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CAPE CORAL BUDGET 2026

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The Cape Coral City Council approved a $1.43 billion budget for Fiscal Year 2026, which began on October 1, 2025. The budget is a 26% increase over the previous year, driven largely by the city’s population growth and the need for new infrastructure and staffing. 

CAPE CORAL POLITICS FLORIDA PALM TREES Budget highlights

The key areas of investment and funding for the 2026 budget include:

  • Property tax rate: The city council approved a slightly reduced property tax rate of 5.1471 mills, or about $5.15 per $1,000 of assessed property value. Due to rising property values, the city anticipates generating roughly the same amount of ad valorem (based on value) revenue as the previous year.
  • Enterprise Fund: The Enterprise Fund, which covers utility improvements, saw a significant increase from $385.7 million to $742.7 million for FY2026. This will address the growing demand for irrigation water and other utility services.
  • Staffing: To support population growth, the budget adds 63 new positions across multiple departments. The new personnel include fire, police, and code enforcement employees.
  • Public safety:
    • Police: $89.6 million is allocated to the police department for personnel, facilities, and technology upgrades. The budget includes 16 new police positions.
    • Fire: $124.2 million is budgeted for the fire department, funding 19 new positions, a new rescue unit, and facilities improvements, including the rebuild of Fire Station 5.
  • Infrastructure:
    • $19.2 million for road repaving.
    • $2 million for bridge maintenance and rehabilitation.
    • Projects related to utilities, road resurfacing, and flood prevention.
  • Parks and Recreation: The budget includes funding for playground replacements at Burton and Giuffrida Parks, fitness station replacements at Del Prado Linear Park, and lighting upgrades at Koza Saladino Fields.
  • Environmental Sustainability: Funds are allocated for stormwater management, flood prevention, and water quality improvements. 
  • Budget documents: The proposed and adopted budget documents are available through the Office of Management and Budget.
  • Property Checkbook tool: The city offers a Property Checkbook tool on its website, allowing residents to look up specific property tax information, assessments, and fees.

How will the city fund the $742.7 million Enterprise Fund?

The City of Cape Coral funds the Enterprise Fund, which supports utility improvements, through a combination of revenue sources. One of the primary sources is the Water and Sewer Fund, which relies on user fees collected from water and sewer bills

Additionally, the city utilizes other funding streams for utility infrastructure, including:

  • Federal and State Grants: The city actively seeks grants, such as the $25 million grant received from the Florida Department of Environmental Protection, to offset the costs of projects like the Utilities Extension Project (UEP).
  • Property Owner Assessments: While not the sole source of funding, property owners contribute through assessments for projects like the UEP.
  • Sale of Bonds: The sale of bonds provides another avenue for financing large capital improvement projects within the Enterprise Fund.
  • Operating Transfers: Funds can also be transferred from the Water and Wastewater Fund to support capital projects.
  • Debt Service: A specific millage rate (0.1608) has been established to cover debt service, which may be related to financing undertaken for the Enterprise Fund. 

The $742.7 million allocated to the Enterprise Fund in the FY2026 budget reflects the significant need for utility improvements, particularly for vast irrigation water resources, as the city continues to grow.

What are the specific projects planned for the $742.7 million Enterprise Fund?

The FY2026 Enterprise Fund budget of $742.7 million is primarily dedicated to expanding and improving Cape Coral’s utility infrastructure to support the city’s rapid growth. 

Key Utility Projects

Significant allocations in the Enterprise Fund are designated for: 

  • North 3 Utility Expansion Project (UEP): $284.6 million for water, sewer, irrigation, and fiber optics in the North 3 area, including $14.8 million for the stormwater drainage system.
  • North Reverse Osmosis (RO) Water Treatment Plant and Wellfield Expansions: $56.1 million for Phase II expansion.
  • Southwest Water Reclamation Facility Improvements: $53 million for upgrades.
  • Other Utility Infrastructure Projects: Including $13 million for Everest Headworks, $5 million for a water reclamation transfer pump station, and other improvements to lift stations, wastewater systems, and water lines. 

The Enterprise Fund also includes funding for environmental and water quality projects: 

  • $4.5 million for swale regrading.
  • $2.2 million for dredging.
  • $1.7 million each for flood prevention/roadway drainage and drainpipe/catch basin replacement.
  • $1 million for aquatic vegetation harvesting.
  • $500,000 for water quality management. 

