Marco Island City Council Adopts FY27 Budget

The Marco Island City Council adopted the City’s Fiscal Year 2027 budget and millage rate during its September 22 meeting. The new fiscal year begins October 1, 2026.

The adopted FY27 General Fund budget is approximately $34.3 million, about 3.3% lower than the FY26 revised General Fund budget. The budget funds essential City services, including Police, Fire Rescue, public works, parks and recreation, and general City operations.

The City’s FY27 millage rate is 1.2670 mills, or $1.267 for every $1,000 of taxable property value. The previous year’s millage rate was 1.2400 mills.

Marco Island continues to have one of the lower municipal millage rates in Florida. According to 2024 data from the Florida Department of Revenue, only 16 of the 393 municipalities included in the report had a millage rate lower than Marco Island’s current rate of 1.2670 mills. The average municipal millage rate in that report was 4.8280 mills.

The City of Marco Island receives only a portion of the property taxes paid by residents.

Approximately 14% of the total property tax bill in the City’s example goes to the City of Marco Island. The remaining portion goes to other taxing authorities that appear separately on the tax bill, such as Collier County, the Collier County School District and other applicable taxing districts. The exact amount and percentage paid to each taxing authority varies by property. The FY27 budget also remains below the spending limit set by the City Charter. The City’s spending cap for FY27 is approximately $33.73 million, while expenses subject to the cap are projected at approximately $32.08 million. This places the City approximately $1.64 million below the spending cap.

The budget also includes investments in the City’s workforce. Police and Fire Rescue employees will receive a 6% pay increase, while General Fund City employees will receive a 3% pay increase.

The Fiscal Year 2027 budget took effect October 1, 2026.