Cape Coral officials are among those opposed to the Homestead Exemption change to come before state voters in November.<\/p>\n
The Florida State Legislature this week passed a bill that largely mirrors Gov. Ron DeSantis\u2019 plan to cut property taxes by raising the tax exception for owner-occupied homes.<\/p>\n
The legislation, passed Tuesday, calls for a constitutional amendment that would raise Florida\u2019s homestead property tax exemption from $50,000 to $150,000 in 2027 and then to $250,000 the year after.<\/p>\n
The amendment, which was introduced by DeSantis, would require approval from 60% of the voters in November to become law.\u00a0<\/p>\n
The State Senate voted 30-9 and the State House voted 75-26 to pass the bill in a Special Legislative Session.<\/p>\n
Ahead of the legislative votes, Cape Coral Mayor John Gunter on Monday sent a letter to the Lee County Legislative Delegation in opposition.<\/p>\n
Saying property taxes constitute about 59.7% of the city\u2019s operating-fund revenues, which \u201cdirectly support core public safety and quality-of-life services\u201d he requested opposition to the then-proposal.<\/p>\n
With the bill now passed, the legislation is expected to be discussed by city council at its budget workshops on Thursday and Friday.\u00a0<\/p>\n
In a press conference on Wednesday, Gunter discussed the financial impact that the referendum, if passed, would have on the city and its services.\u00a0<\/p>\n
Gunter said the $150,000 exemption would have a $28 million impact on the city, and the $250,000 exemption would see a $46 million impact \u2014 or just about 30% of the money taken in by the city currently.\u00a0<\/p>\n
Gunter said the city receives $160 million from property taxes.\u00a0<\/p>\n
\u201cIt would be quite impactful for the city of Cape Coral, as well as all of the other counties and cities throughout the state,\u201d he said. \u201cIf it is passed in November, that\u2019s when we will have to sit down as a city council and a management team and decide exactly what that means for our city.\u201d<\/p>\n
Gunter said the referendum also dictates what the city can spend property tax dollars on, \u201cso we have to take that into account, also.\u201d<\/p>\n
Public safety departments are essentially exempt from these impacts, but other services in the city will be impacted.<\/p>\n
\u201cThis is something that will majorly affect our city, just like many different cities throughout the state,\u201d he said. \u201cWe will have to make those hard decisions some time in the future if the referendum does pass.\u201d<\/p>\n
As for what services will be cut, Gunter said \u201cthat\u2019s something we\u2019ll have to sit down and take a look at.<\/p>\n
\u201cI can tell you, probably one of the first things that we look at is parks and the quality of those types of projects. Everything is going to be on the table except for public safety. We\u2019ll have to try and figure out how to balance the budget.\u201d<\/p>\n
Gunter said he spoke with Lee County Commissioners on Tuesday, and they discussed that if it were a five- or seven-year plan rather than a two-year plan, it would be easier to try to implement.\u00a0<\/p>\n
\u201cIt\u2019s going to be a substantial cut,\u201d he said. \u201cWe\u2019re going to have to ask ourselves\u2026what is the level of service that we\u2019re going to be able to provide based on the tax dollars that we see?\u201d<\/p>\n
As for how the city will make up the difference, Gunter said while there may be some \u201cfat\u201d in the budget, it will not be in the sum of $46 million.\u00a0<\/p>\n
\u201cThere will have to be cuts, and we\u2019re really going to have to look at what type of level of service that we can provide to the community,\u201d Gunter said. \u201cWill we be able to provide the same level of service today with a $46 million shortfall? Never going to happen.\u201d<\/p>\n
Gunter talked of potentially raising the city\u2019s fire service assessment from 81% to 100% to recoup money for the general fund.\u00a0<\/p>\n
\u201cWe could look at all of our fees throughout the city now and assessments that we have and any future assessments,\u201d Gunter said. \u201cAgain, everything is pretty much on the table. We\u2019ll have to sit down, roll our sleeves up, and figure out what services we can do without, and what type of level of service that we want to cut and see what that dollar amount is.\u201d<\/p>\n
Gunter said city council has been in conversation for six months about the referendum, but that the recent verbiage of the legislation is something they are working through as it occurred just a few days before Gunter\u2019s press conference.<\/p>\n
While the idea of having to pass less on property taxes sounds like a positive, Gunter said the ripple effect comes with consequences.\u00a0<\/p>\n
\u201cAs long as residents are willing to accept the cost that comes along with the reduction of services that will be provided by the city,\u201d Gunter said. \u201cEverything that glitters isn\u2019t gold. You have to look at exactly the result of this. That\u2019s the most important thing. We all would like to pay less for property taxes, myself included. That will come at a cost.\u201d<\/p>\n
Continued discussions among members of council will be ongoing until the election takes place.\u00a0<\/p>\n
Gunter added the referendum will start to impact decisions made by the city now, including the direction of projects such as the Yacht Club and beyond.\u00a0<\/p>\n