ENTERPRISE FUNDS - CAPE CORAL POLITICS

The City of Cape Coral, Florida uses enterprise funds (a type of proprietary fund) to account for business-type activities. These operations function similarly to private businesses, with revenues primarily from user fees and charges for goods/services rather than taxes. They use full accrual accounting and focus on recovering costs through rates while maintaining infrastructure.

The City’s fiscal year ends September 30. As of the most recent Popular Annual Financial Report (PAFR) for FY 2025 (ended September 30, 2025), the City maintains three enterprise funds:

1. Water & Sewer Fund (also called Water and Sewer Utility Fund)

This is the largest enterprise fund. It accounts for the City’s potable (drinking) water, irrigation water, wastewater collection, treatment, and disposal services.

Key operations and infrastructure:
Provides services to residents and businesses.
Supports growth through utility expansion projects (e.g., North 1–5 Utility Expansion Projects involving water, sewer, irrigation, and fiber optics).
Significant capital investments address inflow/infiltration in older sewer systems, rehabilitation, and compliance.
FY 2025 financial highlights (in dollars):
Operating revenues: $129,701,060
Operating expenses: $128,118,540
Operating gain: ~$1.58 million
Non-operating activity (net, including investments, debt activity, assessments, and transfers): +$45,810,340
Total change in net position (income): +$47,392,860
Operating indicators (FY 2025):
Water connections: 78,751
Sewer connections: 76,601
Water pumped to system: 5,274 million gallons
Water sold: 4,389 million gallons
Water distribution mains: 908 miles

This fund typically shows strong performance due to steady demand and rate adjustments from approved rate studies. Recent budgets include substantial capital outlays for expansion to support population growth.

2. Stormwater Fund (Stormwater Utility Fund)

This fund accounts for the City’s stormwater drainage and management program. It ensures compliance with U.S. Environmental Protection Agency (EPA), state, and local regulations for flood control, water quality, and drainage.

Key operations and infrastructure:
Maintains catch basins, drainage pipes, swales, and related systems.
Includes projects like advanced drainage systems tied to utility expansions (e.g., North 3 UEP Stormwater).
FY 2025 financial highlights:
Operating revenues: $25,993,758
Operating expenses: $26,800,695
Operating loss: ~$806,937
Non-operating activity (net): +$1,701,532
Total change in net position (income): +$894,595
Operating indicators (FY 2025):
Catch basins: 24,205
Drainage pipes: 545 miles
Swales: 3,050 miles

Revenues come mainly from stormwater utility fees. The fund runs close to break-even or slight losses on operations, with non-operating items (e.g., transfers) helping overall results. Rate studies have driven recent increases in both revenues and expenditures.

3. Yacht Basin Fund

This fund accounts for the City’s public marinas, docks, and related waterfront facilities (including the Yacht Club area). Revenues and resources are restricted to support only this function.

Key operations:
Manages boat slips, marinas, docks, and associated amenities (e.g., restaurant/tiki bar operations).
Impacted by Hurricane Ian (2022), which damaged infrastructure (e.g., 89 boat slips pending repair as of FY 2025 reporting).
FY 2025 financial highlights:
Operating revenues: $155,849 (lower due to closures post-Ian, including the Yacht Club and Boathouse Tiki Bar & Grill)
Operating expenses: $467,099
Operating loss: ~$311,250
Non-operating activity (net): +$46,717
Total change in net position (loss): -$264,533
Operating indicators (FY 2025):
Boat slips available for rent: 20
Slips rented: 16 (with ongoing recovery from storm damage)

This is the smallest enterprise fund and has shown challenges due to storm impacts and limited operations. The City is planning a major rebuild of the Yacht Club facility (estimated costs have risen to ~$197–225 million). Discussions include phased construction (prioritizing revenue-generating elements like docks, fuel systems, and restaurant), potential private partnerships, or resident-funded options via debt or other mechanisms. The fund’s resources are legally restricted to marina/dock support.

