Frequently Asked Questions
Budget and Budget Process
The budget process and the levy of ad valorem taxes are governed by Florida Statutes Chapter 200 and City of Cape Coral Charter Article VII Chapter 7. The Statutes address the budget timetable from the point of initial presentation of a proposed budget and taxable value to the governing body. The timetable, public advertising requirements, and the two required public hearings to adopt the budget and to levy ad valorem taxes are statutory/charter requirements. Additionally, State Comptroller Regulations dictate a uniform accounting structure, which must be embodied in the budget and financial reporting.
The final budget document reflects a continuation of the managerial focus on both the budget process and the document itself. An outline of Cape Coral’s process is presented below.
Certified taxable values for the determination of proposed ad valorem taxes are received from the Property Appraiser for all taxing districts setting the legal adoption timetable
City Manager submits proposed operating budget to the City Council in late July
City Council establishes a proposed millage rate for all Cape Coral ad valorem taxes for the new Fiscal Year. Proposed ad valorem millage levies must be certified to the Property Appraiser by the City Council within thirty-five (35) days of presentation of assessed values, and public hearing dates must be set.
A Town Hall is held at City Council Chambers to provide the opportunity for the community to ask questions from Department Directors and learn about the proposed fiscal year budget
The first public hearing is held within twenty-five days of the mailing of the TRIM notice. Tentative millage rates and operating budget are approved at the first public hearing.
The second public hearing is held within fifteen days following the first public hearing. Advertisement in the newspaper is required three to five days before the second public hearing. The advertisement must contain a summary of the budget, all millage rates, and tax increase percentages over the rolled back rate millage. The final budget and millage levies are adopted at the second public hearing.
Summary documents of the final approved budget are posted on the City’s website. The final budget document is produced reflecting final program service information and dollars. Copies of the final document are made available for review by the media, taxpayers, and public interest groups at all libraries and at the City Clerk’s office.
The six-year Asset Management Program is updated annually at the same time as annual budget preparation, consisting of an adoptable one-year asset improvement program and a five-year forecast. Proposed funding sources are shown for each project. Revenue estimates for capital funding sources are projected for the five years of the program. A proposed update of the five-year Asset Management Program is presented during annual budget review. The proposed update is reviewed and modified by the departments. The first year of the updated Asset Management Program as modified is integrated into the proposed annual budget. When the final budget is adopted, the final update of the six-year Asset Management Program is produced.
Florida law provides general guidelines regarding budget amendment policies. Appropriation of additional unanticipated revenue is also allowed by law in all fund categories for many types of revenue at public City Council meetings. The law allows appropriation increases of any nature to occur through a supplemental budget process requiring advertised public hearings. Cape Coral’s budget amendment policy allows the maximum flexibility under Florida law. Budget amendments or transfers not requiring an increase in a fund total or department total are granted within guidelines to various levels of management. Formal legal appropriation by the City Council is at the department level for the general fund and at the fund level for all other funds in order to allow the degree of flexibility provided by the City policy.
Budgets for all funds are prepared on the modified accrual basis, which means it conforms to Generally Accepted Accounting Principles (GAAP) except for a few notable differences:
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
All governmental funds, expendable trust funds, and agency funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are included on the balance sheet. The modified accrual basis of accounting is used by these fund types. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay current liabilities.
All proprietary funds, non-expendable trust funds and pension funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheets. The accrual basis of accounting is utilized by these fund types. Revenues are recorded when earned and expenses are recorded when the liability is incurred.
On February 25, 1991, the City of Cape Coral adopted a comprehensive set of financial management policies in the areas of operating management, debt management, accounts management, financial planning, and economic resources. At various times, City Council and the Budget Review Committee have conducted thorough reviews of such policies as part of an ongoing process of economic and financial analysis as conducted by City staff. On November 2, 2022 the City of Cape Coral adopted an updated set of financial management policies effective September 30, 2022.
The City of Cape Coral Charter School Authority approved financial policies on June 13, 2023.
The final budget document reflects a continuation of the managerial focus on both the budget process and the document itself. An outline of Cape Coral’s process is presented below.
