Will Lower Taxes Affect Annexation? A Decision Awaits Coral Gables

Javier Baños

Baños is the Editor of Gables Insider

If you’re a registered voter in Coral Gables, you’ve probably noticed a key question popping up on absentee ballots. It’s a straightforward yet impactful question, ultimately decided in the upcoming August 20, 2024, county election.

The ballot question reads: “Would you support the City pursuing the annexation of Little Gables (the area generally bounded by SW 8th Street to the North, SW 16 Street to the South, Cortez Street to the West, and SW 40th Avenue to the East) into the City of Coral Gables via Miami-Dade County’s annexation process, and absorbing all associated annexation costs?”

This question isn’t coming out of nowhere. It’s been a long journey, marked by a series of workshops since 2022, after previous attempts to annex Little Gables. The effort seemed to hit a dead end last February  when former City Manager Peter Iglesias, a supporter of the annexation, was let go. The city’s decision to reject the annexation proposals for High Pines/Ponce-Davis added to the impression that the whole annexation idea was over. But Mayor Vince Lago, determined to get a clear read on public sentiment, pushed the Commission to present this question to the public. This decision, costing about $18,000, aims to settle the annexation question once and for all. Although it’s just a straw poll and the Commission could technically ignore the results, the vote will reflect what residents want and significantly influence the debate.

Adding another layer to this already complex issue, Vice Mayor Anderson proposed a tax rate reduction on July 10, 2024, which would cost the city an additional $2.65 million in revenue. This proposal complicates the annexation discussion even further, as it impacts the city’s budget and financial planning.

If voters approve the measure, and the Commission moves along with annexing Little Gables, the big question will be whether the revenue from annexing Little Gables will be enough to balance out the increased costs of providing services to the area. Early estimates suggested a net negative impact on tax revenues versus city expenditures for the first three years post-annexation. Essentially, the city might face a financial shortfall during the initial period after annexation.

The Commission is set to vote on the proposed millage rate on August 1, 2024. This decision will be crucial in shaping the city’s financial landscape, especially in the context of the annexation debate. If the proposed tax rate reduction is approved, (which will not only cut taxes indiscriminately across all taxpayers, regardless of their commercial or residential classification, but will also decrease the taxes that will come from any annexed areas) it could further strain the city’s budget, worsening the financial impact of annexation.

 To discuss the millage rate and its implications, Commissioner Castro has scheduled a town hall meeting on July 30, 2024. This event will give residents a chance to voice their opinions and learn more about the financial aspects of the proposed tax reduction and annexation.

The annexation issue has been a hot topic for several years. Back in July 2019, the County rejected the nearly three-year-long first attempt to annex Little Gables. Mayor Lago brought the effort back in August 2022, leading to one of the year’s most contentious meetings. His disagreement with then-Commissioner Fors, who opposed annexation, was evident. During a meeting on September 13, 2023, Commissioner Fernandez asked about the renewed process after learning about an ongoing effort to get signatures of support from Little Gables residents through “YES” only postcard mailers. The staff presented the new effort in detail, restarting the previous three-year attempt halted by the County in 2019.

The debate over annexation has its pros and cons, which have been thoroughly discussed in past meetings. Proponents, including Mayor Lago, argue that integrating Little Gables into Coral Gables will bring numerous benefits. One major advantage is the potential for increased tax revenue in an area that is already served by Coral Gables Police and Fire services without direct compensation. By incorporating Little Gables, the city would expand its tax base, which could help support public services and infrastructure projects. Mayor Lago also believes that annexation would gradually eliminate blighted areas near eight street, improving the city’s overall quality and reputation. Additionally, annexation would provide Little Gables residents with more efficient emergency services, as Coral Gables’ police and fire departments already serve the area due to slower response times from county services.

