Cape Coral closes on reservoir purchase; council approves 41% irrigation rate increase for residential irrigation

City of Cape Coral officials announced the municipality closed on a 1,202-acre reservoir site and approved an irrigation-rate adjustment on Tuesday to pay for the purchase and pipeline work.

City Manager Mark Mason told the City Council the city completed the purchase of a former borrow pit property that staff expects to convert into a long-term irrigation reservoir. "We did in fact close on the property today," Mason said during the meeting’s utility-rate presentation. City officials described the acquisition as a planned step in a multi-phase program to secure additional irrigation supply for the city’s freshwater canal system.

To finance the purchase and associated pipeline and pump-station work, the council approved Resolution 140-25, which changes irrigation rates for residential customers from $9.50 per month to $13.40 per month, effective Oct. 1, 2025. The change represents a 41% increase for residential irrigation charges. Council also approved corresponding increases for multifamily and nonresidential irrigation customers as part of the city’s comprehensive utility rate plan.

Utilities Director Jeff Pearson and staff said the reservoir, combined with a pipeline and a master pump station, will significantly increase the city’s available irrigation supply. Pearson explained the system will rely on a two-phase approach: constructing conveyance infrastructure (pipeline and pump station) and obtaining a permit to augment the reservoir via a regional source (the City manager referenced a potential connection to the Babcock Ranch/Cecil Webb sources). "It's going to provide us much needed additional irrigation water for many years into the future," Pearson said.

The packet for the May 20 meeting shows the purchase contract for the reservoir property at approximately $38,000,000. Staff said the debt for the land purchase, pipeline and pump station would be issued together to reduce borrowing costs; staff also said grants will be pursued to offset costs for pipeline and pump construction.

Vote: The irrigation-rate resolution passed on a roll-call vote, 8–0.

Why it matters: Cape Coral relies on a freshwater canal-based irrigation system; growth and recurring drought pressure have strained capacity. Officials said the reservoir and pipeline will improve reliability for irrigation and reduce pressure on potable groundwater sources.

What happens next: Staff will begin pipeline bidding and continue permitting work for the reservoir recharge strategy; the new irrigation rates are scheduled to take effect Oct. 1, 2025. Council asked staff to bring back grant-application updates and construction timelines as those elements firm up.

Speakers quoted: City Manager Mark Mason and Utilities Director Jeff Pearson spoke for the city; the vote was unanimous at the May 20 meeting.