Punta Gorda adopts $203M budget as residents protest water rate hikes

Punta Gorda City Council approved a $203.6 million budget and held the property tax rate steady for the 2025-26 fiscal year, but residents at the Sept. 24 meeting were more concerned about rising utility bills. 

Council unanimously adopted a millage rate of 3.8686, the same as last year, and passed the budget with little debate and no public comment. But the announcement of recently approved utility rate increases prompted frustration from residents who said the higher costs could be devastating for those on fixed incomes. 

“The rates are going up so fast, we can’t afford them,” said Punta Gorda Isles resident Glen Coombs. He noted that many retirees rely on pensions and Social Security, and that cost-of-living adjustments do not keep pace with inflation. 

Coombs also criticized city and county officials for allowing too much residential development. He said new hookups were driving demand and blamed that growth for escalating rates. 

Council member Greg Julian countered that the city has denied some development requests. Projects outside city limits are overseen by Charlotte County commissioners, though some in unincorporated areas still rely on Punta Gorda’s water system. 

Coombs asked whether the city could phase in the hikes over more years. Council members responded that staff is seeking state and federal grants to help soften the financial burden. 

Another Punta Gorda Isles resident, Anthony Demonte, worried aloud that water bills could soon reach $400 to $500 per month for some households, especially once the rainy season ends. 

Utilities Director Tom Spencer said postponing system upgrades is not an option. He reminded council members of the citywide boil water notice issued earlier this year. Without improvements, he said, such advisories could become “an ongoing or frequent occurrence.” 

Spencer explained that growth in southern Punta Gorda, approved by the county rather than the city, has added unexpected strain to aging infrastructure. Demand also has been pushed higher by more year-round residents and the lingering impact of the pandemic, when people spent more time at home. 

The city had projected water use to reach 9 million gallons per day by 2030, but actual demand exceeded 9.5 million gallons a day in 2022. 

To keep up, Punta Gorda is expanding its reverse osmosis plant, adding wells and capacity at its water treatment facility and rehabbing the Shell Creek Water Treatment Plant. Crews also are replacing water meters. 

According to city officials, the typical residential customer will pay about $11.20 more per month by 2026. Details of the planned upgrades and financing are posted on the city’s website. 

Spencer also invited residents and council members to tour the new wastewater plant now under construction, designed with future expansion in mind. 

While utility costs dominated public comments, council members emphasized that the city’s property tax rate remains stable. 

“Our property taxes will be a lot different next year,” Mayor Debi Lux said, noting that assessed values have begun to fall. 

Council member Janis Denton agreed. “Two homes on my street were listed a year ago for $950,000, and they sold for under $750,000,” she said, warning that declining values will “definitely affect our revenue.” 

Finance Director Kristin Simeone said ad valorem tax revenue will fund service changes, including 16 new employees across Public Works, Public Safety and the City Clerk’s office. The money also will cover technology improvements, subscription costs and staffing for a new five-year capital plan. 

Infrastructure remains a major priority. The budget includes funding for road paving and drainage projects, emergency vehicle and equipment replacements and ongoing maintenance of city facilities.