City Manager releases at-a-glance of the FY26 Proposed Budget

Aug 8, 2025 9 min read

Cape oral City Manager Michael Ilczyszyn has released an at-a-glance of his proposed budget for the fiscal year that begins oct. 1.

The FY 2026 Budget, presents “a structurally balanced financial plan that prioritizes enhanced service delivery, sustainability, and continued investment in Cape Coral’s future,” a release from teh city issued late Thursday states.

The $1.5 billion proposed budget maintains the current millage rate of 5.2188 and “supports the City’s long-term strategic goals while addressing population growth, inflationary pressures, and infrastructure needs,” officials said.

“My primary focus for the Fiscal Year 2026 Proposed Budget remains on maintaining and enhancing our community’s quality of life by prioritizing growth in public safety and infrastructure,” Ilczyszyn said in a prepared statement. “I am extremely proud of our dedicated staff who have worked tirelessly to bring this budget forward, and I am grateful for the unwavering support and leadership of our City Council. Together, we are building a roadmap for a strong and secure future for all our residents.”

The information below is as presented in the city’s release. For clarity, The Breeze has placed quote marks around the city’s statements pertaining to the numbers.

ADVANCING PUBLIC SAFETY AND EMERGENCY RESILIENCE

“Public safety remains a top priority in FY26, with significant new investments across police, fire, and emergency management services, including $124.2 million for the Fire Department, $89.6 million for the Police Department, and $2.1 million for Emergency Management and Resilience.

“The budget proposes an 11 percent increase in the Fire Service Assessment, boosting the cost recovery rate from 70 to 81 percent.

“The budget includes key investments to strengthen Cape Coral’s fire services, focusing on staffing, facilities, training, and safety upgrades, including:”

• $59.2 million allocated to fire personnel services, which include 19 new positions including a new Rescue Unit and support roles

• $9.4 million for Fire Station 5 rebuild

• $1.4 million for direct capture exhaust air filter systems at all fire stations

• $1.1 million to replace aging fire department vehicles

• $949,279 for Fire Training Facility phase 3 design

The base pay for firefighters was increased by $2.97 per hour

“Investments in Cape Coral’s police services support personnel growth, facility enhancements, and the addition of cutting-edge technology and equipment:”

• $74.1 million allocated to police personnel services for 16 new positions including nine new police officers, a lieutenant, sergeants for training and school safety, administrative assistant, digital forensics technician, and two public service aides, an increase of nearly $10.2 million from the FY25 adopted budget.

• $1.2 million to replace aging police department vehicles

• $631,123 for a Southeast Precinct design

• $180,000 for new police speed measuring devices

• $94,000 for forensics LEICA laser scanner

• $54,692 for two new TruNarc narcotics scanners

• $10,000 hiring bonus continuing for new police officers

“The budget includes funding focused on expanding emergency operations and boosting city communication systems to improve weather event resilience and connectivity, including:”

• $30.1 million for the Emergency Operations Center expansion

• $8 million disaster reserve to provide temporary resources in the event of a federal- or state-declared emergency

• $1 million for city fiber and wireless conduit connecting city facilities with hardened communications in the event of weather events and providing fiber supported wireless at parks and city facilities

• $300,000 for backup generators at lift stations

FISCAL HEALTH

“Cape Coral is committed to maintaining strong fiscal health by enhancing the City’s resilience to economic fluctuations and disaster response, including:”

• $62.2 million for the Budget Sustainability Reserve, which is equal to 2.8 months of FY26 proposed General Fund expenditures. This reserve will bolster future fiscal resilience and support innovative initiatives, including sustainability-focused projects.

MODERNIZING INFRASTRUCTURE: ROADS, BRIDGES, AND CONNECTIVITY

“The FY26 Proposed Budget includes major infrastructure upgrades, reflecting Cape Coral’s commitment to equitable access, mobility, and resilience, including.”

• $19.2 million for road repaving, including alleyways

• $3.7 million for roadway improvements

• $3.7 million for Chiquita access management and turn lane improvements

• $3.7 million for transportation street lighting

• $2 million for the bridge capital project fund

• $1.1 million for sidewalk installation around schools

• $700,000 for median curbing

• $200,000 for ADA upgrades as part of road resurfacing

“The budget allocates funds to maintain and improve key city facilities and infrastructure, supporting long-term community needs and operational efficiency, including:”

• $76.22 million for Fleet and Facilities Building construction

• $2 million for bridge maintenance and rehabilitation

• $850,000 for City Hall roof replacement

• $280,000 for the North Cape Public Safety Complex turn lane at Jacaranda and Averill

• $150,000 for security access and upgrades at city buildings

UTILITY INFRASTRUCTURE

“Cape Coral remains one of the fastest-growing cities in the nation. The FY26 budget includes capital improvements and facility expansions to meet the demands of a growing population, including:”

• $139.7 million for North 3 UEP water, sewer, irrigation transmission, utilities, and fiber optics conduit

• $53 million for Southwest Water Reclamation Facility improvements

• $41.4 million for the North Reverse Osmosis Water Treatment Plant expansion phase II & 12 MG Potable Water

• $20.4 million for the North 3 UEP transportation improvements

• $14.7 million for the North Reverse Osmosis Water Treatment Plant Wellfield expansion phase II

• $13 million for Everest Headworks

• $11.1 million for Everest Water Reclamation Plant Reuse Pump Station replacement

• $5 million for a water reclamation north south transfer pump station

• $3.6 million for wastewater inflow and infiltration, which includes manhole maintenance and pipe relining

• $3.3 million for Judd Creek water and sewer line extension

• $2 million for water reclamation lift station 401 relocation

• $2 million for water reclamation lift station panel replacement and upgrades

• $1.5 million to fund the backflow program

• $550,000 for lift station pump replacements

• $409,000 for maintaining fire hydrants

• INVESTING IN QUALITY OF LIFE

“Cape Coral continues to invest significantly in its parks and recreation infrastructure to provide enhanced amenities and improved facilities for residents, including:”

• $3.5 million for Coral Oaks Golf Course operations

• $3.4 million for Lake Kennedy parking lot construction

• $3.15 million for a new neighborhood park at 2224 NE 15th St.