However, the annexation proposal has its critics. Opponents argue that the financial burden of annexation may outweigh the benefits. Initial estimates suggest that the cost to the city could be upwards of $23 million over the first five years, which might not be fully offset by the additional tax revenue generated. Critics also point out that incorporating Little Gables could bring additional challenges, such as addressing infrastructure and permitting needs to bring the area to par with Coral Gables standards, and managing increased service demands. Some residents worry that annexation could strain the city’s resources and detract from its ability to address current priorities. There are also concerns about the potential impact on property values and the city’s character, with some fearing that annexation could bring unwanted changes to their neighborhoods.

Annexation will undoubtedly cost those in Little Gables, but it will also provide additional tax revenue to Coral Gables. The overall cost to the city is estimated to be upwards of $23 million over the first five years. While the additional tax revenue from Little Gables could help offset these costs, initial estimates suggest that it might not be enough to cover all expenses.

The closer residents are to Little Gables, the more they seem to favor annexation. Conversely, those farther away tend to view the annexation as a potential burden, with concerns about adding a blighted area to the City Beautiful.

The upcoming vote on annexation will significantly impact Coral Gables’ fiscal health and community dynamics. The decision to annex Little Gables and the proposed tax reduction are intertwined issues that will shape the city’s future. Residents are encouraged to participate in the upcoming town hall meeting on July 30 and stay informed about the Commission’s vote on the millage rate on August 1. These events will provide further clarity on the financial implications and help guide the community in making an informed decision.

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27 thoughts on “Will Lower Taxes Affect Annexation? A Decision Awaits Coral Gables

  1. Wow, wow, wow…Miami-Dade and Coral Gables Mayors has made a good combination!!!
    The WHOLE County will decide in the future of Coral Gables. People that, or they don’t care or they have a tremendous envy to people who live in Coral Gables.
    The question was placed in the last minutes in the ballots that even it was not included in the guide that was mailed to voters!!! SNEAKY, SNEAKY, SNEAKY…

  2. @Don John What an ignorant post. I am for annexation, like you are, but what on earth are you running your mouth about? Not only did I grow up in Little Gables, but 3 of the in my family have served as law enforcement for Miami Dade and Coral Gables at some point in their careers. The crime COMES INTO Little Gables and also affects North Gables, and it is overwhelmingly from OUTSIDE the area because everyone is aware of the slow response times to that area due to being part of unincorporated Miami Dade. How absolutely ignorant, bigoted and foolish you are.

    While I grew up in Little Gables (and still own property there), I also both live AND own additional property in the heart of CG. And I can tell you flat out the homes in Little Gables have had more modernization and beautification investments than the majority of the North Gables area. Property value there has soared as a result and Coral Gables is missing out on the long term benefit of tax revenue and being able to lock down that area with fast police response times (and closing the direct entrance/exits to main roads like 8th street, which was done in North Gables).

    Anyone here wasting their time saying yes to lowering taxes but not annexing has never spent a minute reviewing city budget or planning for the City Beautiful. Get informed before spouting such nonsense. We have everything to gain from annexation and plenty of upside.

  3. @Concerned Citizen, you know exactly what I’m saying, and you also know what I’m saying is true. We looked into buying a home in that area, and the front door neighbor was told to us by a neighbor that it was a drug den. I’m not making a blanket statement about all residents in Little Gables, but the situation I described is accurate. Stop trying to shift blame to Broward, as your discrimination is now showing! Stop tying to put words in my mouth about the residents of the trailer park not being up to my standards. YOU said that! You say you live in Little Gables so you do not see it from our point of view, as your neighbors come into North Gables and commit crimes. Of course you will say you and your neighbors are angels..because on Channel 7 news, when they interview the neighbors of a kid who just shot someone, they always say “he was always such a good kid, loved his mom, went to church..”. So please, spare the victimhood.

    Anyway VOTE YES on ANNEXATION!

  4. No to annexing little gables. The cost outweigh the benefits on all sides. Only Mayor Lago & developers benefit.

  5. It would be good to hear from the Little Gables residents (a survey directly from its residents only) what they think of any pros & cons and concerns before a CG wide vote & decision.

