City council caps tax rate for next year
After being presented with the city’s draft budget by staff, the Sanibel City Council approved the not-to-exceed millage rate and first budget hearing for fiscal year 2024-25 during its recent meeting.
On July 16, the council voted unanimously 5-0 on a resolution to advise the Lee County property appraiser of a proposed operating millage rate of 2.500 mills — the same as the current fiscal year — as well as a rolled-back rate of 2.4848 mills and a proposed aggregate millage rate of 2.6369 mills.
It included a millage levy for the sewer voted debt service of 0.0169 mills and a millage levy for the recreation center voted debt service of 0.1200 mills. Proposed aggregate taxes levied are $11,650,054.
The millage rate can be lowered during the upcoming budget process but not raised.
Prior to the council’s discussion and vote, Deputy City Manager and Finance Director Steve Chaipel presented the draft budget as prepared by staff using the same 2.500 for the operating millage. He noted that the rolled-back — the rate needed to bring in the same revenue as this year’s 2.500 — is 2.4848.
Chaipel explained that the draft budget is just over $233 million, which is an increase of about 28% from this year at just over $182 million. However, when the city subtracts the federal and state grants received due to Hurricane Ian, along with all of the loans, the budget stands at just over $84 million.
“Which is almost exactly where we were pre-storm,” he said of the adjusted figure. “There’s a clear indication of the way the budget is being driven right now. It’s certainly the recovery of Hurricane Ian.”
Chaipel reiterated that a hurricane fund was created to hold and track all revenues and expenses.
He continued that at the 2.500 rate, the draft budget provides for reserves funded back at the $5.9 million for disaster reserves in the general fund, it sets aside $1 million in reserves for disaster recovery in the sewer fund, and provides reserves for additional operational support and end fund balances.
Chaipel also noted the positive 1% increase in the preliminary property valuations.
“So there is some indication in recovery of values,” he said.
“We still see some significant segments that are still not experiencing the increase in value recovery as some others are,” Chaipel added. “Namely condominiums, for example, as compared to single-family homes.”
Asked by council, staff reported that it was comfortable with a 2.500 not-to-exceed.
In addition, council expressed consensus in using the same starting number, pointing out it is a cap.
“This is the highest that we can go,” Mayor Richard Johnson said. “We can always come down, but we can’t go above 2.5 (mills).”
The budget hearings will be held on Sept. 9 and Sept. 23 at 5:30 p.m.
Originally a workshop, the council has a special meeting set for July 30 at 5:30 p.m.
INITIAL ASSESSMENTS
Also at the meeting, the council voted 5-0 to approve a resolution relating to the 2024-25 special service assessment for the collection and disposal of solid waste, recyclables and horticultural waste.
A public hearing was set for Aug. 20 at 9:10 a.m. on the estimated assessment.
It also voted 5-0 on a resolution approving the solid waste rate structure, establishing solid waste, recyclables and horticulture waste rates for residential, commercial and multi-family properties, and approving the solid waste franchise fee and solid waste disposal surcharge.
Additionally, the council voted 5-0 to approve a resolution relating to the 2024-25 special service assessment for the Shell Harbor and Sanibel Estates Canal Area Dredging Assessment District.
A public hearing was set for Aug. 20 at 9:10 a.m. on the proposed assessment.
IN OTHER NEWS
– The council voted 4-0 on an ordinance to amend the Land Development Code standards to revise the master development plan for the Bailey’s Shopping Center property’s Planned Unit Development.
As an owner of Bailey’s, Johnson recused himself from the discussion and vote.
– The council voted 5-0 on a resolution to amend previous resolutions by extending the temporary waiver or discount on certain emergency repair permit fees, first re-inspection fee for emergency repair permits and development permit demolition of a structure fee and adding the discount to building and development permit fees charged for new construction.
– The council voted 5-0 to approve a contract with All Star Sports Surfacing in the amount of $458,000 for the Periwinkle Way and Palm Ridge Road Shared Use Path (SUP) Project, along with a proposal from Haley Ward to provide construction administration services in the amount of $10,500.
– The council voted 5-0 to approve a proposal from Weston & Sampson Engineers to provide professional engineering services in the amount of $63,700 for hurricane-related Sanibel Boat Ramp dock replacement. The city received a $250,000 Volunteer Florida grant to fund the design and construction services for the replacement of the ramp’s wood dock structure.
– The council voted 5-0 to approve a Holiday Tree Lighting on Nov. 30 at 5:30 p.m. at the Sanibel Community Park, as proposed by the 50th anniversary workgroup, along with a contract from Blingle Premier Lighting in the amount of $23,846 for the event.
– The council voted 5-0 to approve the following grant agreements from the Lee County Tourist Development Council: Beach Park Facility Maintenance in an amount not to exceed $2,497,374 and Beach and Shoreline Erosion Monitoring in an amount not to exceed $50,000.
– The council voted 5-0 on a resolution approving and awarding a franchise agreement to Waste Management, of Fort Myers. It is a five-year agreement, with the option for two two-year renewals.
– The council held the first reading for an ordinance to amend the Code regarding buildings and building regulations related to mandatory inspection — milestone inspection — of aging condominium and cooperative buildings. The second reading is set for Aug. 20.
– The council re-held the first reading for an ordinance to amend the Code regarding an automatic speed detection system for the school zone at The Sanibel School. The second reading is set for Aug. 20.
– The council held the first reading for an ordinance to amend the Charter to allow it greater flexibility in determining interim council appointments and any necessary special election following a vacancy.
– The council voted 5-0 to move to first reading a draft ordinance on e-bikes and SUP speed limits.
– The council voted 5-0 to change its budget workshop on July 20 to a special meeting and to include on the agenda the consideration of a day pass program proposed by the Sundial Beach Resort & Spa.
– The council presented the city’s Judith Ann Zimomra Scholarship Award to the following recipients: Caroline Dillon, daughter of Sanibel Recreation Department support services assistant Denise Dillon; Analise Gingerich, daughter of Sanibel Police Department information technology/computer support specialist Chad Gingerich; Colin Menzel, son of Sanibel Recreation Department tradesworker Chris Menzel; and Kaia Miller, daughter of Recreation Department Director Andrea Miller.
– The council recognized SPD Police Chief William “Bill” Dalton for 30 years of service to the city.
– The council recognized SPD Police Aide Supervisor Kevin Kloesz as the Employee of the Third Quarter.