Cape Coral’s budget could swell by 43.2%, or $457.2 million, in fiscal year 2026 to meet the growing city’s need for personnel and capital improvements, especially utility system upgrades.
Cape Coral city staff held an open-house-style town hall July 31 to present the city manager’s proposed $1.5 billion fiscal year 2026 budget.
In City Council chambers, a 20-minute video describing the city’s needs played on a loop between 4 and 8 p.m. Out in the hall, leaders from across the city’s departments stood on hand to answer questions about the new budget.
Council is considering hiking taxes and fees to increase revenue for the Cape’s general fund that is used to pay for services and capital expenditures. Under the proposed budget, it is set to increase 3.15% to $266.6 million.
“It’s mostly requesting additional personnel to meet the needs of a growing city,” said Lauren Kurkimilis, a city spokesperson and public information specialist.
Adding code enforcement staff to enforce the rules is a priority as the city expands northward, Development Services Director Brett Limbaugh said. “It takes a lot of folks to do that, especially for a town of our size.”
Personnel services account for 21%, or $318.3 million, of the total proposed budget. That includes 2,432 full-time equivalent employees.
About 41% of the city manager’s proposed budget is expected to be spent on capital outlay. That includes $460.3 million in utility system costs and $77.2 million for city facilities, along with budgeting for parks, roads, public safety, maintenance, sidewalks and stormwater control. Operating expenses account for 20% of the budget, with transfers out, debt services and reserves rounding out the rest of the city’s costs.
About 38% of the Cape’s total revenue comes from debt proceeds with the rest gained from property taxes, fees and other sources. Under the proposed budget, residents would shoulder higher fees and charges for services to boost general fund revenue.
Council will host at least two more budget workshops Aug. 5 and 12. A public hearing Sept. 11 will take place to approve the tentative millage rate and budget, with a second hearing Sept. 25 to adopt the final budget for fiscal year 2026, which begins Oct. 1.
Potential tax and fee increases
Council approved a potential property tax increase up to, but no more than, 5.5188 mills, or $5.5188 per $1,000 in taxable value.
If that rate is adopted, a resident who owns property worth $350,000 would pay $105 more per year or a total of $1,932.
However, city staff points out that the Cape’s 5.2188 millage rate this year is an 18% reduction since 2021, when the rate reached 6.375. And the city manager’s proposed budget for fiscal 2026 was crafted using the same 5.2188 rate as 2025.
Residential waste collection rates could increase by $38.49 to $384.25, and services for stormwater control could rise from $149 to $156.
Fire protection services for a single-family home worth $261,998 could see a $91.28 hike to $529.76.
Council also is considering new fees for mowing empty lots. District 2, 3 and 4’s rates would see small increases. But lot owners south of Pine Island Road in District 1 could be among the few to see costs drop to $70.48 or about $16 less than fiscal 2025.
