Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Naples council adopts tentative FY2026 budgets, sets general fund millage at 1.23 mills
Summary
The Naples City Council on Sept. 3 adopted tentative millage rates and budgets for fiscal year 2026, keeping the general fund millage at 1.23 mills and approving budgets for two dependent taxing districts; council members cited public safety, infrastructure and pension funding as drivers of the increase.
The Naples City Council on Wednesday, Sept. 3 adopted tentative millage rates and budgets for fiscal year 2026, approving a 1.23-mill general fund rate, a 0.5-mill rate for the East Naples Bay Special Taxing District and a 0.0125-mill rate for the Moorings Bay Special Taxing District.
City Manager Young opened the budget hearing and introduced Finance Director Stefan Masal, who gave the presentation and overview of the proposed fiscal year 2025–26 budget. Masal said the packet included the general fund budget materials, TRIM compliance forms and separate budgets for the two dependent taxing districts.
The tentative budget totals and millage rates matter because they set tax levies and spending ceilings that the council must finalize in a second public hearing. The council approved the tentative general fund levy before adopting the tentative general fund budget, and then took the same sequence for the East Naples Bay and Moorings Bay taxing districts, as required by Florida law and TRIM notice procedures.
Key numbers from the presentation: the city’s proposed expenditures for FY2026 are roughly $240,068,382, up from $208,800,000 in the prior year; the proposed general fund millage is 1.23 mills (advertised via the TRIM notice); the aggregate rollback rate for the taxing authorities was presented as 1.1832 mills and the combined aggregate millage was shown as 1.2473 mills (an aggregate increase of 5.42% over the rollback rate). The East Naples Bay budget was listed at $406,200 and the Moorings Bay budget at $116,285.
Finance items the council cited as primary reasons for the revenue increase included negotiated salary and benefit increases, additional personnel related to a multi-year public safety enhancement program (the budget shows a net increase of two positions), higher costs for goods and services, and continued emphasis on street paving and infrastructure. The presentation also included pension funding levels: proposed contribution rates of 40% for police, 40% for fire and 15% for general employees, described as greater than actuarial requirements.
Masal said the proposed general fund budget anticipated a $2,694,713 spend-down of fund balance in FY2026, although a state appropriation of $3,750,000 was noted in the packet and would affect end-of-year reserves. The presentation listed a net budget effect of $2,364,656 in additional ad valorem proceeds to the general fund under the proposed millage compared with the rollback rate.
The council heard no public comment during the hearing. After the presentation, the council approved a series of resolutions in order: the tentative general fund millage rate, the tentative general fund budget, the East Naples Bay millage rate and budget, and the Moorings Bay millage rate and budget. All motions carried unanimously.
Votes at a glance - Resolution fixing the 2025 tentative general fund millage rate (advertised rate 1.23 mills): motion by Vice Mayor Hutchison; second by Council Member Petronoff. Vote: Hutchison — yes; Peneman — yes; Christman — yes; Barton — yes; Kramer — yes; Petronoff — yes; Mayor Heinemann — yes. Outcome: approved.
- Resolution adopting the tentative City of Naples FY2026 budget (general fund): motion by Council Member Kramer; second by Council Member Petronoff. Vote: unanimous. Outcome: approved.
- Resolution fixing the 2025 millage rate for the East Naples Bay Special Taxing District (0.5 mills): motion by Council Member Kramer; second by Council Member Barton. Vote: unanimous. Outcome: approved.
- Resolution adopting the tentative East Naples Bay Special Taxing District budget (FY2026): motion by Council Member Christman; second by Council Member Petronoff. Vote: unanimous. Outcome: approved.
- Resolution fixing the 2025 millage rate for the Moorings Bay Special Taxing District (0.0125 mills): motion by Council Member Christman; second by Council Member Barton. Vote: unanimous. Outcome: approved.
- Resolution adopting the tentative Moorings Bay/Mornings Bay Special Taxing District budget (FY2026): motion by Council Member Christman; second by Council Member Kramer. Vote: unanimous. Outcome: approved.
Council members and staff noted next steps, including a final public hearing on Monday, Sept. 22 at 5:05 p.m. in City Council Chambers, where the council will consider adoption of the final millage rates and budgets. City Manager Young and Finance Director Masal thanked department heads and staff for preparing the materials.
The council session adjourned after the votes.
