Fort Myers considers 5% utility rate increase as city cites rising costs, major projects

FORT MYERS, Fla. (WINK) — Fort Myers City Council is considering another increase to utility rates, with city staff recommending a 5% increase for the next fiscal year and additional 5% increases in future years.

The proposed increase would affect potable water, sewer and irrigation water rates. City staff estimates the change would generate about $4.4 million in additional revenue for the Utility Fund.

The proposal is part of Ordinance 4107.

At Monday's meeting, council is asked to give the city permission to advertise the ordinance and the required public hearing. The public hearing would be scheduled for Sept. 21 at about 4:30 p.m. at Fort Myers City Hall if approved.

The city says about 80% of its customers use roughly 3,500 gallons of water each month. For a residential customer using that amount, the city says the current monthly cost is $107.28. Under the proposed 5% increase, that bill would rise to $112.64 — an increase of $5.36 per month, or about $64 a year.

The city's current rate schedule calculates utility bills using water and sewer consumption, water and sewer readiness-to-serve charges and the applicable utility tax. The site is linked here.

Why does Fort Myers want to raise rates?

City staff told WINK News the increase is being driven by operating costs and capital costs.

The city says the average annual cost of operating the utility increased 7.5% in fiscal year 2024.

That was largely driven by:

• A 9% increase in operating supplies, including chemicals and consumable parts.
• A 10.5% increase in personnel costs.

The city also has a $371 million five-year capital improvement program for its utilities.

That plan includes six major projects:

• Water Treatment Plant Expansion
• CAWWTF Reclaimed Water Expansion
• CAWWTF Deep Injection Well
• SAWWTF Reclaimed Water Expansion
• SAWWTF Deep Injection Well
• Wellfield Expansion

The city says the additional revenue is also needed to maintain proper reserves in the Utility Fund.

This isn't just a one-year increase

A city spokesperson told WINK News the recommendation is for a 5% increase each year.

The proposed ordinance lays out rates for fiscal years 2027 through 2031.

The city says regular, predictable increases are easier for customers to plan for than larger, unpredictable double-digit increases.

The ordinance also provides that rates can be revised by City Council in the future as necessary to meet existing obligations and for the proper maintenance and operation of the utility system.

Richard Kaserman, who lives in McGregor Preserve, said he understands the city has costs but wants more information about exactly how the additional money would be spent.

“It’s a matter of basic transparency,” Kaserman said.

Kaserman questioned what specific costs are increasing and what projects the additional revenue would fund. He also expressed concern about the impact of repeated increases on residents living on fixed incomes.

“I don't like the constant 5% escalation,” Kaserman said. “I think that needs to be relooked.”

Kaserman said he isn't necessarily opposed to the city raising the money it needs, but wants more accountability over how those dollars will be spent.

The city has not indicated that the proposed utility-rate increase is being driven by Amendment 3. City staff's explanation to WINK News points instead to rising operating costs, capital needs and maintaining utility reserves.

What happens next?

On Monday, councilmembers will discuss if they want to move forward with advertising the item.

If council gives permission to advertise Ordinance 4107 — it means the city is moving forward with the required public notice for the proposed ordinance and public hearing. It is not the final adoption of the rate increase.

The public hearing would be scheduled for:

Sept. 21, 2026

About 4:30 p.m.

Fort Myers City Hall

2200 Second Street

The proposed rates have not yet been finally approved.