North 3 Utilities Extension Project (UEP)

The City of Cape Coral funds the North 3 Utilities Extension Project (UEP) primarily through special assessments charged to property owners in the project area. This cost is financed by the city through the issuance of municipal bonds, which are then paid back over a period of 20 to 30 years by the assessed properties. 

Key funding mechanisms

  • Special assessments on property owners: The largest portion of the project cost is passed on to the property owners who benefit from the new water, sewer, and irrigation lines. For example, prior UEP areas saw typical residential lots assessed for over $30,000. The assessment covers the capital cost of the line extensions and a Capacity Facility Expansion Charge.
  • Municipal bonds and loans: To cover the massive upfront costs of construction, the city secures financing through municipal bonds or State Revolving Fund (SRF) loans. This allows the cost to be spread out over decades and repaid by the property owners’ annual assessment payments.
  • Grant funding: The city aggressively pursues grant opportunities to help offset costs. For example, a $25 million grant from the Florida Department of Environmental Protection (FDEP) helped reduce assessment costs for property owners in the North 1 UEP area. The city plans to apply for additional grants for future phases, which may include the North 3 area.
  • Hardship and low-income assistance: The city offers programs to assist qualified homeowners who meet federal income guidelines. These programs, funded by sources like the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grants, can help with connection costs and provide hardship deferrals. 

Payment options for property owners

Property owners in the North 3 UEP will have several ways to pay their assessments: 

  • Upfront prepayment: The total amount can be paid at once during a specific prepayment period to avoid financing charges.
  • Amortized payments: The assessment can be paid in annual installments over 20, 25, or 30 years and added to the property’s annual tax bill.
  • Transfer of assessment: If the property is sold, any remaining assessment balance is transferred to the new owner.

How does Cape Coral’s 2026 budget compare to other Florida cities?

For Cape Coral’s 2026 budget to be compared to other Florida cities, key metrics must be analyzed, including budget growth, property tax rates, and infrastructure spending, relative to population growth

. While a direct city-by-city comparison is difficult without knowing the specific budgets of all other municipalities, the available data allows for analysis of Cape Coral’s approach. 

Budget growth driven by population

  • Cape Coral: The city’s $1.43 billion budget for Fiscal Year 2026 represents a 26% increase over the previous year, with a significant portion going toward utility infrastructure to accommodate rapid population growth. Cape Coral is one of the fastest-growing cities in the nation, and its budget increase reflects the capital investments required to keep pace with expansion.
  • Florida overall: The state’s population continues to grow rapidly. A July 2024 report projected an average of nearly 320,000 net new residents annually through 2028. Cities across Florida are experiencing similar growth pressures, necessitating budget increases for infrastructure, public safety, and other services. However, the scale and focus of Cape Coral’s budget increase—particularly on utility expansion—stand out. 

Property tax and revenue strategy

  • Cape Coral: For 2026, Cape Coral’s council approved a “rolled-back” property tax rate of 5.1471 mills, a slight decrease from the prior year. By lowering the rate while property values rose by more than 7%, the city was able to generate more revenue without increasing the tax burden on individual property owners. This strategy helps pay for services like public safety while keeping the tax rate relatively stable.
  • Other cities: In contrast, some Florida municipalities have to raise millage rates to keep up with rising costs, which can increase property tax bills even without a sharp rise in property values. Other cities with slower growth may have more moderate budget and tax rate changes. In a 2025 comparison, Cape Coral’s property tax rates were in the top third of one survey, though this was partly offset by lower sales and utility taxes. 

Infrastructure investment

  • Cape Coral: A massive $742.7 million of the 2026 budget is allocated to the Enterprise Fund, which is dedicated to utility improvements. This reflects the city’s urgent need to expand its water, sewer, and irrigation systems to service new development, most notably the North 3 UEP.
  • Other cities: While many Florida cities are spending on infrastructure, Cape Coral’s budget reflects a more acute need tied directly to its exceptional growth rate. The sheer scale of its utility fund—which more than doubled from 2025—is unusual compared to more mature cities, which may prioritize different infrastructure needs like road maintenance or parks over utility expansion. 

Affordability comparison

  • Cape Coral: Compared to major metropolitan hubs like Miami, Orlando, and Tampa, the overall cost of living in Cape Coral remains more affordable. However, comparisons with smaller or neighboring areas sometimes show Cape Coral as slightly more expensive, particularly in housing costs.
  • Other cities: While individual cost-of-living data varies, the trend is clear: Cape Coral is dealing with the financial pressures of rapid growth in a way that, for now, keeps it a more affordable option than the state’s largest and most established urban centers.

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