Cape Canaveral weighs property tax increase as city faces $4 million budget gap, depleted reserves

Cape Canaveral city leaders are weighing a property tax increase as they work to close a projected $4 million budget gap while rebuilding emergency reserves that officials say were depleted after years of overspending.The City Council held a special budget hearing Monday to determine the maximum property tax millage rate for the 2026-27 fiscal year. City officials said the city needs about $20 million to fund next year’s budget but is roughly $4 million short under the current tax rate.Residents urged council members to avoid raising taxes, arguing taxpayers should not be responsible for decisions made by previous city leaders.“It looks like folks in Cape Canaveral have had a spending problem in the last 10 to 15 years, and now we the citizens have a pay-for-it problem,” one resident told the council.Mayor Wes Morrison said no one wants a tax increase but acknowledged the city faces difficult financial decisions.City Manager Keith Touchberry said the city had been spending reserve fund