Lake Wales Focuses on Furthering Redevelopment with $144M Budget, Higher Property Taxes
by James Coulter
City residents may see higher property taxes on next year’s bill, but the added revenue will help accelerate redevelopment efforts: smoother neighborhood streets, enhanced downtown streetscapes, the revival of a historic hotel, and further rollout of the city’s award‑winning Connected plan.
At their regular meeting on Tues., Sept. 22, 2026, Lake Wales city commissioners voted unanimously to adopt the budget and millage rate for the upcoming fiscal year.
The $144,473,884 budget outlines a wide range of capital projects, many tied to Lake Wales Connected, the city’s master blueprint for revitalizing historic downtown and strengthening links between neighborhoods, parks, and commercial districts.
According to the city’s website, the plan envisions “downtown being the epicenter of Lake Wales with vibrant streetscapes and interconnected trails, connecting citizens and visitors to area establishments, nearby parks, green spaces and neighborhoods.”
Key investments include:
• $1 million for citywide street resurfacing
• $250,000 to implement the CRA’s downtown parking strategic plan
• $2.5 million for upgrades to the Peterson Myers building and Stuart Avenue parking
• $17.5 million to advance the Walesbilt Hotel restoration
City officials consider the Walesbilt Hotel one of the most significant redevelopment investments. Earlier this year, commissioners approved a $2 million interim agreement for preconstruction and design work, which also sets a maximum CRA contribution of $17.5 million toward the restoration.
A study by PlaceEconomics projects substantial economic impact: 173 construction‑phase jobs, $19 million in labor income, and more than $900,000 in local tax revenue. Once it reopens, the restored hotel is expected to attract 19,500 visitors annually and generate $12.1 million in visitor spending in the first year.
Beyond downtown redevelopment, the budget funds improvements across multiple city services, including:
• Expansion of Memorial Gardens Cemetery
• Restoration of the historic Stuart House
• Construction of a new south fire station on Hunt Brothers Road
• Renovation of the recently acquired police annex facility
• Upgrades to the James P. Austin Community Center and the Family Recreation Center
• Improvements to the city’s water and wastewater systems
• Construction of multimodal trails, including the Ridge Scenic Highway Trail, Crystal Lake Loop Trail, and Kiwanis Loop Trail
• Renovations at the municipal airport, including a new weather station and beacon, an expanded parking ramp, and an aircraft tug
The budget is supported by a millage rate of 8.0462 mills, a 6.85 percent increase over the rolled‑back rate of 7.5304 mills. Under the new rate, a homeowner with a taxable value of $200,000 would pay about $1,609 in property taxes, roughly $103 more than last year.
The higher millage rate reflects a major surge in the city’s taxable property base. In the past year alone, Lake Wales added more than $1.5 billion in value, a 20.56 percent increase driven by new construction, annexations, and continued development activity, according to Lake Wales News.
