Cape Coral approves FY27 stormwater fee increase to fund major capital projects

Cape Coral approves FY27 stormwater fee increase to fund major capital projectsThe city council voted 6-2 to raise the stormwater user fee to $163 per equivalent residential unit, citing the need for dedicated swale crews and major drainage upgrades across one of Florida's largest municipal stormwater systems.

The new rate of $163 per ERU is expected to generate an additional $1 million in revenue compared to FY 2026.

Capital investments include $7.7 million for Trafalgar drainage improvements, $3.3 million for weir upgrades, and $2.6 million for catch basin replacements.

Funding will add a dedicated swale crew, a heavy equipment operator, and a service worker to address a growing backlog of swale regrading requests.

Officials defended the increase by noting Cape Coral manages the second or third largest municipal separate storm sewer system in Florida.

Cape Coral City Council approved its FY 2026-2027 stormwater user fee on August 26, setting the rate at $163 per equivalent residential unit (ERU). The measure, passed in a 6-2 vote, is projected to increase stormwater revenue by approximately $1 million over the previous fiscal year. The city's Financial Services Director outlined a robust capital improvement program funded by the fee. Key allocations include $7.7 million for Trafalgar drainage improvements, $3.3 million for weir improvements, $2.6 million for catch basin replacements, and $1 million for a stormwater system retrofit at Rotary Park. An additional $1.8 million is earmarked for environmental and water quality projects, alongside $500,000 for flood prevention. A major driver of the fee increase is the need for expanded operational capacity. The city will fund a dedicated swale crew, a heavy equipment operator, and a service worker to address maintenance backlogs. The City Manager noted that as more properties are built, swale regrading has become significantly more complex, requiring surveys and design work to accommodate varying driveway elevations. "By not adding crews but adding the workload... they're accomplishing less. So what we need to do is add crews to keep up," the City Manager explained. The fee hike faced pushback from several residents citing affordability concerns and recent flooding incidents. One resident noted they had paid $46,000 for a recent Utility Expansion Project (UEP) but still experienced street flooding and water main issues. The City Manager attributed recent flash flooding to an extreme weather event that dropped nearly four inches of rain in a single hour, temporarily overwhelming the system's design capacity. Defending the rate, officials emphasized the unique scale of Cape Coral's infrastructure. The city operates what is considered the world's largest canal system and the second or third largest municipal separate storm sewer system in Florida. In related business, the council also approved assessment rolls for delinquent utility accounts and upcoming Utility Expansion Project (UEP) capital expansion fees.