When the city of Cape Coral started its charter school system in 2005, there was a promise that it would not be funded in any way by city taxes.

Today, that promise, which was not formalized in an ordinance or resolution, is something officials say may now have to be broken to keep the municipal system’s four schools open.

On Wednesday, during a five-hour workshop meeting, the Cape Coral City Council, along with administrators for the school system, determined that as a result of benefits the school system brings, and the debt the city would assume by closing them, the city should do what it can to keep the schools open and operating, even if it means subsidizing the system with tax dollars.

Assistant City Manager Connie Barron gave the city council two simple options; to keep the schools open and consider it a core service, or to close them and let the School District of Lee County disperse the students among its public schools, along with the consequences for both.

If Council consensus was yes, the city would have to cover the system’s debt service ($57.8 million over the next 19 years), restructure the leases on the buildings and take over the non-academic administrative duties of the system.

Charter Schools Superintendent Jacqueline Collins said she believes the schools should be considered a core service and the city should do what it can to help.

“Things are different from what they were in 2005. The revenues don’t keep up with inflation. We can’t overload classes with students. The money should be going to the students,” Collins said.

The schools, which are public schools operated by the city and open to all city residents as space permits, do not charge for tuition. Most of their funding comes from the state in Florida Education Finance Program (FEFP) and the Public Education Capital Outlay (PECO) money. The amount of money received is per pupil. If they don’t fill the schools, the system receives less money.

When Council gave its suggestions, it became quickly apparent that the board wanted to do whatever it can to keep the system solvent, since all four schools have an “A” rating.

Councilmember Dan Sheppard said the schools can not only educate, but also change the financial demographics of the city for the better.

“The schools are a winner, but they are being held back because the money has been stagnant. We need to take the financial strain off them and allow them to teach hi-tech and higher paying fields,” Sheppard said.

Councilmember Rick Williams suggested, perhaps, raising non-ad valorem taxes such as the Public Service Tax or the franchise fee charged to electric bills, while Councilmember Tom Hayden suggested a referendum to add an additional property tax as the city did to raise money for its $60 million parks plan via general obligation bonds.

It also became apparent that “no” was not an option, since the city would have to pay the debt service whether the schools were open or not, as the debt for facilities belongs to the city and not the school system the city created.

“If the schools go out of business, we still have to pay the debt. We need to make sure that all the schools are filled every year,” Mayor John Gunter said.

The city will address charter schools at a later date.

In other business, Council also received an update on the upcoming 2021 state legislative session and discussed changing the collection method for Lee County Annual Solid Waste Disposal Facilities Assessment Tax.