Cape Coral officials discuss budget and potential tax changes amid revenue concerns

Cape Coral officials gathered on Thursday to discuss next year’s $1.5 billion budget and potential solutions for a projected $37 million revenue gap if Florida voters approve changes to the homestead exemption.

City budget documents estimate the change could reduce revenues by more than $37 million, prompting discussions about new taxes, fees and other ways to make up the difference.

If 60% of voters support the ballot referendum, the homestead exemption would increase from $50,000 to $150,000 of a home’s assessed taxable value starting Jan. 1, and then rise to $250,000 in 2028.

Thomas Senatore, a Cape Coral resident, shared his ideas on how the city could address the potential shortfall.

"Maybe increase the sales tax, maybe increase the gas tax, maybe increase the tolls," Senatore said.

Senatore also expressed concerns about how the changes might impact newer residents.

"It's the people coming in that are newer that are going to be affected, because if we go and we cut it somewhere, we're going to have to add it somewhere else," he said.

City officials are considering several measures to fill the gap, including increasing the public service tax by 3%, implementing a public service tax for charter schools, and charging fees at city parks and recreation centers.

Resident Terry Gowing supported the idea of charging fees for park use.

"I don't think there's anything wrong with paying, paying for, you know, to rent a park for, for an event," Gowing said.

However, not all residents agree. Tara Boccia voiced concerns about charging fees for services that are currently free.

"Nobody's going to go when, if they're going to charge extra for things that are free already, people are going to go to different communities. They're going to leave the areas that are enforcing taxes or to charge," Boccia said.

Residents are also set to pay more next year for water, sewer, and stormwater fees.

Despite the challenges, some residents remain optimistic that the larger homestead exemption could attract more families to the area.

"I think that the lower the taxes there are, that the more people will get in here and more revenue will bring into the city. Instead of pushing people out," Gowing said.

Cape Coral officials plan to hold several public hearings on the budget this fall.