  6. NO to lowering the millage. The benefits to the average Gables resident are very low. We are all capped at 3% increase. The big winners will be those who recently purchased multi million dollar residences, who clearly don’t need it, and those who own rental buildings, who don’t need it either as rent revenues have gone through the roof. The rest of us have very little to gain and alot of city services to lose.

  7. Yes to annexation. It makes sense. Look at the map!
    No to lowering taxes if the tax bill will be lowered by only a few dollars!

  8. YES to annexation of Little Gables! As soon as they become part of the “City Beautiful” their property values jump at least 10%, which means more revenue from a higher assessment! Coral Gables Code Enforcement will bring much-needed aesthetic improvements to some of the homes there, further increasing their value. And, yes, I would trust the redevelopment of the blighted trailer park under City review than under County review. It will be developed regardless, so which government do you trust more for a quality redevelopment? Coral Gables, of course!

  9. Vote yes to lower millage/property taxes at even a greater amount. It’s shameful to fool residents about the huge increase in property tax revenue they have received since the pandemic and will continue to receive in an exponential amount with all new, current and future development. Lower the budget which includes so much wasteful spending.

  10. Vote yes to lower millage/property taxes at even a greater amount. It’s shameful to fool residents about the huge increase in property tax revenue they have received since the pandemic and will continue to receive in an exponential amount with all new, current and future development. Lower the budget which includes so much wasteful spending.

  11. You are simply wrong when you say that lowering taxes will “cost” the city $2.65 million in revenue. The reduction is meant to offset increased taxes due to skyrocketing property values, which will bring in some $10 million in additional income for the city. It’s meant to try to keep a lid on rising taxes, which hurt residents on fixed incomes. Your estimates of the cost of annexing Little Gables are also way exaggerated. Yes, it will cost more initially, but in the long run it will result in more tax income from new residents who already use the city’s police, fire and recreational facilities. Both police and fire are in favor of this.

  12. NO to lowering the millage rate and putting the City in a hole with the budget…cutting services is never a good thing. It’s a ploy by politicians to be able to say they lowered taxes when reelection time comes around, and it will negatively impact the City budget far into the future.

    NO to annexing Little Gables…the 23 million cost is fiscally irresponsible, and they don’t want to be annexed! Gables residents get to vote on this issue, (binding or not), but the residents of Little Gables don’t have a say in the matter??? That makes absolutely no sense.

  13. I Say NO NO NO to annexation.
    Yes to lowering taxes.

    Lago has been wanting annexation for a long time. Why? Little Gables has some homes that are kept up, but what about the trailer park? Maybe one of Lago’s friends could buy the trailer park and build a large condo on the site. If there is annexation the City of Coral Gables will need to address the Trailer Park, which will mean a huge expense to the City. Why take on an area which will need lots of money to bring it up to Gables standards?

    Lowering taxes for the Gables is just a gimmick. Would lower taxes be worth it? Please, don’t be fooled by the talk of lowering taxes. If taxes can be lowered, why do they go up every year? It would be great if they were lowered, but would it be a noticeable amount? In a year the taxes would go up again. Currently every sale of property in the Gables brings in extra money with the hike in property values. Plus we should have plenty of money from all the construction of luxury condos going up. We do not need tax money from Little Gables. I believe taxes can definitely be lowered without any annexation. If Lago wants annexation, address High Pines again, not Little Gables.

  14. So many remodeled, even NEW homes for sale in Little Gables. I see several signs on Mendoza/ SW 16 ST. Makes sense to annex since these homes about to sell will be taxed near the selling price/ fair market value. Many homes in Little Gables have new roofs, fancy driveways, etc. There are streets/ homes in Little Gables that look better than many in neighboring North Gables. The new CG Police/ Fire HQ is so close by. The people in South Gables, on the other side of US 1, the birthplace of a certain neighborhood organization meant to oppose the UGLY Paseo Riviera Development are the ones opposing annexation. How sad! How selfish, since the ORIGINAL, the HEART of CG is 33134, North Gables. Where did pioneers Mr Merrick & his wife née Peacock live? Where’s City Hall? Not South of US 1, but a short walk from LITTLE GABLES.