November – April
- Strategic Planning Session
- Budget Kickoff with City Council
- Budget Division updates Fiscal Forecasts
- Budget Division prepares and distributes Budget Guidelines
- Departments update Asset Improvement Plan components and prepare operating budgets
May – June City Manager Review
- City Manager reviews departmental requests and service level recommendations
- Issues are discussed, resolved, and recommendations prepared for presentation to the City Council
- Detailed analysis of budget is accomplished
- Preliminary taxable value estimates provided by the Lee County Property Appraiser
July 1 – Certified Taxable Values
Certified taxable values for the determination of proposed ad valorem taxes are received from the Property Appraiser for all taxing districts setting the legal adoption timetable
July/August – Submittal of Proposed Budget and Establishment of Proposed Millage Rate
City Manager submits proposed operating budget to the City Council in late July
City Council establishes a proposed millage rate for all Cape Coral ad valorem taxes for the new Fiscal Year. Proposed ad valorem millage levies must be certified to the Property Appraiser by the City Council within thirty-five (35) days of presentation of assessed values, and public hearing dates must be set.
Late July
A Town Hall is held at City Council Chambers to provide the opportunity for the community to ask questions from Department Directors and learn about the proposed fiscal year budget
August
- City Council Workshop(s) to discuss City Manager’s Proposed Budget
- Property Appraiser mails TRIM notices to all property owners
September – Public Hearings
The first public hearing is held within twenty-five days of the mailing of the TRIM notice. Tentative millage rates and operating budget are approved at the first public hearing.
The second public hearing is held within fifteen days following the first public hearing. Advertisement in the newspaper is required three to five days before the second public hearing. The advertisement must contain a summary of the budget, all millage rates, and tax increase percentages over the rolled back rate millage. The final budget and millage levies are adopted at the second public hearing.
November/December - Final Budget Document
Summary documents of the final approved budget are posted on the City’s website. The final budget document is produced reflecting final program service information and dollars. Copies of the final document are made available for review by the media, taxpayers, and public interest groups at all libraries and at the City Clerk’s office.
Six-Year Asset Management Program
The six-year Asset Management Program is updated annually at the same time as annual budget preparation, consisting of an adoptable one-year asset improvement program and a five-year forecast. Proposed funding sources are shown for each project. Revenue estimates for capital funding sources are projected for the five years of the program. A proposed update of the five-year Asset Management Program is presented during annual budget review. The proposed update is reviewed and modified by the departments. The first year of the updated Asset Management Program as modified is integrated into the proposed annual budget. When the final budget is adopted, the final update of the six-year Asset Management Program is produced.
Budget Amendment Policy
Florida law provides general guidelines regarding budget amendment policies. Appropriation of additional unanticipated revenue is also allowed by law in all fund categories for many types of revenue at public City Council meetings. The law allows appropriation increases of any nature to occur through a supplemental budget process requiring advertised public hearings. Cape Coral’s budget amendment policy allows the maximum flexibility under Florida law. Budget amendments or transfers not requiring an increase in a fund total or department total are granted within guidelines to various levels of management. Formal legal appropriation by the City Council is at the department level for the general fund and at the fund level for all other funds in order to allow the degree of flexibility provided by the City policy.
Basis of Budgeting
Budgets for all funds are prepared on the modified accrual basis, which means it conforms to Generally Accepted Accounting Principles (GAAP) except for a few notable differences:
- Lease and financing proceeds are included as revenue
- Principal payments on debt are included as expenditures
- Cash outlay for both equipment and capital projects are included as expenditures
- Depreciation expense and other non-cash expenses such as Other Post-Employment Benefits (OPEB), amortization of bond premiums, and bond discounts are not included
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
All governmental funds, expendable trust funds, and agency funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are included on the balance sheet. The modified accrual basis of accounting is used by these fund types. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay current liabilities.
All proprietary funds, non-expendable trust funds and pension funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheets. The accrual basis of accounting is utilized by these fund types. Revenues are recorded when earned and expenses are recorded when the liability is incurred.
Financial Management Policies
On February 25, 1991, the City of Cape Coral adopted a comprehensive set of financial management policies in the areas of operating management, debt management, accounts management, financial planning, and economic resources. At various times, City Council and the Budget Review Committee have conducted thorough reviews of such policies as part of an ongoing process of economic and financial analysis as conducted by City staff. On November 2, 2022 the City of Cape Coral adopted an updated set of financial management policies effective September 30, 2022.
The City of Cape Coral Charter School Authority approved financial policies on June 13, 2023.
Budget Viewing and Public Budget Hearings
The proposed budget for the upcoming fiscal year is available for viewing and downloads on the capecoral.gov website under the Office of Management & Budget in late July. One can also reach out to request a physical copy through the City Clerk’s Office via a Records Request.
The entire approved budget is available for viewing and downloads on or about December 1 of this fiscal year online or a request can be made via a records request through the City Clerk’s Office.
The entire approved budget is available for viewing and downloads on or about December 1 of this fiscal year online or a request can be made via a records request through the City Clerk’s Office.
