Commission approves first reading of higher water/wastewater capacity fees on replacement‑value basis after heated debate

The commission advanced an ordinance on first reading to increase water and wastewater capacity fees using a replacement‑value methodology. Catherine Van Zandt of the Florida Rural Water Association explained two accepted methods for calculating capacity fees: remaining useful life and replacement value. The replacement‑value method (Option B) assigns a higher per‑ERC (equivalent residential connection) fee because it reflects the current cost to replace infrastructure rather than depreciated book value.

Under Option B the report shows higher impact numbers: for water, replacement‑value fees were estimated around $2,760 per ERC (versus $520 under remaining useful life); for wastewater, replacement value figures were larger as well. The study documented that the system has substantial built‑in capacity (staff noted roughly 30–50% of plant capacity unused at the time of the study), but the consultant and staff argued replacement‑value fees would help build reserves to fund required future projects including state reuse mandates and eventual plant upgrades.

Public comment included builders and business representatives who warned the increases would stifle redevelopment and raise housing costs, and residents who said it was fair for new users to pay for capacity. Commissioners engaged in a lengthy debate about equity: some said that past under‑charging should not preclude charging correct fees now; others said it was punitive to ask a few remaining new builders to make up for decades of lower fees. The commission voted 3‑2 in favor of Option B on first reading. The ordinance now returns for second reading and adoption at a later meeting.