• $2.5 million for Coral Oaks Golf Course irrigation upgrade

• $1.5 million for playground replacements at Burton Park and Giuffrida Park

• $1.3 million for lighting replacements at Koza Saladino Fields 1 through 4 and the BMX Track

• $100,000 for fitness station replacements at Del Prado Linear Park

• $100,000 for tennis/pickleball court resurfacing at Camelot Park and Joe Stonis Park

“In addition to facility improvements, Cape Coral prioritizes personnel support, beautification efforts, and diverse community programming, including:”

• $16.8 million allocated to Parks and Recreation personnel services to support additional recreation staff, including a senior recreation specialist, a contract athletic assistant, and a contract athletic official, an increase of nearly $1.8 million from the FY25 adopted budget.

• $1.7 million for city special events

• $1.6 million for the Frieda B. Smith Special Populations Center for adults and children with intellectual disabilities

• $1.2 million for Palm Tree median beautification

• $720,353 for four code compliance officers and one supervisor

• $621,360 for community median beautification

• $411,407 to operate Pops Cafe, which employs members of the community with special needs

• Youth programming:

• $1.1 million for programming at the Youth Center

• $118,771 for athletics programming

• $106,839 for programming at Four Freedoms Park

• $49,170 for programming at the South Cape Community Center

• $28,949 for programming at Lake Kennedy Center

• $23,548 for programming at Rotary Park

• $4,087 for programming at the Art Center

• Senior programming:

• $106,989 for programming at Lake Kennedy Center

• $35,558 for programming at Rotary Park

• $15,811 for programming at Four Freedoms Park

• $10,350 for programming at the South Cape Community Center

ENVIRONMENTAL PROTECTION AND WATER QUALITY

“The budget prioritizes environmental protection through major investments in advanced stormwater management, flood prevention, drainage improvements, aquatic vegetation control, and water quality upgrades, including:”

• $14.78 million for the North 3 Utility Expansion Project (UEP) Stormwater Advanced Drainage System

• $4.5 million for swale regrading to improve neighborhood drainage

• $4.3 million for stormwater drainpipe replacement to modernize aging infrastructure

• $2.99 million for dredging

• $2.3 million for surface water management water quality improvements

• $1.68 million for flood prevention and roadway drainage

• $1.6 million for drainpipe and catch basin replacement

• $1.1 million for stormwater catch basin management

• $1.09 million for weir management

• $1.04 million for aquatic vegetation harvesting in the South Spreader Canal

• $585,000 for street sweeping

• $537,600 for Trafalgar drainage improvements

• $500,000 for water quality management Improvements

• DRIVING ECONOMIC DEVELOPMENT

“To encourage long-term prosperity and sustainability, the budget includes new economic initiatives, including:”

• $3 million for proposed economic development Incentives reserve, which would fund commercial growth opportunities and support targeted industry expansion.

• $2.2 million in targeted grants: This year’s budget dedicates grant funding to programs that strengthen entrepreneurship, environmental innovation, technology, and community development, including:

• $1.1 million for the Community Development Block Grant

• $561,243 for programs serving Special Populations

• $381,874 for the HOME Investment Partnership

• $169,063 for the Tourist Development Council

• $1.4 million for enhanced marketing and outreach to promote Cape Coral as a dynamic destination for residents, businesses, and visitors.

OASIS MUNICIPAL SCHOOLS AND EDUCATIONAL PROGRAMS

“Cape Coral dedicates significant resources to its municipal charter school system and varied educational programs, enhancing learning opportunities for residents of all ages, including:”

• $37.9 million to run the municipal charter school system

• $2.1 million toward lifestyle enrichment programs

• $278,383 to operate VPK programs at the Youth Center and Four Freedoms Park

• Promoting Transparency: The Property Checkbook Tool

“To bolster fiscal transparency, residents can look up specific properties and see tax information, assessments, and fees that contribute to the total cost for city services. Visit capecoral.gov/checkbook. (Note: The tool may experience temporary updates during the millage rate adjustment period.)

Next Steps: Final Budget Adoption

The Council will vote on final adoption in September. The proposed budget document is available on the City’s official website, https://www.capecoral.gov/department/financial_services/office_of_management_and_budget.php providing residents with detailed insights into the City’s financial priorities and investments.

About Cape Coral

Cape Coral designated one of America’s “biggest boomtowns” – Second in nation for Gross Domestic Product (GDP) Growth and Employee Identification Numbers (EIN) granted by Lendingtree; July 2025

Cape Coral named one of the seven best places to move in Florida by Southern Living; July 2025

Cape Coral named dream base for travel-ready retirees by Investopedia; June 2025

Cape Coral named second best city for first-time home buyers, by WalletHub; July 2024

Cape Coral named 4th best places to live in Florida in 2024 by Forbes Advisor; April 2024

Cape Coral named top emerging luxury city in America by Architectural Digest; March 2024