Cape Coral residents face $384M utility expansion bill

Homeownership is becoming more expensive for Cape Coral residents north of Pine Island Road who are shouldering the cost of a massive Utility Expansion Project to rid the area of individual septic systems and wells. 

The latest part of the mandatory hookup to city water, sewer and irrigation targets an area called the North 3 UEP. It includes about 5,180 parcels south of Kismet Parkway, east and west of Burnt Store Road. 

A homeowner on an average lot in North 3 would owe more than $35,000 for the hookups if paid in full — or about $3,600 per year for 30 years with interest, city staff estimates. Each homeowner would also pay up to $5,000 for a plumber to complete the initial hookup and hundreds more in fees. 

City Council voted 5-3 to move forward with the North 3 UEP after a five-hour, standing-room-only meeting Sept. 28 in which residents packed council chambers. They asked the city to delay the project until after the November elections and find other funding sources. 

It was the first of two public hearings before construction can begin on the North 3 UEP. The next step is an Oct. 19 public information meeting. A final adoption hearing for the project is set for Nov. 2. 

If the city adopts the project, construction could begin as soon as December. North 3 homeowners would see the costs added to their yearly tax assessments beginning in November 2027. 

The average estimated cost for a homeowner east of Burnt Store Road — based on a typical 10,000-square-foot lot — comes to $35,264. That’s typically financed over 30 years at $3,648 per year based on a 6.25% rate. 

Each homeowner would be responsible for hiring a plumber to complete the hookup at an estimated cost of $3,000 to $5,000. Additional costs, including disposal of an old septic system, come to about $650. 

North 3 residents west of Burnt Store Road would pay more because of roadway improvements added to their part of the project. They would pay the same initial plumbing fees plus an estimated $41,029, or $4,244 each year for 30 years. 

The city also is offering 20- and 25-year payment terms, along with a hardship program that offers deferred payments for people who qualify annually and grants that cover initial hookup costs for very low-income residents. 

It’s the same funding method the city has applied to the UEP in other areas, including North 2 and North 1 West and East. 

The North 3 estimated cost is comparable to other recent areas that have undergone construction, such as North 1 East. City officials said they continue to apply for grants that have helped lower costs for homeowners in some areas. 

The city’s total estimated cost for the North 3 UEP comes to $384.1 million, based on current bids for construction and design. 

The three primary portions of the project include potable water utility construction for about $64 million, irrigation utilities for $69.7 million and wastewater, or sewer, construction for $141.4 million, a city staff report shows. 

That covers 58.8 miles of roads in North 3, including Tropicana, Yucatan, Gulfstream, Kismet and Van Buren parkways and Old Burnt Store Road. 

The city finances the project through bonds, repaid primarily by homeowners in each project area along with utility fees. 

Council member Rachel Kaduk lives in a part of Cape Coral where the work is already being done. As a homeowner, she is paying the bill along with her neighbors and living through an ongoing construction project that has torn up her street and spread some of the residual material onto her vehicle. 

“I feel what is coming for you guys,” she told North 3 residents. “You have no idea how dirty my car is.” 

Officials say the UEP is crucial to protect the city’s aquifer-based water supply from running dry or saltwater intrusion. They also say it provides environmental benefits by eliminating leaky septic tanks, creates a more reliable utility system and uses treated wastewater for irrigation. 

Officials told residents that if they don’t do the work now, it’s going to get more expensive in the future. 

“And we’ll be back in the same room, when it’s more expensive, waiting to kick the can down the road again,” council member Bill Steinke said. 

Attendees cheered a motion by council member Jennifer Nelson-Lastra to defer further discussion on the project until after the November elections. But the motion failed 5-3, with council members Kaduk and Keith Long supporting it. 

After the vote, most of the remaining audience left council chambers. Council members eventually voted to advance the project to the Nov. 2 final hearing. Nelson-Lastra, Long and Kaduk cast dissenting votes. 

City Council members said that if the project isn’t done now, there is potential for environmental impacts such as declining aquifer levels to worsen. 

During a public comment period that was extended beyond its usual 60-minute limit, speakers lined up to take their three-minute turn at the dais. Many expressed sticker shock, raising concerns that residents would be priced out of their homes.