Cape Coral Council Approves Stormwater Management Fee; Residents Face New Monthly Charge

Cape Coral City Council voted 3-1 on Tuesday to adopt a stormwater management utility fee that will charge residential property owners between $8.50 and $12 per month on their water bills, beginning September 1. The fee funds $18.4 million in drainage infrastructure repairs across the city's oldest neighborhoods, areas prone to flooding during heavy summer rains.

Councilwoman Patricia Nash cast the dissenting vote, raising concerns about the timing and burden on fixed-income residents. City Manager Marni Majarlika told the council that aging storm drains throughout East Cape Coral have exceeded their 50-year design capacity. Public works records show three major flooding events in the past 24 months affected 127 homes in precincts along Embers Parkway and along segments of Santa Barbara Boulevard, where stormwater backup into residential yards has become routine during afternoon thunderstorms. The fee was presented as the most direct mechanism to address the problem without seeking a bond referendum.

For the typical single-family home owner in affected zones, the monthly charge translates to roughly $102 to $144 annually. Condominiums and multi-unit properties will face tiered rates based on impervious surface area, meaning buildings with larger parking lots or roof footprints will pay higher amounts. Commercial properties along Burnt Store Road and Del Prado Boulevard will be assessed separately based on property size and drainage demand.

What the money pays for

The $18.4 million collected over the first five years goes toward replacing undersized clay and concrete pipe segments in neighborhoods built between 1965 and 1985. Public works engineers identified 3.2 miles of pipe requiring replacement in the Diplomat Parkway corridor alone. The plan also includes nine detention pond expansions and new permeable pavement installations along four residential streets to reduce runoff velocity during intense rainfall events. City documents state the project is expected to reduce localized flooding frequency by 60 percent for homes within one-quarter mile of improved infrastructure.

City officials noted that the fee applies only to properties connected to the municipal stormwater system, excluding homes with private drainage or those in unincorporated Lee County areas. Approximately 34,600 residential parcels fall within the fee zone. Business improvement districts and property owners associations have already begun requesting hardship exemptions for low-income residents and properties with documented accessibility needs.

What comes next

The council directed the finance department to mail billing notices by August 15, giving residents two weeks before the September 1 implementation date. A dedicated phone line and online portal for fee inquiries and exemption applications will launch August 20. Councilman James Weaver asked staff to return with a quarterly progress report on the drainage project, noting that residents will expect visible improvements by early 2027. The first phase of pipe replacement in the Diplomat Parkway area is scheduled to begin in October.

Residents opposed to the fee have until September 1 to submit written objections to the city clerk. Under Florida Statute 403.086, the city must hold a public hearing on any fee challenge if at least 10 percent of affected property owners formally object. No hearing has been triggered as of Thursday.