City manager apologizes to staff for not defending them in face of council criticism
Cape Coral City Manager Michael Ilczyszyn apologized to his staff at Wednesday’s city council meeting for not defending them after questions he considered “out of line” by the city council during last week’s first budget hearing.
“Last week when we had a budget session, there were statements made about quality of work, manipulation, trickery and changing of numbers that were demeaning to my staff,” Ilczyszyn said. “As their leader, I failed them. I should have challenged those statements you all made and I didn’t. I publicly apologize to all of my staff in finance and department heads.
“The comments made by our governing board last week were out of line and I stand by all the hard work by my staff.”
The apology and criticism of council stemmed from a presentation last week when council learned for the first time at the budget hearing there was a $2.2 million shortfall because of unanticipated state revenue reductions.
Staff learned of the shortfall three days before the hearing and said they didn’t have time to add it to the agenda, although it was later added to backup material. Council members believed staff could have communicated the shortfall ahead of time.
Councilmember Rachel Kaduk took issue saying: “They are tricking us, and we are paying attention.”
Financial Services Director Crystal Feast told council the reduction was “extremely unexpected. There was no indication from the state,” she said about the 6-8% decrease.
Councilmember Jennifer Nelson-Lastra believed staff could have communicated the reduction before the budget hearing.
When contacted Thursday about the city manager’s comments, Nelson-Lastra said:
“I don’t see us being out of line,” she said. “I was taken aback because none of us had heard about the $2.2 million. I feel like it could have been mentioned at the COW meeting (the day before). I felt blind-sided by that. I feel like there were opportunities in our one-on-ones (meeting with city manager).”
Councilmember Bill Steinke, who presided over Wednesday’s meeting as mayor pro tem, added:
“I have full faith in our staff, beginning with our city manager through all departments, to present options and make us aware of things we need to be aware of for good decision making. When things happen in short notice sometimes you have got to bob and weave,” Steinke said. “Would I have liked to have known about the reduction in state revenue earlier? Yes. Would I have liked more time to learn about what we need to do with the loss of revenue? Yes. I don’t believe there was any trickery involved.”
Ilczyszyn said after he learned of the state reductions, he was able to provide enough cuts to the budget to make up the difference and achieve what the council wanted. Those cuts included new playground equipment at Burton and BMX parks, stopping the print version of Cape’s On the Move magazine and cutting funding for certain events, among others.
Council was working toward a tax rate of $5.1471 per $1,000 of taxable valuation on a residential property when the state reductions were received. Ilczyszyn was able to achieve a $285 million operating budget and a $1.440 billion overall budget with his additional cuts.
Because he didn’t eliminate positions, programs and increase user fees, and still came in on budget, he didn’t feel the need to let council know about the state reduction. Had he not been able to achieve the necessary cuts, the city manager said he would have notified council.
For now, council voted 5-3 — with Kaduk, Derrick Donnell and Nelson-Lastra dissenting — to take money from the budget stabilization reserve, which currently has $62.7 million, to cover the loss, but keeps the overall budget at $1.442 billion. That reserve is to provide the city with enough operating money to cover the city for about three months should there be a catastrophic event. That reserve was at 2.9 months prior to council’s decision.
“Somehow we got to where this was not a collaborative effort, turned into my staff being manipulative, staff not being transparent or withholding information,” Ilczyszyn said. “I walked away, had time to reflect on what was said and as a leader of an organization, I failed my employees.”
Kaduk said the budget still is not where she wants it. She is looking at a 5.1471 tax rate and an overall budget of $1.440 billion without using reserves. She said she will find the necessary cuts and present them at next Thursday’s final budget hearing.
“I think they (staff) definitely understand there are people who get elected who will blindly follow rather than question,” she said. “I have no qualms with him apologizing to staff. The governing body comments (by Ilczyszyn) weren’t out of line. I represent the people and I ask the tough questions.”
Ilczyszyn said at Friday’s staff meeting, the entire executive team thanked him for his support and applauded his efforts.
“As a leader of my organization, I will always stand up for them when they are doing their job,” he said. “I will never let them become a political pawn.”
The second and final public hearing for Cape Coral’s fiscal year 2027 budget is scheduled for Thursday, Sept. 24, at 5:05 p.m. at City Hall, at 1015 Cultural Park Blvd.
To reach TOM HAYDEN, please email news@breezenewspapers.com