Cape Coral City Manager Michael Ilczyszyn apologized to his staff at Wednesday\u2019s city council meeting for not defending them after questions he considered \u201cout of line\u201d by the city council during last week\u2019s first budget hearing.<\/p>\n
\u201cLast week when we had a budget session, there were statements made about quality of work, manipulation, trickery and changing of numbers that were demeaning to my staff,\u201d Ilczyszyn said. \u201cAs their leader, I failed them. I should have challenged those statements you all made and I didn\u2019t. I publicly apologize to all of my staff in finance and department heads.<\/p>\n
\u201cThe comments made by our governing board last week were out of line and I stand by all the hard work by my staff.\u201d <\/p>\n
The apology and criticism of council stemmed from a presentation last week when council learned for the first time at the budget hearing there was a $2.2 million shortfall because of unanticipated state revenue reductions.<\/p>\n
Staff learned of the shortfall three days before the hearing and said they didn\u2019t have time to add it to the agenda, although it was later added to backup material. Council members believed staff could have communicated the shortfall ahead of time.<\/p>\n
Councilmember Rachel Kaduk took issue saying: \u201cThey are tricking us, and we are paying attention.\u201d<\/p>\n
Financial Services Director Crystal Feast told council the reduction was \u201cextremely unexpected. There was no indication from the state,\u201d she said about the 6-8% decrease.<\/p>\n
Councilmember Jennifer Nelson-Lastra believed staff could have communicated the reduction before the budget hearing.<\/p>\n
When contacted Thursday about the city manager\u2019s comments, Nelson-Lastra said:<\/p>\n
\u201cI don\u2019t see us being out of line,\u201d she said. \u201cI was taken aback because none of us had heard about the $2.2 million. I feel like it could have been mentioned at the COW meeting (the day before). I felt blind-sided by that. I feel like there were opportunities in our one-on-ones (meeting with city manager).\u201d<\/p>\n
Councilmember Bill Steinke, who presided over Wednesday\u2019s meeting as mayor pro tem, added:<\/p>\n
\u201cI have full faith in our staff, beginning with our city manager through all departments, to present options and make us aware of things we need to be aware of for good decision making. When things happen in short notice sometimes you have got to bob and weave,\u201d Steinke said. \u201cWould I have liked to have known about the reduction in state revenue earlier? Yes. Would I have liked more time to learn about what we need to do with the loss of revenue? Yes. I don\u2019t believe there was any trickery involved.\u201d<\/p>\n
Ilczyszyn said after he learned of the state reductions, he was able to provide enough cuts to the budget to make up the difference and achieve what the council wanted. Those cuts included new playground equipment at Burton and BMX parks, stopping the print version of Cape\u2019s On the Move magazine and cutting funding for certain events, among others.<\/p>\n
Council was working toward a tax rate of $5.1471 per $1,000 of taxable valuation on a residential property when the state reductions were received. Ilczyszyn was able to achieve a $285 million operating budget and a $1.440 billion overall budget with his additional cuts.<\/p>\n
Because he didn\u2019t eliminate positions, programs and increase user fees, and still came in on budget, he didn\u2019t feel the need to let council know about the state reduction. Had he not been able to achieve the necessary cuts, the city manager said he would have notified council.<\/p>\n
For now, council voted 5-3 \u2014 with Kaduk, Derrick Donnell and Nelson-Lastra dissenting \u2014 to take money from the budget stabilization reserve, which currently has $62.7 million, to cover the loss, but keeps the overall budget at $1.442 billion. That reserve is to provide the city with enough operating money to cover the city for about three months should there be a catastrophic event. That reserve was at 2.9 months prior to council\u2019s decision.<\/p>\n
\u201cSomehow we got to where this was not a collaborative effort, turned into my staff being manipulative, staff not being transparent or withholding information,\u201d Ilczyszyn said. \u201cI walked away, had time to reflect on what was said and as a leader of an organization, I failed my employees.\u201d<\/p>\n
Kaduk said the budget still is not where she wants it. She is looking at a 5.1471 tax rate and an overall budget of $1.440 billion without using reserves. She said she will find the necessary cuts and present them at next Thursday\u2019s final budget hearing.<\/p>\n
\u201cI think they (staff) definitely understand there are people who get elected who will blindly follow rather than question,\u201d she said. \u201cI have no qualms with him apologizing to staff. The governing body comments (by Ilczyszyn) weren\u2019t out of line. I represent the people and I ask the tough questions.\u201d<\/p>\n
Ilczyszyn said at Friday\u2019s staff meeting, the entire executive team thanked him for his support and applauded his efforts.<\/p>\n
\u201cAs a leader of my organization, I will always stand up for them when they are doing their job,\u201d he said. \u201cI will never let them become a political pawn.\u201d<\/p>\n
The second and final public hearing for Cape Coral\u2019s fiscal year 2027 budget is scheduled for Thursday, Sept. 24, at 5:05 p.m. at City Hall, at 1015 Cultural Park Blvd.<\/p>\n