Mayor suggests new charges for Fort Myers Beach visitors to address budget shortfall

Town of Fort Myers Beach Mayor Dan Allers encouraged town staff to consider more charges for visitors to the town in order to make up for an approximately $1.2 million budget hole that has led to a tentative millage rate hike of 26%.

Allers said he wants staff to look into extra charges and revenue from island visitors so the town can continue to fund fireworks and associated law enforcement details. Allers made the suggestion three days after Councilmember John King had also called for increased charges for visitors to the town.

Under the proposed budget, Fort Myers Beach Community Services Director Jeff Hauge said the cost of fireworks increased by $155,000 for the Fourth of July and New Year’s Eve. That cost includes law enforcement details from the Lee County Sheriff’s Office, he said. Law enforcement expenses, which are covered by the Lee County Sheriff’s Office, are up $135,000 to cover the Fourth of July and New Year’s Eve, Hauge said. That includes parade details and closing the Matanzas Pass Bridge.

“These two items for me give me great pause,” Allers said in reference to the cost of fireworks going up and law enforcement expenses.

“In the past, obviously these weren’t shouldered by Fort Myers Beach,” Allers said. “I am having a hard time telling residents that ‘we are increasing your millage rate because of fireworks that everybody gets to enjoy but is shouldered on the back of the residents.’ … How do we put some of this burden on those that enjoy it that come in temporarily whether it is overnight? Visitors should have to bear a lot of this cost.”

Allers said he fully supports law enforcement and fireworks but “wants to find another way.”

Hauge said the town only used to pay $30,000 for fireworks and less for the Lee County Sheriff’s Office. “Now they want more law enforcement here for public safety,” Hauge said.

The town also had to come up with $80,000 last year to cover the cost of fireworks after an expected donation did not come through. For the Fourth of July, the town received a $47,000 gift from Seagate to cover the fireworks.

Allers made his remarks about finding more revenue to cover the expenses while also talking about the town’s $250,000 budgeted line item for a community policing program with the Lee County Sheriff’s Office, which the town hasn’t embarked on since it was budgeted in 2022.

Allers said he “fought hard” for community policing three years ago, when the town council voted to raise the cost of its parking meters from $3 to $5 an hour to pay for an expanded community policing program which the town never embarked on.

The expanded $250,000 annual contract with the Lee County Sheriff’s Office for added services never went into effect due to the impacts of Hurricane Ian.

During budget talks at a management and planning session on Thursday, Allers asked staff if the town could eliminate the cost of the community policing contract from the budget since it isn’t planned to currently go into use.

Allers also wants the town to look into potentially cutting expenses at Bay Oaks Recreational Campus or the Mound House.

Allers said that the Bay Oaks budget is about the same as the town’s budget deficit.

Town Manager Will McKannay said the town is reviewing fees, which have held steady since Hurricane Ian. “Fees will only make a small dent in that,” he said.

Hauge said the town will start charging memberships again Aug. 15. Bay Oaks recently reopened with its summer camp. The weight room is now open, basketball is available at the gym and for pickleball. Residents currently don’t pay a fee for the weight room or pickleball, while non-residents get charged $5 a day. Hauge said the town will be rolling out new membership fees this week.

Allers asked about the plans for the town pool. Hauge said the town only had one bid for the design of rebuilding the pool which is expected to be awarded Aug. 15. The contract will be covered by a federal Community Development Block Grant, Allers said. FEMA will cover $180,000 of the cost, Hauge said.

The town’s budget also includes funds to start repaying the state’s $11.9 million bridge loan and the interest on the loan that Gov. Ron DeSantis approved after Hurricane Ian. Town officials have sought to have the loan forgiven but Allers said he was told by state legislators in the most recent legislative session that would not be possible for the recently concluded legislative session.

The loan is meant to cover revenue shortfalls the town has experienced since Hurricane Ian. Onzick said the 10% interest on the loan will become due in 2033 though the town is budgeting to pay back the loan.

The town received a $1.2 million matching grant from the state in the recent budget session to cover repairs to the south water tower, road infrastructure and stormwater improvements. The grant requires the town to match the $1.2 million with its own spending.

Onzick said the town will see approximately $670,000 in increased ad valorem tax revenue due to increased property assessments in the town, while there was an increase of non ad-valorem revenue of $617,000 from permit fees, parking meters and other sources.

Due to increased revenues, about $1.5 million less from the state bridge loan can be used this year compared to last year.

Thursday’s management and planning session was held three days after the Town of Fort Myers Beach Council voted to approve a tentative millage rate hike of 26%.

While councilmembers on Thursday discussed potential ways to navigate its budget, there were few specifics on what programs and expenses the council were willing to cut.

Overall, Onzick said the new budget represents an increase in total general fund expenses of $881,000 with a total deficit of approximately $1.2 million.

Among the increased expenses are a $100,000 increase in legal services and a $105,000 increase in liability insurance, Onzick said,

Among the losses in revenue, is funding from Tourist Development Council funds for two neighborhood service rangers which now have to be funded through town taxes.

The town has 69 full-time employees, which is down about 18 employees from last year. That includes unfilled positions that were eliminated.

Town of Fort Myers Beach Councilmember John King suggested the town initiate a hiring freeze. The town has 14 vacant positions that are being advertised. King said the town should look at a hiring freeze before raising taxes.

“I hope that’s something we look at before we look at increasing the millage rate,” King said.

Town of Fort Myers Beach Human Resources director Talisa Oliveira said the town is often running “bare bones” and has increased some staff to manage contracts and grants. The town will also be starting a performance-based pay incentive system this year which is budgeted to cost about $70,000 for new bonuses.

McKannay said the town needs to fill a number of positions, such as an assistant finance director, code enforcement staff and planners. McKannay said he hears a lot of complaints about permit responses and why it takes so long.

In response to King’s suggestion of a hiring freeze, McKannay said “We will look at it as a potential option.”

Onzick said based on his projections, the town will get out of its budget deficits in 2028 based on current projected spending and revenues unless the town makes budget cuts.