Council OKs millage, 2015 budget
The Cape Coral City Council on Thursday gave its approval to the 2015 budget while keeping the millage rate the same as last year during a special meeting at City Hall.
The millage rate will remain at 7.7070 after a 6-2 vote, with the possibility of a reduced rate next year either through a rollback rate or the promised .75 decrease if the fire service assessment (FSA) that is stuck in the Florida Supreme Court is approved.
The $170.9 million budget, which passed by a 7-1 margin, will address many of the much needed fixes the city had put off for years during the recession, according to City Manager John Szerlag.
“It’s a budget that is starting us on a path toward rebuilding the city, both in infrastructure for our roads and organizational infrastructure, which will give raises to employees who haven’t had raises in many years,” Szerlag said.
The highlights of the budget include a proposed 5 percent pay raise for city employees, which will have to be bargained for with the unions, and the continuation of road paving ($5.7 million) and replacement of old police cars, fire trucks ($3.6 million) and other city equipment ($2.2 million).
The budget will also allocate $3.7 million to replenish reserves that have been depleted through years of balancing the budget with them.
But not everyone was satisfied, particularly with the millage rate staying the same. Councilmember Rana Erbrick reiterated her desire for the city to go to the rollback rate of 7.2089, calling the status quo the equivalent to a tax increase.
Councilmember Richard Leon joined her on that stance as the millage rate passed. However, Erbrick backed off somewhat when it came time to pass the actual budget, agreeing to come aboard, albeit with a promise to watch the spending carefully.
“We can’t continue to steal from Peter to pay Paul. We need to do this,” Councilmember Jim Burch said. “What quality of life do you want? We all want to save money, but we can’t do what we need with the rollback rate.”
In the end, Leon voted against the budget, with Rick Williams, Derrick Donnell and Erbrick saying they fully expect a lower millage this time next year.
Leon said there were many places where the city could have cut spending and saved as much as $3 million and rolled back the millage by .29.
“There’s the issue with master planning and some infrastructure. We’re doing good, but we can do better and prepare better,” Leon said. “This is a good time to not go all in, but slowly move forward.”
Leon said the city could have reduced road paving by $1 million, reduced the pay raises to 3 percent, not put as much into reserves, and put off the planning of the seven islands, which don’t have utilities.
As for the FSA, Szerlag said that money will be held in an escrow account until a decision is made.
“That money isn’t there waiting to be spent on anything, there are specific allocations for that money last year and this year,” Szerlag said.