Palmetto Bay's property tax rate for 2026–27 took two budget hearings, a 3–2 vote, a warning that a four-fifths vote would be needed, and an amendment that cut 0.039 mills before it passed on September 23. The stormwater fee passed with far less fuss. It went from $5.00 to $16.50 a month per home on a 5–0 first-reading vote. For most single-family homes in the Village, the stormwater fee is the bigger change on the bill.
The fee is easy to miss when you're working out what a house will cost to own. Ordinance 2026-14 bills it as a separate line on the utility account, with Miami-Dade County allowed to handle the billing, and it says the property owner is ultimately responsible for paying it. So it won't show up in the property tax history you see on a listing. The higher rate started October 1, 2026, which means anyone closing on a Palmetto Bay home this fall takes over a utility line that's more than three times what last year's bills showed.
The Rate Schedule the Council Skipped
The Village hired the consultant Raftelis to study whether stormwater revenue was enough to cover costs. Its final report is dated August 6, 2026, and it recommended a ramp: raise the fee once now, hold it flat for four years, then raise it again in fiscal year 2031. The Council took the last step on that ramp first.
| Fiscal year | Raftelis recommended, per ERU per month | Adopted, per ERU per month |
|---|---|---|
| Before Oct. 1, 2026 | $5.00 | $5.00 |
| FY 2027 | $13.00 | $16.50 |
| FY 2028 | $13.00 | $16.50 |
| FY 2029 | $13.00 | $16.50 |
| FY 2030 | $13.00 | $16.50 |
| FY 2031 | $16.50 | $16.50 |
The rate hadn't moved in a long time before this. According to the Raftelis study, the fee was $4.00 per ERU for fourteen years and then $5.00 from 2020 until this fall. A single-family home now pays $198 a year, up from $60. That's $138 more per year, and $42 more than the consultant's own recommendation would have charged during each of the next four years.
Why the Council Went Straight to $16.50
The September 14 meeting minutes give the reason. During questions about the $13.00 recommendation and the capital plan, the consultant said a $16.50 rate "would increase cash flow for additional projects and support debt financing." Vice Mayor Mark Merwitzer then moved to set the fee at $16.50, "the rate recommended for 2031," and Councilmember Steve Cody seconded.
Village Attorney John Quick added that the ordinance "would approve only the fee," and that individual projects would each need their own approval later. In other words, owners started paying the higher rate on October 1 before any of the extra projects it's meant to fund had been named or approved.
The final ordinance passed on second reading October 5, 2026, by a vote of 4–1. Patrick Fiore, who had voted yes in September, voted no. Steve Cody, Marsha Matson, Mark Merwitzer and Mayor Karyn Cunningham voted yes.
The Millage Fight, Priced Per Million
The tax rate got most of the debate, so here's what it's worth in dollars. The Village's log of final Council action shows the 2026–27 operating millage adopted at 2.3500 mills on a 4–1 vote, with Marsha Matson voting no. That's 8.19 percent above the rollback rate of 2.1722. The amendment lowered the rate from 2.389, the figure approved at first reading. The year before, the Village adopted 2.3018 mills for fiscal 2025–26.
One mill equals $1 for every $1,000 of taxable value, so each change converts to dollars like this:
| Change | Mills | Annual effect per $1M of taxable value |
|---|---|---|
| Amendment, 2.389 down to 2.3500 | 0.039 | About $39 saved |
| FY2025–26 to FY2026–27, 2.3018 up to 2.3500 | 0.0482 | About $48 more |
| Adopted rate above rollback, 2.1722 to 2.3500 | 0.1778 | About $178 more |
| Stormwater fee, single-family home | n/a | $138 more, at any value |
The year-over-year increase in the Village millage only matches the $138 stormwater increase once a home's taxable value reaches about $2.86 million. Below that, which describes most single-family homes, the flat fee raised the Village's share of the bill more than the tax rate did. The September amendment saved owners about $39 per million of taxable value. The fee change that passed unanimously at first reading costs every house $138.
