COUNTY PROPOSES TO EXPAND MUNICIPAL SERVICE BENEFIT UNIT (MSBU) PROGRAM TO SUPPORT NEW RESIDENTIAL NEIGHBORHOOD IMPROVEMENTS

MONROE COUNTY, FL – Monroe County is proposing to expand its existing Municipal Service Benefit Unit (MSBU) program in unincorporated Monroe County to allow property owners to initiate and fund neighborhood improvement projects. This new program will broaden the scope of possible improvements beyond those aimed at addressing flooding, based on various requests the county receives from residents.
 
Many neighborhood residents are facing challenges from sea-level rise or sunny-day flooding. The county created several pilot projects to develop planning, design, and construction projects to elevate roads and adjust drainage to address the flooding. After several projects were designed and bid out, the cost of these improvements exceeded the grant funding available to construct them. Between 40 and 90 neighborhoods are expected to need some type of drainage improvement over the next several years. It became evident that using ad valorem tax, also known as property tax, collected countywide to fund these specific neighborhood projects would be cost-prohibitive and also raised a fairness issue, as taxpayers were asked to fund improvements that benefit only those in lower-lying areas.
 
“This program provides neighborhoods an opportunity to request neighborhood improvements, while also placing the responsibility for funding them on the properties benefiting from them,” said Rhonda Haag, Chief Resilience Officer. “The county can partner with residents to make targeted investments that enhance safety, resilience, and quality of life and avoid overall countywide tax increases.”
 
The new MSBU Neighborhood Improvement Plan program would allow property owners to initiate and fund projects such as

• road elevations and drainage improvements
• canal restorations
• beach renourishment and erosion control
• living shorelines
• new sidewalks
• additional lighting
• other infrastructure or services that benefit a specific area

 
The county will continue to implement and fund basic operations, such as regularly scheduled maintenance and repair or repavement of existing roadways and bridges; maintenance of existing drainage structures; roadway striping; right-of-way vegetation trimming; and required street lighting and signage. These basic infrastructure operations are available to neighborhoods, subject to available budgeted funding.
 
Projects must be requested by residents and approved by a majority of the property owners (50 percent plus one) who would benefit from the improvements.
 
The county may advance funds for research, design, permitting, construction management, and related project tasks, with the costs reimbursed to the county through a special assessment on the properties that benefit. This is allowed by state law. The county is also considering a hardship deferral program for eligible property owners who may not be able to afford the assessment. The county may also apply for grants to offset project costs when available.
 
The Board of County Commissioners discussed this new program on Nov. 12 and will hold another discussion item at its Dec. 10 regularly scheduled meeting in Key Largo and via Zoom. A public hearing on the program will occur on Jan. 28, 2026, in Marathon and via Zoom. The Board will be asked to adopt the updated MSBU ordinance and formally expand the program. Once adopted, the county will work with property owners on each project.
 
Residents interested in learning more about the process can review the proposed flowchart, presentation, and draft ordinance at www.monroecounty-fl.gov/msbu. 

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