Cape Coral council hears FY2026 budget; leans to keep millage at 5.2188 and fund public safety through FSA

Cape Coral City Council held a budget workshop on Aug. 5, 2025, to review the city manager’s proposed fiscal year 2026 budget and related rate changes. Budget Administrator Nicole Reitler presented a proposed all‑funds budget of $1,515,592,288 and a general fund budget of about $266 million; the proposal assumes a general fund operating millage of 5.2188 mills and a fire service assessment (FSA) recovery increase from 70% to 81%.

The workshop focused on structural balance across FY2026–2028, proposed revenue adjustments and utility rate changes, and a package of staffing additions that the city manager included in the recommended budget. Reitler told the council the proposed millage of 5.2188 mills is unchanged from FY2025 and that a previously set not‑to‑exceed rate of 5.5188 mills (an additional 0.3 mills) remains available for council consideration. “Once we receive that updated information, we will present that to council,” Reitler said when noting outstanding state shared revenues and a not‑yet‑finalized police contract.

Why it matters: the council’s choices determine tax levies and how recurring costs such as contract increases and new staff are funded. The city manager’s balanced FY2026 plan relies in part on raising the FSA and on modest growth assumptions; without additional measures the staff presentations showed forecast deficits in the later years.

Key facts from the presentation

- Total proposed budget (all funds): $1,515,592,288. General fund proposed: approximately $266,000,000. The proposed millage rate: 5.2188 mills (no change from FY2025). Reitler said the city used July 1, 2025, taxable values from the property appraiser to…