Mayor: ‘Tax relief’ legislation would hit city hard
Cape Coral officials are among those opposed to the Homestead Exemption change to come before state voters in November.
The Florida State Legislature this week passed a bill that largely mirrors Gov. Ron DeSantis’ plan to cut property taxes by raising the tax exception for owner-occupied homes.
The legislation, passed Tuesday, calls for a constitutional amendment that would raise Florida’s homestead property tax exemption from $50,000 to $150,000 in 2027 and then to $250,000 the year after.
The amendment, which was introduced by DeSantis, would require approval from 60% of the voters in November to become law.
The State Senate voted 30-9 and the State House voted 75-26 to pass the bill in a Special Legislative Session.
Ahead of the legislative votes, Cape Coral Mayor John Gunter on Monday sent a letter to the Lee County Legislative Delegation in opposition.
Saying property taxes constitute about 59.7% of the city’s operating-fund revenues, which “directly support core public safety and quality-of-life services” he requested opposition to the then-proposal.
With the bill now passed, the legislation is expected to be discussed by city council at its budget workshops on Thursday and Friday.
In a press conference on Wednesday, Gunter discussed the financial impact that the referendum, if passed, would have on the city and its services.
Gunter said the $150,000 exemption would have a $28 million impact on the city, and the $250,000 exemption would see a $46 million impact — or just about 30% of the money taken in by the city currently.
Gunter said the city receives $160 million from property taxes.
“It would be quite impactful for the city of Cape Coral, as well as all of the other counties and cities throughout the state,” he said. “If it is passed in November, that’s when we will have to sit down as a city council and a management team and decide exactly what that means for our city.”
Gunter said the referendum also dictates what the city can spend property tax dollars on, “so we have to take that into account, also.”
Public safety departments are essentially exempt from these impacts, but other services in the city will be impacted.
“This is something that will majorly affect our city, just like many different cities throughout the state,” he said. “We will have to make those hard decisions some time in the future if the referendum does pass.”
As for what services will be cut, Gunter said “that’s something we’ll have to sit down and take a look at.
“I can tell you, probably one of the first things that we look at is parks and the quality of those types of projects. Everything is going to be on the table except for public safety. We’ll have to try and figure out how to balance the budget.”
Gunter said he spoke with Lee County Commissioners on Tuesday, and they discussed that if it were a five- or seven-year plan rather than a two-year plan, it would be easier to try to implement.
“It’s going to be a substantial cut,” he said. “We’re going to have to ask ourselves…what is the level of service that we’re going to be able to provide based on the tax dollars that we see?”
As for how the city will make up the difference, Gunter said while there may be some “fat” in the budget, it will not be in the sum of $46 million.
“There will have to be cuts, and we’re really going to have to look at what type of level of service that we can provide to the community,” Gunter said. “Will we be able to provide the same level of service today with a $46 million shortfall? Never going to happen.”
Gunter talked of potentially raising the city’s fire service assessment from 81% to 100% to recoup money for the general fund.
“We could look at all of our fees throughout the city now and assessments that we have and any future assessments,” Gunter said. “Again, everything is pretty much on the table. We’ll have to sit down, roll our sleeves up, and figure out what services we can do without, and what type of level of service that we want to cut and see what that dollar amount is.”
Gunter said city council has been in conversation for six months about the referendum, but that the recent verbiage of the legislation is something they are working through as it occurred just a few days before Gunter’s press conference.
While the idea of having to pass less on property taxes sounds like a positive, Gunter said the ripple effect comes with consequences.
“As long as residents are willing to accept the cost that comes along with the reduction of services that will be provided by the city,” Gunter said. “Everything that glitters isn’t gold. You have to look at exactly the result of this. That’s the most important thing. We all would like to pay less for property taxes, myself included. That will come at a cost.”
Continued discussions among members of council will be ongoing until the election takes place.
Gunter added the referendum will start to impact decisions made by the city now, including the direction of projects such as the Yacht Club and beyond.
To reach CJ HADDAD, please email cjhaddad@breezenewspapers.com