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Tentative tax rate, budget, gets nod

3 min read

The 2017 Cape Coral city budget will be a little higher than last year, but will hit the average Cape Coral taxpayer a little less, city officials said.

The city council on Thursday, during a special public hearing on the proposed 2017 city budget, set the tentative budget and millage ahead of their second and final hearing on Sept. 22.

By a 5-2 margin, the millage rate was set at 6.75 mills, a decrease of .207 mills from last year, and the final operating budget of $195,691,726, an increase of $549,727 over 2016.

One mill is equal to $1 per every $1,000 of taxable, assessed valuation.

With more people coming into the city, it will mean the average Cape resident will pay about $4 less than last year. For someone with a home assessed at $150,000, it will cost $939.24 this year as opposed to $943.09 last year.

Ad-valorem taxes will raise $78.1 million of the funds in the budget. The Public Service Tax on electric bills is expected to bring in $7.6 million, a $400,000 increase from last year, the 64 percent fire service assessment will raised $22.6 million, an increase of $3 million. The city will use $8,374,475 in reserves, leaving the city with 2.76 months in reserves, or $32,749,907.

The proposed budget will include 17 additional full-time positions, as well as the continuation of the improved street lighting program. It will also include $6.5 million for road paving, $306,000 for median improvements, $510,000 for alleyway improvements and $710,000 for improvements of parks and public spaces.

Among the items left off the budget were the $1.3 million funds from 2016, of which about $400,000 still has not been allocated.

Council members Richard Leon and Jessica Cosden were left wondering why the one-time expenditures from last year were cropping up in this year’s budget.

“I don’t know why we’re talking about this. They’re one-time expenses that are irrelevant,” Cosden said.

The rollback rate of 6.57 was supported by Councilmember Rana Erbrick, who said the $1.3 million left from last year’s budget would fulfill those needs. Leon agreed, adding that real estate could bring in even more money and an even lower tax rate, and voted against the millage. They also voted against the budget in the 4-2 vote. Marilyn Stout was absent, while Mayor Marni Retzer left after the first vote to attend a Cape Coral Construction Industry Association meeting.

“We can lower the rate more than proposed. We have an opportunity to look at the dollars coming in through real estate. If we use some of the reserves to cover the cost of what the millage rate would be, when we get those monies from the real estate transactions, we can get those reserves back,” Leon said. “I want to make sure we use the money properly.

Cosden said she was glad they were reducing the millage, but wanted to see the Public Service Tax reduced, which she knew would be a non-starter.

“It’s a good budget. It’s economically sound. We have reserves in a good amount and will hopefully keep our bond rate better,” Cosden said. “It’s my first budget and I’m glad. It wasn’t easy, but we have steady revenue, especially from property.”

Thursday’s meeting was the first of two public hearings required to finalize and adopt the city’s Fiscal Year 2017 operating budget that goes into effect on Oct. 1.

The final hearing will be held at 5:05 p.m. Thursday, Sept. 22, in the council chambers.