by SC Reporter Emilie Alfino
Deputy City Manager and Chief Financial Officer Steve Chaipel presented a draft Capital Improvement Project (CIP) Budget for Fiscal Year 2027. By law, the City’s fiscal year ends September 30, and this has been the case for many decades. The draft budget is presented for Council comments. Here are some highlights; the complete budget can be viewed at the city’s website.
Preliminary taxable property values are to be released July 1, 2026. This is the value that is used to determine millage rates. The maximum operating millage rate will be determined at the July City Council meeting. Final millage rates are not adopted until the September hearings.
Estimated property values were presented:
• $5,536,341,000 Estimated Taxable Value
• 1.75% decrease from the July 2025 values used for FY 2026 budget
• At the same operating millage rate adopted in FY 2026, this represents a net decrease in revenue to the General Fund of $238,805 (inclusive of a 3.0% early payment discount available to taxpayers per law)
Portions of the Fiscal Year 2027 CIP for discussion included:
• Stormwater improvements $500,000
• Weir flap gate improvements $600,000 (Florida State Appropriation)
• Tahiti-Jamaica/Tradewinds stormwater project
Funding not secured in 2026 cycle
$4.2 million estimated project cost – delayed to FY2028 plan
• Sewer Utility System non-grant-funded projects
· $2.6 million force main improvements
· $3.4 million lift station control panel replacements
· $5.2 million included in draft budget that is grant funded
• Police Department $380,000 for patrol boat
• Public Works – $2.3 million in TDC funding
· Includes $2.1 million for pier replacement ($250,000 is also included in budget for design, but this part of the project is City-funded)
• Lighthouse Beach Park maintenance building $450,000
· $100,000 insurance funding
• Recreation Center pool deck $350,000
• Recreation Center structural assessments FY2027 $85,000
• City Hall general repairs $300,000
• City Hall generator $500,000
• City Hall HVAC $250,000
• Historical Village $50,000
• Shared-use paths $1.25 million Florida State Appropriation included
The City has been having issues with FEMA about reimbursements, Chaipel said. Chaipel said FEMA does not agree that Sanibel was damaged by the storm (Ian). Lift stations are the most egregious example of that, Chaipel said. Regarding the lift stations, FEMA said, “You didn’t receive the damage that you said,” according to Chaipel.
“I question whether or not they’re (FEMA) a good partner,” said City Manager Dana Souza. “I have never seen FEMA argue with us about the extent of damage. It is really, really disturbing to me to see that.” We should be arguing about the cost, Souza said, not whether this community suffered catastrophic damage. “If FEMA doesn’t fulfill its obligation, we will probably have to issue debt.”
“We don’t have enough money right now to fund our projects without reimbursement,” Chaipel said.
Council member Richard Johnson asked the Council to seek funding for the Tradewinds project. “This project has been stalled for such a long time,” he said.
This is the first attempt at a budget. The budget schedule is as follows:
• June 2, 2026 – Draft Capital Improvement Plan Draft Discussion
• June 16, 2026 – City Council Budget Workshop
• July 1, 2026 – Property Appraiser Releases Taxable Values
• July 14, 2026 – Planning Commission CIP Sub-Committee Meeting
• July 21, 2026 – Draft Full Budget Presentation to the City Council
• August 18, 2026 – City Council Budget Workshop
• September 14, 2026 – First Budget Hearing
• September 28, 2026 – Final Budget Hearing – FY2027 Budget Adopted
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