The Marathon City Council has postponed a vote on a significant increase to vacation rental license fees. The proposed hike, intended to cover city costs associated with rentals, faced strong opposition from rental owners and industry professionals who argued the increase was excessive and lacked sufficient justification. The council will revisit the matter next month.
Key Takeaways
- Marathon City Council is considering a substantial increase in annual vacation rental license fees.
- The proposed increase aims to offset costs incurred by the city due to vacation rentals.
- Rental owners expressed concerns about the magnitude of the proposed fee hike and the data supporting it.
- The council ultimately decided to table the resolution for further review and discussion.
Proposed Fee Increase and Justification
The Marathon City Council debated a resolution that would raise annual vacation rental license fees by up to $1,000 per home. The proposed new fees range from $2,100 for a new one-bedroom rental to $3,000 for a new 10-bedroom rental. These figures are intended to cover a portion of the city’s expenses, including legal team salaries, vacation rental agents, vehicles, software, office space, code officers, and contributions to the parks and recreation and fire/EMS budgets.
Councilman Kenny Matlock, who pushed for the fee adjustment, stated that the increase is a "numerical calculation" to ensure vacation rentals cover their costs to taxpayers and city staffing, noting that the city has not raised fees in four years despite increased expenses.
Opposition and Concerns from Rental Owners
A dozen rental owners, managers, and industry professionals attended the meeting to voice their objections. They argued that the proposed increase, in some cases more than doubling current fees, was excessive and could negatively impact the local tourism-based economy. Concerns were raised about the timing of the data supporting the fee increase, with some council members noting it was received shortly before the meeting.
Rental owners highlighted the economic benefits vacation rentals bring to the community, including revenue for local businesses, vacation management companies, cleaners, and pool services. They requested more comprehensive data to justify the significant hike and suggested a more gradual increase over several years.
Council’s Decision and Future Steps
While some council members acknowledged the need for cost recovery, others expressed reservations about the size of the increase and the potential for legal challenges, despite the city attorney noting Marathon has amended its fee structure multiple times without issue since 2011. Concerns were also raised about the disproportionate impact of flat-rate increases on smaller rentals.
Ultimately, the council unanimously agreed to table the resolution. The decision to postpone allows for further review of the justification data and provides an opportunity for more discussion. The matter is now scheduled for consideration at the council’s regular meeting in February.
Other Council Business
In other proceedings, the council announced an open-format question-and-answer workshop for residents on January 27th. The Marathon Fire Rescue department officially welcomed three new firefighters and recognized Lieutenant Shana Rogers for 21 years of service. Maria Thorley was also honored for 20 years of service in the city’s code department. Additionally, the council unanimously approved resolutions accepting $1.5 million in grant funding for affordable housing reconstruction.
Sources
- GO UP, OR STAY THE SAME? MARATHON COUNCIL DEBATES VACATION RENTAL FEES, Keys Weekly Newspapers.