Key West, Florida Development News

Key West Proposes $300 Million Budget with Focus on Infrastructure and Fiscal Responsibility

The City of Key West held a budget workshop for fiscal years 2026-2027. The proposed budget is $300 million, with a zero-based budgeting approach focusing on infrastructure, financial stability, climate adaptation, and housing. Key points include a tentative ad valorem tax rate of 1.8660 (1% under rollback), a $6 million transfer from Key West Bight, and a 5.74% increase in personnel expenditures. No new positions were recommended, but 17 vacant positions were recommended for deletion. The budget includes significant infrastructure investments, with $48 million in capital projects for the infrastructure fund, a potential $10 million bond issuance for citywide paving, and allocations for sidewalks, traffic signals, and shoulder restoration. Discussions also centered on the Key West Bight fund, property tax reform, debt service, and transit budget adjustments, including the elimination of Key West Rides and the potential return of the Duval Loop.