Cape Canaveral council trims FY2025–26 budget to rollback rate, weighing cuts to city hall air conditioner and parks projects

City of Cape Canaveral staff on Aug. 19 told the City Council at a budget workshop that reducing the proposed millage to the rollback rate cut about $1,458,000 in ad valorem revenue and required using more reserves and trimming capital and operating items to balance the fiscal year 2025–26 budget.

The change in revenues and offsets was described in a memo read by finance staff. "By taking the millage rate down from the proposed to the rollback rate, we have lost $1,458,000 in ad Valerum revenue," finance staff said, and noted that the use of reserves increased from $747,000 to $926,000. The memo also said transfers from the general fund to the community redevelopment agency (CRA) would fall by $359,000 and that EV‑charging revenue estimates were corrected down to about $5,000.

Why it matters: the staff presentation made clear the council must choose which capital projects to postpone or fund from reserves to remain at the rollback rate. "We had to find $1,100,000, which we have done," finance director John D'Alejo said, summarizing line‑item adjustments and department reductions. Council members pressed staff on which projects were cut and what could be restored.

Major proposed reductions and tradeoffs included removing a proposed $325,000 city hall air‑conditioning replacement from the capital plan and moving several parks and recreation capital improvement projects out of the upcoming year. The memo lists Manatee Sanctuary Park upgrades removed ($19,000), a batting‑cage/pitching‑machine CIP ($10,000), and other PRCA items moved out of the year. Staff said reassigning ARPA funds to stormwater projects saved roughly $700,000 of general‑fund expense.

Council debate focused on whether to restore smaller parks maintenance and accessibility upgrades rather than funding new projects such as Rover Park West. Council member Jackson questioned moving Manatee Park upgrades off the list given maintenance needs, and Council member Willis argued the community would get "more bang for our buck" by restoring maintenance items rather than completing Rover West. Staff responded that removing the larger air conditioner cost allowed them to reinstate Rover Park funding while remaining balanced.

Mayor Pro Tem Bertram Kellum asked whether CRA funds could be used to cover park work or be redirected to help the city hall air‑conditioning need; staff said CRA monies are restricted and that although the CRA balance is healthy, CRA funds cannot be used for general‑fund items such as the city hall AC. Staff noted some concession‑stand money previously budgeted at roughly $300,000 will roll forward because the scope was reduced to a $20,000–$25,000 project.

On larger park projects, Parks staff (Molly) described the condition of playground equipment and said a full replacement with a poured‑in‑place safety surface would likely total about $500,000. "We're gonna be needing $500,000," the staff member said, noting installation and surfacing drive costs and that some grant assistance had originally covered an installed playground.

Councilors discussed alternatives to fully funding the city hall air conditioner this year, including splitting the cost across two fiscal years so that half would be included now and half in the next budget, which staff said was possible but would reduce available contingency, renewal‑and‑replace funds and reserves and could leave little room for unexpected costs before the next audit.

Personnel accounting questions also surfaced: staff said the apparent $146,000 rise in personnel costs reflected part‑time and seasonal positions that were not previously captured and the repurposing of positions; Tamsen clarified that a full‑time records position was repurposed into part‑time allocations and that overall headcount was adjusted in the new budget documents.

Next steps: staff and council agreed staff will continue to refine options and present revised numbers at the first budget hearing on Sept. 3, 2025. No formal votes were taken at the workshop.