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Title:
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Resolution - Adopting the Tentative FY2026 Millage Rate - City of Marco Island - Melissa Hinton, Budget Manager, Finance Department
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Agenda Item: 6(a)
Prepared By: Melissa Hinton, Budget Manager
Business: Public Hearing
Department: Finance
Subject:
Title
Resolution - Adopting the Tentative FY2026 Millage Rate - City of Marco Island - Melissa Hinton, Budget Manager, Finance Department
Body
BACKGROUND:
City Council is requested to consider the attached resolution setting the tentative millage rate for the 2026 City Budget. This resolution conforms with the discussions at your August 25, 2025 City Council meeting.
To comply with the TRIM regulations, City Council is required to take separate actions in a specified order. At each of the public hearings, the public may speak and ask questions before Council adopts any measures. Council must then adopt a millage rate before it adopts a budget. The millage rate and budget must be adopted by separate votes at the advertised hearing. The final millage rate adopted at the second hearing cannot exceed the tentatively adopted millage rate.
The proposed tentative millage rate is the rate of 1.2400 mils for City operations. The City staff is recommending an amendment to the Resolution to approve a millage rate of 1.267 to generate approximately $500,000 in additional revenue to fund the Winterberry beach boardwalk replacement.
At the hearing, prior to adoption of the millage levy resolution, the following must be announced:
1. The name of the principal taxing authority is the City of Marco Island, Florida.
2. The current year aggregate rolled-back rate is 1.2449 mils.
3. The current year proposed aggregate millage rate is 1.3228 mils.
4. The change over the aggregate rolled-back rate is an increase of 6.26 percent.
5. The millage rate to be levied is 1.2400 mils for City of Marco Island.
6. The City has a dependent special district and the Board of Supervisors of the Hideaway
Beach Special Taxing District at their May 20, 2025 meeting recommended a tax levy of 1.600 mil for district operations.
FUNDING SOURCE / FISCAL IMPACT: The fiscal year 2026 budget is presented in balance and the operating millage rate of 1.2400 will support the budget as discussed by City Council. The proposed budget continues the process of eliminating the requirement to borrow money to pay for renewal, replacement, and improvement of currently owned assets by accumulating funding to build reserves for a prescribed list of projects. No debt service millage is needed since the Veteran's Park voted debt service has been repaid as scheduled
RECOMMENDATION: Conduct the public hearings required by TRIM regulations and approve the resolution adopting tentative tax levy millage rate. The rate to be considered at the second public hearing can be lower, but no higher than the rate approved at this first hearing. The budget is based upon an operating millage rate of 1.2400. However, the staff recommends approving a tentative millage rate of 1.2670. The operating millage can be reduced in the motion below, but not increased from the proposed rate of 1.2670 mills.
POTENTIAL MOTION: "I move adoption of Resolution 25-41 authorizing a tentative tax levy and millage rate of 1.2400 mills (or 1.2670) for City operations for the City of Marco Island, exclusive of dependent taxing districts."