The Panama City Commission voted unanimously on Nov. 18 to adopt ordinance 32-74, raising the city’s water and wastewater connection fees to address multi‑year capital needs.

Under the ordinance, the new rates are $1,350 per equivalent residential connection (ERC) for water and $1,610 per ERC for wastewater. The increases will be phased in for all properties across the city: 25% of the proposed increase becomes effective 02/16/2026, 50% on 01/01/2027, and the full amount on 01/01/2028, the commission confirmed. Commissioners emphasized the 90‑day effective date required for adoption.

Commissioners and staff discussed policy options to ease the impact on individual homeowners and small builders. Commissioner Hughes proposed a tiered payment and rollout approach that would allow builders and qualifying homeowners to spread payment over time; staff said the city’s current billing system requires impact fees to be paid before a certificate of occupancy is issued, so any installment program would require manual processing or system changes.

City consultants and staff noted that the city had not updated connection fees since 2003 and that a rate study by the city’s consultant informed the proposed numbers. City representatives cautioned that differentiating rates for Panama City North versus Panama City proper would require a separate study at substantial cost (roughly $40,000–$60,000, staff estimated) because the existing study treated the utility as a single system.

Public commenters raised concerns that a uniform fee treats new large developments the same as modest infill hookups; Derek Thomas urged targeted assistance and clearer communication about available programs. Commissioners responded by directing staff to develop a written policy that establishes the tiered rollout and creates a payment‑assistance plan for households required by state mandate to hook up.

The commission voted 5-0 to adopt the ordinance and to instruct staff to draft a policy and implementation plan for installment payments and assistance programs for those affected by mandated hookups. Staff said they will return policy language and implementation details to a future meeting.

The ordinance text and related code changes were read into the record during the meeting; the effective dates were restated on the record at adoption. The commission also asked staff to improve public visibility of existing utility assistance programs and to coordinate with local housing assistance resources as needed.

The commission action means developers and property owners should expect the first phase of the increase to take effect Feb. 16, 2026, with subsequent increases in 2027 and 2028.