Discussions on insurance extended into broader legislative matters, with property tax reform also on the agenda. Council members deliberated on the potential implications of state-level property tax reforms, particularly their impact on city revenue and essential services such as police and fire departments. Concerns were raised about how such reforms might disproportionately affect renters and non-resident homeowners, given that the majority of homes in the area are not homesteaded.

The council also explored alternative funding mechanisms that could offset potential revenue losses from property tax reforms. One proposed plan, Freedom 123, suggested implementing a 5% transaction fee on real estate sales and a separate public safety transaction fee to generate funds for tourism-related services. There was interest in interlocal agreements with Brevard County for tourist development tax revenue sharing, which could benefit Cape Canaveral’s shoreline projects and lagoon initiatives. However, it was noted that any new taxation measures would require legislative approval, and cities currently lack the authority to impose their own bed taxes.

Another discussion centered around short-term rentals, with the council scrutinizing state legislation that allows such rentals in residential neighborhoods without zoning restrictions. This legislation has created challenges for local governance, as community members express frustration over the presence of Airbnbs and similar short-term rental properties that disrupt residential areas. The council emphasized the need for local control over short-term rentals to better manage their impact on neighborhoods and ensure compliance with safety regulations.

The meeting also touched upon the potential implementation of a fee on hotel stays to fund stormwater and shoreline protection projects. This proposal, which involves adding a nominal charge to hotel bills, aims to finance necessary infrastructure improvements without overburdening the city’s regular budget. The council recognized the importance of such funding for maintaining coastal resilience and addressing wastewater management challenges, particularly given the city’s high wastewater capacity threshold and increased demand from hotels.

In discussing legislative priorities, home rule was identified as a foundational issue that underpins various local governance concerns. The council stressed the need for flexibility in municipal operations and voiced concerns about state mandates that could undermine local decision-making. This topic is particularly relevant in light of recent legislative actions, such as the Live Local Act, which may restrict local governance capabilities. The council expressed a strong desire to protect home rule and ensure that local voices are prioritized in legislative matters.