Cutler Bay projects 2025 audit-year deficit, council approves moving forward with 2.6% COLA guidance

Cutler Bay’s town manager told the council on June 17 that an upcoming audited net change in the general fund will show a projected deficit of about $988,000, largely because the town used roughly $4.1 million of reserves for soil remediation at Legacy Park.

The manager, Ralph, said the town captured federal ARPA funds and expects to sell brownfield tax credits to a neighboring Publix, but the remediation expense still moved the city into a near‑million‑dollar deficit on the unaudited figures. He outlined a proposed 2.6% cost‑of‑living adjustment (COLA) for town employees — based on the regional consumer price index — that would add approximately $123,506 to next year’s budget.

Ralph told council the town would enter budget season with multiple workshops (July 30, Aug. 31) and two tentative hearings (Sept. 10 and Sept. 24), and described other capital needs funded by grants or reserves, including park projects and transportation improvements. He emphasized that without the Legacy Park remediation the town would be about $3.2 million in the black.

Vice Mayor Callahan and several council members said staff should not be held solely responsible for costs arising from a Council‑approved remediation project and expressed support for advancing the 2.6% COLA. Because this meeting was a workshop, the change will be brought forward as a formal resolution to be adopted as part of the overall budget process.

Why it matters: The town’s near‑term budget choices come as Florida faces proposed statewide property tax changes that staff estimated could reduce Cutler Bay’s ad valorem revenue by roughly $2.5 million annually under a $150,000 homestead exemption scenario and up to $4.3 million under a larger exemption — forcing staff and council to identify potential reductions, reprioritize projects or seek alternative funding.

Next steps: Council directed staff to draft a resolution including the COLA and to continue work with department heads on targeted reductions (staff’s internal goal was a 2.5% spending reduction across departments). The town will return with firm audited figures and further budget details before final adoption.