×
×
homepage logo
STORE

We’re number 10 out of 391

Town of Fort Myers Beach budget update: Fiscal Year 2023

By Town of Fort Myers Beach Manager Roger Hernstadt - Guest column | Sep 2, 2022

Town of Fort Myers Beach Manager Roger Hernstadt, who offered his resignation effective in April, offered to resign Monday following board discussions if he should continue to stay on. After accepting his resignation effective Monday, the council then acted to suspend him with pay. File photo

Fiscal year 2023 budget preparations are underway, and Town Council has set public hearings after 5 p.m. in September for the proposed budget.

Town staff are committed to being cost wise, efficient, and effective with the Town’s revenues. Challenges due to Red Tide, blue/green algae, hurricanes, and COVID-19 have been met due to our sound emergency strategies and financial reserves all while our rates and fees have remained stable and “low” by comparison to our municipal peers.

To that end, our preliminary general operating budget for Fiscal Year 2023 was prepared at the same rate of .95 mills per $1,000 of property value as the past two fiscal years.

Each year since 2017, Town staff have achieved a “carry forward savings” of unanticipated revenues combined with spending below the authorized budget. And while it is true that we have experienced additional statutorily capped property value roll growth, we recently have also experienced significant inflation. In 2022 alone, inflation is estimated to be approximately 10 percent. Increases in property values will generate additional property taxes of 4.2 percent. However, this only partially addresses/mitigates this economic reality.

As you may recall, during September 2021, Town Council adopted the millage of .95 (up from .87) as a strategy to finance the redevelopment of Bay Oaks Recreational Campus, Bayside Park (construction was just completed), and Times Square. This strategy funded a $10 million loan to be complimented by grants for construction of these three projects. Repayments on this loan are not due to start until December of 2023 but we started repayment this year.

When we benchmark the town relative to other municipalities based on 2021 Florida municipality millage rates, only nine other municipalities in the State of Florida have a lower millage rate than the Town of Fort Myers Beach. We should be extremely proud that we rank 381 out of the 391 local governments in Florida, which includes one municipality that is dissolved, if the rate remains at .95 mills.

Town Council will be debating up to an .04 mills increase to fund recurring new initiatives. Initiatives include increased public safety, beach renourishment, roadway safety lighting, and workforce housing, among others.

Fortunately, because of strong financial management, the Town has $2 million available to fund new initiatives. However, the proposed initiatives list exceeds $3 million. Town Council will be faced with the difficult task of reviewing the inflationary impact on fees and prioritizing and allocating funding to some of these enhancements.

Assuming that the rate is ultimately adjusted to .99 mills at the September budget hearings, the Town’s ranking would then become 380 out of 391 rising one point to the 11th lowest in the State of Florida, including one municipality that is dissolved.

At .99 mills it is estimated that a homesteaded property appraised at $538,000 would pay $512 per year to the Town of Fort Myers Beach. On this sample property, the property owner would also pay $2,182 to Lee County; $3,263 to the Lee County Public Schools, and $1,608 to the Fort Myers Beach Fire Control District, among others, based on the preliminary information available.

Another critical program, separate from the general fund and property taxes, is our Utilities Department’s infrastructure projects. Town staff, with the Council’s support, have steadfastly continued to implement water and stormwater improvements funded by the rate adjustments recommended by an independent rate consultant. This collaboration has allowed us to progress beyond the joint project with Lee County to complete downtown streets. We are now bidding to move on to upgrades of the 16 most needy local roads with the greatest flooding risk in 2023.

Prior project costs thus far have been below initial estimates and financed through the very low interest State Revolving Funding program. Stormwater maintenance efforts have been enhanced and are now self-funded without further contributions from the general fund or gas taxes.

In summary, by working together, the town’s cash position continues to be strong, our reserves are stable, and we are in a better position to address new initiatives. At the direction of Town Council, we can continue to renew and replace existing assets and implement new strategic improvements to our Town.