Rental registration fees will flow into a fund dedicated to paying for the city’s compliance initiative.
Cape Coral City Council chose to move forward with a special revenue, restrictive fund during its Wednesday workshop.
Workshop votes are not binding but give city staff direction as to how the elected board wants an issue pursued.
City Manager Michael Ilczyszyn said at a previous meeting Councilmember Rachel Kaduk had asked that staff look into the possibility of creating a special fund to track the expenses and revenue generated by the fees, which increased as of Jan.1.
“We did not have 100% compliance with the old program,” he said, adding that if there are 9,000 rental properties their goal is to have a minimum of 8,900 registered with the city.
Ilczyszyn said the new program will engage for a higher level of service defined as compliance and monitoring, particularly of short-term rentals.
“You rent from this day to this day; you are in violation. You are renting, you are not registered, here is your letter,” he said. “We are taking a monumental leap forward in our approach with monitoring and compliance with short-term rentals.”
Council directed staff to move forward with the creation of restrictive fund, as it would provide better data as they can track the number of registrations and expenses of the program.
The alternative was to direct the fees into the city’s general, or operational, fund.
Financial Services Director Crystal Feast said the previous one-time fee of $35 for rental properties brought in approximately $82,000 a year into the general fund. Those funds were used to fund the cost of the program and general operations.
Feast said, on average, about $82,000 is generated, which may speak to the fact that there are minimal code enforcement functions surrounding the program. She said there are many more out there that are not paying the one-time registration fee, hence the enhanced program.
Ordinance, 53-25 amended the program to establish long-term and short-term rental classifications, and resolution 279-25l, established a $35 annual fee for long-term residential rentals, and a $350 annual fee for short-term residential rentals. It also established a $50 late fee.
Feast said to have an effective program, additional resources will be needed.
Those resources include two code enforcement officers, two police officers, one research specialist and one contract administrative technician. In addition, for operating and capital, vehicles will be needed, as well as computers and related equipment, outside services, enhanced data gathering software and printing and mailing.
Feast said both the general fund and special revenue fund are both appropriate. The general fund is unrestrictive and flexible, while the special revenue fund is restricted and provides clear linkage between fees and program costs.
Ilczyszyn said with the council’s direction, staff will begin to build the program as revenues just started coming in with the new fees starting on Jan. 1.
“We have a lot build out from here,” he said, as they are building the program all by itself.
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