Audit shows Lake Kennedy budget rose as project scope changed; city auditor says project currently under budget

Residents raised concerns at the May 7 Cape Coral City Council meeting about reporting that Lake Kennedy Community Park had experienced a 48% budget increase. The city auditor and staff explained that the increase reflected an approved change in scope — from park improvements to a regional racket center — and that the project is currently within the revised budget.

A resident, Marie Kavanaugh, told the council she was “outraged” by reporting that the Lake Kennedy project had risen 48% and asked whether the city had improperly managed the project. She also asked whether large‑ticket items such as a seawall were included in the project total.

Andrea Russell, the City Auditor, told the council the audit examined the planning and closeout process. Russell said the budget figure rose because the city moved from the 2016 parks master‑plan concept (improvements) to a larger tournament center design. As she explained, “The budget was changed because we went from the 2016 parks master plan of Lake Kennedy Community Park improvements to what we have now, the Lake Kennedy World Center for tournaments.”

Russell reported that as of the audit appendix, the city had spent about $11.9 million of a $12.3 million current budget and that the audit found the project was “substantially complete.” She said the 48% figure reflected a change in the baseline budget used for comparison, not an overrun against the current budget.

Council members and the city manager echoed that explanation. Council Member Steinke said percentage comparisons can mislead readers when the project baseline changes: “When the entire scope of Kennedy changed, the budget for Kennedy should have changed to then monitor against what was truly the budget for the work going to be done.” Council Member Lee said that expanding from 16 to 32 pickleball courts and adding amenities should have prompted public notice about the larger budget.

Council members emphasized that the project’s enlarged scope had been discussed in public workshops and that subsequent votes and budget adjustments were recorded by the council. The city auditor said the audit’s purpose was to review planning and closeout procedures and not to allege fiscal mismanagement.

No new spending authorization was approved at the May 7 meeting related to Lake Kennedy; the discussion clarified the audit findings and sought to address public confusion.