Retreat kicks off city budget discussions
First of two sessions held at Palmetto Pine Country Club
The city has done many things over the years regarding how it puts together a budget. For the first time on Thursday, the Cape Coral City Council held a retreat to get a first glimpse of the 2023 fiscal year budget and explain what the members believe to be the wants and needs.
After the first meeting, which was held at Palmetto Pine Country Club, residents can expect a much lower millage, thanks to the huge jump in property values, while other ideas such as a fully taxpayer funded fire service assessment went nowhere.
Finance Director Mark Mason and City Manager Rob Hernandez sought direction on a millage rate, the FSA and council priorities for the preliminary budget proposal on the first day of the two-day retreat.
One of the first things council noticed was a smaller overall budget and general fund. The 2022 overall budget was $978,464,119, but drops to $943,588,701 for 2023. The general fund drops from $296,590,898 to $246,285,476.
The general fund numbers are a little misleading as some adjustments were made. The golf course and Parks & Recreation programs moved from a special revenue to the general fund, along with sidewalks, while the FSA moved from the general fund to special revenues. A Bridge Capital Project fund was also created.
The current millage is 6.25. With the estimated 20 percent growth rate in property values, the rollback rate becomes an estimated 5.4292 for 2023.
One mill is equal to $1 for every $1,000 of assessed taxable property valuation.
Among the highlights include the hiring of 15 firefighters for Station 13 opening later this year and 15 police personnel, beautification on four major intersections and the development of a bridge rehabilitation fund.
With the city manager’s budget plan utilizing a 10 percent increase in taxes, his plan equated to a millage of 5.7052. The Go Bond debt service millage was expected to be 0.0471.
Another idea was to make the FSA fully funded 100 percent by taxpayers. This would happen over a five-year period to bring it more in line with most municipalities, that also use 100 percent. Cape Coral’s rate is 62 percent and would remain so.
This was a non-starter with those on council, even if it would mean a further drop in the millage. But a drop in the millage to between 5.70 and 5.90 was thought to be a good idea by council.
“I don’t like to reduce the millage with everything that has to be done, but with property values increasing I changed my mind,” Councilmember Tom Hayden said. “The 6.25 rate is too high. I’d like to see the millage at 5.7 to 5.9.”
Among the things council members wanted to see included in the budget (which was put into the city managers “parking lot” for later discussion) was an aquatics center, the creation of an Oasis High School athletics facility and more sidewalks and median improvements.
Hernandez said Thursday’s meeting was a great first day as he was able to gauge City Council’s interest in priorities.
“We had a conversation before we get into the work on the final budget. I sensed they are looking at expanding the recreational opportunities such as access to freshwater canals and an aquatic center and full agreement in expanding our public safety plans,” Hernandez said.
Mayor John Gunter said it was great to get lots of information early on and to be able to discuss it before council’s summer recess, which begins after the June 15 meeting.
“We have wants and needs and it’s our job to identify the priorities for them and move forward,” Gunter said. “It’s like your house except this house is a little bigger. We need to find that balance between wants and needs and that’s why we have these discussions.”
The second day of the City Council budget retreat is Friday starting at 9 a.m. at Palmetto Pine Country Club.
To reach CHUCK BALLARO, please email news@breezenewspapers.com