A Decade-First Shift: Fort Myers Considers Property Tax & Fee Increases

Following years of rapid population growth and expanding real estate values that kept municipal tax rates low, the City of Fort Myers is navigating a changing economic climate.

For fiscal year 2026–2027, the Fort Myers City Council is moving forward with plans to consider raising the city’s property tax (millage) rate for the first time in ten years. The proposal comes as city officials work to address slowing population growth, cooling commercial real estate assessments, and rising capital project demands.

At the LeAneSuarezGroup, we monitor local municipal budgets and tax policy changes across Lee County carefully. Understanding local millage proposals and fee structures helps property owners and buyers evaluate overall holding costs and long-term real estate trends throughout Southwest Florida.

Key August 3 Votes: City Council members will formally vote on whether to increase the maximum proposed millage rate cap, consider raising the fire assessment fee cap by up to 30%, and evaluate issuing $40 million in capital project bonds.

The Drivers: Slowing Growth & Revenue Projections

The proposed tax adjustments are driven in large part by cooling growth metrics across the city. According to City Manager Marty Lawing, Fort Myers’ population is projected to remain largely flat at approximately 102,000 residents.

Concurrently, the city’s total ad valorem tax base grew by just 0.45% in 2026 to roughly $14 billion—a sharp drop from the double-digit percentage surges experienced during peak boom years.

                   FORT MYERS 2026 TAX BASE DYNAMICS
  
  [ APARTMENT DIPS ]    ──► $195.2 Million drop in apartment property tax valuations
  [ NEW CONSTRUCTION ] ──► $257.6 Million gain in new construction valuation additions
  [ NET TAX BASE RISE ] ──► +0.45% Overall growth (Reaching ~$14 Billion total base)

Despite the growth slowdown, Financial Services Director Christine Tenney highlighted that strong revenue in recent years has allowed the city to maintain a solid $44.4 million in general reserves, independent of emergency contingency funds, providing a helpful buffer against broader economic uncertainties.

Evaluating the Millage Cap & Fire Assessment Proposal

To maintain flexibility as staff finalize the 2026–2027 budget ahead of the October 1 fiscal start, councilors are setting maximum revenue caps. Setting a higher cap gives the city options to address revenue gaps, though final rates can still be lowered during public hearings in September.

For a property with $100,000 in taxable assessed value, a shift from 6.5 to 7.3112 mills would equate to an annual increase of approximately $81.12 on the city portion of the property tax bill.

                 CITY COUNCIL VOTING THRESHOLD RULES
  
  [ SIMPLE MAJORITY ]  ──► Required to adopt up to the rolled-back rate (6.6465 mills)
  [ SUPERMAJORITY 2/3 ]──► Required to adopt rates between 6.6465 and 7.3112 mills
  [ UNANIMOUS (5-0) ]  ──► Required to adopt any rate exceeding 7.3112 mills (up to 10 mills)

Capital Projects & Future Revenue Factors

The revenue under review is slated to fund rising operational costs and ongoing infrastructure initiatives across Fort Myers, including:

• Infrastructure & Safety: A new $147.2 million police headquarters, a new fire station, utility projects, road repair, and Midtown redevelopment spending.

• Debt Service Obligations: Absorbing approximately $17.1 million in total debt service payments for fiscal year 2026–2027.

• Amendment 3 Considerations: Municipal leaders are also tracking statewide Amendment 3 on the November ballot. If approved by 60% of Florida voters, it would raise non-school homestead exemptions to $150,000 in 2027 and $250,000 in 2028, altering local government tax bases state-wide.

Final millage rates and the operational budget will be formally decided following mandatory public hearings in September.