Cape Coral approves $1.4B budget tackling rapid growth

The Cape Coral City Council approved a budget for fiscal year 2026 (FY26) on Sept. 25. The $1.4 billion budget focuses on several areas of priority for the city. According to officials, the budget addresses rapid population growth, infrastructure needs and pressure from inflation.

The budget also adds 63 new positions, enhancing service across multiple departments including emergency management, fire and police. Public safety is a major priority for officials as the population grows, with $202.7 million allocated in the budget for emergency services and management.

The Cape Coral Fire Department received $99.5 million of that figure, focusing on areas such as staffing, training, facilities and safety upgrades. Improvements include $60.5 million for fire personnel services, which include an additional 19 positions, as well as $9.4 million to rebuild Fire Station 5.

The Cape Coral Police Department received $91.8 million, supporting police operations citywide. This includes $76.6 million dedicated to personnel services, adding 16 new positions and specialized roles in training, school safety and digital forensics. An additional $8 million is set aside as a general disaster reserve to provide temporary resources in the event of a declared disaster.

Water and utility infrastructure also received major attention from officials, with more than $478 million allocated for several initiatives across the city. Significant investments include:

$284.6 million – North 3 Utility Expansion Project, extending water, sewer, irrigation, utilities and fiber optics to accommodate rapid growth in the northern part of the city.
$56.1 million – Phase II North Reverse Osmosis Water Treatment Plant, expanding water treatment capacity and wellfield infrastructure to meet increasing demand.
$53 million – Southwest Water Reclamation Facility Improvements, upgrading wastewater treatment infrastructure at the Southwest water reclamation facility.
$14.8 million – North 3 UEP Stormwater Advanced Drainage System, developing advanced stormwater management infrastructure as part of the North 3 expansion project.
$13 million – Everest Headworks, funding infrastructure improvements at the Everest water reclamation facility.

Officials also focused on fiscal sustainability for the FY26 budget, allocating $62.2 million in total funding. The funds will be placed in a reserve equal to 2.8 months of General Fund expenditures. This provides financial stability during economic downturns and disasters.

About $41.6 million in total funding goes toward education. The budget allocates $37.9 million for operating Cape Coral’s municipal charter schools, with another $2.1 million funding educational and enrichment programs for residents of all ages. The Frieda B Smith Special Populations Center also received $1.6 million to support programs and services for adults and children with disabilities.

Infrastructure and community development received $23.9 million. While officials approved numerous smaller investments across the city, $8.1 million will fund road repairs, resurfacing and other road upgrades throughout Cape Coral. Another $3.5 million will go toward installing and upgrading street lighting along major transportation corridors. The city is also allocating $3.5 million to the Coral Oaks Municipal Golf Course for maintaining operations at the facility.

Other general, notable improvements include:

$3.4 million – Lake Kennedy parking lot construction.
$3.2 million – New neighborhood park at 2224 NE 15th St.
$3.2 million – Chiquita access management and turn lane improvements.
$2 million – Bridge capital project fund allocation.
$1.1 million – Sidewalk installation around schools.
$850,000 – City Hall roof replacement.
$700,000 – Median curbing upgrades.

The FY26 budget took effect Oct. 1. Cape Coral remains one of the fastest-growing cities in the nation, according to officials, who said the 2026 budget positions the city to meet evolving resident needs while maintaining fiscal responsibility. The city will continue updating its six-year Asset Management Program alongside ongoing capital improvements throughout the fiscal year.

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