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Marco Island City Council reduced property tax rates for the eighth consecutive year and approved a nearly $32 million budget for 2025 that provides raises for staff, police and fire personnel.

The $31.92 million budget approved by Council on Sept. 9 is 1.5% lower than this year’s $32.4 million budget and includes 3% raises for city staff, a 5% increase for firefighters and 15% to 20% raises for police to make them competitive with others statewide.

The rolled-back property tax rate—which provides the same revenue as this year’s millage rate—will be 1.24 mills, a decrease from 1.31 mills this year. Over the past eight years, residents have seen a 40% decrease in taxes. The final budget vote will take place at 5:30 p.m. Sept. 23 at City Hall, 50 Bald Eagle Drive.

Before the budget passed, Vice Chair Erik Brechnitz proposed removing $206,480 for a three-month trial for a Collier Area Transit bus service from January through March. The pilot program is designed to determine whether on-island service would lessen parking and traffic congestion during season. The bus would be painted to look like an old-fashioned trolley.

“I would rather use the $200,000 for all these other projects in which we’re having dollar shortfalls,” Brechnitz said of the canal flushing project, repairing bridges and other infrastructure needs.

Nine residents lined up to oppose the 50-passenger bus pilot program supported by many, including businesses and restaurants. Many wore “Stop the bus” pins and signed an online petition, which urged residents to vote out councilors Rich Blonna and Becky Irwin, who were among four who support the trial and are up for reelection in November.

Residents urged Council to conduct a parking and traffic study, let voters decide or conduct a survey, consider reenacting a toll on the S.S. Jolley Bridge or impose a bus fee to gauge interest.

Councilor Joe Rola contended residents don’t want bus service and elderly residents, who don’t like the heat, won’t walk to a bus stop. But Blonna, Irwin and councilor Darrin Palumbo said a trial would gauge interest and determine whether it solves parking and traffic problems.

Chairman Jared Grifoni called the “anti-business mentality” unfortunate, noting that businesses and restaurants pay taxes and employ people, bringing in $1.2 billion in tourism-related wages. He noted that $2.5 billion in direct spending countywide is tourism related and includes the city.

“It helps us in various ways, keeps our taxes down,” Grifoni said, adding that beach work is all supported by county Tourism Development Taxes, all paid for by visitors.

He agreed public transit is always a loss for taxpayers, but this would cost only one-thousandth of a penny per full-time resident per ride.

Despite the push to defund the bus, a motion to approve the budget without the bus pilot program failed 3-4, prompting councilors to pass the proposed budget 5-2, with Brechnitz and Rola opposing.

The budget and reduced taxes are possible because Marco Island’s taxable value for property and personal property, such as vehicles, increased to $17.1 billion, up 7.54% from this year’s $16.9 billion. Add to that, new construction, which staff expects to bring in another $300,000, and the lack of new capital projects.

The millage rate keeps water and sewer rates the same. One mill is equal to $1 for every $1,000 worth of a property’s taxable value after adjustments, including a homestead exemption, so an owner of a $1 million home would pay about $1,240 in city property taxes, nearly $74 less than this year.

The $6.89 million police budget is up from $6.2 million this year, allowing 15% raises for officers, with an additional 5% for sergeants. Command staff, which includes the chief, two captains and two lieutenants, weren’t involved in the union negotiations. The three-year contract approved this month increases officers’ starting pay to $50,537, while sergeants’ salaries will rise to $65,800. In addition, officers who receive a satisfactory evaluation will get 5% annual increases retroactive to 2018.

At a budget hearing in July, city Police Chief Tracy Frazzano said there are six vacancies and that officers leave for “more money and more opportunities” at Collier County and Lee County sheriff’s offices and state Division of Alcoholic Beverages & Tobacco. City Manager Mike McNees said the collective bargaining agreement represented the largest one-year pay increases in his career, noting it’s “healthy” and brings police “where we need to be.”

The $8.36 million fire budget is 8.7% higher than last year’s $7.69 million budget and includes lower reduced payroll and pension costs. The Public Works budget will rise 10.3% to $3.4 million and the Parks & Recreation budget will drop 1.7% to $1.26 million.

Council also unanimously approved a 1.6 millage rate for the Hideaway Beach Tax District, up from 1.55 mills this year. The special district, which has a $873 million taxable value, was created to preserve, maintain and monitor Hideaway Beach, a private beach accessible only to Hideaway Beach Club members and residents.

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