The Sanibel City Council adopted the final millage rate and budget for fiscal year 2023-24 during its second and final budget hearing last week.
On Sept. 27, it voted unanimously 5-0 to approve an operating rate of 2.500 mills, which exceeds the rolled-back rate of 1.7333 by 44.2%, but it is lower than the maximum rate set earlier of 2.9598.
Included within the millage rate resolution, the council approved the voted debt service millage rates, including 0.0624 mills for the tentative sewer and 0.1305 mills for the tentative recreation center.
The council also voted 5-0 to approve a final budget of $182,278,937 for the new year.
The Lee County Property Appraiser’s Office certified that the gross taxable value for operating and budgeting purposes not exempt from taxation within the city of Sanibel as $4,217,281,792.
Additionally, the council voted 5-0 to commit the following from the General Fund’s balance: $5.9 million for emergency reserves, $600,000 for operational support reserves and $500,000 for the under-collection of tax revenue reserves. Before the vote, staff noted that there are reserves in other funds.
In opening the discussion, Deputy City Manager and Finance Director Steve Chaipel provided an updated presentation on the proposed budget based upon the rate of 2.500 mills. He also reiterated the impact to the revenues due to the significant reduction in property values following Hurricane Ian.
Chaipel noted that staff worked to isolate the storm expenses as best as possible in the budget so changes can be analyzed, adding that he anticipates providing regular updates during the year.
“Certainly this budget will be amended throughout fiscal year 2024, and I would expect fairly significantly as we move through the recovery process,” he said.
During the following discussion and prior to voting, all of the council praised City Manager Dana Souza, Chaipel and staff for delivering a balanced and workable budget given the property value loss.
“I am comfortable with where we are tonight going forward into the next fiscal year,” Mayor Richard Johnson said. “This is a historic budget. This was a very difficult year. But we will prevail.”
“We will continue to make the decisions that are in the best interest of our community,” he added.
Vice Mayor Mike Miller called the budget an “excellent budget.”
“A budget that’s balanced not just in terms of debts and credits, but balanced in terms of fulfilling a variety of our needs in responding to certain challenges,” he said, noting the large revenue losses.
“This budget deals with those losses,” Miller said. “And I think it’s fiscally conservative.”
He added that the 2.500 rate was used after Hurricane Charley.
Also during the hearing, the council voted 5-0 to approve the following resolutions:
– Extending the authorization for the placement of temporary signs on commercial properties until Sept. 30, 2024.
– Extending the authorization for the construction or repairing of structures to occur between the hours of 7 a.m. to 7 p.m. Monday through Saturday through Sept. 30, 2024.
– Extending the authorization of outdoor displays of merchandise under certain conditions through Sept. 30, 2024.
– Waiving the temporary structure development permit fee retroactively from May 8 through Sept. 30, 2024.
