Cutler Bay residents will not see an increase in their property tax rate next year.
Town council members decided in a 4-1 vote to keep the tax rate the same as it was this year: $2.57 for every $1,000 of assessed property value.
Under the current rate, the owner of a typical home with an assessed value of $115,000, taking the standard $50,000 homestead exemption, pays about $167.20 in property taxes per year. The council initially voted for a tentative rate of $2.80 for every $1,000 of assessed property value, on Sept. 10, but decided against the higher rate at Monday’s meeting.
Longtime homeowners can still expect a 3 percent higher tax bill due to increased assessed home values, however.
With the $2.57 tax rate, the town will have to plan to take an extra $372,000 from its savings account to balance the budget. This means a total planned dip of $2.1 million into the town’s reserves for next year.
Initially, most council members expressed concern over taking money out of the reserves.
“Things cost money,” council member Mary Ann Mixon said. “I’m all for not raising taxes. I want to give the public what they want, but I’m struggling about where it’s going to come from.”
Mayor Ed MacDougall and council member Sue Ellen Loyzelle echoed her thoughts, with Loyzelle saying: “I’m very nervous about dipping into the reserves.”
Council member Peggy Bell and Vice Mayor Ernie Sochin argued against a tax increase.
“I feel very comfortable staying at the existing rate,” Sochin said. “There’s no real danger in not raising taxes.”
In the end, only council member Loyzelle voted against keeping the tax rate flat. She had expressed concern about dipping into the reserves.
Interim town manager Rafael Casals said the town may not need to take as much money out of the reserves as budgeted.
“Historically, we don’t get to that number because we tighten our belt throughout the year,” Casals said.
Even if the town did take the full $2.1 million out of the reserves, it would be left with $13 million, which Casals said is about 74 percent of the town’s yearly expenses.
The Government Finance Officers Association says a healthy savings account should reach about 10-15 percent, Casals said.
“We’re super healthy because our reserves go well beyond that,” he said.
Cutler Bay residents must choose a vice mayor and decide on more than a dozen changes to the Town Charter.
Council members cancelled plans for a tax increase, opting to spend more of the town’s savings instead.
Ten years ago, residents voted to incorporate the village of Palmetto Bay. Many positive changes have occurred, including improved quality of life, the sixth-lowest tax rate in Miami-Dade County, a AA bond rating and a $9 million reserve fund. However, it is election time and a new, politically motivated committee is creating an ugly atmosphere.
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