On Monday, in a 4-1 vote, the Fort Myers Beach Town Council approved a millage rate ceiling of 1.34 per $1,000 of assessed property value. If approved, that translates to a 30% millage increase on Fort Myers Beach property owners.
The 1.34 mills is the highest millage rate the town can now adopt. The final rate can come down between now and through two September budget public hearings. Town staff will now work to refine the budget to get it to a final product.
The current millage rate is 1.0294 per $1,000 of assessed property value. Town Manager Will McKannay is proposing the rate go to 1.34 and states the increase is to help the town “become more sustainable in the future.”
Council member John King voted against starting at 1.34. “I was disappointed in the lack of support for island taxpayers. While the vote set a maximum millage rate, and it can be reduced during budget hearings, there was nothing said about cutting spending, only increasing it. In addition I made a motion to sell the old Town Hall property. That died for a lack of a 2nd. I believe all options need to be investigated before we ask taxpayers to pay more money.” The old Town Hall property is eventually expected to be a paid parking lot. It has been sitting empty for months because the town did not follow its own permitting procedures to convert it into a parking lot.
As presented to the Town Council on July 15th, McKannay reported that the preliminary budget is currently unbalanced and the town will experience a shortfall of $1.5 million. On Monday, the town’s new Assistant Finance Director Jeffrey Newman pitched the Town Council on the higher millage rate by telling them Fort Myers Beach had one of the lowest millage rates in the state. What he didn’t include was that the Fort Myers Beach government does not pay for its own police department (the government does contract with LCSO when the beach is very busy), residents are taxed seperately for fire protection, and Lee County cover srepairs for its main road and three major parks on the beach. Fort Myers Beach was also incorporated under the moniker of “Government Light.”
As the Town Council mulls over a massive millage rate increase, taxpayers are also deciding how to vote on property tax reform. If approved, the higher homestead exemptions for Fort Myers Beach will not have as big an impact as other municipalities. About 18% of the properties on the beach are homesteaded.
The town was already expected to see more revenue from taxpayers after Property Appraiser Matt Caldwell said property values on Fort Myers Beach increased 8.52% over last year. Caldwell reports that Fort Myers Beach went from $4.6 billion in total taxable value last year to just over $5 billion this year. From Caldwell’s increase in valuation the town will see an additional $346,462. However, according to McKannay, that’s not enough.
Council member John McLean, who’s running for re-election in November, voted for the 1.34 ceiling but wants to see it come down before the final budget vote. “While I approved the motion to raise the max millage rate to 1.34 and even seconded it, I did so to keep the process moving and meet tomorrow’s deadline with the state. This is only the first step in the process and does not in any way reflect my support for a 30% increase in our taxes. I gave clear direction that the Town Manager needs to identify areas of cost reduction and deliver a balanced budget with minimal tax impact.”
Since last year, McKannay has brought on an additional 12 full-time employees due to ‘operational needs and departmental reorganizations.’ Those additional hires will add over $525,000 to the budget between cost-of-living increase ($212,000), bonuses ($230,000), and a step plan/career ladder program ($84,425).
Since 2020, the number of employees working for the town has gone from approximately 55 full-time and 33 part-time to 85 full-time and 14 part-time in 2025. That has nearly doubled the cost of employees, from approximately $4.8 million in 2020 to over $8 million in 2025.
In addition to the new hires, the town is budgeting over $325,000 to operate the new pool, with projections to generate $0 in revenue, $683,000 to operate the Mound House, with $124,0000 in projected revenue, and over $930,000 to operate Bay Oaks with $120,000 in projected revenue.
The town says it’s using $629,030 from a state bridge loan to cover operating expenses which it received following Hurricane Ian. The $11.9 million interest free bridge loan was awarded to the town in early 2023.