  15. Yes to LOWER the property taxes! Reduce the budget. Eliminate the nonsense scare tactics that the city will suffer by lowering taxes. The city will not suffer – reduce the budget and eliminate wasteful unnecessary spending. No to annexation.

  16. @Don John – what are you even saying?? The residents of Little Gables are NOT delinquents! Do you really think those residents are the ones going into Coral Gables to commit crimes?? you must be kidding or you don’t watch the news. These delinquents are coming from all over, including Broward, where there is a ring of thieves stealing luxury cars straight out of the garages in peoples homes. You definitely have not done your homework. The people in the trailer park may not be up to your standards, but I have been living in Little Gables for years and not once has a crime been committed by one of those residents. They may be poor but they are not delinquents. Imagine voting for annexation without proper information. Insane! NO TO ANNEXATION AND DISCRIMINATION!

  17. I agree with Don John and support
    annexation. Will benefit all.
    Also support current millage rate.

  18. This article states, “But Mayor Vince Lago, determined to get a clear read on public sentiment, pushed the Commission to present this question to the public.”

    In fact, he said the exact opposite at the November 14, 2023 commission meeting.

    Please go the meeting video of November 14, 2023 for the annexation discussion video.
    Scroll to Item H1 / hour 1:13minutes for the first part of the annexation discussion.
    The item was interrupted for another item and then resumed at hour 2:37.
    At hour 2:49, the mayor says, as part of his speech… this:

    “When you’re elected, you’re put in position to represent the residents.
    They have full faith and confidence in your ability to make a decision.
    I think that if you’re going to put this out there to the residents..
    I think it’s a mistake, because the level of information…you’re gong to have to build a website. You should put everything out there..the finances ..the benefits of public safety. Traffic..all these kinds of things.
    I think we should trust in ourselves as elected officials to move the process forward to make the right decision.
    We can’t vote on everything based on referendum.
    That’s not why we’re here.
    We’re here to make decisions and move this forward.”

    It is worth reviewing the entire video of the meeting, easily found on the Coral Gables website link to All City Meetings.

  19. Vote YES! to annexation.

    This is an issue about safety. I’ll be the bad person and say it! This little pocket of unpoliced Miami-Dade County has been a thorn in the side of residents of North Gables. Residents of Little Gables constantly enter the North Gables neighborhood and commit crimes, such as stealing cars, checking car doors, home burglaries, then they duck back into the wild west pocket before Gables police can arrive. The police have a great new building nearby, and thank goodness because their, and the Fire Department’s response time is impressive! Yet, it’s impossible to control Little Gables.

    Some may say “oh, how about the people who live in the trailer park”. Have you seen the squalid conditions of that trailer park? The fact that more people don’t get hurt through faulty wiring is surprising. Although, maybe they do and we just never hear about it. The trailer park is just like the favelas of Brazil.

    The home owners of Little Gables will be very happy when their property value also increases!

    So to those crunching numbers, I say this..Sometimes you have to spend money for the safety and security of your City.. and the money will come back ten-fold.

    To those who say “somebody is benefiting from this”, I say this..not everything is a conspiracy, and yes, the people who will benefit are the existing residents of Coral Gables.

  20. Vice mayor Anderson is a thorn in our city. Political stunts like these show just how belligerent some politicians are. What’s up with these crazy folks, Anderson’s got to go.

  21. Vote NO NO NO. We do not need it and we should be using the money to better our long standing Community. You people pushing this must have some financial gain at the end of the rainbow.

  22. 1) No to Annexation. This will only make our City pay much more than we get in return.
    2) No to lowering a measly amount that no one would feel, but the City will lose. This is a political stunt by Vice Mayor Anderson (and she knows it), which makes me sick!

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