Lee County advances 4% pay raise as revenues tighten

Lee County commissioners agreed to move forward with a 4% wage increase for county employees during a budget workshop Aug. 24. 

The annual wage and benefits agreement still must be approved at final budget hearings in September. It includes the Sheriff’s Office, the most expensive line item in the county’s general fund budget, along with constitutional offices and courts. 

Commissioners at the Aug. 24 meeting debated the impacts of zero to 5% wage increases as they sought to keep pay and benefits competitive while planning for broader economic trends. 

The county is expecting a slowdown in property tax revenue due to softening residential real estate valuations and rising costs for public safety and health insurance. 

The county’s health insurance package is one of the key benefits of being a public employee, Commissioner Kevin Ruane said. 

Maintaining employees who can afford to live in Lee County remains a central concern for area employers. 

The 4% increase is part of $732.6 million in projected general fund expenses for fiscal 2027. 

County planners project $763.6 million in revenue with the same property tax rate as last year. 

That leaves a $31 million surplus and total adjusted reserve funds of $109.8 million. 

The raise would impact 3,034 Lee County government and 1,745 Sheriff’s Office employees, based on their most recent counts.

The 4% bump was a compromise as the county prepares for potentially lean years ahead, depending on property tax revenue this year and in coming years. 

On the whole, Lee County property value growth slowed this year, part of what real estate professionals have called a market stabilization after a post-COVID-19 boom. 

“The theme for this year was stabilization,” Commissioner Brian Hamman said. 

Ruane predicted that property values will continue to slide and warned county staff that there may be no wage increases next year. He argued for a greater 5% wage increase for fiscal 2026-27 to boost incomes in advance of the slowdown he’s expecting. 

“I’m a big believer in doing what we can while we still have the opportunity,” Ruane said. 

Later in the meeting, he added: 

“Whether we do 4% or 5%, I just want everyone to know that it’s a high probability it’s going to be zero next year.” 

Ruane said his prediction doesn’t account for the big unknown, Amendment 3’s statewide residential property tax cut. It continues to loom over budget season discussions across Florida. 

Officials won’t know whether Amendment 3 has been approved before they finalize the fiscal 2027 budget. That has to happen before the new fiscal year begins Oct. 1. 

Florida voters will decide during the November general election whether to approve the constitutional amendment, which would increase the homestead exemption for nonschool property taxes to $150,000 in 2027 and $250,000 in 2028. 

Lee County projected that would erase more than 40% of the county’s general fund revenue, or about $240.8 million per year, starting in fiscal 2028-29. 

Whether it passes or not, the measure has already caused county officials and planners to proceed during this year’s budget talks with additional caution. 

“If it did pass, obviously we’d be changing the structure of a lot of things,” Chairman Cecil Pendergrass said. “A lot of things would obviously go away.” 

He added that programs such as Lee County’s Conservation 20/20, a voter-approved fund to acquire preservation lands, along with departments such as Parks & Recreation and Human Resources, could be targeted for cuts. 

Lee County commissioners are set to hold a Sept. 1 meeting to review the potential impacts of Amendment 3’s property tax reform. 

A first public budget hearing for fiscal 2027 is set for 5:05 p.m. Sept. 3, with a final hearing to adopt the budget set for 5:05 p.m. Sept. 15.