City Council proposes 12% water rate increase amid infrastructure improvements

Punta Gorda's Utility Advisory Board has proposed significant rate increases for water and wastewater services, aiming for a 12% hike through fiscal year 2029, followed by a 5% increase in fiscal year 2030. This plan, discussed during the board's meeting on June 23, 2025, is designed to address rising operational costs and fund essential capital improvement projects.

The proposed rate structure may vary, with lower tiers potentially seeing smaller increases while higher tiers could face increases of up to 30%. This tiered approach aims to balance the financial burden across different customer segments. The board is also considering adjustments to the water and wastewater impact fees, which are expected to fluctuate based on consumption and economic conditions.

Key projects outlined in the five-year capital improvement plan include the AMI (Advanced Metering Infrastructure) system and wastewater treatment plant upgrades, with debt service for these projects anticipated to begin in fiscal year 2028. The board is preparing to present a detailed rate study to the city council in July, with final recommendations expected in August.

In addition to rate increases, the board discussed operational expenditures, including personnel costs and necessary equipment upgrades. Notably, health insurance costs have come in lower than expected, providing some financial relief. However, increases in chemical costs and aging infrastructure are driving up other operational expenses.

The board emphasized the importance of maintaining a robust operating reserve, currently set at $3.1 million, to ensure financial stability amid fluctuating revenues and rising costs. They are also exploring alternative financing options and grant opportunities to support ongoing projects, particularly in relation to the septic-to-sewer initiative.

As the city prepares for these changes, residents can expect further discussions and updates on the proposed rate increases and capital projects in the coming months. The board's proactive approach aims to ensure sustainable utility services while addressing the community's growing needs.