Key West approves $286.6M budget with tax hike

Cuts to UNESCO program revive long-running battle over cruise tourism vs. cultural identity.

Former City Planner and City Manager candidate Thaddeus Cohen finishes addressing concerns prior to the Key West City Commission approving a 9.17 percent tax-hike. / COKW

The Key West City Commission quietly approved a $286,615,419 budget and more than 9.17 percent property tax hike Thursday night with little fanfare — and even less discussion — while the halving of UNESCO cultural funding reignited the island’s deeper fight over cruise ship tourism and quality-of-life priorities.

Commissioners Monica Haskell, Lissette Carey, Mayor Danise Henriquez, Donie Lee and Aaron Castillo voted in favor of the increase, which takes effect Oct. 1.

Commissioner Sam Kaufman cast the lone “no” vote, repeating concerns about Tallahassee’s push under Gov. Ron DeSantis to reduce or eliminate property taxes altogether.

“I don’t think people realize that DOGE is very serious about its efforts and at the very least severely reducing ad valorem taxes — if not eliminating them entirely,” Kaufman said. “I don’t see how this puts us in a position at all to prepare for that eventuality.”

“I want to make it very clear that I am in favor of rollback and not increasing taxes — at all. The increases will only be passed on to the working men, women and families of Key West.” — Kaufman

Community pushback

Key West Chamber Executive Director Kerry Baker, left, and former commissioner Margaret Romero address the Key West City Commission about budget issues.

Several residents turned out for the final hearing, including the Key West Chamber of Commerce and former Commissioner Margaret Romero.

Chamber Executive Director Kerry Baker said her group’s 600 business leaders objected to the hike.

“At a time when so many of our nonprofits have suffered due to cuts at the state and county levels, and businesses are having a tougher time, any increase would put additional pressure on businesses,” she said.

The Chamber also opposed funding the UNESCO Creative Cities program — even though many of its members could benefit from it.

Critics — and Kaufman — noted that the very businesses now struggling with fewer tourists are those most likely to gain from the international recognition.

Romero echoed the Chamber’s opposition and raised additional concerns about whether firefighter contract negotiations had been properly funded.

“I don’t know if they have concluded negotiations — as this would normally be something that would make the papers — but I hope that this budget includes enough money to account for the outcome of that,” she said, adding with a laugh: “I am over 70 now, and if I need to call them, I want to be sure they will be there.”

Romero also questioned whether the budget eliminated special commissioner reimbursements. Originally she commended them for doing so, before Henriquez clarified that the $90,000 in commissioner expenses was simply moved to another section.

She explained that commissioners would be required to submit end-of-month expense reports that would be reviewed and adjusted by financial staff in future budgeting cycles.

Later in the meeting, Romero thanked the mayor for clarifying the shell game.

“I am glad that the public has the information, and I didn’t think to look for that money elsewhere when I noticed it was gone,” said Romero. “I want to be clear, when I served on the commission, I never recieved reimbursement for anything.”

Clockwise from upper left, Manchester, UK, Oyama, Japan, Edinburgh, Scotland, Lasi, Romania and Rio D, Romania and Rio de Janiero could welcome Key West into elite company as UNESCO Creative Cities.

UNESCO and strategic planning cuts

Kaufman bristled at leaving $90,000 for commissioner reimbursements while cutting UNESCO Creative Cities funding from $150,000 to $75,000.

“We are slashing the money for that program in half, when it would allow us to advertise internationally for and draw tourists who would be interested in Key West — and businesses would reap the benefits,” he said.

No explanation was given for the reduction, which critics called arbitrary and reflective of a commission majority that “doesn’t have or get culture.”

For many, the move underscored the long-running battle between factions favoring high-volume cruise ship dollars and those advocating for cultural investment and livability without the never-ending crush of humanity.

The latter have made the case — and one three times — for smaller, boutique cruiseships that focus more on Key West’s history and culture than shoreside benders and $4 t-shirt shops.

Kaufman also objected to removing $50,000 set aside for strategic planning. City Manager Brian Barroso said he intends to host a retreat and rely on commissioner experience instead.

CRA and affordable housing

Former City Planner and city manager candidate Thaddeus Cohen criticized the city for skimming funds from the Bahama Village Community Redevelopment Agency to support projects such as upgrades at the Key West Bight and Caroline Street Corridor.

“You have eliminated the Duval Loop and defunded it, yet we are still contributing money and getting less services,” Cohen said. “There has to be a better way … it would allow us to work on projects in Bahama Village like drainage and purchasing lots for affordable housing.”

Kaufman’s position

Kaufman said his opposition boiled down to fiscal responsibility and protecting residents.

“Property tax increases disproportionately hurt working families and renters,” he said. “Landlords pass these costs on, making housing less affordable. Business owners, who don’t have homestead protections, shoulder the full weight. At a time when property insurance and everyday expenses are already skyrocketing, this was the wrong choice.”

With 92 days in reserves and tens of millions in other funds, he argued the city could have avoided raising taxes by “pursuing efficiencies, controlling expenses and reducing the size and cost of government.”

By the numbers — Key West Budget 2025–26

$236.6 million — Total city budget approved

• 9%+ — Property tax increase passed by commission

• $75,000 — Remaining UNESCO Creative Cities funding (cut from $150,000)

• $90,000+ — Commissioner expense reimbursements budgeted

• $50,000 — Strategic planning funds removed

• 92 days — Reserves held in the General Fund

Key West’s identity fight

The UNESCO cut was more than a budget line. It marked another chapter in Key West’s struggle over identity — whether to lean on cruise ship volume and short-term dollars or to invest in cultural assets and quality-of-life values that have defined the island for generations.

That fight is not finished. Commissioners are expected to vote at their next regular meeting on Thursday, Oct. 9, on whether to formally pursue UNESCO Creative Cities status and whether to appoint an independent Inspector General to restore trust in City Hall. The morning session begins at 9 a.m., with the afternoon session starting at 5 p.m.

The IG proposal, introduced by embattled Commissioner Carey, comes amid harsh criticism from State Attorney Dennis Ward after a scathing grand jury report led to indictments of the former city attorney, chief building officer and code enforcement director — while also placing Carey and several others under scrutiny.

Both votes will help decide the question at the center of Key West politics: who controls the island’s future — cruise lines and commerce, or culture and community.

This is an evolving story. Watch this space.