Council Budget Discussions Begin

Beginning in May, and continuing in the four months that follow, city staff and elected officials take on the laborious task of creating Marco Island’s fiscal budget for the upcoming year.

This involves creating an operating budget as well as a capital budget for the city. At the same time, they are working on obtaining approval of an operating and capital budget for the city’s Water/Wastewater Utility. As an enterprise operation, the utility does not require any ad valorem taxes to support it for operations or capital funding.

In July, the city is required to set its preliminary tax rate, which is a “not to exceed” rate. In September, the final rate that will be transmitted to the State of Florida may be less than the preliminary number, but will not exceed it. 

City Manager Michael McNees and city staff have been working with department heads to create a preliminary budget to present to council in June. Council will then hear from the city’s Finance Director Gil Polanco and department heads.

City Manager McNees, Finance Director Polanco and City Council met in a workshop setting in May to discuss income stream news recently released to Collier County by the State of Florida. The information concerned county property values and contained very few (if any) surprises regarding the substantial growth in Collier County over the last two years.

The State of Florida’s report showed that last year the assessed valuations in Collier County rose by 10%. The increase in property valuation, as well as new construction, accelerates those county growth numbers.

The City of Marco Island is not utilizing that 10% number as they create its 2022-2023 budget. Instead, a more conservative approach is being taken, and the figure of 5.3% is being used to calculate revenue streams to fund the budget.

Under Florida law, homesteaded residential property values are capped at 3%. In Collier County, non-homestead residential property came in at an 11.2% increase and non-residential/non-homestead values showed a 2.4% increase. Polanco reached the 5.3% figure by taking an average of the three distinct taxable property segments.

Currently, the total value of properties throughout Marco Island stands at $12.5 billion. 

Coastal Breeze News will continue to report on the budget process and any future workshops.