As the town of Fort Myers Beach contemplates increasing its millage rate by 26% for fiscal year 2026, and fill a $1.2 million budget shortfall, three town facilities are expected to operate at a combined $2 million deficit next year.
According to Fort Myers Beach Finance Director Joe Onzik, in fiscal 2026 which begins on October 1st, Bay Oaks will operate 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.
Bay Oaks suffered significant damage from Hurricane Ian in 2022 then got hammered again by Milton last year. It’s been closed for a large chunk of time since September of 2022 and it was just last week that the Bay Oaks fitness room opened up again.
The pool at Bay Oaks has been closed since Hurricane Ian and is still costing town taxpayers $12,000 a year. The town did receive grant money to fix the pool but the bid for repairs came in too high so they had to go out to bid again, further delaying repairs. When the pool will actually open is unknown. The town says the pool is a moneymaker for them.
Out of the 11 departments listed in Onzik’s budget slide presentation, 10 of them will operate at a deficit next year. The town is filling their $1.2 million budget shortfall from a $12 million bridge loan from the state. That loan must be paid back by 2033. It’s interest free until then.
Some of the revenue deficit blame has been put on the fact that with homes and condos destroyed by Ian, and the rebuild taking time, fewer people are living on the island. As a result, the town’s share of certain revenue streams is a lot lower than pre-Ian levels. That offsets the additional revenue ($671,000) the town will see from higher property values.
The biggest chunk of revenue the town will not see next year is $297,000 from the Public Service Tax (electricity, gas, water and telecommunication services). The State Communication Tax (local, long distance, and toll telephone services mobile communications, cable and satellite television) is projected to be down $258,000 next year. And the town will also see $127,000 less from the half cent sales tax.
No matter how you slice it, or try to justify how small a 26% tax increase is every month, Fort Myers Beach residents are going to pay more heading into 2026. Property values on the beach were up so right out of the gate property owners will be assessed at a higher number than 2025 and pay more taxes toward every line on their tax bill. As we’ve reported, the town of Fort Myers Beach is considering a 26% increase in their millage rate. And, eventually if the town wants to get Bay Oaks and The Mound House operating a little more efficiently, fees will go higher.
Onzik said it’ll most likely take until about 2028 for the town to get out of annual operating deficits.
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