City council OKs proposed budget and millage rate
After being presented with the city’s proposed updated budget by staff, the Sanibel City Council approved the tentative millage rate and budget for fiscal year 2025-26 at its first hearing.
On Sept. 8, the council voted unanimously 5-0 to adopt an operating millage rate of 2.5000 mills, which is greater than the rolled-back rate of 2.0930 mills, but equal to the current year. It included a millage levy for the sewer voted debt service of 0.0140 mills and a millage levy for the recreation center voted debt service of 0.1011 mills.
The millage rate can be lowered during the budget process but not raised.
The council also voted 5-0 to approve a tentative budget of $216,061,856 for the fiscal year.
The Lee County Property Appraiser’s Office has certified the gross taxable value for operating and budgeting purposes not exempt from taxation within the city to the city as $5,634,817,483.
The second and final budget hearing is set for Sept. 25 at 5:30 p.m.
Prior to the council’s discussion and vote, Deputy City Manager and Chief Financial Officer Steve Chaipel presented the proposed tentative budget using the 2.5000 mills for the operating millage rate.
He explained that the preliminary taxable property value from the property appraiser on July 1 was $5,634,817,483. In comparison, the pre-Hurricane Ian valuation was $6,357,621,055 — down 11.4% — and this year’s value was $4,687,992,704 — up 20.2%.
The not-to-exceed rate of 2.5000 mills approved in July would result in $13,664,432 in revenue, or $2,363,880 in extra revenue into the General Fund. The rolled-back rate — the rate needed to generate about the same revenue as the current year — is 2.0930 and would generate $11,439,863. For fiscal year 2024-25, the 2.5000 mills generated $11,300,552 in revenue.
Chaipel pointed out the breakdown for the local taxes, with the Lee County School Board’s portion about 37.5%, county 26.5%, city 18.4%, Sanibel’s independent districts 13.8% and other 3.7%
In regards to debt service millage rates, the total debt service levied is 0.1151 mills — a decrease of 15.9% from the prior year. It includes 0.1011 mills for the Sanibel Recreation Center construction and 0.0140 mills for the sewer system expansion; it will be the last fiscal year for the sewer system debt.
He continued that about 90% of the island is residential. The significant taxable valuation increases from last year to this year included: condominiums at 178.07%, homesteaded condos at 112.43% and miscellaneous residential at 166.82%. Meanwhile, single-family residential rose 1.86%, homesteaded single-family residential increased 3.17% and multifamily with less than 10 units rose 2.89%.
Using the 2.5000 millage rate for all residential taxpayers — including the significant taxable valuation increases — the total average household change would be about $361, from about $2,811 to $3,172. However, when looking at residential single-family taxpayers only, the total average household change would be about $105, from about $3,654 to $3,759.
The tentative budget of $216,061,856 is a 7.35% decrease from the current budget.
Chaipel reported that based on the council’s direction at the last workshop, he updated the draft budget to include the stormwater project at $150,000 for a feasibility study on pump automation and $130,000 for weir flap gate modifications. Other adjustments included: estimated revenues in fiscal year 2025; personnel expenditures and insurance, such as health and workers compensation; and general property and liability insurance.
The total budgeted revenues is $216 million. It consists of $3.8 million in transfers between funds, $87.5 million in beginning fund balance and $124.7 million in revenue. For the revenue, $32.6 million is related to Hurricane Ian, $33.1 million is for capital projects related to storm recovery and $14 million is in the sewer fund related to storm recovery.
The total budgeted expenses is $216 million. It includes: $44.1 million in total operating expenses, a 1.6% increase from the prior year; $86.3 million for the total capital improvement plan, a 9.7% decrease; $18,442,050 for other uses of funds, a 31.9% decrease; and $66,058,086 total ending fund balance, which is consistent with the prior year.
He reported that the total reserves include about $12 million in total fund reserves.
As for operating expenditures, they are up 5% from the current year. It includes storm related expenses in the Hurricane Ian fund and $800,000 in professional fees for the planning department, which are $200,000 for the transportation master plan (grant), $250,000 for the update to the Sanibel Plan (grant) and $350,000 to implement changes to the Sanibel Plan.
After some discussion, a majority of the council directed staff to adjust the budget further by including $75,000 for a federal lobbyist and a $740,000 reserve fund for principal payment on the bridge loan.
To view the approved tentative budget, visit https://stories.opengov.com/sanibelfl/900a6b97-2b72-49b5-a665-628e7cf083b4/published/aPpTTgi9e?currentPageId=TOC.
MONTHLY MEETING
The council held its regular meeting before the budget hearing and the following took place:
– It approved a resolution confirming the established rate schedule for the sewer system relating to residential, commercial and reclaimed water rates.
– It voted 5-0 to approve an ordinance amending the Code to amend the penalties or fines previously established to be consistent with a recently amended fine structure for Shared Path Use violations.
– It voted 5-0 to approve an ordinance amending the Code to extend the deadline to re-establish or “build-back” nonconforming structures and uses.
– It voted 5-0 to approve an ordinance amending the Code to rename “Alternative Shoreline Stabilization Projects” to “Living Shoreline Stabilization Projects,” clarify existing requirements, add example graphics and provide an administrative process for amendments to be permitted projects.
– It voted 5-0 to approve an ordinance amending the Code to amend the list of permitted uses in the D-2 Upland Wetlands Zone to add existing multifamily buildings established after the city’s incorporation but prohibited by the Code to be designated as permitted uses.
– It voted 5-0 to authorize the city manager to increase wages up to 6% for general employees.
– It voted 5-0 to approve a resolution ratifying a new labor agreement between the city and Fraternal Order of Police (FOP) representing police officers and dispatchers. It also voted 5-0 to approve a resolution ratifying a new labor agreement between the city and FOP representing police sergeants and lieutenants.
– The council voted 5-0 on a resolution appointing Dorothy Plumb and Ralph Quillen to the Parks and Recreation Advisory Committee. Prior to the vote, the council held a ballot vote. The other applicants were Iris Aloia, Deborah Bouchard, Matt Chesse and Michal Frejka.
– The council voted 5-0 on a resolution appointing Bill Fellows, Jeffery Lemma and Jason Maughan to the General Employee Pension Board of Trustees. Prior to the vote, the council held two ballot votes. The other applicants were Michal Frejka and Chuck Sterrett.
– SanCap Chamber President and Chief Executive Officer John Lai provided the council with an update on the city and chamber’s joint “Live, Work, Play” campaign.
To reach TIFFANY REPECKI / trepecki@breezenewspapers.com, please email