Dunedin to Raise Water Rates Beginning October 1

Published on August 12, 2025

Starting October 1, 2025, City of Dunedin water and sewer rates will increase, following the adoption of Ordinance 25-04 by the City Commission. The change is intended to stabilize the City’s Utility Enterprise Fund and ensure reliable water and wastewater service through 2030.

City officials say the rate increase is essential to offset rising operational costs, inflation and new regulatory requirements.

“This isn’t something we take lightly,” said Utilities & Engineering Director Clayton Watkins. “But we have a responsibility to ensure that Dunedin residents continue to receive high-quality, safe and compliant water service. That takes investment.”

The City’s last utility rate study was completed in 2020, with rates structured through fiscal year 2025. Since then, construction costs for infrastructure projects have jumped by more than 20 percent. Duke Energy has projected a 25 percent increase in costs over the next year and some material suppliers have warned of dramatic price spikes. One vendor, for example, recently notified the City that brass prices could go up 60 percent.

Labor costs have also increased as the City works to retain experienced staff and build a strong utilities workforce. To help preserve institutional knowledge and promote employee growth, the City implemented a wage study and launched a career ladder program in its Utilities Department. These changes offer increased pay to employees who earn additional certifications, part of a broader effort to invest in and retain a skilled workforce.

“These are skilled positions,” Watkins said. “The better we support our staff, the better service we can deliver.”

The City is also responding to state mandates such as Senate Bill 64. Passed in 2021, it requires municipalities to stop discharging treated or dechlorinated reclaimed water into surface waters by 2032. Complying with the law is expected to cost the City roughly $16 million, with no guaranteed funding from the state to assist with those expenses.

In addition to the water and sewer rate increase, the City’s reclaimed water customers will also see a rate increase with the passage of Resolution 25-19. The resolution also establishes a surcharge for the use of reclaimed water during the months of February through June of each year.

In an effort to address these anticipated cost increases, the City conducted a revenue sufficiency study through Raftelis Financial Consultants. The study, presented earlier this year, confirmed that existing rates would not support the utility’s operational needs or planned infrastructure projects. It was approved by the Board of Finance in April and reviewed with the City Commission in May, leading to the adoption of Ordinance 25-04 and Resolution 25-19.

Watkins emphasized that the City’s utility operations are not for profit. “This is about being transparent with our residents and showing them why this is necessary,” he said.

To help customers manage their usage and understand their bills, the City encourages residents to focus on water conservation and has rolled out a tool called EyeOnWater , an app which allows users to monitor their daily water use.

“Giving people tools to take control of their water bill is just as important as explaining why we have to raise rates in the first place,” Watkins said. "Ultimately, the goal is to maintain dependable, high-quality service that residents can continue to count on every day."