A millage increase to 1.34 will provide the town with an additional $1,792,925.21 in revenue above the rolled back rate. The town’s rolled back rate is .9687. That millage rate would provide the town with the exact same amount of ad valorem revenue as last year. If the town approved a millage rate of 1.34, that increase would be 38.5% above the rolled back rate.
Mayor Dan Allers voted in favor of 1.34 as the budget starting point. “The proposed maximum millage rate of 1.34 mills is a budget ceiling, not the final tax rate. It provides the flexibility needed as we complete the budget process. The Council has directed staff to continue identifying efficiencies and cost savings to reduce the final millage rate by the greatest amount possible from that proposed ceiling while continuing to provide the high level of services our residents expect.”
Back in June, Governor Ron DeSantis signed Senate Bill 4-F and House Bill 1329 into law. That makes it harder for local municipalities to easily pass millage increases. Millage rates up to 110 percent of the rolled-back rate require a two-thirds vote of the governing body. Millage rates above 110 percent of the rolled-back rate require a unanimous vote.
The legislation also requires local governments to publish detailed financial information online, including: budget summaries, revenues and expenditures, departmental spending, staffing information, reserve levels and fund balances, and additional financial reports and budget documents.
Most significantly, HB 1329 requires local governments to conduct a budget reduction exercise before adopting a final budget. Local officials must identify strategies to reduce proposed spending by 10 percent without affecting essential services such as law enforcement, fire protection, and other legally required government functions.
The town does not hold budget workshops like all other municipalities. They go straight to 2 budget hearings after they approve the millage rate ceiling, which they will do Monday. Once that’s approved they can reduce the rate at the budget hearings, they cannot increase it. The first budget hearing is September 9th at 5:01PM. The final budget hearing is September 23rd at 5:01PM.
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PARASITE; : someone or something that resembles a biological parasite in living off of, being dependent on, or exploiting another while giving little or nothing in return
A bulging bureaucracy right under the noses of a council full of conservative business people. And no diet in sight.
Such irony.
Government lite was always a reasonable concept, not one to be sniffed at by a council full of business people.
Your natives are restless.
Your spending has become as nightmarish as Seagate.
We do not need a pool. The gulf is across the street and Margaritaville and Diamond Head has pools you can pay to go to. Pools only cost money and always need repairs (like a boat). Everyone on the island has their own pool or access to a pool. Stop spending money on things we can not afford. You can not have 12 new employees and pools and bay oaks all the same year.
Sounds like very high priced Willy is very good at fluff
The permit department is terrible
It would be great to get services for the money that we’re spending.
I’ve made several phone calls the Townhall. I’ve never gotten a response.
DeSantis is trying to save taxpayers money with this bill and forcing governments to find ways to cut back. So here we are now with a town council that wants to increase our taxes and not one word of cutting back. Is this high tax rate just in case DesSantua’s bill goes thru and FMB doesn’t know how to cut back? There are so many residents that still are not in their homes from Ian. I bet they are just jumping for joy to see how their taxes are going up to support 12 more employees, Mound House, Bay, Oaks, etc. Lol I hope someday we we get a town council that can properly budget and run a town.
I am with you 100% They have no clue
We all need to email DeSantis and tell him what is going on. He needs to bring his Doge team here and dig around and see what is going on. WHY is the old town hall land not sold? Why has our population gone down but they needed to hire 12 new employees? How do those 12 employees help improve our lives on FMB??? I suggest we all email DeSantis and request an audit.
Before raising taxes, how about selling the lot that the old townhall sat on before the storm? What is the plan for that property? When they are silent on something then you know they are up to no good. Don’t be surprised if they build a big low income housing complex.
We no longer own a home on the island and therefore have no voice in the matter but I have to believe that most taxpayers would respect the decision to increase millage rates IF politicians were able to demonstrate any instance of tightening the town’s financial belt, cut costs, eliminated wasteful or redundant services, stopped hiring goofball consultants, eliminated and sold non-necessary vehicles and equipment, stopped creating unnecessary positions or eliminated or consolidated staffing positions. Then compile a detailed list documenting cost cutting efficiencies and present it to the taxpayers.
