City council caps tax rate for next year
The Sanibel City Council reviewed the city’s draft budget for fiscal year 2022-23 and approved a tentative operating millage rate of 1.9750 — higher than the current rate — during its recent meeting.
On July 19, the council voted 4-1 on a resolution to advise the Lee County Property Appraiser of the proposed millage rate, along with a rolled-back rate of 1.6792 and a proposed aggregate millage rate of 2.1523. It included millages levied of 0.0858 for the sewer voted debt service and 0.0915 for the recreation center voted debt service. Exclusive of the voted debt service levies, the proposed aggregate taxes levied are approximately $12,556,302.
The operating millage rate can be lowered but not raised in the coming budget process.
Prior to council discussion and the vote, Finance Director Steve Chaipel provided an overview of the draft budget as prepared using an operating millage rate of 1.8922 — the current 2021-22 rate. He also provided comparisons using the 1.6792 rolled-back rate and a higher rate of 1.9750 for consideration.
“They show each of the city’s funds at very high levels,” Chaipel said of the three rates.
Next year’s proposed budget totals $83,265,755 and includes the general fund, special revenue funds, capital project funds, enterprise funds, inter-fund transfers, reserves, and beginning fund balances.
He explained that the rolled-back rate would bring in the same tax dollars and noted the decreases in ending fund balances with reserves, while expenses remain consistent. In comparison, the 1.9750 rate would provide an extra $500,000 to the general fund — which translates to a net of about $134,000 — to begin to restore the reductions that have been used to balance the budget for the past several years.
Chaipel reported that property values hit about $6.35 billion, which is used for setting the millage.
“Which again is an all-time record for Sanibel,” he said.
Chaipel added that the rate can be honed over the next months in the budget process.
“The millage rate at this point can go down. It just cannot be increased,” he said of the tentative operating rate. “It’s the max millage rate that the council is willing to accept for discussion purposes.”
During the following discussion, many on the dais pointed out that the draft budget does not take into account the wage increases still being discussed, while some voiced concern about reserve levels. Staff was asked about the average tax increase per household when using the 1.8922 rate versus the 1.9750.
Chaipel and City Manager Dana Souza reported that it would be a $162 increase for a property estimated at an average value of $758,928 and would be approximately $231 with the higher rate.
Councilmember John Henshaw shared his thoughts about the higher 1.9750 rate, explaining that he does not think 17 percent is enough for reserves and the council can roll that back in September.
“I would like the ability to analyze it,” he said. “We can always bring it down, but we can’t bring it up.”
Councilmember Dr. Scott Crater echoed that sentiment.
“We want to give ourselves the headroom,” he said, adding that if the council does not trim in some areas, it could eat into the reserves. “Also, we don’t know what our labor budget is going to be.”
Councilmember Mike Miller thought going higher was unnecessary, but saw no disadvantages.
Vice Mayor Richard Johnson voiced agreement.
“That is the number we cannot exceed. We can always come down,” he said, adding that they still have to go through the budget, which has debt falling off the books but the final labor costs are unknown.
An initial motion to approve the maximum operating millage rate at 1.8922, which allowed the council to initiate its discussion, failed in a 1-4 vote; Mayor Holly Smith voted in support of it.
A second motion to set the rate at 1.9750 passed in 4-1 vote; Smith was the sole dissenter.
A third motion to approve a resolution with the set rate passed 4-1; Smith again dissented.
A workshop will be scheduled for the council to review the proposed budget.
The first budget hearing is set for Sept. 12 at 5:01 p.m., with the second and final one on Sept. 28.
IN OTHER NEWS
– The council voted 5-0 to approve a 8.77 percent increase in its solid waste contract with Waste Management as part of a one-year extension. The company requested a 12.48 percent rate increase.
– The council voted 5-0 on the annual assessment to fund the collection and disposal of solid waste, recyclables and horticultural waste for 2022-23, as well as set a public hearing to consider its adoption. It also voted 5-0 on a solid waste rate structure, established the solid waste, recyclables and horticulture waste rates for residential, commercial and multi-family properties in the city, and approved a solid waste franchise fee and solid waste disposal surcharge.
– The council directed staff to proceed with a proposed one-year pilot program at the Sanibel boat ramp, including increasing the daily fee from $20 to $40, increasing the fee for parking violations from $150 to $250 and restricting weekend and holiday parking to AC and BC parking permits, with no fee collection. Staff proposed providing the council with updates on the program at six and 10 months.
– The council voted 5-0 to approve an ordinance amending the Sanibel Code pertaining to signs to establish content neutral sign regulations. Some minimal revisions were approved in its passing.
– The council held its first reading of an ordinance to amend the Sanibel Code relating to the prohibition of non-human-powered vehicles on the beach or dune system. The second reading is scheduled for Aug. 16.
– The council discussed cigarette smoking on beaches and in parks. A motion to direct the city attorney to prepare a draft ordinance prohibiting such in the context of litter and secondhand smoke failed 2-3.
– The council discussed the operation of low speed vehicles within the city, with a particular focus on Sanibel-Captiva Road, and debated whether to ask staff to draft an ordinance prohibiting them. No action was taken by the dais on the matter. However, it did direct staff to look at how to improve safety on San-Cap road and follow up on five proposals raised by Henshaw: limit the speed limit to 30 mph, stop unauthorized low speed vehicles, explore widening the road to provide a shoulder or bike lane or areas for vehicles to pullover, increase rental instruction, and increase signage about sharing the road.
– The council discussed the recent digging of deep holes on city beaches and debated whether to ask staff to draft an ordinance prohibiting such activity. No action was taken by the dais on the matter.
– The council voted 5-0 to approve the Vision Statement Summary, Mission Statement and Core Values, with a change from “Sanibel C A R E S” to “Sanibel Values” under Core Values, as proposed by staff for the Sanibel Strategic Plan. It voted 5-0 to approve the proposed Strategic Goals, with a change within the language from the term “below market rate housing” to “affordable housing.”
– The Lee County Sheriff’s Office provided an update on its Sanibel Causeway operations.
Law Enforcement Bureau Chief James Rankine and West District Capt. Tim Lalo reported that since the city’s request for additional support, the LCSO has been working with the Lee County park rangers, signage has been installed, and an extra four to two deputies have been assigned for weekend patrols.
The weekends of May 21 and 30, deputies issued 119 open container warnings, 29 parking warnings and five loud music warnings. On the July 4 weekend, they issued seven open container warnings and 30 loud music warnings. The park service has since committed to funding two LCSO deputies per weekend.
– The council presented a proclamation recognizing Sanibel Building Director Harold Law for his retirement on July 1. Hired in 2003 as chief building official and director of the Building Department, he was instrumental in creating the city’s Contractor Review Board and in the development and oversight of the Structural Safety Inspectors Program that is activated during emergencies. Law is a past president of the Building Officials Association of Florida and he has been recognized by it multiple times as Building Official of Year.
– The council recognized Accounting Operations Manager Jocelyn Upchurch for earning her Certified Government Finance Officer’s designation from the Florida Government Finance Officer’s Association.
To reach TIFFANY REPECKI / trepecki@breezenewspapers.com, please email