Council Cuts Into 26% Tax Increase

During a 4-hour budget workshop session last night the Fort Myers Beach Town Council listened to a presentation from staff that would reduce the proposed 26% millage rate increase to zero. That included  a slew of cuts Town Manager Will McKannay was hoping to have in his budget that begins October 1. 

The town is facing a $1.19 million budget deficit, according to Finance Director Joe Onzik. To fill that gap, McKannay asked the town to raise the millage rate from .99 per $1,000 of assessed property valuation to $1.25, an increase of 26%.

If all the cuts the Town Council heard last night go through, taxpayers will not be responsible to pay for fireworks on New Years Eve or the 4th of July, other events run by the town could come to an end, and town-run pickleball leagues, youth leagues and clinics will be eliminated. Several staff positions will remain unfilled, hours at Bay Oaks might be shortened, and services at The Mound House could be reduced. 

Last month Onzik said in fiscal 2026 Bay Oaks will operate at a $1.1 million deficit, The Mound House will operate at a $645,000 deficit, and the town’s Marine Operations division, which includes the mooring field, will operate at a $359,000 deficit.

Last night town staff did not present any user numbers for either Bay Oaks, the youth programs or The Mound House. The presentation did not include how many residents compared to non-residents use town owned and run facilities.

McKannay told the Town Council he would not be comfortable if all the cuts went through but, “you give us the guidance and we’ll make it happen.” The town’s overall budget will be about $53 million.
In the end, the Town Council approved a tentative millage rate of 1.15 mills, which is a 16% increase. They tasked Onzik with finding the money to properly fund the town’s reserves and giving McKannay more breathing room to provide the town with more of the services he believes the town wants. At 1.15 mills the town would see an additional $719,000 in ad valorem revenue over 2025. Keep in mind residents will already be paying more in taxes because their property values increased over last year. 

The Town Council approved a tentative budget that includes no increase based on the staff cuts. It’s contingent on Onzik adding in the $719,000 using the 1.15 millage rate. Council members John King and Jim Atterholt were a hard no on any tax increase and voted against the higher millage and the tentative budget. Mayor Dan Allers and council members Karen Woodson and Scott Safford vote in favor. 

There were 4 members of the public at the meeting that appeared to be speaking out against any tax increase. 

The final budget hearing is Tuesday, September 24th at 5PM. At that public hearing, the budget and millage rate must be approved. While the council voted last night for a tentative increase to 1.15, they can still go all the way back up to $1.25 (a 26% increase) because that was the first millage rate set as the ceiling. All eyes are on Onzik and what he brings back at the second public hearing. 

The 2026 fiscal year begins October 1st.

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