Sanibel Council Adopts Largest Budget In History

by SC Reporter Emilie Alfino

Sanibel City Council adopts largest budget in history – more than $200M. SC photo by Emilie Alfino

At its September 23 meeting, Sanibel City Council unanimously adopted the largest budget in its history, $233,208,969. It should be noted, though, that removing the effect of Hurricane Ian on the budget brings it in at about $84 million, just about the same as fiscal year 2022 before the storm.

The millage rate was adopted at 2.5 mills, no change from the draft budget. This final operating millage rate exceeds the rolled-back rate of 2.4848 mills by .61 percent.

The entire budget is posted online at mysanibel.com on the City’s updated website. There will be a public information campaign to introduce the new Online Budget features, which offer narrative explanations of the numbers. “In some cases, it’s more important than the numbers,” said Steve Chaipel, Deputy City Manager and Chief Financial Officer. The budget is best viewed on a computer rather than a tablet or phone.

Council also unanimously adopted a three percent increase in the sewer rate, which is the amount stated in the Code to automatically take place annually. “Once a year we conduct a rate study to determine what revenue the system needs to operate,” Chaipel explained. This year, a 4-1/2 percent increase had been anticipated. “Next year we will probably have to consider a higher increase to fund the current capital,” Chaipel concluded.

Sanibel’s rates are below average and have been for quite a while, even with the 3 percent rate increase, Chaipel said. The rate change should translate for the average homeowner to $25.28 annually.

Councilmember John Henshaw questioned whether it would be wise to switch to a usage rate rather than a flat rate. Sanibel is unique among cities in charging a flat rate. Regarding next year’s anticipated increase, Mayor Richard Johnson said, “I am comfortable with the recommendation of 3 percent. I’m a little nervous going into the future and would like to soften that landing a little bit. There has to be a compelling reason for what we’re asking for. The folks who set this up did a pretty good job for us.”

Chaipel will gather additional historical information about the way rates are charged and bring it back to Council for consideration by the end of the year.

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