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Naples council adopts 2025-26 budget, sets city millage at 1.23; special taxing districts also approved
Summary
On Sept. 22 the Naples City Council adopted the fiscal year 2025-26 final budget, set a 1.23 millage rate for the city and approved budgets and millage rates for the East Naples Bay and Moorings Bay special taxing districts; all measures passed unanimously.
The Naples City Council on Sept. 22 adopted the fiscal year 2025-26 final budget, fixed the city general fund millage rate at 1.23 and approved companion millage rates and budgets for the East Naples Bay and Moorings Bay special taxing districts.
The actions, taken at a special budget public hearing, finalize the city’s operating plan that totals about $241,000,000 and include an aggregate millage that the finance director said is roughly 5.42% higher than the rollback rate (the tax rate that would have produced the same levy as the prior year, excluding new construction). Finance Director Stefan Massall told the council that adopting the 1.23 millage for the general fund would raise about $2,364,656 more in revenue than the general-fund rollback rate of 1.1658.
Council members voted unanimously on six resolutions: the city general fund millage rate, the city final budget, and millage and budget resolutions for the East Naples Bay and Moorings Bay special taxing districts. There were no members of the public who spoke during the hearing.
Massall said the budget increases reflect negotiated salary and benefit increases for fiscal year 2026, additions to staffing related to public safety and ongoing capital priorities such as street repaving. He presented a breakdown showing personnel at about 36% of the budget, operating at 31% and capital at 33%. The proposed budget figure presented to council was $241,000,000, up from $208,800,000 in fiscal year 2024-25 — an increase of about $32,200,000.
Massall also summarized several specific changes incorporated since the proposed budget: a $200,000 rescheduling of the Fire Station 2 design, rescheduling of stormwater multi-basin improvements, and Community Redevelopment Agency adjustments that together added roughly $4,125,000. He said the East Naples Bay special taxing district budget is proposed at $406,200 and the Moorings Bay district budget at $116,285.
The finance director described pension funding increases included in the adopted budget: budgeted contribution rates of 40% for police, 40% for fire and 15% for general employees, compared with actuarial rates cited at 29.3%, 19.4% and 11.3%, producing an additional budgeted contribution of approximately $2,460,000 to address unfunded liabilities. Massall also noted a projected unassigned fund balance of roughly $20,000,000 and that the city’s fund-balance policy requires an emergency reserve equal to 10% of the adopted operating budget.
On cost drivers, Massall identified personnel services as the largest factor and referenced a multi-year seawall-related settlement included in the budget. He also noted a state appropriation of $3,750,000 that offsets part of that expense. Massall said some telecommunication-tax revenue has been directed to the streets fund to support repaving.
Mayor Heitman closed the hearing by thanking Finance Director Massall, other department leaders and staff. "I want to thank you for your efforts and for the department leadership and coming up with a fiscally responsible budget," the mayor said.
Votes at a glance
- Resolution determining and fixing the 2025 tax levy and final millage rate for the City of Naples (general fund millage 1.23): motion by Council member Christmann; second by Council member Barton. Vote: unanimous (Council members Christmann, Barton, Kramer, Peneman, Petronoff, Vice Mayor Hutchison and Mayor Heitman voted yes). Outcome: approved.
- Resolution adopting the final budget for the City of Naples (fiscal year 10/01/2025–09/30/2026): motion by Council member Christmann; second by Council member Barton. Vote: unanimous. Outcome: approved.
- Resolution determining and fixing the 2025 tax levy and final millage rate for the East Naples Bay Special Taxing District (millage 0.5): motion by Council member Barton; second by Council member Peneman. Vote: unanimous. Outcome: approved.
- Resolution adopting the final budget for the East Naples Bay Special Taxing District (fiscal year 10/01/2025–09/30/2026, budget $406,200): motion by Council member Kramer; second by Council member Petronoff. Vote: unanimous. Outcome: approved.
- Resolution determining and fixing the 2025 tax levy and final millage rate for the Moorings Bay Special Taxing District (millage 0.0125): motion by Council member Kramer; second by Council member Petronoff. Vote: unanimous. Outcome: approved.
- Resolution adopting the final budget for the Moorings Bay Special Taxing District (fiscal year 10/01/2025–09/30/2026, budget $116,285): motion by Council member Peneman; second by Council member Barton. Vote: unanimous. Outcome: approved.
Council members and staff indicated there were no public commenters at the hearing. Finance staff said they will file proof of TRIM notice compliance with the state as required by Florida law following adoption of the millage and budgets.
