Naples City Council approved a slight tax increase to 1.23 mills to pay for needed resiliency, public safety and quality of life expenditures.
Council voted 6-1 on Sept. 5, with Vice Mayor Terry Hutchison opposing, to increase its millage rate from 1.17 mills this year. No residents or businesses spoke during the city’s first public hearing on its 2024-25 fiscal year budget. The increase to the general fund will generate $2.05 million in additional revenues and increase this year’s $197.2 million budget to $208.8 million on Oct. 1, the start of the fiscal year.
Hutchison, who cited residents struggling to pay bills, also opposed the increase to 1.17 mills last year after the rate had remained unchanged since 2020. One mill is equal to $1 for every $1,000 worth of a property’s taxable value after adjustments, including a homestead exemption.
Council also unanimously voted to adopt the 2024-25 fiscal year budget and millage rates for two taxing districts, East Naples Bay and Moorings Bay. The votes came after a budget presentation and no debate.
“This really is a budget about increasing for public safety and our quality of life,” Mayor Teresa Heitmann said afterward, thanking Gary Young, the city’s chief financial officer, City Manager Jay Boodheshwar and council members for their hard work on a “fiscally responsible” budget.
The second and final budget hearing will be at 5:05 p.m. Sept. 18 in City Council Chambers, 735 Eighth St. S.
During a budget presentation, Young said the tax increase was needed to keep up with increasing salaries and benefits, added personnel costs and enhanced police, fire, parks, recreation and planning services. He said the city also needs to keep pace with the cost of goods and services, continue to operate at current levels and maintain fund reserves in case of inflation.
“Public safety and quality of life, this is what the municipality’s budget is about and these numbers reflect that,” Young said, adding that those sectors account for 80.5%.
The $20.64 million police budget represents 33%, while the $26.33 million fire budget accounts for 26.1%, and parks, recreation and facilities totals $13.42 million, 21.46%. The increase allows the city to add more personnel, including police officers and firefighters, and help the city improve resiliency and stormwater systems.
Compared with this year’s budget, personnel costs rose from $69.5 million this year to $74.5 million for 2024-25, while operating expenses increased from $69.8 million to $76.1 million and capital expenses dropped from $57.8 million to $55.8 million.
“We’ve had sizable property value increases, but also we’ve maintained very low millage rates over a long period of time,” Young said.
Despite the increase, Naples still has one of the lowest tax rates statewide. Its property tax values totaled more than $38.5 billion this year, an increase of more than 11% from 2023 that will bring $3.8 million more in revenues.
