Tax Increase Turnaround

Fort Myers Beach Town Finance Director Joe Onzick now says that due to greater than budgeted revenue and less than budgeted for expenses, he is no longer recommending the Town Council increase the millage rate on island residents.

In a memo to the Town Council this week Onzick says that the town collected over $1 million more than budgeted in revenue and budgeted over $2 million less in expenses. Last month Onzick wanted the Town Council to raise the millage rate from .99 per $1,000 of assessed property value to $1.03. His concern was the town’s 3 depleted emergency funds due to Hurricane Ian. Onzick now says with this new information he can move the new found money into those accounts and the Town Council can keep the millage rate the same if they choose to.

Onzick wants the town’s emergency funds to have a total of $3.5 million in them. That’s the amount of money the town spent in the immediate aftermath of the Hurricane. As of today those funds have $1.8 million in them. Last month Onzick told the Town Council that if the tax rate stayed at .99, $290,000 would have been deposited back into the town’s emergency fund and that every point they raised taxes another $36,000 is added to that $290,000.

After digging deep into the numbers, and getting the final property valuation figures from the Lee County Property Appraiser, Onzick says the town now has just under $3 million available for allocation. He’s proposing nearly all of that money goes into emergency reserves. He also recommends that the town contribute $435,000 into emergency reserves every year moving forward.

On June 17th, by a vote of 3-2 (Atterholt and King opposed), the Fort Myers Beach Town Council voted to set the tentative 2025 millage rate at $1.03 per $1,000 of assessed property value. The current rate is .99. The taxpayers of Fort Myers Beach were already going to pay more in taxes after Lee County Property Appraiser Matt Caldwell announced property values on Fort Myers Beach increased 50% since last year.

Vice Mayor Jim Atterholt, who voted against the tentative millage increase and wants to see the town sell the property that housed the old town hall said, “The recent fiscal recommendations by the town staff further demonstrate that Fort Myers Beach is on the move. There is no need for a tax increase because we are building back our homes and businesses faster than many expected. These developments inspire confidence and further demonstrate that the future of our island is bright.”

As the town now goes through the budget process the Town Council can only decide to lower the millage rate. They can not go higher than the tentative rate of $1.03 when they approve their final budget. They can decide to approve the higher millage rate at $1.03. They can decide to keep it at .99. They can also decide to roll the rate back. The roll-back rate would be whatever the rate is that nets the town the same amount of millage revenue it received this year based on property valuations. That rate would certainly be lower than .99.

The town is holding budget hearings at 5PM on September 9th and September 23rd. The new fiscal year begins October 1st.

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