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Fort Myers finance staff previews 2026 budget: proposed 6.5 millage, $2M reserve target and utility rate increases
Summary
The finance director presented third-quarter fiscal results and initial budget proposals, including a proposed millage rate not to exceed 6.5 mills, a planned 5% utility rate increase, and schedule for budget hearings (Sept. 3 and Sept. 15). City staff flagged the $147M central plant project as a major CIP driver.
City finance staff presented third‑quarter fiscal 2025 results and a preliminary fiscal 2026 budget framework at a Fort Myers City Council workshop, reporting general fund revenues above last year and overall departmental spending under budget while flagging large capital needs ahead.
Finance staff said the city's taxable value rose 6.49% to about $13.81 billion, producing additional property tax revenue. The administration proposed a not‑to‑exceed millage rate of 6.50 mills for 2026; staff said that rate would generate additional net revenue for the general fund after CRA pass‑throughs. The presentation noted a proposed one‑time contribution of $1 million to an Affordable Housing Trust Fund and other operating requests; department requests initially totaled 84 positions, which staff pared to 27 under consideration, with 8 positions included in the draft operating budget so far.
Staff proposed a 5% increase in water and sewer rates next year (estimated to generate about $4.3 million) and a 10% increase in reclaimed‑water rates. The solid‑waste residential assessment and the stormwater assessment rates were proposed to remain unchanged in the draft. Staff described a preliminary household impact example: an average residential property could see an annual net increase of about $104.60 under the draft (including property tax, water/sewer, stormwater and solid waste assessments) using the assumptions presented.
On capital, staff reported $67 million spent through June on capital projects and $189 million in obligated contract funds; multi‑year projects will roll forward. The central wastewater plant reclaimed‑water project (presented separately) was identified as a major CIP driver and the finance team noted that the city is actively pursuing grants and principal‑forgiveness loans. The city’s estimated unassigned general fund reserves were about $41.9 million (roughly 24% of operating expenditures) and an emergency contingency reserve of about 4% of operating revenues (about $6.8 million) was in place.
Staff outlined the remaining budget schedule: a CIP review at an upcoming work session, the first public hearing on the millage and budget on Sept. 3, and the second and final public hearing and adoption on Sept. 15. No budget ordinance was adopted at the workshop; the presentation is a preliminary plan subject to further council direction.
