As our community continues to grow and evolve, so do the demands on our essential services. To ensure the long-term reliability of our water and wastewater systems, the City of Punta Gorda is implementing phased utility rate adjustments beginning in 2026. These adjustments will fund critical infrastructure improvements that are necessary to maintain service quality, prepare for future demand, and protect public health and the environment.

Our current utility rates will not be sufficient to cover the increasing costs of operations and capital improvements. Without these rate increases, the utility operating fund could be depleted by 2027. The utilities budget is enterprise-funded, meaning it is supported entirely by the rates customers pay, not by property taxes or millage rates.

Water demand has reached new highs, with peak usage surpassing 9.5 million gallons per day. However, during the dry season, the City's ability to meet demand is limited to approximately 8 million gallons per day due to Minimum Flows and Levels (MFL) restrictions established by the Southwest Florida Water Management District. These limitations make it essential to expand our Reverse Osmosis Plant and wellfield, and to rehabilitate the Shell Creek Water Treatment Facility to maintain dependable service during peak periods.

Additionally, our wastewater infrastructure must be upgraded to support operational reliability, and we must complete construction of our new wastewater treatment plant. These investments are critical to maintaining safe, compliant, and sustainable services for our customers.

We thoroughly evaluated other funding mechanisms and continue to pursue grant opportunities. However, a phased rate increase remains the most stable and equitable path forward. The last rate adjustment occurred in September 2024, when rates increased by 6 percent, following a 3.75 percent increase in 2023.

Below is an overview of the work being funded, how we are planning for the future, and answers to common questions.

What These Rate Adjustments Support

The proposed rate increase is 12 percent annually through 2029. For the typical residential customer, this equates to approximately an $11.20 increase per month. To help maintain affordability, we are proposing that fixed and Tier 1 charges for existing customers remain unchanged.

The City is preparing to update its water and sewer impact fees. These one-time charges are collected from new development to fund the infrastructure needed to serve new capacity. As construction costs rise, the current impact fee structure no longer adequately covers the cost of building new capacity. It is important that new development contributes its fair share so that existing customers are not burdened with those costs.

Additionally, we are proposing a rate structure change that consolidates water rate Tiers 4 and 5 into a single tier for usage of 20,001 gallons or more per month. This change is intended to encourage water conservation without impacting the majority of residential users.

Even with these adjustments, utility bills in Punta Gorda are expected to remain very comparable to those in neighboring communities.

The upcoming phased rate increases will help fund the following high-priority projects and initiatives:

1. Reverse Osmosis Water Treatment Plant Expansion Our system relies on a blend of water from two sources: The Reverse Osmosis (RO) Water Treatment Plant and the Shell Creek Water Treatment Facility. The RO plant treats brackish groundwater and plays a critical role in meeting peak demand, especially during dry seasons. Expanding this facility will allow us to produce more high-quality drinking water and meet long-term demand projections.
2. Shell Creek Water Treatment Plant Rehabilitation The Shell Creek facility treats surface water and is an essential part of our water supply. Over time, critical components of this plant have aged and require rehabilitation to maintain reliability. This project will modernize equipment and ensure the facility can continue to operate efficiently for decades to come.
3. Wastewater System Infrastructure Upgrades Many parts of our wastewater collection system are aging and in need of targeted rehabilitation. These upgrades are necessary to reduce the risk of system failures, backups, and environmental impacts. Current efforts include rehabilitation and modernization of the Master Pumping Station and the Booster Pumping Station, both of which are essential to maintaining proper flow and pressure throughout the system. We are also preparing to rehabilitate the gravity sewer system associated with Lift Station 30, an area critical to the overall performance of the network. Investing in these proactive improvements will help avoid more costly emergency repairs and service interruptions.
4. New Wastewater Treatment Plant Construction To accommodate future demand and meet modern treatment standards, the City is moving forward with construction of a new wastewater treatment facility. This project is a central component of our long-term infrastructure strategy.
5. Utilities Master Plan and Predictive Maintenance Tools The City is developing a Utilities Master Plan that includes detailed condition assessments of our water and sewer systems. We are also implementing a modern GIS-based work order system that will enable predictive maintenance and improve planning. In conjunction with these efforts, we will work closely with our consultants to review current operations, stay ahead of regulatory changes, and evaluate the department's overall performance. This process will result in a comprehensive report card that helps guide future decisions and long-term planning.
6. Water Distribution System Enhancements The City is undertaking a project to upsize several key watermains that are currently undersized for current and future demands. This will improve system performance, particularly during high-usage periods, and support better fire protection capacity. In addition, the Burnt Store Elevated Water Tower will be upgraded to improve overall pressure stability and storage capacity in the southern service area.

Thank you for taking the time to learn more about these important utility system improvements. If you have any questions or would like more information, please do not hesitate to reach out to the Utilities Department. We value your feedback and look forward to continuing to serve our community.

For more information and updates, please visit the City Utilities Page or contact us at Utilities@CityofPuntaGoraFL.com

Studies and Presentations 

• 2025 Utility Advisory Board Rate Study Presentation
• 2024 Water Supply Plan