Why a Flat Fee Hits Lower-Value Homes Harder
The reason is in how the fee is calculated. One ERU equals 1,578 square feet of impervious area. Even so, every single-family property is billed exactly one ERU, while each multifamily unit is billed 0.6 ERU and nonresidential properties are billed by their actual impervious area. A small ranch house and a large estate on an acre pay the same $16.50. A multifamily unit pays $9.90 a month, or $118.80 a year.
That's why the same dollar figure feels different from one house to the next. Here's how it compares with the Village's property tax portion alone at 2.3500 mills:
- At $500,000 of taxable value, the Village millage comes to $1,175 a year, and the $198 stormwater fee adds about 17 percent on top.
- At $1 million, the millage is $2,350, and the fee adds about 8 percent.
- At $2 million, the millage is $4,700, and the fee adds about 4 percent.
These figures cover only the Village's operating millage and the stormwater fee, not the county, school or other taxing authorities that also appear on a Miami-Dade tax bill. The pattern holds anyway. When you compare Palmetto Bay with nearby suburbs, a flat utility charge makes up a bigger share of the cost at the lower end of the price range, and it stays at $198 no matter how assessed values change.
Where the Money Is Pointed
The consultant's capital plan is based on project cost estimates from Kimley-Horn drawn from the Village's 2020 stormwater master plan. Its project table lists three items scheduled between 2026 and 2032:
- Local Drainage Improvements: $1,965,100, paid from rate revenue, scheduled 2026 through 2031
- Drainage Sub-basin #43: $2,439,100, assumed to be funded by a State Revolving Fund loan, scheduled 2027 through 2030
- Drainage Sub-basin #11: $2,468,100, also assumed to be loan-funded, scheduled 2031 through 2032
The study describes the sub-basin work as fixing roadway flooding with new catch basins, manholes and exfiltration trenches. The two loans are assumed at about $2.5 million each, with 20-year terms at 2 percent interest and average debt service of about $152,000 a year. Under the study's assumptions, payments on the first loan begin in fiscal 2028. The Village also still pays Miami-Dade County roughly $108,000 a year as its share of the county's Series 2020 stormwater bonds, which mature in fiscal 2029.
All of these figures are forecast assumptions. The study notes that the master plan is being updated and that "existing projects may be revised or additional projects identified." The extra money the $16.50 rate brings in is meant for projects the Council hasn't named yet, and per the Village Attorney, each one will come back for its own vote.
What to Ask Before You Close
The fee doesn't appear on the property tax record, so buyers need to ask for it separately:
- Ask the seller for a recent Miami-Dade utility bill and find the stormwater line. Bills dated after October 1, 2026, should show the new rate.
- Confirm how many ERUs the property is billed for. Single-family homes are billed one ERU under the Village's structure. For a multifamily unit or a property with commercial use, check the actual billing record.
- Add $198 a year to your carrying-cost estimate for a single-family home, next to the property tax figure. The tax figure is based on last year's 2.3018 millage until the new tax bills go out.
- Watch the Council agendas for stormwater project approvals. The updated master plan and the individual project votes will show which streets get work first.
This post is general information about how Village fees and tax rates work, not legal, tax or financial advice, so please confirm the numbers for your own property with the right professional.
FAQ
Is the stormwater fee part of my property tax bill? No. Ordinance 2026-14 bills it as a separate line on the utility account, with Miami-Dade County permitted to handle billing, and makes the property owner ultimately responsible for it.
Does a bigger house or lot pay a higher fee? Not if it's a single-family home. Every single-family property is billed one ERU regardless of size. Multifamily units pay 0.6 ERU, and nonresidential properties are billed by impervious area.
Will the fee go up again in 2031? The consultant's schedule tops out at $16.50 in fiscal 2031, and the Village is already charging that rate. The current rate was set by Ordinance 2026-14 after two readings and two Council votes, and the study doesn't project any rate beyond fiscal 2031.
If you're weighing a Palmetto Bay home or planning to sell one, Team Citron can help you put the fee, the millage and the house itself into one clear carrying-cost picture before you make a decision. Get a Free Home Valuation, and we'll walk through the numbers with you.
