The Miami Lakes council set a cap for a tentative millage rate for the 2025-2026 fiscal year. The highest the property tax rate could be is 2.6372, or $2.63 per every $1,000 of assessed property value, less a homestead deduction and other exemptions.
Council members pledged on July 29 to seek cuts or find revenue sources for a proposed $24.9 million general fund budget and to set a lower millage rate to pay for it.
The council reduced tax levies in 2017, 2018, 2019, 2023, 2024 and kept it flat in 2025.
“The multi-year reduction of millage has placed cumulative pressures on town revenues and its ability to provide a high standard of public services,” Town Manager Edward Pidermann said in a memo to the council.
His proposed rate is closer to what was levied in 2006-2007, or $2.74 at that time. The new rate would generate $13.1 million in tax revenues, increase ad valorem revenue by $2.8 million for the general fund and fund all the town’s operations.
For a property with a taxable value of $293,906, town taxes would increase $166 for the year, Pidermann said.
Contractor agreements are going up annually, the town said. Police costs are 48.5 % of general fund expenses.
The Miami-Dade Sheriff’s contract for patrol services is $12 million and is the town’s biggest expense. In the coming fiscal year, the contract is increasing by $836,194, Pidermann said.
Property tax revenues also pay for employee health insurance, general liability insurance, state retirement system payments and a 5% cost of living raise for staff.
And it would cover a final $500,000 legal settlement payment to former Mayor Michael Pizzi, Pidermann said.
“I don’t think that the flat millage rate makes sense at this time,” Vice Mayor Bryan Morera said. “While I do believe we can significantly reduce from the 2.6372, I will support it for now, knowing we can absolutely come down from that number.”
Keeping a flat millage rate at the current levy of $2.07 per every $1,000 of assessed property value would generate $10.3 million and could mean cuts to police patrols for traffic and burglary prevention; not making a $300,000 contribution to the town’s infrastructure fund; reduced tree trimming, park and median maintenance and no new park equipment, Pidermann told the council in July.
Also, no staff raises; committee budgets would be cut; there would be fewer town events and no council travel.
Councilman Ray Garcia called the proposed rate “irresponsible” and wanted it to stay flat, while also fully funding police and parks budgets.
Councilman Angelo Cuadra Garcia said he would not support any tax increase.
Councilman Steven Herzberg said he wanted to keep committee budgets flat and ensure that budgets for the police and overtime are fully funded.
Mayor Josh Dieguez said he wants to go through the budget line by line to look for cuts.
“I don’t think we should be afraid of that process … we’ll see what is left over,” Dieguez said.
Ray Garcia’s amendment for a flat rate failed. The millage cap at $2.63 passed, with Cuadra Garcia and Garcia dissenting.
Property taxes make up 53% of revenues that go to the general fund, or the town’s spending account for services including town administration; the town clerk; town attorney; town council; crossing guards; planning and zoning; code compliance; police patrols; public works; community outreach and parks and recreation.
Other revenues that support the general fund come from fines and forfeitures, licenses and permits, which contribute a combined 3% to the fund.
Intergovernmental revenue contributes 20%; utility taxes are 16.5% and FPL franchise fees are 6 % of revenues.
Budget workshops are scheduled for Aug. 27 and if needed, on Sept. 3, both at 6 p.m.
Two budget hearings are set for Sept. 11 and Sept. 25, both at 6:30 p.m., all at Town Hall, 6601 Main St.