Failure of Marco City Government

Since I left Council (2012 – 2016), the city has deteriorated financially due to City Manager and four councilors' mismanagement. Their decision to budget a Rollback Millage Rate for Ad-Valorem Taxes, resulting in NO PROPERTY TAX INCREASE for EIGHT YEARS, which resulted in a loss of a revenue source to fund future infrastructure needs, which never reared its head until Fiscal Year 2026.

As to why that was never discussed in prior years, it is difficult to describe other than an oversight, which is being polite.

Fiscal Year 2016 -2017 Taxable Value $9.266 Billion,

Fiscal Year 2024 – 2025 Taxable Value $17.103 Billion, Increase of 82.6%.

Fiscal Year 2016 -2017 Millage Rate was 1.9966,

Fiscal Year 2024 – 2025 Millage Rate 1.2400, Decrease of 37.9%.

Fiscal Year 2016 – 2017, Ad-Valorem Taxes $18,7 Million,

Fiscal Year 2024 – 2025 Ad-Valorem Taxes $20.4 Million, Increase of $1.7 Million, Increase 9.0%.

This is the Problem. Failure to generate sufficient revenue to fund infrastructure needs!

The City was able to direct itself to infrastructure needs because in 2019, they were receiving revenue from the County 1% Sales Tax ($24.3 million) over several years. The Voters of Marco VOTED AGAINST THE 1% SALES TAX.

Unfortunately, the 1% Sales Tax did not cover the total cost of Veterans Park and the Fire House; both projects had to be bonded to cover the balance of the cost.

Unfortunately, they had a tool in their box for infrastructure needs and that is The BUCKET LIST, which was established by the City Manager while I was on City Council, which we Councilors blessed. The Bucket List was established after review of all General Government assets and their life span. The decision was to deposit from the General Fund Revenue $5 million annually to cover the cost to replace the assets on a cash basis and NOT BOND for it.

Unfortunately, the City, for eight years, did not fully fund this reserve for approximately $24 million.

In Fiscal Year 2026, the City’s initial budget was for a significant tax increase from a millage rate of 1.2400 to 1.6680, which would have resulted in a $9.3 million tax increase. Here again, the City Manager and MOST City Councilors did not comprehend the Spending Cap Calculation that prohibits them from doing so. They were forced to settle for lesser Millage Rate of 1.2670, which resulted in a tax increase of $2.3 Million.

Note: In eight years, taxes increased $1.7 million and in one year, taxes increased $2.3 million.

Result: In eight years, City Government was fiscally irresponsible! That leaves the City with a revenue dilemma.

I reviewed the 10-year Capital Improvement Plan and did not see any line item for Street Resurfacing and Stormwater Projects.

Recommendation: The City Councilors should DELETE the Assistant City Manager Position. They should also disband the Fleet and Facilities Department and put that responsibility back with the Department Heads, as was done before.