On September 18, 2025, the Collier County Commissioners adopted the County’s FY 2025-2026 Budget for the period from October 1, 2025, to September 30, 2026. Setting millage (tax) rates and adopting the annual budget are arguably among the most important policy decisions the Board of County Commissioners makes each year.
The amount of taxes due on a property are a function of the tax rates (set by the BCC and other governmental bodies) and the valuation of a property (as determined by the Property Appraiser after adjusting for any eligible exemptions).
Key tax rates approved by the BCC are for services provided on a county-wide basis. These include the following:
· General Fund (i.e., law enforcement, elections, road maintenance and library service)
· Water Pollution Control (approved by voter referendum)
· Conservation Collier (purchase of undeveloped land for conservation).
Important budgetary terms to understand are as follows:
- Millage Neutral – This means to keep the millage (tax) rate the same as that of the previous year. As such, any increase in tax revenue would come from increases in the assessed value of property, new construction, and improvements to existing properties. .
- Rolled-Back Millage Rate – This is the millage rate, based on the current year’s taxable value, exclusive of new construction, that generates the same amount of property tax revenue collected in the previous year. The rolled-back millage rate represents a no tax increase scenario.
Millage History
The following chart summarizes the General Fund millage history, the percent increase above or below the rolled-back millage rate, and the adopted General Fund tax revenue from FY 2007 through FY 2026.
The economic downturn, later known as the Great Recession began at the end of 2007. In response, the Board lowered the General Fund millage rate in FY 2008, and through FY 2013 levied a General Fund millage rate below the rolled-back rate (representing no tax increase). During this period, there was deferral of capital maintenance to help mitigate the reductions in tax revenue ($260.5M in FY 08 to $208.9M in FY 13). The tax reductions were implemented to assist property owners in a period of great economic uncertainty.
From FY 2014 through FY 2023, the Board approved millage-neutral tax rates to begin addressing deferred capital maintenance and to replenish reserves used for hurricane recovery efforts.
The Board then reduced the General Fund millage rates in FY 2024 and FY 2025 to the rolled-back rates to provide tax relief to the public. Commissioners noted that the General Fund savings associated with levying the rolled-back rate rather than millage neutral rates during that two-year period amounted to $133.9M.
Public Discussion of the FY 2026 Proposed Millage Rates
An essential component of the budget process is the two (2) public hearings on the proposed budget. Florida Statutes require that the BCC take public input on the proposed tax rates and the public prior to adoption.
Commission debate centered on the merits of adopting a millage neutral budget versus one that fell between millage neutral and rolled-back. Persuasive discussion ensued citing future challenges including aging buildings in need of replacement, stormwater and road funding shortfalls, and the necessary maintenance associated with operating over $2B in governmental capital and infrastructure assets. Given these unmet needs, the Board adopted the budget at the millage neutral tax rate.
Future Outlook
The Board of County Commissioners adopted the following Mission Statement for Collier County government: “To deliver high-quality and best-value public services, programs, and facilities to meet the needs of our residents, visitors, and businesses today and tomorrow.”
As noted in the Mission Statement, meeting the needs of residents, visitors, and businesses has components of an immediate need (today) and perhaps, more importantly, a longer-term need (tomorrow). This suggests that governmental decision-making needs to have a focus on the horizon that extends beyond the immediate short-term needs. A longer-term view with an emphasis on fiscal sustainability is important in maintaining a diversified local economy, developing an available and well-trained workforce, and securing a stable population base.
There are many factors that impact long-term fiscal sustainability including the following:
·Unpaid Advances/Loans from the General Fund
·Property acquisition by non-taxpaying entities
·General Fund subsidy of Stadium Sports Complex operations
·Aging Infrastructure and the sunset of the Infrastructure Sales Tax
·Non-sustainable Operations & Maintenance (O&M) Funding
·Increases in water and wastewater Rates
·Unfunded and underfunded program areas such as the Road program and Stormwater
Each of these areas must be reviewed for future sustainability decision making.