Back HomeA plan to apply more than $11 million in special assessments for vacant lots for improvements to the Marco Island Utility’s infrastructure has been moved to the Oct. 20 Marco Island City Council meeting.
The change in the date for consideration of the issue was dictated by publishing deadlines for advertising of the meeting, city officials said.
The proposed assessment dates back to the original STRP program and the improvements made to both the wastewater treatment plant and upgrading of the water-production facilities on the island.
During a recent utilities rate workshop, the council agreed to move forward to collect those capital improvement costs from vacant lot owners benefiting from the improvements to the system. Prior to this action, owners would not have to pay for those improvements either until the lots were sold or they built on the property.
The total amount of revenue the city would realize if all the money owed were to be paid at once is about $11.22 million, city officials said.
The mechanisms for payment would be similar to those property owners were offered during the STRP program. They include being able to pay up-front and receive a discount or make payments for the next 10 years with interest on the balance.
If the property is sold, the debt would have to be immediately satisfied to clear title of the property.
The funds for the improvements had to be borrowed via the bonding method and any payments by this assessment of the vacant lots would have to be encumbered for paying down that debt, city officials said.
Homeowners and consumers of the utility today are paying for that borrowing in their monthly utility bills, while vacant lot owners are seen to be benefiting in the value associated from the improvements, while deferring payments.
The council was originally scheduled to hold a public hearing and vote on the plan during its Oct. 6 regular meeting. However, due to a problem with scheduling the required legal advertisement of the issue, it has been rescheduled to the Oct. 20 meeting at 5:50 p.m. at the council chambers.
