City Budget Discussions Continue

Marco Island City Council held its third meeting to discuss the 2022-2023 Annual Budget on Monday, July 18. The first meeting with Finance Director Guillermo Polanco was held in June to review the city’s finances and where anticipated revenues would come from to support the next fiscal year’s budget.

The State of Florida showed an estimated 10% rise in the total assessed valuations in Collier County in early June. Those numbers are yet to be finalized, but the city has taken a conservative approach, only plugging in a 5.3% rise in those numbers, making it easier to put together the budget. However, the votes are there to continue the process of setting the millage rate at a “roll-back” number. Simply put, they will continue to raise funds from ad valorem taxes, which were raised in the previous year, from homeowners who were homesteaded over the last year.

Additional revenues will be raised through sales tax receipts, new properties entering the property tax rolls, increases in valuations from improvements, and other income streams not related to ad valorem tax receipts.

The second meeting regarding the 2022-2023 budget focused on the “capital budget.” This takes into consideration departmental requests for new equipment, such as vehicles, radios, computers, generators, buildings, and other “one-time” purchases.

During this week’s discussions, staff and council looked at manpower requests and the cost to run government on a day-to-day basis. This segment of the budget deals with the ongoing “operational budget.” Early on, it became evident that the city is beginning to feel the impact of higher fuel costs, insurance increases, and the need to stay competitive with employee compensation. 

Regarding employee retention, the city continues to see a very competitive environment. Private enterprise and other governmental agencies are constantly seeking to lure employees with specialty skills and abilities. Marco Island has not been immune to this, especially if an employee will be able to work closer to home and defer added fuel costs from commuting.

The city was fortunate in the last 18 months to settle contract negotiations with two unionized bargaining units. Government agencies in both Lee and Collier counties have also sweetened the pot for similar employees.