In a move to enhance public safety, improve quality of life, and address growing expenses, the Naples City Council voted to increase the property tax rate to 1.23 mills for the 2024-25 fiscal year. This slight tax increase, approved by a 6-1 vote on September 5, is expected to generate an additional $2.05 million in revenue, raising the city’s budget from $197.2 million to $208.8 million starting October 1.
The increase from the current 1.17 mills comes after discussions about the need for investments in essential city services. Vice Mayor Terry Hutchison was the sole opposition, citing concerns about residents already struggling with the rising cost of living. Hutchison had also opposed last year’s increase after the millage rate had remained unchanged since 2020. For context, one mill equates to $1 for every $1,000 of a property’s taxable value.
Despite the tax hike, there was no public comment during the first budget hearing. Mayor Teresa Heitmann emphasized that the budget focuses on essential areas like public safety and overall quality of life, thanking city staff for their work on a “fiscally responsible” budget. The second and final budget hearing is scheduled for September 18 at 5:05 p.m.
According to Chief Financial Officer Gary Young, the additional funds will support salary increases, personnel expansions, and improvements in police, fire, parks, recreation, and planning services. The need to manage rising operational costs, while maintaining city services and building financial reserves, was also highlighted. Public safety and quality of life initiatives represent over 80% of the budget, with $20.64 million allocated to the police, $26.33 million for fire services, and $13.42 million for parks and recreation.
Personnel costs will rise from $69.5 million this year to $74.5 million, while operating expenses will increase to $76.1 million. Capital expenses, however, will see a slight decrease, dropping from $57.8 million to $55.8 million.
Even with this tax increase, Naples maintains one of the lowest property tax rates in the state. Property values in Naples have surged, totaling over $38.5 billion in 2024—a more than 11% increase from 2023, which will generate an additional $3.8 million in revenue.
This budget is designed to ensure the city continues to meet the needs of its growing population while enhancing the resilience and safety of its infrastructure.
