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City staff say recent state change means winter haven must rebalance water rates; study to show impacts on residents
Summary
City water staff briefed commissioners on a rate and connection fee study prompted by recent state legislation that will require ending an automatic surcharge on out‑of‑city customers by July 1, 2027; staff warned in‑city customers will likely see higher rates as the surcharge is removed.
City water and finance staff told commissioners a state law change requires Winter Haven to eliminate its automatic surcharge for out‑of‑city water and sewer customers by July 1, 2027, triggering a citywide rate rebalance and a planned rate and connection fee study.
Gary (water department staff) explained the study will evaluate rate structures and connection fees to support capital plans and possible construction borrowing. He said staff asked their consultant to consider an environmental surcharge option to help fund septic‑to‑sewer conversions and land acquisition for environmental protection.
"So we've got basically a year to work through this process," a city manager said, describing the July 1, 2027 statutory deadline for removing the automatic surcharge. Commissioners were told the existing rate structure (adopted August 2024) relies on a 25% surcharge for roughly one‑third of customers who live outside the city limits.
Mayor (speaking bluntly) noted the local impact: "If anybody's watching on YouTube, understand why your water bill's gonna go up," he said, summarizing the effect of rebalance if the surcharge is removed and costs are spread across more customers.
Staff estimated about 33% of customers are outside city limits and currently pay the surcharge; removing that automatic charge will lower bills for some outside customers while raising rates for inside customers to rebalance revenue requirements and cover CIP needs. Staff said any recommended new rates would be timed for implementation either Jan. 1 or the start of the fiscal year pending commission direction.
Commissioners discussed timing and whether a surcharge option remains: staff said a surcharge is still possible under a more complex and laborious process but the automatic mechanism goes away. The study will inform budget planning for FY2027–28 and any recommended rate changes.
The commission asked staff to return with the consultant's findings and recommended rate structure options for formal consideration during budget work sessions.
