The Sanibel City Council approved the city’s final budget and millage rate for fiscal year 2025-26 during its second and final budget hearing on September 25.
Council members voted unanimously, 5-0, to adopt an operating millage rate of 2.5000 mills, which is 19.45% higher than the rolled-back rate of 2.0930 mills. The final millage also includes a 0.0169 mill levy for sewer debt service and a 0.1011 mill levy for the recreation center debt service.
In addition, the council approved a final city budget of $216,061,856 for the fiscal year. From the General Fund’s balance, the following amounts were committed: $5.9 million for emergency reserves, $600,000 for operational support reserves, and $737,500 for debt service reserves.
The Lee County Property Appraiser’s Office certified the city’s gross taxable value at $5.63 billion, which serves as the basis for operating and budgeting purposes.
Budget Adjustments and Loan Planning
Deputy City Manager and CFO Steve Chaipel provided an overview of budget adjustments made since the first hearing:
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The city manager’s budget increased by $75,000 to fund federal lobbying efforts, reducing the General Fund’s ending balance and slightly increasing the required cash flow reserve.
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The city’s 2023 state loan of $15.2 million included $5.9 million in appropriations. To address repayment, a reserve account has been created with an annual allocation of $737,500 beginning in FY 2026 to ensure repayment by the loan’s 2033 due date.
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Overall, the General Fund’s ending balance decreased by $825,251, though the total General Fund and citywide budget remain unchanged.
The full approved budget can be viewed here.
Regular Meeting Highlights
Following the budget hearing, the council moved into its regular session. Key actions included:
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Compensation & Classification Plan: Approved unanimously, this resolution amends job classes and reclassifications, updates salary bands for certain bargaining unit positions, and authorizes the city manager to update job descriptions as needed.
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Administrative Authority for Plats: Approved unanimously, granting the city manager or designee the authority to receive, review, and approve plats or replats in accordance with amended state statutes.
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School Zone Speed Detection Report: Police Chief William “Bill” Dalton presented the annual report, sharing statistics and compliance results with state statute requirements.
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BIG ARTS Recognition: The council issued a proclamation acknowledging BIG ARTS for its continued support of the Sanibel community.
