CAPE CANAVERAL, Fla. — The Cape Canaveral City Manager is calling on the Brevard County Sheriff’s Office to investigate after he said the city’s finances are in worse shape than many realized. He said a review of the past 15 years found the city routinely relied on savings to balance its budget.
City Manager Keith Touchberry said two consecutive unfavorable audits have now highlighted the city’s declining financial position.
Touchberry said the city has no meaningful reserve funds to absorb the costs of hurricanes, infrastructure failures, economic downturns, or other emergencies.
He said the proposed budget for next year is projected to have a roughly $4 million deficit.
“Postponing difficult decisions only limits future options and increases the burden on future councils, future employees, future taxpayers,” Touchberry said.
He also warned Amendment 3, expected on Florida’s November ballot, could further reduce the city’s biggest source of recurring revenue, like property taxes.
“Ad valorem taxes constitute the city’s primary recurring source of operating revenue; any reduction in taxable value or future tax collection would further strain the city’s ability to fund essential services, rebuild reserves, and restore financial stability,” Touchberry said.
Touchberry is now requesting BCSO to investigate.
“The purpose of this investigation is to determine the facts and to evaluate whether any criminal conduct, employee misconduct, policy violations, failures of internal controls, or organizational deficiencies occurred,” Touchberry said.
Touchberry said the city council must now adopt a formal financial recovery plan, and that if the city receives a third straight unfavorable audit, the state could step in with increased financial oversight. The city’s next budget meeting is on August 3rd.
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