By Coral Gables Gazette staff
As the state stumbles through its intended overhaul of property tax proposals – with a special session to approve a budget and take on the issue expected in the coming weeks – the potential consequences of those actions are beginning to hit home in Coral Gables.
Mayor Vince Lago and city commissioners have warned for months about the possible fallout from major reductions in property tax revenue – “winter is coming,” the mayor has said repeatedly – but members of the Budget Audit Advisory Board received a candid and detailed assessment from Finance Director Diana Gomez during its March 18 meeting.
Gomez made clear that while the scope of any final legislation remains uncertain, the potential impacts to city finances could be significant, even under more moderate proposals.
“I don’t believe the wholesale cut of property taxes is going to happen,” Gomez told the board. “I believe that we may have that increased homestead exemption… like $100,000—but even that’s a $6 million impact to us.”
Under such a scenario, increasing the homestead exemption reduces the taxable value of primary residences, shrinking the city’s tax base. As much as roughly half of the city’s single-family homes are homesteaded, according to conservative estimations, meaning the effects would be substantial even if not universal.
What a $6 million hit would mean
Despite the uncertainty, Gomez said the city is deliberately avoiding premature projections.
“If I brought you any numbers today, it would be a waste of time,” she said, explaining that there was no plan for how any shortfalls might be made up and that no proposal has been approved.
Service cuts and fee increases on the table
Still, she outlined what the city’s response could look like if significant revenue reductions materialize, including the cutting of services and raising of fees.
“The exercise that we would do from a budget perspective is we would start to look at programmatic cuts – (reducing) hours of parks, stopping some services… some cost savings across the board,” Gomez said.
At the same time, the city would likely be forced to increase fees to offset lost revenue, shifting more of the cost of services directly onto residents.
“Right now, our park fees don’t fully cover park services because we consider it a public benefit… but if we had to, those fees would have to go up to cover costs.”
Such changes would not happen overnight, she cautioned, noting that any new or increased fees would require commission approval and time to implement.
Timing and voter approval still uncertain
Timing is another key factor. Gomez emphasized that even if lawmakers approve a property tax reform proposal this year, it would require voter approval in a statewide referendum before taking effect.
This Post Has 8 Comments
This cut has been forecasted for months. The commission should immediately revisit spending $1 million for art inside a garage that serves few in the community who are paying for the art. Our City is beautiful because of parks and green spaces. Stick to core values and services. Trim budgets while better serving the community as a whole.
I concur.
Elected city officials carry a significant responsibility when it comes to setting and managing fiscal priorities. The choices they make shape everything from public safety and infrastructure to parks, housing, and long‑term economic stability. Because city budgets directly affect residents’ daily lives, responsible stewardship of public funds is not just a technical obligation, but it’s a core part of democratic accountability.
Effective fiscal leadership requires balancing immediate community needs with long‑term planning. This means evaluating trade‑offs, ensuring transparency in how funds are allocated, and making decisions that reflect both the city’s strategic goals and the values of its residents. When officials prioritize spending wisely, they help build public trust, strengthen essential services, and create a foundation for sustainable growth.
I think it’s time for the elected officials to start discussing increasing the mileage rate, taxes, and fees. It may be political suicide, but a city that is fairly wealthy on an average.mean salary of $135k-$194k and average home listing for over $1.8m, it is not a city of the poor. Residents will still complain however we are the crossroad with a deficit and maintaining the current services. Not an easy decision however, if anyone has a better idea, please do recommend.
To begin with, no government should have the right to lien your homestead property (we do not live in a communist country). The property you purchased years ago believing you would one day retire and live in. Yes, not everyone wants to sell their home and move when they retire. Especially when you live in South Florida. Between the insurance, property taxes, and cost of living it is almost impossible to afford to stay in your homestead on a fixed income.
The shortfall because of reduced property taxes is but a drop in the bucket compared to the impact fees and other fees charged by the City for commercial properties. Have you noticed all the new high rise apartments with commercial space on the first floor?
A quick fix for this deficit would be not to build an unnecessary mobility hub with a budget of $60 MILLION (preliminary estimate).
The shortfall because of reduced property taxes is but a drop in the bucket compared to the impact fees and other fees charged by the City for commercial and residential new construction. Have you noticed all the new high rise apartments with commercial space on the first floor? This is one fix.
Another fix for this deficit would be not to build an unnecessary mobility hub with a budget of $60 MILLION (preliminary estimate).
No government should have the right to lien your homestead property (we do not live in a communist country). The property you purchased years ago believing you would one day retire and live in. Yes, not everyone wants to sell their home and move when they retire. Especially when you live in South Florida. Between the insurance, property taxes, and cost of living it is almost impossible to afford to stay in your homestead on a fixed income.
Spend less. Clean up redundancies. Then use the ever increasing revenue from all these new properties judiciously, wisely, conservatively. Bottom line, too much wasteful spending, too many employees doing the same job, etc……
We hope to retire and remain in the Gables after 30 + years. But the increased cost of living and endless increases in taxes, insurance, etc. make that very difficult.
Seems dumb to have decreased annual Waste fees. Was it done to garner voter support?
Prefer to pay more in fees for services than RE taxes.
The politicians here in So FL know their constituents well. Cheap gas with few applied taxes encourages the uneducated, unskilled riff raff to settle near here and clog our streets, making a living as Uber/ Lyft drivers or with Amazon deliveries.
Maybe the idea is to provide employment so they don’t resort to stealing/ crime?
But then to generate revenue, hitting hard the property owners and against higher sales tax/ VAT.
All for the benefit of the majority. Reminds me of a socialist campaign slogan “Somos Mas”. We are the majority, the rabble.
The Commission should stop spending $1 million on art.