Council approves preliminary assessments, sets not‑to‑exceed millage; solid waste, fire and stormwater increases advance

The Cape Coral City Council on July 23 adopted a set of preliminary assessments and budget actions tied to the fiscal‑year 2026 budget and set a not‑to‑exceed millage rate for the city’s general fund.

Key approvals and votes

- Lot mowing (Resolution 204‑25): Council approved the annual lot‑mowing assessment rates for four districts used to fund mowing, invasive vegetation removal and burrowing‑owl trimming for approximately 31,000 parcels. Staff said District 1’s per‑lot rate declines after last year’s supplemental debris funding tied to Hurricane Ian, while Districts 2–4 see modest increases tied to contract cost rises. Vote: 8–0 in favor.

- Solid waste assessment (Resolution 205‑25): Council approved the proposed solid‑waste assessment for FY2026. Staff described components including Waste Pro contract CPI adjustments, Lee County tipping‑fee increases and a policy decision to build restricted reserves in the solid‑waste fund to stand up to future debris and contract shocks. The proposed adjustment increased the annual assessment by $38.49 over the prior year; staff said the change will create an estimated restricted fund balance of about $26.5 million by 09/30/2026. Public commenters criticized building the reserve and questioned whether the city should be holding that cash. Vote: 7 ayes, 1 nay.

- Fire protection assessment (Resolution 206‑25): The council approved a preliminary not‑to‑exceed rate that would increase the assessed recovery from 70% to 81% of fire costs, reducing general‑fund subsidy and funding investments the staff listed: a rebuild of Fire Station 5 ($9.5 million), a diesel exhaust system ($1.4 million), generator replacements and docking stations ($810,000), a rescue truck ($390,000), facilities maintenance and 19 additional positions. Staff said the change equates to about a 25% increase over last year; the example shown for an average single‑family household was an increase of roughly $91 per year. Vote: 7 ayes, 1 nay.

- Stormwater user fee (Resolution 207‑25): Council set a proposed not‑to‑exceed stormwater fee of $156 per equivalent residential unit (ERU) for FY2026 and scheduled the final public hearing. Staff said the proposed fee will fund new maintenance crews, environmental and water‑quality projects ($1.1 million), flood‑prevention investments ($1.6 million) and drainage improvements ($1.7 million). Public commenters praised stormwater crews’ work and also raised concerns about response times on some swales. Motion carried (roll call recorded; council approved proceeding to final hearing).

- Collections and assessment corrections (Resolution 208‑25 and 209‑25): Council started the formal process to place several previously delinquent deferred assessments, hardship deferrals and one delinquent loan on the tax roll (resolution 208‑25) and to correct an administrative miscoding that had exempted 22 parcels from an irrigation assessment (resolution 209‑25). In both cases staff said notices will be mailed, prepayment periods offered and final hearings set for August 27. Both measures were approved.

- Millage (Resolution 210‑25): The council set a proposed not‑to‑exceed millage rate of 5.5188 mills for general operations (rolled‑back rate 5.1471) and 0.1608 mills for voted parks debt service for the FY2026 trim process. The proposed general‑fund not‑to‑exceed rate is a policy decision to provide flexibility in the upcoming budget process; the final millage and budget will be adopted at public hearings scheduled for Sept. 11 (tentative) and Sept. 25. Vote on the not‑to‑exceed millage: 6 ayes, 2 nays.

Staff presentations and public comment

Financial staff and department directors provided the numbers behind each assessment. Crystal Feese, financial services director, presented the lot‑mowing data and the calendar for the final hearing. Terry Schweitzer, solid waste manager, and other staff described the rationale for a restricted solid‑waste reserve and the mechanics of the assessment billing. Budget staff noted the city’s overall fiscal‑year 2026 proposed general fund budget and explained that the millage action on July 23 was a “not‑to‑exceed” step required for Truth in Millage (TRIM) notifications.

Several residents spoke during public hearings. Comments ranged from criticism of building a large solid‑waste reserve, to concerns about assessment transparency, to support for additional stormwater crews. One frequent commenter asked why the council was increasing assessments and taxes while residents face affordability pressures; others urged the city to proceed with needed capital investments.

Next steps

Each of the adopted preliminary rates and assessments is set for a final public hearing on August 27 (4 p.m.) or in the September TRIM hearings for ad valorem millage. Staff will publish detailed assessment calculations and mailing notices where required. The council’s approval of the not‑to‑exceed millage preserves flexibility but does not finalize property tax rates — the final rates will be set in September after additional budget work and public hearings.