Cape Coral council sets tentative 2025-26 millage, OKs tentative $1.437 billion budget after 4-3 votes

The Cape Coral City Council on Sept. 11 set a tentative operating millage rate of 5.2188 mills and a parks general‑obligation bond millage of 0.1608 mills, and approved a tentative operating and capital budget totaling $1,437,048,387 across city funds for fiscal year 2026. Both motions passed on 4–3 roll‑call votes. The council scheduled final adoption for Sept. 25, 2025.

The vote follows the first of two required public hearings on the city’s proposed fiscal 2026 budget. Crystal Feese, the city’s financial services director, opened the presentation by noting, "This evening marks the first of two public hearings that we are required to adopt the millage and operating budget for fiscal year 25‑26." Feese said the proposed general‑fund budget is $264,702,131 and that the combined across‑funds proposal is $1,437,048,387.

Why it matters: council members and the city’s consultant said the city faces growing gaps between revenues and expenses after fiscal 2026. Peter Napoli of Stantec Consulting told the council the city’s forecasting model shows 2026 ending fund balances are “sustained and healthy,” but warned that “the problem that occurs in ’27 onwards is the gap between revenues and expenses continues to exacerbate,” projecting an $11 million shortfall in 2027 that grows in later years unless revenues or expenditures change.

Key details and council debate - Millage decisions: Council considered four millage options described by staff:…