Cape Coral mayor warns $46M tax shortfall could shrink city services

CAPE CORAL, Fla. (WINK)—Cape Coral's mayor says a lower tax bill may look good on paper, but residents need to understand what services could shrink because of it.

Mayor John Gunter told WINK News the city does not have a final cut list yet. He also said keeping the same level of service with a $46.6 million shortfall is impossible.

"Everybody throughout the state would love to pay less in their property taxes, myself included," Gunter said.

A higher homestead exemption could lower homeowners' tax bills, but Cape Coral says it would also cut $9 billion from the city's taxable value. That adds up to an annual $46.6 million hit.

"The $250,000 exemption, there would be a $46 million impact," Gunter said.

That money helps pay for services residents use, including parks and transportation, as well as code enforcement and city operations. Gunter did not say these would be the exact cuts, but he did say public safety would be protected, meaning other services would have to be reviewed.

"Everything is going to be on the table except for public safety," Gunter said.

Stephen Guiton has lived in Cape Coral for 12 years. He says lower taxes sound good, but only if residents know what they may lose.

"Everybody wants a lower bill, but we also don't want to lose the services that the city provides to us," Guiton said.

The city says Cape Coral is especially exposed because it is so heavily residential. Guiton says that's part of the problem.

"We don't have any businesses to support that with the business income and the business taxes to support that," Guiton said. "All the businesses are in Fort Myers."

Mayor Gunter says the tax break should not be viewed in isolation. The city can look for cuts, but he says $46.6 million is not something Cape Coral can trim without residents feeling it.

"Will we be able to provide the same level of service today with a $46 million shortfall?" Gunter said. "Never going to happen."

The question for voters is not just whether they want to pay less but what level of city service they expect in return. Gunter also said discussions are going to happen at a city council meeting, so the community knows what could happen after the November election.