City tax rate held to current rate
Cape Coral City Council sets property tax rate at 5.2188 mills
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Cape Coral City Council set the property tax rate at 5.2188 mills, the same as it is currently.
The 5.2188 millage rate will generate $264,702,131 for the general fund. The proposed millage rate for the parks general obligation bonds is 0.1608 mills.
City Manager Michael Ilczyszyn said at the first public hearing on the budget Thursday that 50% of all revenue coming in is basically for police and fire services.
"Just the ad valorum taxes alone that come from the millage is over 85% of the taxes that go to police and fire. Less than 15% are for everything else," he said.
Councilmembers Keith Long, Dr. Derrick Donnell and Jennifer Nelson-Lastra voted against the millage rate.
Nelson-Lastra said she spoke with a number of residents over the last six weeks that had concerns because they are on fixed incomes.
"I have looked, and I have asked," she said. "One last time, anything we can do? I can't find it. I am wondering if there is anything creative or innovative to get us there. I am worried about my constituents."
Donnell said they have been having a budget discussion since November of last year.
"What has been troubling me are the words that we are using. I am not sure we are looking at how important the data is," he said.
Donnell wanted to go to 5.5188 mills, the not-to-exceed rate previously set by council. That rate would generate $273,910,397 for the city’s general, or operations, fund.
"It's the same conversation year after year - can we find money and we have to find money," he said of the gravity of council’s decision. "We are playing catch up. How much catch up? Our budgets put out fires. I am asking for you all to look at 5.5138. This is my emotional plea."
One mill is equal to $1 for every $1,000 of assessed taxable property valuation. As overall valuations went up in the city last year, maintaining the same rate means the city is getting more property tax dollars. The roll-back-rate is the rate at which property tax revenue would remain the same.
The council was given four options to consider -- the proposed rate of 5.2188 mills, the rolled-back rate at 5.1471 mills, the not-to- exceed tax notice rate at 5.5188 or any millage rate greater than the rolled-back rate but lower than the not-to-exceed rate.
The council also approved the fiscal year 2026 budget at $1,437,048,387.
Long, Donnell and Nelson-Lastra also voted against the budget.
Before council voted, Ilczyszyn said where they are going, nobody has a crystal ball. He said it is possible he will present another status quo budget for next year.
"The picture next year might be worse, or better. The discussion next year is the same as this year. We are going to be doing the same exercise as we are next year," he said.
Ilczyszyn said to get to a balanced budget this year he had to cut $11.5 million in requests. With that reduction, $2.2 million for sidewalks was cut, median beautification, Operation Sparkle, fiber optics, police department command vehicle, and irrigation costs.
"For anybody that was paying attention we definitely talked about cuts; none are restored. They are out and gone," he said.
Financial Services Director Crystal Feast said they received additional information that required adjustments to the proposed budget. Those included state shared revenue, and half cent increases on projections from the state. She said there are also three TDC grants that were awarded for $414,621, and $3 million removal for the Economic Development Reserve, as it was already established in the current year.
There were also such adjustments to expenditures as $2.5 million to cover the new police union contracts.
There was also a revision to the total proposed budget to $1.4 billion down from $1.5 billion. Some of the reductions included the fleet maintenance building and property management building and the Emergency Operation Center.
Some of the highlights of the 2026 budget include 19 positions added to the fire department, 16 positions added to the police department, playground replacement at Burton Park and Giuffrida Park, neighborhood park at 2224 N.E. 15th St., City Hall roof replacement, median curbing and flood prevention improvements.
The final public hearing will be held at 5:05 p.m. Thursday, Sept. 29, to adopt the millage rate and budget.