Key West City Commission Approved the Fiscal Year 2025/2026 Budget

The Key West City Commission has officially approved the Fiscal Year 2026 budget during its meeting held on September 25th. The total budget of $286,615,419 is an increase of $24,092,251 over the 2025 budget.

In addition to the $101,417,531 General Fund budget, the FY2026 budget includes strategic investments in sustainability, infrastructure, roads, and transportation, as well as continued funding for essential public services including sewer, stormwater, solid waste, transit, and operations at the City Marina and Key West Bight.

As part of the budget adoption process, the Commission also voted to set the ad valorem property tax rate at 1.9551, which is 4 percent above the rollback rate.

The rollback rate is the tax rate that would generate the same amount of revenue as the previous year, excluding new construction. By setting the rate 4 percent above this level, the City will generate additional revenue necessary to maintain financial stability and service delivery in the face of rising costs.

The FY2026 budget was developed through a collaborative and strategic process involving City departments, the City Manager, Finance Director, and guidance from the City Commission.

"The FY2026 budget reflects the City's ongoing commitment to providing essential services, maintaining infrastructure, and supporting community initiatives," said Finance Director Christina Bervaldi. "The approved ad valorem tax rate adjustment will allow the City to meet increasing operational costs, fund public safety improvements, and invest in key capital projects that align with long-term strategic goals."

Despite the 4 percent increase over the rollback rate, the impact on property owners will vary.

• Homesteaded residential properties with an average assessed value of $592,832 will see a 93-cent decrease in the City portion of their FY2026 property tax.

• Non-homesteaded residential properties with an average assessed value of $1,088,136 will see a $6.82 monthly increase.

• Commercial properties with an average assessed value of $2,085,773 will see a $13.07 monthly increase to the City portion of their FY2026 property tax bill.

The adopted budget positions the City to responsibly manage resources while investing in long-term priorities that enhance quality of life for residents and visitors alike.