City Budget on Track for First Quarter

Marco Island City Council, at its January 24 regular meeting, received its 90-day reflection on where the city stands in regard to the 2021-2022 annual budget. The city’s fiscal year runs from October 1 to September 30. The report, provided by the city’s Finance Director Guillermo Polanco, shows they are basically on track to meet all of their projections for this fiscal year.

The YTD projections for ad valorem tax revenues are actually trending slightly above the projected YTD number of $16,611,786, and came in at $16,900,576. That equates to a $288,789 figure above the projections.

However, licenses, permits and other taxes fell short by $75,791 of the projected first quarter budget numbers of $441,643. Future quarters may out-perform as some quarters come in lighter than others.

Miscellaneous income was down $73,136, as well as Transfers & All Others by $218,101, but it is anticipated that those too may correct as the year progresses.

The combination of all city department expenditures YTD are tracking well below their projected numbers. Some of that may be due to lower personnel costs from vacancies. The YTD budget for all those combined departments was anticipated to be at $7,069,561. The actual number for first quarter came in at $1,158,916, below those YTD projected numbers of $5,910,644.

Building Services revenues were budgeted to come in at $3,096,598, with first quarter revenues estimated at $774,150. Those first quarter revenues fell short by $47,109. Anticipated expenses for the first quarter were estimated at $774,150, but came in $142,186 below the estimate, at $631,964.

Council recently heard from the Community Development Director, under which the Building Services Department is located, that they may look at adjusting some of the inspection services fees in order to maintain a positive cash flow from the department. Those fees fund its operation from permit fees, and is considered an “Enterprise Fund.”

The city’s water/wastewater utility is another Enterprise Fund. Operating revenues were down by $618,578 from the projected budget of $8,181,895, and brought in $7,563,317. Those quarterly numbers fluctuate over the period of the annual budget. On a brighter note, the expenses anticipated for the quarter at $8,181,108 came in $763,027 below the YTD budget, at $7,418,081.