Police and fire services would consume more than half of Key Biscayne's operating budget under a $56.1 million spending plan village leaders reviewed at a budget workshop June 30.

The Key Biscayne Police Department would receive $12.2 million, or 27.6% of the baseline budget, while Fire Rescue would get $11.4 million, or 25.7%. Combined, the two departments account for $23.6 million of the $44.4 million operational budget, according to figures presented by Village Manager Steve Williamson.

Tax Rate Could Rise 4.2%

The spending plan comes with a proposed tax increase. The council agreed by consensus on a maximum millage rate of 3.0066 for fiscal year 2026-27, a 4.2% jump over the current rate of 2.8846. Mayor Joe Rasco said the rate would likely come down before final budget hearings. Chief Financial Officer Benjamin Nussbaum said the village's millage has dropped or held steady for five years, making any increase a tough sell.

"We laid out what we can do this year," Williamson told the council at the workshop, held at Village Hall, 560 Crandon Blvd.

Public Safety Projects Anchor Capital Plan

Beyond day-to-day operations, the village's capital improvement plan dedicates $10.4 million to public safety projects. Proposed spending includes $2.3 million for a fire engine replacement, $350,000 for police vehicles, $204,000 for a police boat replacement and $144,000 to add one firefighter. Fire Rescue Chief Joseph Fernandez said the additional firefighter would complete three 12-person shifts, reducing overtime costs.

The council directed Williamson to determine whether the fire engine must be paid for upfront, given that delivery timelines have stretched to four to five years after an order is placed.

Flood Control Drives Broader Capital Spending

Flood control is the other major capital driver, with nearly $27 million earmarked for flood-reduction projects. The village's full capital plan includes 34 projects totaling $64.1 million, funded through a mix of grants, general obligation bond proceeds and general fund dollars.

State Amendment Could Cut Revenue

If Florida voters approve HJR 1-F in November 2026, Key Biscayne estimates it would lose about $800,000 in the first year and $1.6 million the following year. The amendment would raise the homestead exemption to $150,000 in 2027 and $250,000 in 2028 on non-school property taxes.

Naming Rights Floated to Offset Losses

To offset potential revenue losses, village leaders floated naming-rights partnerships. Ideas included a "Gloria Estefan Key Biscayne Chamber Theater," a "Lionel Messi Village Green Soccer Complex" and an "HCA Florida Mercy Hospital Key Biscayne Community Center."

Reserves, Low Tax Rate Provide Cushion

The village maintains $27 million in reserves and holds the lowest overlapping millage rate in Miami-Dade County, at 15.5108.

Hearings Set for September

Formal budget hearings are scheduled for Sept. 8 and Sept. 30, according to the village's preliminary schedule.