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Marco property values see greatest decrease in history

Marco suffers property value decrease for second consecutive year

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Marco Island’s taxable property values drop for the second consecutive year, more than doubling Collier County’s average decrease.

Numbers released by the Collier County Property Appraiser’s office last week indicated that city officials’ fears of a decrease were accurate.

“We estimated a 10 percent decrease. I’d like to tell you my crystal ball is 100 percent accurate ... We were pretty close,” said Marco Island Financial Director Bill Harrison.

According to the preliminary estimates by Property Appraiser Abe Skinner, taxable values decreased by about 9.5 percent in the City of Marco Island.

For the first time in 53 years, Collier County also saw a decrease in its taxable property value. Collier’s taxable property worth is down about four percent from the previous year.

The four percent decrease is the first decline on record for Collier County dating back to 1955.

Of Collier County’s incorporated areas, Marco fared the worst. The City of Naples saw only about a one percent decrease in taxable value and Everglades City experienced the area’s only increase.

Everglades City’s approximate seven percent increase was largely due to the completed construction of a large new condominium complex, explained assessment roll analyst Kevin Lilly.

Preliminary estimated numbers are usually released June 1, however officials said they issued the numbers a couple days earlier to help the leaders of the taxing districts as they approach budget decisions.

“We wanted to give them a head start on their budgeting. They’ve been anxious to get this number,” Lilly said.

Local governments have until August 1 to set maximum property tax rates.

“Hopefully we’ll have that answer (to this year’s tax rates) by June 16,” Harrison said.

If the millage rate were to stay the same as last year, the City of Marco Island would be looking at a $1.8 million loss in tax revenues due to the $1 billion decrease in total taxable values, he added.

“It will be up to the Council to come up with how to deal with it. There are really only two options: Take more money out of the pockets of the tax payers or cut government services,” he said.

On or before July 1, Skinner will send revised 2008 preliminary assessment roll figures to area taxing authorities and the Florida Department of Revenue, which will decide if the estimate is fair and accurate.

Harrison said that historically the initial estimate will likely only change by one percent or less.

Marco Island and many governments all over Florida were faced with declining property values while also facing the first year of tax reform last year, which included a mandated tax roll back over the next few years.

Marco cut its property tax collection by nine percent last year due to legislative reforms which “strongly encouraged” a decrease, Harrison said.

“We had to do some serious budget cutting,” he added.

Lilly explained that Marco saw the steepest decreases because “in the good days when the market was going up quickly, there was more speculative buying. The increases were higher (on Marco.) The greater the increases were then, the steeper the decreases are now,” he said.

Harrison said the city’s reserves would not likely be used to absorb all the loss. He said the city has $2.6 million, or about 15 percent of its total operating budget, in unrestricted reserves and $4 million, or about 25 percent of its operating budget, in emergency reserves, most likely reserved for use following a hurricane.

“It’s a reasonable level of reserves. It’s not excessive,” Harrison added.

Property owners will be given notice of their property-specific values and their taxing authorities millage rates in August. The Property Appraiser’s office will also have owners’ specific property values on their Web site in mid-July, Lilly said.

“The most important point is to remember we are looking at the market in 2007. When property rates were going up quickly every few months, people used to think “you’re values are way too low,” he explained.

Similarly, he added that people may have seen dramatic decreases in sale prices the first two quarters of 2008, but those values will be looked at in 2009.

As Harrison put it: “It’s meaningless to say the average property lost 10 percent of its value. Non-homesteaded homes may have decreased 20 percent. Homesteaded homes may have lost none ... Some people saw an increase in value.”

More information on Marco Island’s and the rest of Collier County’s taxable property values is available on the Collier County Property Appraiser’s Web site www.collierappraiser.com.

Comments

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Don't I remember Mr. Minozzi bragging that Marco property values would increase between 10% and 20% a year as far as the eye could see? When in office he based his development plans on this rosy-eyed scenario and bragged how he spent his life "in finance" and knew what he was talking about. Well, it seems he had pink eye, not foresight, doesn't it? Now he's pushing a toll bridge so he can get his name on the toll plaza. Maybe we could make the bridge an "enterprise" and use it to raise uncapped money. Now, there's a thought!

#1 Posted by blackwidow on June 4, 2008 at 9:32 a.m. (Suggest removal)

A couple of years ago Marco Island saw a record increase in property values. Noone seemed to complain then. The ones complaining are the ones that didn't sell in 2004

#2 Posted by hourigan82247 on June 4, 2008 at 10:01 a.m. (Suggest removal)

You may want to argue the 9.5% if you are a vacant lot owner. If you paid $600K for a water indirect lot in 2004 or 2005 you MIGHT be able to sell it today for $300K most, are selling for less. Paid $350 or $400 for an inland lot? $150K today if you are lucky. Home values for the most part mirror those percentages.

