Barroso Releases Annual Report Amid Executive Pay Raises and Department Reclassifications

City manager highlights progress as compensation decisions draw scrutiny.

Key West City Manager Brian Barroso has released the city’s annual report outlining municipal finances, capital projects and departmental priorities as recent pay increases for top administrators continue to draw public attention.

Mayor Danise Henriquez is expected to deliver her annual State of the City address at the March 5 City Commission meeting, scheduled to begin at 9 a.m. The presentation typically appears during the first two meetings of the year, but was not listed in Jan., or Feb. agendas.

The manager’s report, published online this week, provides a department-by-department overview of operations, infrastructure initiatives and fiscal management across city government. In a letter to residents, Barroso describes the document as a snapshot of accomplishments and ongoing challenges, citing capital improvements, waterfront investments and organizational changes.

The report’s release follows a recent amendment to Barroso’s employment contract approved by the City Commission. The revised package increased his salary and benefits and placed his compensation among the higher levels for municipal managers in comparable Florida cities, based on publicly available data.

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At least one senior department head also received a reclassification and raise. Marcus Davila in the city’s Community Services Department was promoted from director to senior director, a change that included a salary increase of more than 10 percent and brought his annual compensation to just over $171,000, according to city payroll records.

Most other city employees received smaller cost-of-living adjustments, while fire and police union contracts provided for roughly 5 percent pay increases.

City officials have said the administrative adjustments reflect expanded responsibilities and organizational needs. Some residents and observers have questioned the timing and scale of executive pay increases as the city continues to face infrastructure demands and budget pressures.

The annual report identifies Community Services as the city’s largest operational division, employing 107 workers — more than either the Key West Police Department or the Key West Fire Department. The department oversees streets, sanitation, facilities maintenance and other core infrastructure services across the island.

The document also details capital improvement planning, marina and waterfront projects, housing initiatives and administrative changes, and outlines the city’s financial position and budget priorities for the current fiscal year.

Barroso wrote that the report reflects “important milestones” while acknowledging the challenges of managing growth, infrastructure and workforce needs in a tourism-dependent island city.

The annual report is likely to factor into upcoming City Commission discussions as officials continue to debate spending priorities, staffing and long-term planning.