Steve D. for City Council!
Even if you did live on the island, you would have a little or no influence.
The only influence you have is to vote out council members that want to spend your money foolishly. And rebuild the island foolishly. Vote for a change.
Same. We sold the plot of post-Ian dirt and our regrets are few. The endless hurdles property owners are expected to navigate is beyond the pale. These ‘officials’ seem completely confused 100% of the time, with no sense of prioritizing projects, and the town hall employees apparently are still as unresponsive as they were 4 years ago. I feel for anyone still trying to just rebuild their lives.
Exactly…I am furious…we are ALL furious…hope they get a grip…live within their means…you idiots just cost me a house I can no longer afford…good for you
The mayor doesn’t own a home on the island and he has a very loud voice. Your voice is just as important.
Where is the 3-5 million dollars in the emergency fund that was lost? Why isn’t anyone at the town answering that question? Why aren’t they even looking for it? If they can’t figure that out, they certainly should not be managing money for the town! November can’t come fast enough! This town is getting too big for its britches.
Eric,
Hear, hear!! Great question, too long unaccountable. Someone organize a search for the missing in action.
The Town didn’t follow their own permitting process regarding the parking lot? What are all the new employees responsible for? Permitting and inspections are one of the biggest issues on this island. Why have the two restaurants in Santini been sitting at a stand still for months…like the town’s parking lot…are those restaurants waiting for permits or inspections by the town? Before raising taxes, how about trying to become efficient?
Adding more people to the FMB government is disgusting. The service from the village is horrible which reflects the hiring and management. Try calling there to reach someone. They NEVER pick up the phone, don’t respond or the mailbox is full. Fire them all.
I Totally agree. The whole city culture needs to change.
I think we need DOGE. Why the increase in employees? What do they do and how did we operate without them before Ian? The percentage increase is unacceptable and appears to be a knee jerk reaction to solve a deficit. It’s the easiest option to increase taxes, we need to have real solutions and leaders.
If it acts like DOGE did, it would get rid of necessary personnel and allow teenager hackers access to everyone’s information.
Thanks for your advocacy, John.
John was the only one standing up for the taxpayers and asking specifically questions on costs. The others were willing to rubber stamp the proposal under the guise of “it’s just the ceiling number “. Let’s see if any of them grow a backbone between now and the two upcoming budget hearings.
Too bad he didn’t stand up for the residents on the Seagate vote.
This is BS! We only have 18% of properties eligible for homestead, we don’t pay for police or Estero Boulevard and fire is taxed separately, but they’re proposing a rate increase? WHERE IS THE $3-5 MILLION THEY LOST? I can’t manage my household this inefficiently, why can they run a town like this?
I don’t care what other places pay. The only comparison that matters is the comparison to OUR recent years. This was a sad excuse/attempt at justification especially given the struggle to answer any questions about the details of the increases. It’s very clear that some of the current town management see the citizens as their money tree. Real managers have to figure out how to do more with less! It’s time to look at cost/benefit ratios for things like The Mound House, Bay Oaks and the mooring field. What % of the town residents use these facilities? I fear the school even though strongly supported by some will fall into this group of items too, where the town leaders decide to take on a role beyond its government lite scope only to add to the small island’s economic woes. Thank goodness for John King. I hope he stands strong in the upcoming budget discussions and pushes the staff to cut the fat that we all know is there!! Just because we’ve had something in the past doesn’t mean we need it in the future. Instead of sharing apples to oranges comparisons to other municipalities, I’d love to hear resident usage numbers and cost per household for each amenity we fund.
True incompetence. You have never heard them ask how they can be good stewards of our taxpayer money. Government leeches.
The vote was not unanimous, so how is a 38.5% increase over the rollback rate allowed under those new state laws? Does it only apply to the final set rate?