Cape Canaveral runs out of money — Where did it go?

The City of Cape Canaveral is facing an estimated $4 million budget shortfall as financial reserves that helped cover expenses for years have dwindled, according to reporting by ClickOrlando/WKMG News 6.

City Manager Keith Touchberry told News 6 that Cape Canaveral has relied on money carried over from previous years to help balance its budget. That approach, he said, has been used for roughly 15 years as projected expenses exceeded recurring revenues.

But those reserves are now running low.

According to the News 6 report, audits show the city’s unrestricted fund balance has fallen below the minimum level required by city policy.

The financial situation could eventually affect services residents rely on. Potential impacts could include less frequent maintenance of public spaces, changes to garbage collection, slower responses from city departments and staffing reductions.

Touchberry proposed increasing the city’s property tax rate as one way to generate additional revenue, but the City Council did not approve the proposed increase.

The financial concerns have also prompted additional scrutiny.

According to ClickOrlando, Cape Canaveral asked the Brevard County Sheriff’s Office to review the city’s financial practices and help determine whether the situation resulted from possible criminal conduct, employee misconduct, weaknesses in internal controls, mismanagement or other factors.

The request for a review does not mean criminal wrongdoing has been established.

City officials now face the challenge of closing the budget gap while determining what services and spending can be maintained with the revenue available.

Source: Reporting by ClickOrlando/WKMG News 6.