by SC Reporter Emilie Alfino
City Council unanimously approved the proposed operating millage rate for the 2024 tax year at 2.5 mills, which is no increase from last year. The rolled-back rate for the City of Sanibel 2024 tax year is 2.4848 mills. The proposed aggregate millage rate is 2.6369 mills. The millage levy for the sewer voted debt service is 0.0169 mills, and the millage levy for the Recreation Center voted debt service is 0.1200 mills.
The proposed aggregate taxes levied, exclusive of voted debt service levies, are $11,650,054.
The millage rate can be reduced during the upcoming process, but it cannot be increased.
First Draft of Budget. The unprecedented effects of Hurricane Ian and the ongoing recovery continue to have a significant role in the first draft of the budget. Taxable preliminary property values (which are used for ad valorem budget purposes) have increased to $4,660,021,567 from last year. This represents a 10.5 percent increase from July 2023 and a 1.0 percent increase from the final property roll in October 2023. At the same operating millage rate of 2.5000 from fiscal year 2024, this would result in approximately $1.0 million increase in tax revenue collections to the City in the General Fund. The rolled-back rate for the upcoming fiscal year is 2.4848. The rolled-back rate is the same tax rate that when applied to current year taxable values results in the same revenue collected for ad valorem taxes in the prior year.
The following items are included in the draft budget:
• $5,900,000 in funding for disaster reserves in the General fund and $1,000,000 in funding for disaster reserves in the Sewer Fund
• $1,000,000 in reserves for revenue stabilization in the Beach Parking fund
• $4,910,000 in reserves for operational support (across all funds)
• $3,900,764 in available ending fund balance for unanticipated expenditures (General fund)
• In the Hurricane Ian fund, the budget includes the following:
· The receipt of $15,260,511 in loan proceeds in FY 2024 from the State of Florida Emergency Bridge Loan. $5,900,000 of these funds were transferred to funds during FY 2024. $9,360,511 of this funding remains in the Hurricane Ian until needed for appropriation;
· The receipt of $28,000,000 in loan proceeds in FY 2024 from the State of Florida Emergency Management Department for FEMA eligible recovery projects. These funds will remain in the Hurricane Ian and are appropriated in relation to the outstanding FEMA project list as of date of this publication;
· The receipt of $9,920,000 in grant proceeds in FY 2025 from the State of Florida Commerce Department. $4,300,000 of these funds are being transferred to the Transportation Operations and Transportation Capital funds for projects in FY 2025.
This is the highest budget the city has ever seen at $233 million, for a 28 percent increase. However, when Hurricane Ian-related items are removed, that number would be $84 million, which is almost exactly where the City was pre-Ian.
Additional analysis and discussion on the draft fiscal year 2025 budget will be presented at the City Council Budget Workshop on July 30, 2024 at 5:30 p.m. Key dates for the Fiscal Year 2025 Budget Adoption Process:
• July 30, 2024: Budget Workshop
• August 27, 2024: Budget Workshop
• September 9, 2024: First Budget Hearing
• September 23, 2024: Final Budget Hearing and Budget Adoption
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