Fort Lauderdale details massive water and stormwater capital scale-up alongside sustained rate hikes
City of Fort Lauderdale Public Works, Florida · Meeting date: June 16, 2026 · Published: June 17, 2026
A newly updated 10-year financial forecast outlines hundreds of millions in upcoming debt issuances for water, sewer, and stormwater infrastructure, alongside a steep 20% stormwater fee hike and a 16.15% jump for the central sewer fund in FY27.
Key points
- The city plans to issue $100 million in water and sewer debt in both FY27 and FY29, followed by $230 million in FY33.
- Stormwater enterprise projections include $350 million placeholders in FY29, FY32, and FY35 for future master plan projects, necessitating a 20% rate increase in FY27.
- The Prospect Lake Water Treatment Plant's commissioning in FY27 will add $15.6 million in annual O&M costs and $29 million in availability payments.
- The city is targeting summer 2027 to complete its Advanced Metering Infrastructure (AMI) rollout, expected to yield $1.1 million in contractual savings.
Full report
During a June 16, 2026, joint commission workshop, the City of Fort Lauderdale presented its updated FY27-36 long-term financial plan, revealing a heavily capital-intensive decade ahead for its water, wastewater, and stormwater enterprises. The financial modeling, presented by Stantec Consulting's Kyle Stevens, outlined the rate adjustments required to support extensive debt issuances and rising operational costs across the utilities.
In the water and sewer fund, the city is transitioning to a period of 5% annual rate increases, stepping down from a previous schedule of 9% and 5% hikes. This stabilization comes despite massive capital outlays. The city expects to issue $100 million in debt in FY27, another $100 million in FY29, and $230 million in FY33. Cash-funded capital will average $40 million annually from 2027 to 2031.
A major operational shift will occur in FY27 as the Prospect Lake Water Treatment Plant comes online. Stevens noted this facility will add $15.6 million in new costs for chemicals, electricity, and personnel. Additionally, subordinate debt and availability payments tied to the facility will hit $29 million in FY27, scaling up to $41 million by FY36. The city is also advancing its Advanced Metering Infrastructure (AMI) project, targeted for a summer 2027 completion. The rollout is projected to deliver $1.1 million in contractual savings starting in FY28 and a 1.75% increase in billed consumption as older meters are replaced.
Driven by master plan requirements, the stormwater fund faces steep capital and rate trajectories. Following a $230 million Phase 1 bond in FY26, the city has allocated $100 million for Phase 2 planning and construction. The long-term financial model includes $350 million placeholders for future projects in FY29, FY32, and FY35. To support these debt issuances, stormwater rates are projected to increase by 20% in FY27, followed by 15% annual increases from FY28 through FY32, before settling at 10%.
Fort Lauderdale is also bracing for near-term rate shocks in its central regional sewer system, where the city accounts for 84% of total wastewater flows. Renewal and replacement expenses at the aging plant are forecasted to reach $24.3 million in FY27. Consequently, the central sewer fund model projects a 16.15% rate increase in FY27 to cover operational cost increases and replacement needs, supplemented by a planned $60 million debt issuance in FY33.
This summary was generated by AI based on the source document and may contain errors.
Source: City Commission Regular Meeting, City of Fort Lauderdale Public Works