Naples council adopts $241 million budget, sets general millage at 1.23

NAPLES, Fla. — The Naples City Council unanimously adopted its fiscal year 2025-26 final budget and fixed the city's general fund millage rate at 1.23 mils during a special budget public hearing on Monday, Sept. 22.

Finance Director Stefan Massall laid out the proposed budget and related TRIM notice disclosures at the hearing, saying the main purpose of the proposed increase was "the effectuation of negotiated salary increases and corresponding benefits for the contracts for fiscal year 2026." The adopted citywide budget totals about $241,000,000, an increase of roughly $32,200,000 from the 2024-25 adopted budget of $208,800,000.

The council also approved final millage rates and budgets for two dependent special taxing districts: the East Naples Bay Special Taxing District (millage 0.50; budget $406,200) and the Moorings Bay Special Taxing District (millage 0.0125; budget $116,285). Councilmembers voted unanimously on all six resolutions to adopt final millage rates and budgets.

Why it matters: the adopted 1.23-mil general fund rate is higher than the general fund rollback rate of 1.1658 mils. City staff said adopting the higher rate would raise an additional $2,364,656 in recurring revenue versus the rollback rate; the aggregate millage across the city and the two special districts was calculated at 1.2473 mils, about 5.42% above the aggregate rollback rate of 1.1832 mils.

Key budget drivers and changes - Personnel and pensions: Personnel services comprise about 36% of the proposed budget; staff said personnel costs increased about $9.6 million (12.6%) compared with the 2024-25 adopted budget. The budget includes higher-than-actuarial pension contribution rates (budgeted contribution rates of 40% for police and fire and 15% for general employees versus actuarial rates reported as 29.3%, 19.4% and 11.3%), producing an additional budgeted contribution of approximately $2,460,000. - Staffing: the adopted budget recognizes a net increase of two police positions, one landscape technician in parks and re-establishes a special projects manager position. - Seawall/Irma settlement: the budget includes $4.5 million related to a seawall/Irma settlement for the current fiscal year and an anticipated additional $3.2 million in 2026-27; the city also reported a state appropriation of $3,750,000 that offsets part of that cost. - Capital and reserves: about one-third of the budget is capital spending. The city's fund balance policy requires a 10% emergency reserve; staff projected roughly $20 million of unassigned fund balance for next fiscal year. - Program timing adjustments: Staff moved Fire Station 2 design costs ($200,000) into the 2025-26 year and rescheduled certain multi-basin stormwater design projects into 2025-26.

Public process and compliance Finance staff confirmed that TRIM advertising and the required notice of proposed tax increase were published in the Naples Daily News and that public comment was allowed; no members of the public spoke during the hearing. Staff said they would submit proof of TRIM compliance to the State of Florida after the hearing.

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 Councilmember Christmann; second by Councilmember Barton; vote 7-0, approved. - Resolution adopting the final budget for the City of Naples, FY 2025-26 (general fund budget ~ $241,000,000): Motion by Councilmember Christmann; second by Councilmember Barton; vote 7-0, approved. - Resolution determining and fixing the 2025 tax levy and final millage rate for the East Naples Bay Special Taxing District (millage 0.50): Motion by Councilmember Barton; second by Councilmember Peneman; vote 7-0, approved. - Resolution adopting the final budget for the East Naples Bay Special Taxing District (budget $406,200): Motion by Councilmember Kramer; second by Councilmember Petronoff; vote 7-0, 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 Councilmember Kramer; second by Councilmember Petronoff; vote 7-0, approved. - Resolution adopting the final budget for the Moorings Bay Special Taxing District (budget $116,285): Motion by Councilmember Peneman; second by Councilmember Barton; vote 7-0, approved.

Council and staff remarks After the votes, Mayor Heitman thanked staff and council for the work on the budget. Councilmembers voiced appreciation for staff analysis and direction. Finance Director Massall closed the presentation; city staff said they will incorporate final millage numbers from other taxing authorities (school district, Collier County, mosquito control, Cypress Basin) into the final adopted budget materials for the record.

What's next The adopted budget takes effect Oct. 1, 2025. Staff will file required TRIM documentation with the state and publish the final adopted budget tables with the finalized millage numbers for other taxing authorities when available.