The Panama City Commission on Nov. 18 voted unanimously to adopt Ordinance 32-74, a revision to the city's utilities code that raises connection (impact) fees for water to $1,350 per equivalent residential connection (ERC) and for wastewater to $1,610 per ERC, with the increases phased in over time.

Under the measure, only 25% of the full fee increase will be effective beginning Feb. 16, 2026 (the 90-day statutory effective date); 50% of the increase will take effect Jan. 1, 2027; and the full increase will be effective Jan. 1, 2028. City staff said the fees had not been updated since 2003 and that the new rates reflect capital investment needed to expand water and wastewater capacity to serve expected growth.

The commission's deliberations focused on equity and implementation. Commissioners discussed whether Panama City North could reasonably be treated as a separate service area (with different fees because of longer sewer transmission and lift-station costs) but staff and the city's rate consultant said a separate analysis would require an additional standalone rate study estimated in the low five figures. Commissioners rejected conducting a new study now and opted for the citywide phased approach to avoid further study expense and delay.

Public commenters said the tiered roll-out still risks surprising homeowners required by state or local actions to connect (for example, properties moving from septic to city sewer). To address that concern, commissioners instructed staff to craft a policy for a tiered payment option and other assistance for people who are mandated to hook up to city utilities. Staff noted the current billing system requires impact fees to be paid before a certificate of occupancy is issued and that installment plans would necessitate administrative changes and carry some risk of human error.

Commissioners also urged stronger outreach about existing assistance programs (including LHAP and utility assistance) and clearer website information so builders and buyers understand available funding and eligibility. The commission asked staff to return with a tiered-payment implementation plan and guidance on disclosure practices for builders.

The ordinance was adopted on a roll-call vote of 5-0. Mayor Branch and all commissioners voted in favor.

What's next: The fee ordinance becomes effective 90 days after adoption (Feb. 16, 2026). Staff will develop and present a policy to allow phased payments and to identify assistance programs for qualifying homeowners and builders.