Additional Context on Enterprise Funds

Overall role in the City: Enterprise funds are self-supporting where possible, but they can involve transfers, debt issuance (e.g., revenue bonds for utilities), impact fees, grants, and use of net position for capital projects. In the FY 2026 adopted budget, the combined Enterprise Fund budget is significant (part of a citywide ~$1.09–1.43 billion total budget, with notable increases tied to utility rate studies and infrastructure).
Governance and accounting: These funds appear in the government-wide financial statements under “business-type activities.” They maintain their own capital assets (e.g., treatment plants, pipes, basins) and may carry long-term debt. Detailed data (Statement of Net Position, changes in net position, cash flows) are in the full Annual Comprehensive Financial Report (ACFR).
Challenges and trends:
Hurricane Ian recovery continues to affect the Yacht Basin.
Rapid growth drives heavy investment in Water & Sewer and Stormwater (e.g., utility extensions, rehabilitation).
Rate adjustments help maintain financial health amid rising costs and capital needs.
The Coral Oaks Municipal Golf Course is not currently an enterprise fund (it was reclassified as governmental in earlier years and receives General Fund support in budgets, e.g., $3.5 million allocated in FY 2026 for operations).
Where to find more details:
Latest PAFR (Popular Annual Financial Report) and ACFR are available on the City’s website (capecoral.gov) under Financial Services → Accounting Document Center.
Budget documents detail appropriations, rate studies, and capital projects for these funds.

Enterprise funds help the City deliver essential services efficiently while minimizing the burden on property taxes. For the absolute latest audited numbers or budget specifics (e.g., FY 2026 amendments), check the official City documents, as figures can update with audits or amendments.

CAPE CORAL CAPITAL PROJECTS

Cape Coral’s Capital Improvement Program (CIP) is a multi-year, multi-billion-dollar effort to support the city’s rapid growth, maintain infrastructure, and enhance resilience. It includes both governmental capital projects (roads, parks, public safety, transportation) funded primarily through the Capital Projects Fund, grants, and impact fees, and enterprise capital projects (utilities) in the Water & Sewer, Stormwater, and Yacht Basin Funds.

The program is detailed in the annual budget (six-year Asset Management Program) and tracked via separate quarterly CIP reports from Public Works and Utilities departments. The latest available (FY 2026 Q2, covering Jan–Mar 2026, released April 2026) show most major projects on schedule and on budget, with North 1 Utility Expansion Projects (UEP) largely wrapping up and North 3 plus treatment facilities advancing in design/construction.

The FY 2026 adopted budget (~$1.4 billion total) includes substantial capital outlays for infrastructure, with key highlights below. Projects are funded via a mix of rates, bonds, grants, impact fees, and reserves. Detailed quarterly updates are posted on the city’s website under Office of Communications → Quarterly Reports.

1. Utility Infrastructure (Enterprise Funds – Largest Share of Capital Spending)

These projects extend water, sewer, irrigation, and fiber optics to support northern growth while upgrading treatment and reclamation capacity. They tie directly to the Water & Sewer and Stormwater enterprise funds discussed previously.

North Utility Expansion Projects (UEPs):
North 1 West UEP ($250 million total): Substantially complete as of Q2 FY2026. Contracts 1–6 are 97–100% complete (punchlist items and final asphalt lift remain). Master Pump Station 720 is 96% complete (substantial completion targeted April 2026). Contractors include Denco Construction, Southwest Utility Systems, Mitchell & Stark, Guymann Construction, and PWC Joint Ventures. On budget.
North 1 East UEP (~$250 million est.; $112.9 million awarded to date): Construction underway; design complete. Includes roundabouts/widening on NE 24 Ave (Contract 11). Booster Pump Station & Tanks ($33.3 million est.) in bidding/pre-construction; Master Pump Station 725 ($9 million; contract awarded $8.8 million, NTP issued).
North 3 UEP (~$300 million construction est.; design contract $17.3 million): Design 75% complete (amendment approved; roundabouts added at Burnt Store Rd intersections). Construction NTP targeted by end of 2026.
Water Treatment & Reclamation:
North Water Reclamation Facility ($400 million est.): Basis of Design Report (BODR) 75% complete. On schedule for CMAR selection (April 2026), final BODR (June 2026), and commissioning (Dec 2030).
Phase II North Reverse Osmosis (RO) WTP Expansion (6 MGD) + 12 MG Storage Tank ($55.4 million): Preliminary Design Report 95% complete (May 2026). Engineering design completion March 2027; full project July 2027. On schedule/budget. Includes 6 new supply wells ($14.9 million construction; contracts awarded/executed Jan–Feb 2026).
Southwest Water Reclamation Facility Improvements + Raw Watermain ($51.6 million): 90% engineering design complete (revisions underway); raw watermain 100%. Engineering design completion April 2026. On schedule.
Everest WRF Headworks Replacement ($31.5 million): Engineering design 75% complete (June 2026). Construction completion July 2029.
Other: Everest Effluent Reuse Pump Station ($12.5 million; BODR complete), North–South Transfer Pump Station ($9.8 million; 60% design), Judd Creek Utilities Extension (Design-Build awarded Feb 2026), etc. All on schedule/budget.

