FOIA Request Reveals City Awash in Cash

I recently submitted a Freedom of Information Act (FOIA) request to the City of Marco Island regarding its capacity to finance the upgrade of Marco’s wastewater treatment plant to Advanced Wastewater Treatment (AWT) or better, technology and the City’s budget is now coming up for discussion. It appears the city is seemingly awash in surplus cash, totaling over $130,000,000 kept in pooled or commingled cash and investments spread across 37 General, Operating, and Capital Improvement accounts (Not including reserves for pension benefits for police, fire or other employees.)

This is particularly striking considering that for the past eight years, the city has been budgeting and limiting real estate tax increases to the "Rollback Rate," despite substantial increases in property values during the same period. While such a policy might appear fiscally prudent on the surface and has kept individual homeowner taxes lower, it has, in reality, deprived the city of essential resources needed for critical water quality projects, infrastructure needs, water and sewer projects, roads, staffing, fair and competitive compensation to City staff and protecting the environment. At least a few City Councilors acknowledge that at the 4/21/25 Council Meeting.

Unfortunately, I have not yet been able to obtain a clear response regarding how much of this money is legally or covenant-bound, reserved by law, required to meet bond obligations or simply policy restrictions initiated by City staff. Additionally, the city's reticence extends to how much of this money is already earmarked for projects with existing contracts or how much is allocated to projects that may never see the light of day.

A noteworthy detail is that over $45,000,000 of this sum is designated for the Water and Sewer Department. Simultaneously, while holding this cash reserve, the city appears to have over $140,000,000 in outstanding bonds.

To be completely fair, I don’t know if the cash reserves or bond obligations are too high, too low, or just the right amount, but I believe that the citizens of Marco Island deserve a straightforward, "Plain English" summary of the city's financial condition and a comprehensive needs assessment before the budget process for the next fiscal year commences. As citizens, we have a right to this transparency and clarity.