Utility leaders propose reclaimed water rate increase to enhance funding and service

Dunedin's City Commission has taken significant steps to address the city's utility funding challenges during their recent meeting on May 22, 2025. A key discussion centered around a gap analysis revealing a 25% shortfall in funding necessary to maintain and improve utility services. City officials emphasized the urgent need to retain specialized utility personnel by keeping pace with salary increases, as losing experienced staff could lead to higher operational costs and a loss of institutional knowledge.

The meeting highlighted the necessity for substantial repairs and maintenance, which have contributed to rising operational costs in recent years. To tackle these financial pressures, the Commission is considering phased rate increases to minimize the immediate impact on residents while ensuring the utility can meet its capital needs. A detailed capital improvement plan (CIP) was presented, outlining projected expenditures over the next several years, with a focus on critical projects such as electrical system upgrades, which alone are estimated to cost $16 million.

Additionally, the Commission discussed the need to adjust reclaimed water rates, which have not changed in over 20 years. The proposed increase would raise the rate from $0.50 to $1.50 per thousand gallons, resulting in a monthly bill increase from $5 to $15 for an average user. This adjustment aims to align the rates more closely with the actual cost of service while recognizing the value of reclaimed water, which is becoming increasingly important for irrigation, especially during dry months.

The discussions underscored the city's commitment to financial planning and proactive measures to ensure the sustainability of its utility services. As the Commission moves forward with these recommendations, residents can expect further updates on the implementation of rate adjustments and capital projects aimed at enhancing the reliability and efficiency of Dunedin's utility infrastructure.