City Council discusses water and sewer rate adjustments amid rising operational costs

Dunedin's City Commission Workshop on May 7, 2025, spotlighted urgent discussions surrounding the city's water and sewer utility rates, driven by rising operational costs due to inflation. Utility Operations Division Director Jennifer highlighted the critical need for a revenue sufficiency study, noting that the utility fund is projected to face a negative net position as early as fiscal year 2026.

The meeting, which coincided with National Drinking Water Week, featured a presentation from Raftelis, a consulting firm engaged to evaluate the city's utility operations. Terry Bovari from Raftelis emphasized the necessity of reassessing the current rates to ensure financial sustainability. He explained that the utility operates as an enterprise fund, meaning it must generate sufficient revenue through service fees rather than relying on tax funding.

The last comprehensive rate study was conducted in 2020, establishing rates through fiscal year 2025. However, increased maintenance and construction costs have prompted city officials to reconsider these rates to maintain essential services. The discussion underscored the importance of proactive financial planning to address the city's growing infrastructure needs, particularly as the population continues to expand.

As the commission prepares to deliberate on the findings and recommendations from the study, the urgency of the situation is clear: without adjustments to the utility rates, Dunedin risks compromising its ability to deliver vital water and sewer services to its residents. The next steps will involve engaging the commission in discussions to determine the best path forward for the utility's financial health.