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 2026-27 during its recent meeting.
On July 21, the council voted unanimously 5-0 on a resolution to advise the Lee County Property Appraiser of a proposed operating millage rate of 2.5000 mills — the same as the current fiscal year — as well as a rolled-back rate of 2.3384 mills and a proposed aggregate millage rate of 2.6000 mills.
It included a millage levy for the recreation center voted debt service of 0.1000 mills.
The proposed aggregate taxes levied, exclusive of the voted debt service levy, are $187,087,616.
The budget hearings will be held on Sept. 14 and Sept. 28 at 5:30 p.m.
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 prepared by staff using the same 2.5000 for the operating millage. He noted that the rolled-back — the rate needed to bring in the same revenue amount as this year — is 2.3384.
He reported that the property appraiser’s preliminary valuation for Sanibel is $6,059,718,993, which is a decrease of 4.69% from its pre-Hurricane Ian value and an increase of 8.15% from the current year.
Chaipel provided the council with the historical taxable property values from 2017 to now.
He continued that the 2.5000 generated $13,664,432 in ad valorem tax revenue for the current year.
Using the same millage rate for the proposed budget would generate $14,694,819 in revenue, or $1,019,764 in additional ad valorem revenue in the General Fund. If the council decided to set the not-to-exceed millage at the rolled-back rate of 2.3384 mills, it would generate $13,744,945 in taxes.
Chaipel noted the millage rates and property values following Hurricanes Charley and Ian.
For debt service millage, it is 0.1000 mills for the recreation center construction.
For the proposed draft budget, Chaipel reported that the total budget would be $187,087,616, with $53,903,124 in ending fund balances. The current year has $65,814,003 in ending fund balances.
The operating budget would be $43,998,434, compared to $44,727,497 this fiscal year. He noted inflationary cost pressures and an emphasis on cost containment for the departments. There would be no change in staffing levels or authorized positions, with some authorized positions not budgeted.
Chaipel added that the proposed operating budget is 0.4% higher in nominal dollars than the fiscal budget two years ago, but it is 5.38% lower after adjusting for inflation. It is 1.6% lower in nominal dollars than the current fiscal year’s operating budget and 5.14% lower after adjusting for inflation.
The proposed capital improvement budget would be $61,307,167.
He highlighted the following from the proposed Capital Improvement Plan (CIP):
– Recreation center pool deck: $350,000
– Recreation center structural assessments: $85,000 for 2026-27 ($85,000 for 2027-28)
– City Hall: $100,000 for general repairs and $250,000 for HVAC
– Historical Village: $50,000
– Shared Use Path (SUP): $1.25 million state appropriation
– Stormwater improvements: $500,000
– Weir flap gate improvements: $600,000 state appropriation
– Clam Bayou box culvert: $4.9 million state grant
– Tahiti-Jamaica/Tradewinds stormwater project: Funding not secured in 2026 cycle; estimated $4.2 million cost — delayed to fiscal year 2028
– Sewer utility system: Grant-funded projects will be fully utilized after fiscal year 2027 — $1 million force main improvements, $1.1 million lift station control panel replacements, and $4.3 million wastewater collection system repairs
– Beach Parking Enterprise Fund: Police Department, $380,000 for patrol boat; Public Works, $2.3 million in Lee County Tourist Development Council funding (includes $2.1 million for the pier replacement); and Lighthouse Beach Park maintenance building, $450,000 (with about $100,000 in insurance funding)
Projects not in the CIP budget but recommended for council discussion at its upcoming budget hearing were: Periwinkle Way landscaping, City Hall native garden rehabilitation, Town Center planning, expansion of recreation center operating hours, coyote population study, and sea turtle nest protection.
As for fund reserves allocated in the proposed budget, Chaipel outlined: $1,475,000 for debt service; $4,297,511 for a 17% cash flow; $991,740 for operational support; and $6,900,000 for disasters.
To view the presentation on the 2026-27 draft budget, click on DRAFT BUDGET 2026-27.
The budget workshop is scheduled for Aug. 18 at 5:30 p.m.
SOLID WASTE ASSESSMENT
Also at the meeting, the council voted 5-0 to approve a resolution relating to the 2026-27 special service assessment for the collection and disposal of solid waste, recyclables and horticultural waste.
The annual proposed rates are $538.51 for residential curbside collection — a 2.44% increase from the current $525.66 — and $684.09 for residential house collection — a 2.69% increase from $666.16.
A public hearing is set for Aug. 18 at 9:15 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.
STORMWATER ASSESSMENT
Also at the meeting, the council was presented with information and data about the potential stormwater assessment. Consultant Stantec presented the Stormwater Assessment Study.
The council voted 5-0 for staff to continue developing the proposed assessment.
The next step will entail a notice and mailing sent to property owners. Afterward, the initial resolution and public hearing is scheduled for Aug. 18, with the final resolution and public hearing on Sept. 14.
To view the presentation on the Stormwater Assessment Study, click on STORMWATER ASSESSMENT STUDY.
IN OTHER NEWS
– The council voted 5-0 on a resolution approving a budget amendment to appropriate $173,121 from donations to perform the temporary repairs to the Sanibel Fishing Pier and $278,344 from the Beach Parking Fund ending fund balance for the design and engineering services for the new pier to be built.
– The council voted 5-0 on a contract with Apex Companies in the amount of about $1,301,046 for engineering services related to the Sanibel Roads Reconstruction Project.
– The council voted 5-0 on an ordinance to amend the Code of Ordinances related to accessory structures to provide better clarity and consistency in evaluating them in front yards, including multi-frontage lots.
– The council held the first reading for an ordinance to amend the Code related to specifying speed limits on publicly-owned roadways within the city. The second reading will be held on Aug. 18.
– Kimley-Horn, consultant for the Periwinkle Way-Causeway Boulevard-Lindgren Boulevard Intersection Study, presented the results of a topographic survey confirming that both one- and two-lane roundabout designs can be accommodated within the intersection and public right-of-way.
Council directed staff to prepare a resolution and ballot language for an advisory referendum concerning a proposed roundabout, which would appear on the March municipal election ballot.
– The council tabled its discussion about amending two ordinances, along with proposed amendments to the Sanibel Code, related to Community Housing & Resources’ Riverview II Below Market Rate Housing Development.
Staff were directed to schedule a joint council and planning commission workshop for discussion.
– City and Sanibel-Captiva Conservation Foundation (SCCF) staff provided a presentation and update on sea turtle nesting and coyote predation management strategies for the 2026 nesting season.
– Altumint provided a presentation on the School Zone Speed Detection System. It outlined corrective measures and safeguards implemented to prevent erroneous speed reporting, as well as steps taken to issue refunds to drivers who received citations in error.
– The council recognized July as Parks & Recreation Month through a proclamation.
– The council recognized Public Works Department tradesworker Dakota Phillips as the Employee of the Third Quarter for the fiscal year.