Fort Myers Beach Town Manager Will McKannay pitched his reasoning for a 26% tax increase on Fort Myers Beach residents to the Town Council in a memo Sunday afternoon. Here’s a copy of that entire memo…
Mr. Mayor, Mr. Vice Mayor, Councilors,
As we approach the final years of the State Bridge Loan, Fort Myers Beach is facing an estimated $1.2 million budget shortfall. This is not due to overspending, but because temporary revenue sources are ending, and we must find sustainable ways to continue essential services.
While we’ve secured state and federal grants for major projects, those funds are restricted and often require a 50% local match. We’ve also worked hard to right-size staffing, frequently combining roles to stretch every dollar.
We know this is a shared effort. Rebuilding Fort Myers Beach into the vibrant, resilient town we all envision takes partnership and investment—especially in emergency reserves, stormwater readiness, and debris response capacity.
We’re proposing a modest millage increase to avoid a sudden tax hike in the future. While targeted fee adjustments may help offset lost revenue, they do not reduce the deficit—they simply reduce the amount of Bridge Loan funding we need to draw. Similarly, impact fees are restricted and cannot be used for General Fund operations.
At this point, only expenditure cuts or a millage rate increase can reduce the deficit. And of those two, a measured millage increase is the most reliable path to keeping Fort Myers Beach strong.
Key Uses for Millage Rate Funds and Possible Targeted Programs for Increased Revenues in the Future**
- Cover Budget Shortfall
- Addresses a projected $1.2 million gap.
- Prevents cuts to essential services like public safety, development, and community programs.
- Establish a Beach Renourishment Fund
- Supports long-term beach health, tourism, and storm resilience.
- Positions the town for rapid response and matching grants when current grants run out.
- Continue Building the Emergency Reserve
- Strengthens the town’s ability to respond to hurricanes and other emergencies.
- Enhances financial stability and reduces reliance on borrowing during crises.
- Plan and Conduct Canal Dredging
- Improves water flow, navigation, and stormwater management.
- Supports marine access, environmental health, and flood prevention.
- Continue to Enhance Community Policing
- Increases visibility and responsiveness of law enforcement.
- Builds trust and engagement between Rangers, deputies, and residents.
- Targeted Staff Increases for Permitting, Planning, and Community Development
- Improves service delivery and responsiveness to residents and businesses.
- Supports responsible growth, code enforcement, and long-term recovery.
**It’s important to note that the proposed millage rate increase would only be sufficient to fund the first item on this list—the budget shortfall. The other items remain unfunded priorities unless additional revenue is identified.
Areas Where the Town Budget Increased While Revenues Have Not Kept Pace
- Employee Benefits – Rising healthcare and retirement costs.
- Wages – Includes a Cost-of-Living Adjustment (COLA) and market-based increases to remain competitive and retain qualified staff.
- Emergency Fund Contributions – Strengthening financial resilience.
- Sheriff Services Augmentation – Enhancing public safety and visibility.
- Holiday Fireworks – Supporting community engagement and tourism.
- Legal Fees – Covering increased demands for legal review and representation.
We have discussed other options to increase revenue, but decided they are not in the Town’s best interest. Other options considered:
Selling Town-Owned Property
- Most parcels are essential for operations or public use.
- One-time revenue doesn’t solve ongoing budget needs and risks losing strategic assets.
Further Staff or Budget Cuts
- Staffing is already lean and consolidated.
- Additional cuts would reduce service levels, slow recovery, and impact public safety.
Special Assessments
- Limited in scope and legally complex.
- Can unfairly burden specific property owners without solving town-wide needs.
Taking Out Loans
- Loans increase long-term debt and are best suited for capital—not operational—expenses.
- Adds interest costs and reduces future financial flexibility.
Why a Millage Increase Makes Sense
- Stable and Predictable – Provides consistent revenue for essential services.
- Equitable – Shared across the tax base.
- Flexible – Can be adjusted as new revenue sources come online.
From the mouth of the town manager… “we must find sustainable ways to continue essential services.”
I’m of the belief that “WE” can find enough nonessential service expenditures to make up the shortfall.
For instance, does the town save money by paying a new water collection agency instead of the previous way? It’s all digitally read and processed now. Are we still paying the employees that no longer perform their hired duties or were they assigned to another “essential” job?
Let the business/developers pay for the special event like the fireworks. They are the people that benefit from the increased visitors and traffic. This council continues damage and taxes the homeowner to support this group let them foot the bill. They always claim they want to be part of the community. Time for them to step up and put the money up to operate the town. We need to dissolve FMB our town council no longer serves a purpose and reasons for incorporation are no longer valid according to this council
This “modest millage increase”
is the single largest millage increase in the town’s 30 year history.
Wasn’t it this council and its supporters like that phony Taxpayers Association that portrayed the former council as a tax and spend bunch? It wasn’t anything close to this crew.
Does FMB have a bed tax for hotel guests? Place more of the burden on tourists, we’re still coming.
