Lake Placid advisory board recommends 15% utility rate hike to town council amid infrastructure needs

The Lake Placid advisory board voted to recommend that the Town Council approve a 15% increase to the town’s total utilities budget, a split proposal that staff and board members described as intended to address a multi-hundred-thousand-dollar operating shortfall and deferred infrastructure work.

The recommendation, moved on the floor by board member Jack Tomlin, was presented as a compromise after staff said an outside review recommended larger increases. “It’s gonna be a 22 for the water and then 5% for the wastewater,” a staff member said when describing the Florida Rural Water recommendation. Tomlin moved that the board recommend a 15% total increase; the board later refined the recommendation to a 10% increase for water and 5% for wastewater when putting the split forward to the council.

Why it matters: board members and public commenters said the utility has been operating with insufficient rates and deferred maintenance, leaving the town dependent on reserves and outside grants while facing a projected deficit. The board’s recommendation sends the proposal to the Lake Placid Town Council, which has authority to set municipal rates for this publicly owned utility.

Board and staff said Thursday that the town faces both near-term and ongoing infrastructure needs. Staff reported the wastewater treatment plant construction is about halfway complete and on schedule, lift-station work and manhole rehabilitation quotes have been received, and meter replacement with new radios is underway. “We have over 350 completed,” one staff member said of the meter replacements; the same staff estimate put the total meters at about 3,000, roughly 10% finished.

Public comment emphasized the fiscal reality. Resident Pam Fintress told the board that federal and state grants the town has relied on are ending or unpredictable and urged the town to stop treating maintenance as “emergency to emergency.” “Those days are gone or they’re nearing the end,” Fintress said, adding that a recent $40,000,000 grant that covered administration and staff costs will not continue into 2026. Vice Mayor Deborah Worley, speaking as a resident and property manager, said providing reliable water to tenants can be costly at the owner level and that the town must fund the utility to provide service: “I just want to say, we provide a service,” she said.

Board discussion touched on affordability concerns for renters and low-income residents, the town’s limited reserve levels, and regulatory differences between privately owned systems and municipal utilities. Leigh Ann Bemis, who identified herself in public comment as representing the Town of Lake Placid, said, “We are a publicly owned municipality, so we do not have that regulatory system,” meaning the council has authority to approve municipal rate changes without the external regulator that would oversee a privately owned utility.

Staff outlined specific project needs and timing: the wastewater plant construction is approximately 55% complete and expected to be finished in late winter; quotes were received for rehabilitation of lift stations and a manhole lining project, though staff said current funds are lacking to do the full set of repairs immediately. Hydrant replacements and repairs were discussed; staff said one hydrant remains out of service while parts and locates are scheduled. The board also heard that some pump replacements cost tens of thousands of dollars when failures occur and that proactive maintenance would reduce larger emergency costs over time.

Action and next steps: board member Jack Tomlin made the motion that the board recommend a 15% increase to the total utilities budget; the motion carried as the board’s recommendation to the Town Council and was recorded as 10% for water and 5% for wastewater for presentation to the council. The board did not record a formal vote tally in the meeting transcript. Staff said Florida Rural Water will present to the council at the council’s second meeting in September to explain its rate study and recommendations. The Town Council will have the final authority to adopt any rate change.

The board and commenters also discussed funding alternatives, including greater use of reserves, tapping Community Redevelopment Agency (CRA) funds for force mains and related infrastructure, and pursuing grants when available. Public commenters urged the board and council to adopt a multi-year maintenance plan rather than a series of emergency fixes.

Documentation and context: staff and public speakers repeatedly cautioned that the percentage figures are projections based on current assets and deficits and could change if new connections or additional revenue sources arise. Staff said projected increases are not locked in and may be adjusted by future studies or additional connections that change the rate base.

For now, the board’s 15% recommendation moves to the Lake Placid Town Council for consideration at upcoming council meetings, where the final decision on rates and any implementation schedule will be set.