FY 2026 budget allocations also included $284.6 million (North 3 UEP), $56.1 million (North RO Phase II), $53 million (Southwest WRF), $14.8 million (North 3 Stormwater), and smaller items like lift stations, inflow/infiltration rehab, and backflow prevention.

2. Transportation, Roads, Bridges & Connectivity (Governmental Capital Projects Fund)

Focus on resurfacing, safety, accessibility, and mobility.

Road Resurfacing/Preservation/Spot Paving (FY 2026): ~$8.8 million total across major resurfacing (~30 lane miles, NTP April 2026), pavement preservation (~238 lane miles), and spot paving. Some awards issued; others pending.
Median Landscaping & Access Management: Multiple Embers Parkway, Viscaya, Shelby, and Surfside projects (budgets $260K–$1.5M each). Several complete or bidding (e.g., Embers West complete/under budget; East bid opening March 2026).
Alley Reconstruction/Drainage: Two alleys under construction (southern: Mar–Jul 2026; northern: Jul–Nov 2026).
Traffic Signals: Several new/installations (e.g., Chiquita & Embers NTP April 2026, completion Dec 2026; others in design or fall 2026 construction).
Sidewalks: Grant-funded and city programs advancing (e.g., Andalusia, Skyline, Santa Barbara segments starting spring 2026; completions through 2026).
SUN Trails (Shared Use Nonmotorized): Phase 1 complete; Phase 2 construction fall 2026; Phase 3 design advancing (grants secured).
Bridges: FHWA Hurricane Ian repairs and capital fund ($2 million in FY 2026 budget).

FY 2026 also funds $8.1 million roadway improvements, $3.5 million street lighting, $1.1 million school-area sidewalks, and $700K median curbing.

3. Public Safety & Facilities

Fire: $9.4 million Fire Station 5 rebuild, $949K Training Facility Phase 3 design, vehicle replacements, exhaust systems.
Police: Vehicle replacements; North Cape Public Safety Complex turn lane.
Other: City Hall roof ($850K), security upgrades, fiber/wireless hardening, backup generators.

4. Parks, Recreation & Environmental/Stormwater

Parks: $3.4 million Lake Kennedy parking lot; $3.2 million new neighborhood park (NE 15th St); playground replacements ($1.5 million); field/BMX lighting ($1.3 million); fitness/tennis resurfacing.
Stormwater/Environmental (integrated with UEPs + separate): $14.8 million North 3 Advanced Drainage; swale regrading, dredging, flood prevention, drainpipe replacement, aquatic vegetation control (FY 2026 budget items total millions).

Additional Context & Trends

Yacht Basin (Enterprise): Rebuild planning continues (post-Hurricane Ian); not highlighted in latest quarterly CIP but remains a restricted-use priority.
Private/Mixed-Use Developments: City CIP supports growth from projects like The Grove (130-acre mixed-use on Pine Island Rd; infrastructure starting 2026), Bimini Square, etc. These drive utility/road demand but are not city capital projects.
Overall Progress: North 1 projects are essentially done; focus shifting to North 3, treatment plants (multi-year), and ongoing maintenance/resurfacing. Quarterly reports emphasize “on schedule/on budget” status with minor cost adjustments for design refinements.
Challenges: Rapid growth, post-storm recovery, and rising construction costs (some estimates increased but still managed).

For the absolute latest details, project maps, or full PDFs, visit capecoral.gov → Departments → Office of Communications → Quarterly Reports (Public Works/Utilities CIP sections) or Financial Services → Budget documents. Specific project inquiries (e.g., one UEP or park) can be directed to Public Works Engineering.

Additional Websites Created by Joe Angrisano: