Brevard County targets 1993-era connection fees to fund $450m expansion

Brevard County targets 1993-era connection fees to fund $450m expansionThe Florida utility plans to update its fee structure to support a massive capital spend, shifting the cost burden of capacity expansion to new development rather than existing ratepayers.

Utilities Director Eddie Fontanin proposed increasing water connection fees to approximately $8,500 and wastewater fees to $4,500.

The department faces a projected $450 million capital expenditure peak around 2027 to address capacity and regulatory compliance.

Connection fees have not been updated since August 1993, despite a construction cost index increase of over 160% since the 1960s.

New revenue is needed to meet EPA PFAS mandates by 2029 and state zero-discharge requirements by 2032.

The Board recently approved a Construction Manager at Risk (CMAR) delivery model to manage the large-scale capital rollout.

Brevard County Utilities is preparing to overhaul its connection fee structure for the first time in over three decades to finance a capital improvement plan estimated at $450 million. During a budget workshop on January 29, 2026, Utilities Director Eddie Fontanin presented a proposal to significantly raise fees to pay for new treatment capacity required by population growth and tightening environmental regulations. According to the presentation, the county's current connection fees—$933 for water and $2,257 for wastewater—have remained static since a rate resolution passed in August 1993. Fontanin proposed updating the fee methodology to reflect current capital investment costs per gallon of capacity. The proposed rates cited in the workshop would see water fees jump to approximately $8,500 and wastewater fees to $4,500. This proposed water rate is notably higher than some regional peers—such as Polk County at roughly $3,038 and Orange County at $2,790 per connection—though fees vary significantly based on local infrastructure needs. Fontanin noted that Brevard's water fee is particularly high due to limited remaining capacity at the county’s two water treatment plants compared to its wastewater facilities. "We need more money and it's connection fees," Fontanin told the Board of County Commissioners. He emphasized that while user rates were updated in 2022, connection fees are specifically intended to pay for growth-related capacity. County Manager Jim Liesenfelt supported the approach, noting that without raising connection fees, the cost of expansion would unfairly fall on existing ratepayers. The revenue is critical to supporting a projected $450 million spike in capital expenditures around 2027. The utility is facing a convergence of regulatory deadlines, including EPA requirements for PFAS reduction by 2029 and Florida Department of Environmental Protection (FDEP) mandates for zero discharge by 2032 and nutrient reductions under Basin Management Action Plans (BMAP). Additionally, the utility must secure water supply sustainability, with the Water Management District urging a shift to the Upper Floridan Aquifer and Reverse Osmosis (RO) treatment. To manage the execution of these large-scale projects, the Board recently approved a Construction Manager at Risk (CMAR) delivery approach. Fontanin explained that this method would allow the utility to phase expenditures more effectively in collaboration with contractors, potentially spreading the $450 million cost over a longer period to manage cash flow. The utility currently serves approximately 67,000 accounts and operates as an enterprise fund, receiving no general tax revenue. The proposed fee increases will require a public hearing and board approval. If approved, the revenue would primarily support debt service for the major capacity projects, including the Mims water plant restoration—expected back online in the first quarter of 2027—and the South Brevard facility. In parallel to the utility needs, the county is also grappling with a severe funding gap in stormwater infrastructure. Public Works staff revealed a backlog of unfunded drainage projects totaling $500 million, with the broader Public Works backlog reaching $3.6 billion due to inflation and scope increases. Staff presented options for potential sales tax referendums or fee adjustments to address the drainage level of service, though no immediate action was taken.