#3 Posted by Cheeseburgerinparadise on June 4, 2008 at 12:08 p.m. (Suggest removal)

Bill Harrison said: "There are really only two options: Take more money out of the pockets of the tax payers or cut government services..."

Hopefully the City makes the wise decision and cuts some government services. I don't like to see people lose jobs, but in a time when building has slowed TREMENDOUSLY... it only seems obvious that the building department be the first place to "trim the fat".

Past precedence shows, however, the City will most likely opt to raise our millage rate... or raise our water bill.

#4 Posted by Rachael on June 4, 2008 at 12:13 p.m. (Suggest removal)

bet on marco council to look out for you.....they always do....let's see....tolls, water tank, sewers, lamp poles, recycle center(joke for sure), hitler park, get rid of the farmers market, lift stations for the future, marriott gets whatever they want....and then under moss try to sell residents beach....what a crew.

#5 Posted by van on June 4, 2008 at 11:15 p.m. (Suggest removal)

Van, once again you have chosen to show your true colors. The entire Country is seeing a tremendous decrease in property values. Marco's decrease is actually less than many areas of the Country. Not one thing you said in your posting has had any effect, other than increase the values here, on Marco Island. If you think it is so bad, sell for a smaller profit and move.
The negative publicity from the CAVE people, before the last election and all the lawsuits had much more effect on the perception of our Island than anything you have brought up. Blame Mr. Neylon and Mr. Foster, if you want to assign any blame.
Ed Issler

#6 Posted by lauralbi1 on June 5, 2008 at 8:45 a.m. (Suggest removal)

To Ed Issler.......Neither Mr. Neylon nor Mr. Foster were council members. Even with the election over for some time you are still trying to find fault with them. I recall the City filing Lawsuits....Do you ? I am still waiting to hear where you disagree with the Marco City Council....past or present! The elected Council Members are in charge of running our City, Are you happy with everything they are doing ?

#7 Posted by SmokeyJoe on June 5, 2008 at 11:10 a.m. (Suggest removal)

Pound sand Naysayers!! We are so tired of all your complaining, intentional misinterpretations and lies. Your opinions really don’t matter anymore.
I get it...the world is against you and you hate life. Too Bad!! You lost all the law suits, you lost the election (actually you were slaughtered at the polls) and now you still haven't learned a thing; you're still complaining. Really, no one gives a schtuff!

#8 Posted by 27_Year_Resident on June 5, 2008 at 3:15 p.m. (Suggest removal)

I agree with 27_Year_Resident. Pound sand Naysayers! Lets look to the future and forget about the past. Get over it - the city is getting better every day.

#9 Posted by merton on June 5, 2008 at 5:08 p.m. (Suggest removal)

merton,

When you're on the bottom, there's only one way to go: up! Question is: are we on the bottom yet? I doubt it but only time will tell, not your ravings.

Issler, why don't you get off it? Nobody cares about your one-track mind and false accusations.

#10 Posted by blackwidow on June 5, 2008 at 5:35 p.m. (Suggest removal)

Now that Foster, Davies, Hall, Neylon, Erickson, Guidry and all of the other assorted trouble makers are either gone or silent I expect our property values to raise!

#11 Posted by MarcoFacts on June 8, 2008 at 9:13 a.m. (Suggest removal)

Property Values UP, Property Values DOWN.

It sounds to me like a bunch of Speculators lost a lot of money. How does that effect me? They didn't share with me when they MADE money.

My House is my Home. What its worth when I’m dead is the Kids problem.

I'm Homesteaded My Taxes aren't to bad.

I'm a Registered Voter and I like the new Council. They seem to get along well together, and when they get along they don't mess with me.

I like to walk my dog after dinner, I might go to the Parks with him. Probably not, we have a route we like.

I have a street light on a concrete pole down the block. It works, that all I care about.

I turn on a switch and the lights come on, that a good Power Company in my book.

I turn on the TV and watch shows that aren't as good as they used to be when they came through an antenna. But its not the Cables fault.

Some of my friends have moved because they couldn’t afford the rent, new friends have moved in. That's a push. (Breaking even in Vegas speak)

I’m getting used to people from NJ, or at least trying.

I've lived here a long time and seen this all before.

If you don't remember the Old Toll Bridge you really haven’t been here long enough to b*tch about the new one.

So like I tell my Dog,,,Shhhhhhh stop barking or ' No Cookie'

#12 Posted by OldMarcoMan on June 8, 2008 at 11:36 a.m. (Suggest removal)

Boy, MarcoFacts, that's about the dumbest thing I've ever read on this blog site. Since when do a handful of people make a difference in real estate values? Are you sure you're not that financial wizard, Mike Minozzi?

#13 Posted by blackwidow on June 8, 2008 at 4:18 p.m. (Suggest removal)



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