State law requires that two public hearings be held to discuss the budget. These hearings occur every September. The first public hearing is held within twenty-five days of the mailing of the TRIM notice and is advertised within the notice. Tentative millage rates and operating budget are approved at the first public hearing.
The second public hearing is held within fifteen days following the first public hearing. Advertisement in the newspaper is required three to five days before the second public hearing. The advertisement must contain a summary of the budget, all millage rates, and tax increase percentages over the rolled back rate millage. The final budget and millage levies are adopted at the second public hearing.
The second public hearing is held within fifteen days following the first public hearing. Advertisement in the newspaper is required three to five days before the second public hearing. The advertisement must contain a summary of the budget, all millage rates, and tax increase percentages over the rolled back rate millage. The final budget and millage levies are adopted at the second public hearing.
Your Trim Notice, Tax Bill, Property Taxes, and Special Assessments
The taxes due on a property are calculated by multiplying the taxable value of the property by the millage rate. For example, the property taxes on a home with a homestead exemption of $50,000 and a tax rate of 4.8325 mills can be calculated in this manner:
The millage rate is multiplied by the value of the property then divided by 1,000 to determine the amount of taxes. The reason: "millage rates" are in dollars per thousand of assessed value. You may also note that certain districts marked with an asterisk do not deduct the Homestead Exemption value prior to calculating the amount of taxes due. These districts are authorized by Florida Statute to use assessed value without exemptions in their tax calculations.
An ad valorem tax is a tax derived from an assessed value, such as the value of real estate or personal property, with a tax rate applied. Commonly referred to as “Property Tax”.
A special assessment is a charge levied on properties for the cost of providing a particular service or improvement, such as solid waste collection, stormwater fees, or utility improvements. It is called a non-ad Valorem assessment because it is on the property tax bill but not based on property value. These are flat amounts that are determined by the Taxing Authorities each tax roll year for the benefits or other services performed.
The millage rate is the amount of property tax charged per $1,000 of taxable property value.
For example: If the City’s current millage rate for general services is $7.7070 per $1,000 of taxable value. A property with a taxable value of $100,000 would pay $770.70 for city services (1,000 x 7.7070 = 770.70).
For example: If the City’s current millage rate for general services is $7.7070 per $1,000 of taxable value. A property with a taxable value of $100,000 would pay $770.70 for city services (1,000 x 7.7070 = 770.70).
TRIM is an acronym for the Truth In Millage Law, passed in 1980 by the Florida state legislature. It was designed to keep the public informed about the taxes as proposed by local taxing authorities. The TRIM notice is the Notice of Proposed Property Taxes required by this law. All property owners should receive a TRIM notice each August.
Other taxing authorities for Cape Coral property owners include the School Board, Lee County, and independent districts such as Mosquito Control. TRIM notices are mailed after proposed millage rates (tax rates) are set, but before taxing authorities take a final vote. That’s why the notice provides public hearing dates, as well as contact information for each taxing authority, in case you would like to provide input before a final vote is taken.
TRIM notices include information about:
Other taxing authorities for Cape Coral property owners include the School Board, Lee County, and independent districts such as Mosquito Control. TRIM notices are mailed after proposed millage rates (tax rates) are set, but before taxing authorities take a final vote. That’s why the notice provides public hearing dates, as well as contact information for each taxing authority, in case you would like to provide input before a final vote is taken.
TRIM notices include information about:
- The current “Just Value” of your property
- Approved exemptions
- The governmental entities responsible for your taxes and
- The amount you owe each entity based on the value of your property
The taxes due on a property are calculated by multiplying the taxable value of the property by the millage rate. For example, the property taxes on a home with a homestead exemption of $50,000 and a tax rate of 4.8325 mills can be calculated in this manner:- Determine the taxable value of the property:
- Assessed Value of Home: $150,000
- Less Homestead Exemption: -$50,000
- Taxable Value: $100,000
- Divide the taxable value by 1,000 and multiply by the millage rate:
- (100,000/1,000) X 4.8325 = $483.25
The millage rate is multiplied by the value of the property then divided by 1,000 to determine the amount of taxes. The reason: "millage rates" are in dollars per thousand of assessed value. You may also note that certain districts marked with an asterisk do not deduct the Homestead Exemption value prior to calculating the amount of taxes due. These districts are authorized by Florida Statute to use assessed value without exemptions in their tax calculations.
