Commission didn't increase water rates for 8 years, now Lee residents will pay the price
Population growth and accompanying demand for water services combined with the pressures of inflation will likely mean higher water and sewer rates for customers of Lee County Utilities.
Residents who depend on Lee Utilities for water could face increases for the three or more years beginning this summer.
They have their chance to comment at a 9:30 a.m. June 20 hearing, in the county commission chamber at the Old County Courthouse, 2120 Main St., Fort Myers.
Water rates have remained stable in Lee County since the 2014-15 budget year, with the last increase taking effect in October 2014.
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Inflation, growth drive higher utility rates
Major reasons for the pressure on water rates, according to the utility's consultant, Thierry Boveri of Rafletis Public Management Group, are inflation and growth.
"The (financial) needs of the system, combined with the inflation and the cost of operation has really driven the need for the rate option plans,” he said. “Costs are increasing. The county is fortunate to have had growth to increase those revenues over the years."
Commissioners will have two options for a water, sewer and reclaimed waste water fees:
Option 1: An 11.5 % increase in each of the three years from 2023 to 2025Option 2: A ‘tapered’ increase for the years 2023 to 2026, with a 12% hike the first year, 9% the second year, 7% the third year and 5% in the fourth year, 2026.
The average water bill is $78.64 in 2023. Either of the increases would end up with the bills topping about $112 in 2027.
Commissioner Mike Greenwell initially asked colleagues to approve the tapered plan after other commissioners said they would prefer the stability of a consistent rate.
Before the vote, Commissioner Kevin Ruane said circumstances would arise that could lead to the rate hikes being reduced, given a more favorable financial situation at some point in the next five years.
"Every year we will have the option to look at staff look at the reserves we have, to see what the collections are, the revenues are and then make our determination," Ruane said. "At least we set the bar for the taxpayer to know what it is."
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Any rate increase would go into effect on July 1.
Water rates have remained stable in Lee County since the beginning of the 2014-15 budget year, with the most recent increase adopted in October 2014.
A major reason for the pressure on water rates, according to water utility consultant Boveri, is the growth of population.
"The capital needs of the system, combined with the inflation and the cost of operation has really driven the need for the rate option plans,” Boveri said. “Costs are increasing, the county is fortunate to have had growth to increase those revenues over the years.”
He said bidding on construction project for public utilities are coming in 30% higher on average over the past 12 months.
The rate vote is a major policy swing for county commissioners, who were dead set against any kind of increases of taxes or fees for several years while expenses rose, but who now find themselves bearing the label of a politician who hits constituents with fee increases.
Lessons of Ian bring action at county water utility
Part of the cost pressures at the Lee county water utility increase is attributable to Hurricane Ian, not only because of the damage inflicted by storm surges that overwhelmed facilities, but damage to equipment. The Category 5 storm hit Southwest Florida on Sept. 28, obliterating parts of the coastline.
A Fort Myers Beach water reclamation facility, operating for nearly 45 years, has fallen behind on both reclaiming water and maintaining capacity to handle population growth. The utility describes the plan’s current condition as inefficient and unable to handle future growth. Barely a month after a master plan for rehabilitating the facility was finished last summer, Hurricane Ian and its accompanying storm swept ashore, with 6 feet of surge setting the plant back further.
“It sustained a lot of damage at the plant, due to the salt water intrusion, the electrical, the instrumentation. We had to redo motors,” said Lee County Utilities Director Pam Keyes. “The urgency to have it replaced is even greater than six months ago.”
The utility then set to redesign the restored facility to prevent future surges. The cost is estimated at $209 million with the county expecting disaster reimbursement from FEMA.
Another water reclamation plant is expected to be finished in the summer 2028, at an estimated cost of $159.9 million. The plant is needed to handle the continue growth in the previously undeveloped areas of the southeast portion of the county.
Work on that facility will begin next year and be completed in the summer of 2028. It is engineered to withstand storm force winds and the projected 100-year flood elevation.
Keyes has identified population growth driven water projects, as well as major maintenance efforts to improve the water utility, that will ultimately cost $785 million. The utility expects to spend $464 million on projects associated with growth, much of it in the southeast sector.
The agency also is involved with expanding wellfields in north Lee county.
Current utility rate averages see Lee County residents paying more for water and wastewater treatment than residents of Naples, Punta Gorda, Bradenton or Manatee county, but paying less than the North Fort Myers Service Area, Collier County, North Port or Fort Myers.
The most expensive places for water in Southwest Florida are Charlotte County and the FGUA utility which serves Pine Lakes and Lake Fairways golf communities in North Fort Myers.
This article originally appeared on Fort Myers News-Press: Lee County water customers face surge in rates to cope with growth
