Naples advances plan for 25% stormwater rate hike

Naples businesses and residents will see a 25% increase in stormwater-management utility fees next year to help fund major stormwater improvements and replace aging infrastructure.

Naples City Council voted unanimously Nov. 19 to amend the city ordinance and raise stormwater utility rates over a four-year period to support $280 million in stormwater projects anticipated over the next 20 years. A second reading and final vote is scheduled for Dec. 3.

The rate changes would take effect in October 2026 and are projected to generate about $22.135 million in new revenue over the first four years and more than $163.79 million over 20 years if rates remain unchanged. The stormwater fund currently generates more than $8.8 million annually.

An average residential unit, or ARU, now billed at $24.78 per month would see an increase of about $6.20 per month, or $74.34 per year. Of the city’s 6,967 stormwater accounts, 644 commercial accounts represent 13,330 ARUs, and 492 multifamily buildings represent 9,837 ARUs. The 5,794 residential accounts comprise 6,007 ARUs, with most homeowners billed for a single ARU based on acreage and impervious surface.

“Residential properties make up 83% of the stormwater accounts; these properties would see a slight increase monthly and annually,” Lisa Douglass, the city’s billing and customer service manager, wrote in a memo to Council, noting the impact to one-ARU properties would be minor. She added, “Multifamily and commercial properties would see a larger impact due to the higher number of ARUs.”

Under the proposed schedule, the average homeowner’s monthly bill would rise to $30.98 next October, $38.72 in October 2027, $48.40 in October 2028 and $60.50 in October 2029.

Council approved the increase without discussion Nov. 19, following a Nov. 5 review of revenue options presented by City Manager Gary Young. Alternatives included raising property taxes, which would require a voter referendum; a one-year 100% rate increase; a 50% increase over two years; or a 33% increase over three years. Council concluded that a 25% increase was the most reasonable option with limited impact on residents.

Young said roughly $65 million may be needed for several stormwater projects, many already in design, with substantial work required to replace aging infrastructure.

The additional revenue also would help support the city’s ongoing stormwater project, which broke ground in October 2024 and is designed to improve the quality of filtered water discharged into the Gulf and reduce flooding along Gulf Shore Boulevard. To help fund that effort, Council approved a 40% fee increase in June 2024.