Council Facing Tough Budget Decisions

Marco Island City Council met in a workshop session on May 20 just prior to their regularly scheduled council meeting to hear from Assistant City Manager Casey Lucius Her presentation was regarding the city’s outline of the budget policies that have been followed and continue to be followed by staff members.

Dr. Lucius also gave an outline of how to understand the tax bills received by residents and sent out by Collier County. The first of those mailings are called the TRIM  Notice.

When setting property tax rates, local governments set a rate that will bring in the same amount of tax revenue as in the previous year. That is known as the “Rollback Rate.” Revenues brought in by new construction are not included.

Any increase over that rate is considered as a “tax increase,” and requires public notice.

Of the 393 municipalities reporting to the State of Florida Revenue Department the following numbers are shown with regard to millage rates

• 24 Adopted rollback
• 7 Lowered their millage rate
• 54 Increase their millage rate 
• 239 Adopted same millage rate
• 69 Adopted millage between rollback and neutral

Marco Island was in the bottom 5% regarding millage with only 17 communities with a lower rate. (**These numbers, however, do not reflect income sources to fund municipal services beyond that of the millage rate).

Although revenues have been increasing it was apparent that so have city expenses.  Should the city continue their policy of “rollback” with  future budgets, they may have to either consider new revenue sources or cut discretionary programs and limit new initiatives.