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.
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