With property tax reform looming, stricter state budget requirements, and the town draining down a state bridge loan, Town Manager Will McKannay will ask the Fort Myers Beach Town Council to approve a 30% millage rate hike for fiscal year 2027.
The current millage rate is 1.0294 per $1,000 of assessed property value. McKannay is proposing the rate go to 1.34 and states the increase is to help the town “become more sustainable in the future.”
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 over $600,000.
The town is 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.
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).
In addition to the new hires, the town is budgeting over $325,000 to operate the 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.
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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Is anyone paying attention to the price of homes as they spiral down? How about the fact that last month only FOUR home sold. No one is doing anything to try to help the real estate on this island. Now our taxes are going to go up again? We had to accept the loss in discount for flood insurance because our clown force didn’t understand the rules from FEMA. The entire state understood the rules, except us. That cost me $1,200 more. Now more employees are hired? For what? We live on an island that was hit 4 yrs ago by Ian and it is still a disaster….It just keeps getting worse.
I predicted this crap a week after Ian destroyed my restaurant on Time Square. A small town simply can’t handle the financial stress of that much destruction. If Ed went back he’d see my comments many times that the towns people would be taxed right out of their homes because a few idiots don’t want big business. It comes down to simple square footage. A home doesn’t generate the tax dollars you gain by going upwards. It’s simple. But keep on listening to the LPA and a handful of others.
Please identify what development that has come for the town council that is over height and over density, has not been approved. Funny how all these people that are not full-time residents or have left the island because their businesses would not succeed here, disparage the residents.
LondonBay had it’s luxury project rejected.
Doesn’t the mooring field lose money every year as well?
There is no reason for that mooring field. It is just a haven for homeless to part dilapidated boats. It is an eye soar and costs us money every year, not to mention when we have to pay to get a boat removed once it sinks. Get it out of here.
Teturn to Lee county control…
Agree
100% AGREE
Who in their right mind approved 12 new employees? Realignment should reduce staff not increase it. Hire someone that knows and understands fiscal management and employee oversight. Watch the employees are the diligently working for all the hours they are being paid for or are they in slo mo and coffee breaks? Reduce vehicles.
What management style request a 30% increase in taxes and has bonuses filled into that request seriously after question these management skills we are chasing developers out of the way here with our thought process and our leadership the incoming candidates for Town council are all of a set mine which will fight the developers perhaps it is time to consider returning to the jurisdiction of Lee county
EXACTLY
Town management is terrible. Increase the rental overnight tax. Also wake up ! The island is mostly rental properties anyways. A little hurricane took out most owners. Also remember the Town was paying overtime to workers that never worked their shifts. Let’s not forget that fraud!
The town has done everything possible to discourage big development which unfortunately is exactly what it needs.
You nailed it. These may saying handful of whining little babies will get exactly what they deserve. You will be taxed right out of your home. Welcome to the mainland. No more island living because of your stupidity. Thank your loser neighbors. Thank your LPA members.
Look in the mirror. We are still here, you are not.
The young are just waiting as the increases in taxes and insurance, if we are fortunate enough not to have yet another hurricane hit, not to mention the fact that we continue to age into death, is removing those of us still left on the beach.
Growing Goverment? 12 New Full-Time employees? The Town Manager should have to come before the Town Council or Develop a Board of Finance to approve any hiring. There needs to be checks and balances by a group responsible to the people. Not a pot of money snd an unelected persons decides alone what is best.
The Town needs to operate within a responsible budget and make difficult financial decisions, just as its residents do. Taxpayers are, in effect, the employers of our local government, and we deserve a meaningful voice in significant salary increases and spending decisions.
Most of us cannot simply ask our employers for a 30% raise because our personal expenses have increased. We are expected to live within our means, prioritize our spending, and make adjustments when necessary. The Town should be held to the same standard.
Rather than continuing to increase costs for residents, the Town should carefully review its expenditures, eliminate unnecessary spending, and focus on fiscal responsibility. Residents have shouldered enough financial burden. It’s time for the Town to tighten its belt, manage taxpayer dollars wisely, and demonstrate the same financial discipline that it expects from the people who fund its operations.
Every day there are 4 to 6 town workers working on “cleaning” old san Carlos blvd and time square area….let the businesses there do that…way too many worker bees…have you seen how many Kubota and trucks are parked at bay oaks? Classic government spend spend spend….
They need to quit spending money they don’t have.
Appears to be far too much spending on projects that don’t support the majority ! The pool, Bay oaks and the Mound house are costing the town too much money to support and what benefit are MOST people getting from them?? I agree with others, Bay Oaks should be supporting itself! Sounds like very poor management there too! And why does the town need 12 more staff members !!!? Seriously? Its time to start cutting instead of spending. Stop imposing more taxes, etc., on residents, property owners and business owners to support your overspending!!! We are not a money tree and the town needs to stop treating us as such.
100% agree, Don!
Don is 100% correct it’s time to reduce not over spend and the fire departments building is beautiful but staffing is a huge cost in additional to FMB staffing initiatives. Come on most of us are retired let wake up and find leadership that understands budgeting. Maybe we should start looking for better leadership?
Get rid of the mound house and forget the pool!
I have the answer – let’s place more restrictions on real estate developers and constrict the tax base even further.
What is the town doing to attract visitors. Don’t just turn to those that are already footing most of the bill to cover. Go after those that owe the town money. Make them pay.
Time to fire the town manager and the extra 12 he brought on. Clearly we need someone with more fiscal responsibility.
How about selling the old Town Hall property?
If my thinking is correct it was taxpayer money which payed/pays for that land. I wonder if the town includes that property in their assessments and spread that tax cost to all other taxpayers. The last time taxes were discussed the town management said they “could” sell the property along with sharpening their pencils. I’m just not seeing it.
Maybe we need new council members and town manager that are more fiscally
responsible. We just gave the town manager a raise in pay.
Government leeches.
The town should absolutely not accept grant money to build a pool that it can’t afford to operate. A grant should not be given for a project that is not affordable. The town should not initiate a fiscally deficient project when it reports current deficits. That is called management. Just “because we used to have” it is the opposite of management.
The town better find the 3-5 million emergency fund they lost before they increase the millage rate!!!! There are so many items they can cut before increasing millage. Rather than increasing the millage rate, increase tourism fees.
They won’t find it in mosquito control.
what is the total number of FMB employees?
Too Many! What can they possibly do?
I think he should fire his excessive staff and cut his salary in half!!!!
Like Maria said
Time to cut some expenses. Start with the mound house. Bay Oaks should pay for itself.