Fort Myers Beach Council votes to alter tentative millage rate hike from 26% to 16% increase

The Town of Fort Myers Beach Council voted 3-2 to lower the proposed millage rate from the 1.255 mills per thousand dollars of taxable property value that was set by the council last month to 1.15 mills per thousand dollars of property value, which would still represent a 16% increase in the millage rate compared to the current millage rate.

The tentative millage rate approved by the town council last month was 1.255 mills per thousand dollars of property value, which would have represented an increase of 26% from the current millage rate of .99 mills per thousand dollars of taxable property value.

The council is scheduled to hold another budget hearing on Wednesday, Sept. 24 at 5:01 p.m. to finalize its budget. The millage rate could be changed again at that date.

Fort Myers Beach Vice Mayor Jim Atterholt and Councilman John King voted against the millage rate, seeking to lower it further. Mayor Dan Allers, Councilman Scott Safford and Councilwoman Karen Woodson voted to support the new tentative millage rate.

King has called for selling town property to meet the town’s budget shortfall.

The town has an estimated $1.2 million budget shortfall which could be made up in part by cutting staff and programs at Bay Oaks Recreational Campus, based on a proposal and presentation to the town council from Community Services Director Jeff Hauge.

Town of Fort Myers Beach Manager Will McKannay said he doesn’t feel comfortable with cuts at Bay Oaks though there was limited comment on the cuts at Bay Oaks from councilmembers. Fort Myers Beach Mayor Dan Allers had previously suggested targeting the recreational center for cuts.

The cuts at Bay Oaks that have been proposed include eliminating part-time recreational aids at the Bay Oaks Recreational Campus, eliminating $200,000 for special events at Bay Oaks.

The cut to special events would eliminate fireworks, the town’s Halloween event at Bay Oaks and the annual Easter egg hunt.

The Mound House has been targeted for extensive cuts, including the proposed elimination of the education coordinator.

“It was hard. It’s difficult,” McKannay said about the budget process. “It hurts to talk about these budget cuts,” he said.

The budget includes an increase of approximately $100,000 due to an increase in the town’s contact with its legal firm – Vose Law Firm.

“The Town has budgeted $450,000 for legal services in the upcoming fiscal year. This is due to a contract adjustment,” Fort Myers Beach Communications Director Nicole Berzin said,.

The budget currently under consideration would also rase user fees at Bay Oaks.

While the town is making its budget projections, Town of Fort Myers Beach Finance Director Joe Onzick said he was still calculating the amount of the town’s reserves and determining other expenditures and FEMA reimbursement figures. Onzick left office in April and recently returned.

Onzick said he is concerned that the town may not have enough reserves. “That is my concern, the emergency reserve fund.”

Safford expressed hesitancy for voting on a millage rate increase without knowing the amount of the town’s reserves. “We may have to be a little higher than we think,” Safford said. “We have to make sure we have reserves.”

Safford said the town was underinsured and under-reserved at the time of Hurricane Ian.

“It’s just like sitting down with your family budget. I can’t say ‘Hey, we can go take the grandkids to Disney World if I don’t have the money,'” Safford said.

During budget talks, King pressed Town of Fort Myers Beach Manager if there could be an increase in fees to charge visitors to the town.

McKannay said fees could potentially bring some revenue but wouldn’t help with paying back the town’s $11.9 million bridge loan to the state or the looming $1.2 million budget deficit the town was facing before the proposed budget cuts were presented at Wednesday’s budget hearing.

McKannay said staff did look at potentially other sources of revenue from visitors. “We are limited as a capacity in the State of Florida what kind of fees we can pass on to visitors and tourists,” he said.

McKannay said there are limited areas for raising funds from visitors aside from short-term vacation rental fees.

McKannay said the town also needs funds for road repairs, referring to recent funding approved by the state but which requires a 50% match from the town.

According to Town of Fort Myers Beach Finance Director Joe Onzick, the town plans to use $1.4 million for the fiscal year 2026 from its $11.9 million loan from the state that was authorized by Gov. Ron DeSantis in 2023. That would leave the town with $2.6 million left from the loan which was approved to cover the town’s loss of revenue due to Hurricane Ian.

The town has requested from the state legislature that the loan be forgiven and while there have been potential indicators in the past that may happen, this past year’s budget saw no relief from the town and Mayor Dan Allers said he was told by some state officials to not even ask. The town will need to start paying back the loan by 2033 with 10% interest.

Adding to the budget is the addition of three public works maintenance workers that had originally been the target of a cut before the last tentative budget.

Jeff Hauge, who oversees Bay Oaks, the Mound House and Public Works as the town’s Community Services Director, said the town spent approximately $155,000 for the Fourth of July parade, New Year’s Eve fireworks and Fourth of July fireworks. Hauge said the fireworks alone would be about $155,000.

Finance Director Joe Onzick said he believed there was also more than $100,000 in expenses for increased Lee County Sheriff’s Office details proposed for the fireworks.

The 2025 fiscal year total cost of Fourth of July parade and fireworks and New Years Eve fireworks came out to $251,000, Berzin said.

There would be $436,000 in cuts to parks and recreation by eliminating the position of the athletics coordinator. Hauge said the elimination of the athletics coordinator would mean the end of the town’s basketball, pickleball and volleyball leagues. Hauge said the town currently has an opening for the position, which would just be eliminated. Hauge said hours at Bay Oaks would likely have to be cut and youth leagues for soccer, basketball would have to be eliminated. One full-time recreational aide and three part-time recreational aides will be eliminated which will reduce hours and days at Bay Oaks. “We just can’t do it with the staff we have,” he said.

Councilmember Karen Woodson asked if the town could have a key program for town residents which would eliminate the need for staff. Hauge said the town was trying to work that out with insurance and to determine its liability insurance. “We have to do a little bit more digging into liability on that one,” Hauge said. Hauge said he was speaking with the town’s attorney regarding those impacts.

Hauge said afterschool and summer youth programs will have less staff to oversee those programs as part of the proposed cuts. Hauge said he also plans to cut youth field trips the town has for its summer camp.

Councilman Scott Safford said the 250th anniversary of the country’s independence for the Fourth of July outweighed the budget impacts. He said he believed the local economic impact of having the parade was more important.

Safford asked about community policing. Onzick said the budget would take out $25,000 from the previous budget line items though the town has still not executed a contract with the Lee County Sheriff’s Office for increasing a community policing program that the town has budgeted for since 2022 though that program is not in effect.

Fort Myers Beach Observer Editor Nathan Mayberg can be reached at NMayberg@breezenewspapers.com