Yes there is a bed tax and it is collected and owed to the county and state. FMB only receives an allotment of the money collected.
Sounds like we are slowly bloating our little town government.. more “police”, we pay Lee county tax for police, wonder if Lee County will lower my tax burden as FMB increases theirs???? I doubt it. $700K for Estero Blvd. landscaping??? let the owners of the properties landscape.. no one from the town comes down my street to mow and trim the right a way in front of my home.. Pay off the bridge loan by selling unused assets (old town hall lot). Work within the budget, cut, cut, cut.. that’s how the private sector works.
The areas between the road and sidewalks were sodded after completion of the road that is in disrepair. Ian wiped out that money and another flood will kill the grass again.
It looks so bad! The town needs to get on this!
Have you noticed all the dead trees? There are dead trees everywhere. The town could make homeowers remove the dead trees on their lots and the town could take care of the rest of them. These trees have been dead since Ian. I would think 3 yrs is long enough for FMB to make owners remove the dangerous, unsightly dead trees. It’s just more scars that are reminders of what Ian did. Why it is ignored is just another example of how the TC and mayor just are not working on getting the island cleaned up. Sanibel removed the dead trees right after the storm. If we have another hurricane and one of these dead trees fall on a neighbors home or fence, etc. the town should be sued for negligence since they are the ones allowing the dead trees to remain.
You can’t waste time and tax payer money to take a property owner through the “very expensive” and LONG process of foreclosure, just to cut down a tree. LOL that’s preposterous. You know how long it would take within the legal “required” chain of events BEFORE the town could even touch a dead tree in private property?
Did I say foreclose on the property? Sorry if you misunderstood what I said. I said they need to make the owners remove the dead trees on their land and the town could take care of the rest…meaning the ones on public grounds, like they did on Sanibel. Sanibel had no problem doing this right after Ian. FMB seems to be able to force people to cut their grass and they had no problem telling us we had to fence in our pools or face daily fines because of safety concerns after Ian. I would think the possibility of a dead tree falling over on a home, a pool, a fence, or a human is a real risk. As I said already, Sanibel made home owners remove dead trees on their land and Sanibel removed the rest. AND NO they did not have to foreclose on the homes to get them to take down the trees. Are you Holly O’s sister?
Absolutely not acceptable! We want further action by this committee to find alternatives. Or they should go.
Dissolve the the Myers Beach town and return to county operation. They’re much more efficient and not prone to all the problems the town board gets involved in the town ran better when it was under county control. The cost of the town is just another layer of government that’s unneeded
Are they more efficient? Five years to build a bathroom?
Every government says it is just a “modest increase” and over 50 year here we are with outrageous tax bills. It’s the number one compliant of residents. These proposed increases should always have an expiration date…
I appreciate the predicament the city is in. As spelled out there are no easy solutions. A 26% increase in property taxes is not a moderate increase. The one thing not mentioned is would there be a tax increase if the town council and city government was dissolved and Lee County took over these functions?
So let me get this straight…
You’ve proposed a 26% millage rate hike, raising it from $0.99 to $1.25 per $1,000 of assessed value — and your solution to a $1.2 million budget shortfall is to place that burden squarely on the shoulders of residents who are still rebuilding their lives?
That’s not just a nibble of an increase. That’s a shark bite, another taxation that adds salt to the wounds of residents still bleeding and recovering from past disasters.
And for what? To cover a budget gap that didn’t sneak up on anyone.
This isn’t strategic — it’s lazy. Instead of digging into smart, sustainable revenue options like targeted tourism development, visitor impact fees, or business revitalization incentives, you defaulted to penalizing the locals. The very people who stayed, rebuilt, and believed in this community after disaster struck. Some still haven’t been able to rebuild.
Why should homeowners — many of whom are still patching properties and bank accounts — foot the bill for a lack of creative foresight?
Where’s the innovation? The leadership? The long-term vision? We’re a world-class coastal town. Act like it. Find solutions that grow our economy without shrinking our residents’ wallets. Stop punishing residents. Because here’s the bigger problem:
When you punish the people most invested in this community, you don’t just weaken morale — you deter future residents from ever wanting to put down roots here. Why would anyone buy in if the price of belonging is constantly going up?
Fort Myers Beach deserves better — and so do the people who call it home.
$130/year is a “shark bite”??
No one likes an increase, but this “26% increase” means a $500k home goes from $495 to $625 in taxes.
I think the shark bite is in insurance premiums, not this millage rate increase.
Seriously. And you pay what tax percentage on what home here? For the property you don’t own and didn’t lose during the hurricane? And please do, tell us all about the sacrifice, hard work, stress and financial upheaval you endured after Ian?
She doesn’t even live in the state. She just googles answers and then copies and pastes them and tries to be the “know it all”. Her obsession with being nasty to home owners and posting snarky comments on this site is troubling…….
Where is the $500k home?
Spot on!!
Well said with 1000’s of backers
Sell off the assets…. especially the land that is vacant. The tax payers want to know why are they holding that? What is their plan? Selling the unused assets can pay off loan.