Cape Coral adopts lower final millage, approves FY 2026 budget

The Cape Coral City Council adopted final millage rates and the city's fiscal year 2026 operating and capital budget at a special meeting on Sept. 25 in council chambers. The council set the operating millage at 5.1471 mills and the millage for parks general obligation bond debt at 0.1608 mills; the motion to adopt the millage passed on a 7-1 vote. The council then adopted the FY 2026 budget ordinance by the same margin.

Financial Services Director Crystal Feas told the council the public hearings before the meeting had set a tentative operating millage of 5.2188 mills and a debt service millage of 0.1608 mills, and staff returned with the final ordinances for adoption. Feas summarized the proposed FY 2026 budget and fund-level highlights, including a general fund of about $264.7 million, special revenue funds of about $213.2 million, $30 million budgeted for debt service, $65.8 million for capital projects, an enterprise fund of about $742.7 million and charter school funding near $38 million. Staff said one small adjustment was made to reflect TDC grants for a boardwalk overlook and restrooms at JC Park, shifting revenue categories without changing totals.

Council members debated the proposed millage before voting. During the public hearing, resident Tom Shadrach urged the council to revert to the rollback rate, saying that would reduce taxes by roughly $2.2 million and citing what he described as budget surpluses in 2024 and through July 2025. Another resident, Richard Matchen, thanked the city and urged cooperation among citizens and the council.

Councilmember Donnell opposed the adopted millage, saying during debate she had been pressing for a higher millage earlier in the process but would not support raising it now; she cast the lone recorded no vote. Other councilmembers who spoke in support said the adopted rate balanced public safety and essential services after months of review and reductions to initial staff requests. Council members described the current budget as lean and noted concern about reserves in later years if economic conditions do not improve.

Staff highlighted programmatic and capital investments in the adopted budget, including 35 new public-safety positions across fire and police, design funding for phase 3 of a fire training facility, sidewalk expansions near schools, four new code compliance officers and one supervisor, park equipment replacements, Lake Kennedy parking lot construction, a neighborhood park on Northeast 15th Street, City Hall roof replacement, city fiber and wireless work and surface-water and flood-prevention improvements.

The two ordinances on the final millage and the budget passed on 7-1 votes. The council record shows the motion to adopt the millage and the subsequent motion to adopt the budget were each seconded; the meeting record did not consistently identify the individual motion-maker and second on the audio transcript. The council did not state an effective date on the record during the meeting.

Council and staff noted follow-up work will continue as departments implement items in the adopted budget and track revenues and reserves. The council scheduled its next regular meeting for Oct. 8.