City manager recommends property tax cut in proposed budget
Cape Coral City Manager John Szerlag released his fiscal year 2017-19 proposed rolling budget today, which includes a recommendation to reduce the FY 2017 millage rate by .207 mils.
The move would lower Cape Coral’s property tax rate from 6.957 to 6.75 – a 2.98 percent decrease, according to officials. When added to previous reductions, the city has cut the property tax rate by 15 percent since FY 2013.
With the proposed reduction in the tax rate, Cape Coral taxpayers will keep $2.4 million in their pockets. When combined with the previous tax cuts, the city will have provided $18.5 million in property tax savings to Cape Coral property owners over the past four years.
The total proposed operating budget for FY 2017 for all city funds is $669,887,085. This includes $194,907,280 for the city’s General Fund – $234,699 less than the FY 2016 adopted budget. General Fund dollars are used to support city services such as police, fire, public works, parks and recreation, planning, community development and administrative support services.
For the FY 2017 budget, the city manager’s proposed millage rate of 6.75 will generate property tax revenue of $78.1 million, which is $2.1 million more than the “rollback” rate of 6.5702. The “rollback” rate is the property tax rate that would generate the same amount of property tax revenues approved for the prior year.
The proposed budget also maintains the public service tax rate at 7 percent, and the cost recovery rate at 64 percent for the fire services assessment. These two revenue sources will produce estimated revenue of $29.4 million.
On the expenditures side, the proposed budget continues to invest in the city’s infrastructure. The budget allocates $6.5 million for local road paving and $789,000 for capital maintenance of parks and general government facilities. The budget has $100,000 for street light improvements, $306,000 for median improvements and $510,000 for alley paving.
The FY 2017 budget also includes funding to build Fire Station 11 at Burnt Store Road North and Northwest 11th Street, and a Fleet Maintenance Facility to replace the current outdated, dilapidated building at Everest Annex.
The city’s FY 2017 operating budget, including the millage rate, all revenues and expenditures must be approved by Cape Coral City Council.
The proposed budget will be discussed at an upcoming workshop and adopted at two public hearings in September. Once these dates are determined, they will be posted on the calendar on the city’s main portal page at: www.capecoral.net.
The public is invited to attend.
The city manager’s FY 2017-19 proposed budget can be accessed on the main website: www.capecoral.net under “Latest City News.”
Source: City of Cape Coral