Town of Fort Myers Beach budget hearing to be held Thursday
Bay Oaks, fireworks could be targets of new round of cuts
A Town of Fort Myers Beach Council budget hearing set for this Thursday at 5:01 p.m. in the town’s new town hall chambers is expected to include discussion on approximately $1.2 million in new spending cuts that town staff has identified that could potentially make up for a $1.2 million budget hole that led to the town council voting 4-1 last month to increase its millage rate by 26%.
More than a quarter of the new spending cuts proposed by town staff and under consideration by the town council would be focused at Bay Oaks Recreational Campus and includes eliminating $200,000 in special events at Bay Oaks Recreational Campus and cutting the positions of three part-time recreational aides there.
Under the tentative 26% millage rate hike approved by the council last month, the millage rate would increase from .99 mills per thousand dollars of taxable property value to 1.255 mills per thousand dollars of taxable property value. The town council still has time to lower the rate increase or even decrease its rate.
Last month, 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 the budget deficit. Councilmember John King also called for increased charges for visitors to the town. King was the lone vote against the millage rate hike and has called for a hiring freeze.
The town has been dealing with a number of budget difficulties including a proposal from the Lee County Sheriff’s Office to increase law enforcement details by a cost of approximately $155,000 to cover security and traffic for the town’s Fourth of July and New Year’s Eve fireworks shows, an increase in legal services expenses from $349,000 to $465,000 along with revenue shortfalls. The town did see an increase of $670,000 in real property tax value assessments this year though which will increase the town’s tax base though its expenses rose more than $800,000. The town also has a looming bill to pay for an $11.9 million loan which will eventually be due at a 10% interest rate unless the state legislature and Gov. Ron DeSantis forgive the loan which was meant to cover town revenue losses after Hurricane Ian. According to the town’s finance director Joe Onzick, increased revenue this past fiscal year means the town can not utilize as much of the loan for its budget
Due to increased revenues, about $1.5 million less from the state bridge loan can be used this year compared to last year when the town used the loan to make up for losses of revenue.
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 plans expected to be discussed on Thursday include turning the town’s fireworks costs over to the private sector.
Requests to the town for more specific information regarding budget projections and programs led to the town issuing only basic budget information. Finance Director Joe Onzick did not respond to messages seeking more detailed comments on the town’s budget or questions regarding why certain budgeted items were seeing large discrepancies from the amount budgeted for the current fiscal year to what actual spending and revenues were.
A request to town officials and the town’s attorney, Vose Law Firm, for why the legal services are budgeted to increase by $116,000, were also not responded to. Fort Myers Beach Mayor Dan Allers said he expects the cost of the legal services to be discussed by the town council on Thursday.
Allers said Tuesday “It’s too early to determine what, if any, increase will be decided. Staff is currently finalizing their recommendations for our discussion this Thursday night.”
Allers had previously expressed apprehension about funding the increased security expenses from the Lee County Sheriff’s Office for fireworks detail unless other revenues from visitors were found. Allers also questioned town staff if it could eliminate the $250,000 line item that the town has had in its budget since 2022 for a planned community policing program which the town has not pursued and would increase the presence of the Lee County Sheriff’s Office on the island. The Sheriff’s Office already has regular patrols in the town and the town also pays extra for traffic patrols during its busy tourist season.
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 though it is not clear based on statements made by Onzick if this budget addresses that.
Fort Myers Beach Vice Mayor Jim Atterholt said he expects the council to review the proposed “belt-tightening measures” on Thursday and to trim the budget. “It is my hope we can have a balanced budget that won’t increase taxes.”
The second and final budget hearing will be held Wednesday, Sept. 24 at the town hall at 5:01 p.m.