,000 in new funding for Youth Center Improvements, bringing available funding in that line to $1.43 million. The budget document does not identify that money as funding for the proposed $60 million replacement Youth Center the Gazette reported on separately this week.
The budget also provides $1 million in new funding for a biochar facility at 72nd Avenue, bringing available funding for that project to $1.74 million.
The Sea Level Rise Mitigation Program remains the single largest project line in the capital schedule, with $37.69 million available — $32.69 million carried forward from prior funding and $5.01 million in new money for fiscal 2027.
Castro signals a smaller rate cut
The millage debate enters this year’s hearings differently than it did a year ago.
Last September, Commissioner Melissa Castro cast the only vote against maintaining the 5.559-mill rate. She pushed instead for a phased quarter-mill rollback that she said could be accomplished without cutting city services. Mayor Vince Lago challenged that position by playing clips of Castro opposing smaller millage reductions in previous years, and the exchange became one of the most contentious moments of the budget hearing.
This July, Castro joined Lago, Vice Mayor Rhonda Anderson and Commissioners Ariel Fernandez and Richard Lara in voting 5-0 to set 5.559 mills as the tentative rate for fiscal 2027. That vote established the ceiling for the September hearings; commissioners can still lower the rate before final adoption.
Castro also made clear at the July budget workshop that she had not abandoned the idea of a reduction. She said she did not intend to revive last year’s quarter-mill proposal but would seek “at least some reduction” during this year’s budget process.
Whether there are enough votes for any reduction will begin to emerge Tuesday.
How to weigh in
Tuesday’s hearing opens with a staff presentation on the proposed fiscal 2027 budget, followed by a public hearing for resident comments. Commissioners will then consider two ordinances on first reading: one setting the property-tax rate and the other adopting the $323.3 million budget.
Residents can attend in person or participate remotely through Zoom. Those joining by telephone can call 305-461-6769, enter Meeting ID 3054466800 and press *9 to raise their hand.
Comments may also be submitted before the meeting through the city’s e-comment system or by emailing cityclerk@coralgables.com. The hearing will be broadcast on the city’s website and Comcast Channel 77.
A second and final budget hearing is scheduled for Sept. 29 at 5:01 p.m., also at Police and Fire Headquarters. The new fiscal year begins Oct. 1.
