In a meeting that was awkward at times, the Fort Myers Beach Town Council has approved a final 2026 millage rate of 1.0294 per $1,000 of assessed property value. That’s an increase of about 4% over the 2025 millage rate.
The higher millage rate will generate an additional $177,149 into the budget which will be used for the town’s Emergency Fund and to match any state grants the town may receive. Council member John King voted against the increase, which needed 4 votes to pass. He said, “I stand with the taxpayers. I cannot support an increase.”
The additional $177,149 will be split and distributed into two funds, $88,574 to the town’s emergency reserve fund and $88,575 to match any state grant money that the town receives for future projects. If there is no grant money that needs to be matched, all of the money will go into the woefully underfunded emergency reserve fund.
Before the 1.0294 millage rate was approved, King voted against a proposed increase to 1.15 mills which would have generated an additional $719,000. That increase is what staff and Town Manager Will McKannay recommended and were heavily pushing for after staff made $1.2 million in cuts to the original tentative 26% increase. Because the increase to 1.15 (16%) was considered significant all 5 council members needed to approve. It failed without King’s vote. Even after the failed vote, and seeing how underfunded the reserve account was, several council members tried to change King’s mind to get him to vote for the higher tax increase. King wasn’t budging on an increase.
At the first budget public hearing, Town Attorney Nancy Stuperich advised the council they had the option to go all the way back up to the tentative millage increase of 1.25 mills which would have generated an additional $1.12 million in revenue. That turned out to be incorrect and was relayed to council members between public hearings. When the council approved 1.15 mills at their first public hearing, that was as high as they could go, but they could go lower.
Something new that came to light Wednesday night was the potential for a $9 million deficit the town may face as they await FEMA reimbursement funds that the town had to spend on emergency projects after Hurricane Ian. Mayor Dan Allers said to Finance Director Joe Onzick, “I wish we would have known this before. Then when the 16% millage increase failed, Allers said, “This leaves us open to potential dangers.”
Vice Mayor Jim Atterholt changed his vote from a no to a yes on the increase when he was assured by McKannay that the additional ad valorem revenue generated from any increase over the 2025 .99 rate would only be used to fund the Emergency Reserve account to match any state grant money that came the town’s way. It’s not unusual for the state to send municipalities money for projects as long as those municipalities match the funding for that particular project.
Allers went on to say that not voting for the higher increase was “reckless.” A word he used several times during the hearing.
Since Hurricane Ian the town has spent $43.5 million from its emergency fund.The chart below details how the town was able to maintain its emergency fund balance and what the town faces if FEMA and FDEM (the state) do not reimburse the town for money it has already spent on emergency projects and that the town was told would be reimbursed for.
The budget and millage rate approved by the town Wednesday night includes cuts made to the budget after the tentative millage rate was set including, all money for 2 fireworks celebrations (New Years Eve and the the 4th of Jul), town-run pickleball leagues, youth leagues and clinics, several staff positions will remain unfilled, hours at Bay Oaks might be shortened, and services at The Mound House could be reduced.
Fort Myers Beach taxpayers were already going to pay more, even if the town rolled back their millage rate to generate the same amount of revene from taxes as last year. Lee County Property Appraiser Matt Caldwell reported property values on Fort Myers Beach increased 12% over the previous year. Onzik said in August that the higher property values will bring the town an additional $670,000 next year. So all in, the town will see an additional $847,000 in fiscal 2026 from taxpayers; $670,000 from higher property values and $177,000 from the increase in the millage rate.
Two residents spoke at public comment during the public hearing, Ellen Vaughan and Tom Torgerson. Both urged the town council to raise the millage rate.