Council retreat kicks off budget season

Jun 7, 2022 By CHUCK BALLARO 3 min read

After receiving the news that the city of Cape Coral’s estimated property valuations went up a startling 38.9 percent, it was guaranteed that the upcoming budget talks will be quite interesting.

That process officially kicks off Thursday and Friday when the Cape Coral City Council and the city’s Budget Review Committee will hold a two-day retreat at the Palmetto Pine Country Club starting at 9 a.m. both days. The public is welcome to attend.

With property values increasing and the expectation that the city’s population is expected to grow by another 20,000 in the next five years will make this budget season perhaps one of the most interesting in city history.

The budget could likely hit some key milestones. The overall budget could hit $1 billion and the General Fund could top $300 million for the first time.

Topics expected to be discussed over the next two days include growth, capital improvements like parks, sidewalks and medians and roads and bridges, tax growth and the property tax rate, personnel needs, investments to balance the need for growth and the environment and debt.

Councilmember Tom Hayden, who in the past has been hesitant to drop the millage rate, said that residents can expect to see a significant drop in the property tax rates as keeping them the same would mean tens of millions more in city coffers.

“I’ve changed my thinking on this because property values came in much higher. It was unexpected. Keeping the millage the same isn’t the right choice,” Hayden said. “At 20 percent it gets us about $22 million more than we thought we would have.”

Many homeowners are protected by Save Our Homes, which caps property tax increases at 3 percent (or the rate of inflation, whatever is lower) for properties that at Homesteaded. Properties without Florida’s Homestead Exemption are still capped at 10 percent.

Hayden said Finance Director Mark Mason is perhaps looking to drop the millage from the current 6.25 to somewhere between 5.7 and 5.9. Hayden said it still allows the city to have extra revenue to fund needed projects.

One mill is equal to $1 for every $1,000 of taxable property valuation.

Last year’s General Fund, or operating, budget was $296,590,898 and the total budget was $978,464,119.

“If you drop the millage to 5.7 and 5.9 and take away $4 million or $5 million away, you still have $17 million or $18 million which allows us to look at projects like a clubhouse for the golf course or money for sidewalks within one mile from a school,” he said.

The city could also consider a new aquatic center, which the city needs and was reminded of during last week’s meeting and add more money in reserves to stay in that three-month range for operating expenses.

Funds could also go toward some of the money Gov. Ron DeSantis took away from the city with his budget vetoes. Among the projects the governor vetoed were $1.75 million for the Caloosahatchee Connect reclaimed water pipeline from Fort Myers to Cape Coral.

Hayden said the city would probably put the money back in for the local legislature and look to get the money back.

Palmetto Ridge Country Club is at 1940 SW 9th Court.

To reach CHUCK BALLARO, please email news@breezenewspapers.com