Tax bills are mailed by November 1, and payment is due on or before March 31 of the following calendar year. Discounts are available for early payment. Taxes paid in November receive a 4% discount, December is a 3% discount, January is 2% and February is 1%. Taxes are due on March 31. For more information on making property tax payments, please call the Lee County Tax Collector at 239-533-6000 or visit their website Lee County Tax Collector www.leetc.com.
- To View, PRINT or Download YOUR TAX BILL
- Visit the Property Tax
- Enter your name, address or account number and select your listing.
- Select Print (PDF) or Download.
- If you have not received your tax bill by postal mail, you can view, pay, or print your bill online.
- If you have an escrow account with your mortgage provider, you can confirm payment has been made by viewing your account online.
The Lee County Tax Collector is responsible for collecting tax payments that become delinquent after April 1 of each year. Please call the Lee County Tax Collector at 239-533-6000 or visit their website Lee County Tax Collector www.leetc.com.
The rolled-back rate is the millage rate based upon updated property value assessments that would provide the same amount of revenue as the previous year’s millage rate. New construction is excluded from this calculation.
Under the law in Florida and a few other states, if a local government adopts the roll-back rate, that government is not increasing taxes, even if the rate itself increases. That’s because the roll-back rate calculates taxable property values in relation to the total revenue they generate for a government. If the tax rate generates the same total revenue one year as it did in the previous year, then the rolled-back rate has been applied.
Under the law in Florida and a few other states, if a local government adopts the roll-back rate, that government is not increasing taxes, even if the rate itself increases. That’s because the roll-back rate calculates taxable property values in relation to the total revenue they generate for a government. If the tax rate generates the same total revenue one year as it did in the previous year, then the rolled-back rate has been applied.
Your tax bill may increase for a variety of reasons. Some of the most common reasons are:
- Loss of homestead exemption or other change in exemption status
- Increase in assessed property value (i.e., increase in market value)
- Increase in millage rate by one or more taxing authority
The assessed value of your home is based upon the market value of the entire property. However, a state limit on the amount a residential property’s assessment can increase each year. If the market value of your home has increased substantially in the last few years, your assessed value will likely be more than your current market value. For more information on how your assessed value is determined, visit the Lee County Property Appraiser’s website at Lee County Property Line www.leepa.org.
Property owners should first contact the Lee County Property Appraiser’s Office at www.leepa.org. Homeowners may decide to file a petition with the Value Adjustment Board to have the assessment adjusted. The VAB must receive these petitions before the deadline in mid-September, 25 days after the Property Appraiser’s Office mails the TRIM notices.
You can apply for a homestead exemption at the Lee County Property Appraiser’s Office at www.leepa.org. There is no fee to apply for the homestead exemption. As long as ownership does not change and you continue to use this residence as your primary residence, the exemption will remain in effect.
Voter Approved Debt (Bonds)
Florida law allows a city to levy separate property tax rates to pay for long-term bonds. Bonds using property taxes to guarantee the payment of the cost of principal and interest are known as “general obligation” (G.O.) bonds. The City issues the bonds only after the voters have approved the bonds.
In 2018, Cape Coral voters approved a $60 million expansion of the city's parks and recreation amenities. The approved 15-year general obligation (GO) bond will fund major parks and recreation improvements throughout the city. These improvements include seven new neighborhood parks, the development of three community parks and Yellow Fever Creek Environmental Park, and improvements to 16 existing parks.
On December 2, 2019, the City Council approved the revised concept plans for the seven neighborhood parks (Resolution 355-19) at the Regular Meeting of the City Council. The public input meetings for the community parks were held in Oct/Nov/Dec of 2019, with revised plans presented to the City Council in 2020.
Note: The most up-to-date site plans can be found on each Park page in the GO Bond Projects section of the GO Bond Home page. Additionally, details on the City’s outstanding debt can be found in the Comprehensive Annual Financial Report or on the City’s Debt Treasury page.
In 2018, Cape Coral voters approved a $60 million expansion of the city's parks and recreation amenities. The approved 15-year general obligation (GO) bond will fund major parks and recreation improvements throughout the city. These improvements include seven new neighborhood parks, the development of three community parks and Yellow Fever Creek Environmental Park, and improvements to 16 existing parks.
On December 2, 2019, the City Council approved the revised concept plans for the seven neighborhood parks (Resolution 355-19) at the Regular Meeting of the City Council. The public input meetings for the community parks were held in Oct/Nov/Dec of 2019, with revised plans presented to the City Council in 2020.
Note: The most up-to-date site plans can be found on each Park page in the GO Bond Projects section of the GO Bond Home page. Additionally, details on the City’s outstanding debt can be found in the Comprehensive Annual Financial Report or on the City’s Debt Treasury page.