Marathon reaffirmed its commitment not to raise property taxes for 2024-25 at its final budget hearing on Sept. 24 – but not without another short round of sparring over staff raises for the coming year.
Unanimously approved on Tuesday night, the 2024-25 operating budget was set at $136,353,198, supported by a millage rate of 2.2235 mills – equal to $222.35 paid by homeowners per $100,000 of taxable assessed value.
In addition to cost of living and merit-based raises for staff, changes for the new year include adjustments to staff salaries based on a recently-completed study comparing city salaries to those of comparable positions in nearby jurisdictions.
As outlined by Finance Director Jennifer Johnson, staff additions include a deputy city manager position, three battalion chiefs for Marathon Fire Rescue along with the removal of a deputy chief, three full-time and two part-time positions for the Parks and Recreation department, two full-time positions for the Public Works department, and three new full-time positions for street maintenance as the city assumes landscaping duties from FDOT along the U.S. 1 corridor.
The budget includes $400,000 to help fund the city’s first-time home buyers’ program, along with $8.5 million allocated to begin Marathon’s required deep wastewater injection well project. Other appropriations include $265,000 for City Hall improvements, $400,000 for new fire hydrants, $2.2 million for construction at the Seven Mile Marina, $100,000 for design of a multi-use facility on 33rd Street, $470,000 for Oceanfront Park improvements, $350,000 for Seven Mile Park improvements, $400,000 for new bathroom facilities at the Quay, $616,000 for Marathon Community Park improvements and $2.3 million for road and bridge improvements.
Johnson said Tuesday night’s original budget proposal would consume roughly $348,000 of the city’s general fund reserves, leaving the city still with 1 year and 35 days of operational expenses in reserve.
Though the council agreed at its Sept. 17 session to a 3% cost of living increase and 2% of employee salaries to be distributed as merit-based raises for high performers by department heads, Mayor Robyn Still immediately reopened the discussion, saying she was in favor of higher increases.
Councilman Jeff Smith, a strong advocate for data-based cost of living adjustment (COLA) increases in prior sessions, recommended the council establish an accepted standard for future adjustments to avoid an annual debate. He suggested that staff COLA raises should mirror those of the city’s lone contractually-obligated annual increase, given to accounting firm Bishop Rosasco & Co. for financial services, based on regional South Florida COLA statistics published in June.
Though Smith’s proposal initially found full agreement with a COLA number of 3.5%, Still and Luis Gonzalez later pushed for a 4% cost of living adjustment and 2.5% merit raise, with Still comparing the local cost of grocery staples to their mainland equivalents.
Smith and councilman Kenny Matlock said that while they were in favor of rewarding top performers, they were hesitant to create compounding increases with permanent raises as opposed to one-time bonuses. Smith and Vice Mayor Lynn Landry added that under the current proposal, top employees could still earn more than the prescribed 2.5% through department heads’ discretionary distribution of available funds, with poor-performing employees awarded less than the average number.
All five members eventually unanimously approved staff raises totaling 6%, with 4% set for cost of living adjustments for all employees and 2% of salaries to be distributed by department heads as merit increases.
The Weekly contacted Johnson by phone on the morning of Sept. 25 for clarification on the budget impacts of the altered staff raises, but did not receive a response before press time.
