The Marathon City Council dove straight into dollars and cents at its July 25 special call meeting, setting a preliminary millage for the city’s 2023-24 budget – but most council members acknowledged there is still significant work to be done.
Finance Director Jennifer Johnson presented the proposed maximum millage rate of 2.72 mills – $2.72 paid per $1,000 of assessed property value. Although the millage is the same as the city’s 2022-2023 budget, due to property value increases, the proposed millage is 11.12% greater than the rollback rate, defined as the millage required to raise the same revenue as the previous year (2.4477 mills). Homesteaded properties would not see the full brunt of this proposed increase, however, as their tax increase is capped at 3% per year.
Notable increased expenditures in the proposed budget include health benefit increases of at least 15% for city employees, as well as merit increases and a 9% cost of living adjustment. The city is proposing to add up to 21 new employees – one full-time code position, up to 13 new firefighters, one full-time and one part-time position in parks and recreation, four new positions in public works and a new vacation rental specialist position. Increased insurance and communication costs, as well as adjustments to pension contributions, round out the increases.
The proposed budget would see roughly $1 million added to the city’s reserves – above the city’s $20.5 million in budgeted expenses – leaving Marathon with about 13.5 months’ worth of reserve funds, 44 days above its 12-month target.
Upcoming meetings to discuss the 2023-24 budget may lower the proposed millage, but not raise it. Councilman Jeff Smith encouraged his fellow council members to “sharpen their pencils,” questioning multiple aspects of the budget including the proposed cost of living adjustment, fire rescue contract numbers with the city of Key Colony Beach that have remained mostly static for multiple years, and the added cost of numerous extra staff positions.
“I’m not all that happy with double-digit tax increases,” he said. “We may look at homesteaded properties, but the fact of the matter is that you still have the excess burden going on commercial property owners and all your rental properties. All your tenants are going to get burdened by this increase.”
The preliminary millage was approved in a 4-1 vote by the council, with councilman Kenny Matlock as the lone “no” vote. Public hearings for the proposed budget are set for Tuesday, Sept. 12 and Tuesday, Sept. 26, both at 5:05 p.m. at Marathon City Hall.
In Other News
- At the invitation of councilman Lynn Landry following Marathon’s temporary closure of its Harbor Drive boat ramp during mini-season week, the council heard from resident Mark Martins, who lives across from the ramp. Martins described the daily “chaos” at the ramp, which sees high traffic and no available parking on a residential street. City staff diligently worked the ramp throughout the mini-season week, establishing a loop traffic pattern to eliminate two-way congestion, but Martins said more action is needed to address the unsafe area. Smith expressed concern with diverting the Aviation Boulevard traffic through residential streets, advocating instead for an increased fee for visitors for use of the Harbor Drive ramp relative to the city’s other ramps to make it less attractive to use. The council will revisit plans for the ramp as an agenda item for its August meeting.
- Reviewing a sample residential lighting ordinance from the city of Sanibel, Florida presented by Planning Director Brian Shea, the council discussed a need for an ordinance that would, among other provisions, prevent lights from residential properties from shining onto neighboring properties and residences. Real estate agent Josh Mothner cautioned the council to consider the safety elements provided by additional lighting in parking lots and multi-unit developments. The council will revisit the topic at a future meeting after providing Shea with comments and suggestions on adapting the sample ordinance to Marathon’s needs.
- Similarly, the council at a future meeting will explore changes to Marathon’s parking ordinances. Tuesday’s discussion of parking requirements throughout the city was a follow-up to concerns raised at the council’s first July meeting, which saw a clash between the Sister’s Creek Townhomes and Marathon Auto & Marine Service over parking in right-of-ways on 25th Street Ocean. While Matlock advocated for a blanket ban on parking in right-of-ways other than those immediately adjacent to an individual resident’s own property, the other four council members said they would rather see cases handled individually with tow-away zones or similar measures in problematic areas.
- Though no action was taken, the council discussed Marathon’s current Transferable Building Right (TBR) transfer fees. Currently set at $40,000, Smith expressed concern that with Building Permit Allocation System (BPAS) allocations dwindling, particularly for affordable housing units, the current fee would not be enough to discourage developers from using existing building rights formerly used to provide long-term residences as a way to build additional vacation rental properties – thereby further reducing Marathon’s low long-term housing stock. Matlock asked City Attorney Steve Williams to explore a mechanism by which the city could provide an incentive for transferable allocations to remain as homesteaded residences.
- Code Director Ted Lozier provided an update on his department’s efforts in vacation rental enforcement. Focusing largely on properties being rented without a proper license, Lozier said about half of roughly 50 existing violations are due to lapsed licenses, while the other half stem from properties that never registered as a rental. The department brought 18 cases to hearing in July, with 24 cases scheduled for hearing in August. He said the city has added about 150 new vacation rental properties since last July.
- The council approved a contract to hire Mothner’s Haven Business Solutions Inc. to provide housing coordinator services for Marathon. Mothner already performs qualifications for the city’s First Time Home Buyer Assistance Program, and will now oversee and maintain Marathon’s pool of affordable and workforce housing properties through income verification.
