TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding Mandatory Potable Water Service Connections.
Recommended Action
Option 1: Continue mandatory potable water connection as identified in the correspondence to residents.
City Commission Options
Option 1: Continue mandatory potable water connection as identified in the correspondence to residents.
• Pros:
o Supports improved water quality and reduces stagnation
o Decreases flushing, water loss, and operational costs
o Aligns with City Code and infrastructure investment
o Ensures equitable participation across benefited properties
• Cons
o Mandatory potable water connection presents a financial burden on residents that are included in the connection areas
o May impact fixed-income households disproportionately
Option 2: Eliminate Mandatory potable connection requirement.
• Pros:
o Removes financial burden on residents
o Reduces public opposition
o Simplifies administration procedures
• Cons:
o Undermines water quality improvements from looping
o Continued stagnation and flushing requirements
o Wasted infrastructure investment
o Creates inequity between connected and non-connected users
o May lead to higher long-term costs
Option 3: Maintain requirement with increased financial assistance
• Pros:
o Balances water quality goals with affordability
o Improves public acceptance and participation
o Accelerates systemwide benefits of looping
o Supports equity through targeted assistance
o Preserves long-term operational efficiencies
• Cons:
o Financial impact to North Port Utilities and/or the City
o May set a precedent for future subsidies
o Potential perceived inequity from prior customers
o Increased program administration complexity
Background Information
Initial water system supply development throughout the City of North Port was driven by building patterns rather than a cohesive plan. This resulted in a disjointed water distribution system, with many dead-end lines rather than a cohesive system. Dead-end lines are sometimes unavoidable in low-density or phased development areas, but they are operationally inefficient and create water-quality issues. To address water-quality issues, North Port Utilities (NPU) has been required to implement operational strategies utilizing automatic flushers and similar procedures to purge transmission lines to mitigate the impacts of the dead-end lines. Best practice is to loop systems wherever possible and as such NPU has developed and implemented multiple capital improvement projects to complete those connections, including U11NEP, U18WDI, U19WDI, U21WDI, U22WDI, and U16WTI.
As looping projects are completed, parcels adjacent or in close proximity to the newly installed water lines are able to connect to potable water supply. The Code of the City of North Port provides direction on requiring connection to available water services within Article III. - Connection Requirements, Section 78-60 - General terms and conditions regarding water and sewer utility service, item (a) which states:
“The owner of every lot or parcel of land within the city shall connect or cause the plumbing for the water
supply and sewerage of any building or facilities thereon to be connected with the utility within 365 days of
notice that service is available. The city commission may, for good cause, extend the 365-day requirement
for a particular lot or parcel.”
Through the completion of looping projects, approximately 500 parcels are now within proximity to connect to municipal water service. Connecting to public water provides many benefits to residents, including access to a reliable, safe, and consistent water supply that is regularly tested to meet state and federal standards, as well as reduced maintenance and replacement responsibilities associated with private well pumps and filtration systems. However, residents are responsible for the costs associated with connecting to public water.
Letters providing notification of the required connection and updated associated costs were mailed to appropriate residences in early April 2026. The notification included information on the connection requirement, timeline, costs and financing options. Homeowners are responsible for installation of the water service between the meter and the residence, and for applicable connection fees.
The fees include:
• Capacity Fee of $2,610.00 (residential rate). Similar to an impact fee, this fee is a one-time charge required for all parcels that connect to NPU water. The fee is adopted by City Commission via Ordinance and was last approved on December 9, 2025. Funds from this fee are utilized to ensure there is functional plant capacity to supply services to the parcel.
• Water Line Extension Fee of $7,835.06. This one time fee is utilized to ensure the distribution system, including the pipes, pumps and valves required to transmit water from the plant to the residence are kept in safe working order.
• Meter installation fee of $1,855.00. This fee covers the cost for material, installation labor and set-up of a water meter at the newly connected location.
The Code of the City of North Port allows NPU to offer 0% financing for the costs associated with mandatory connection. The capacity and line extension fees can be distributed in equal monthly payments over a 30 year period, with a $10 administrative fee. Residents that choose this option will receive monthly bills of $39.01 plus the cost for water used during that month.
The resident may also choose to finance a portion of the water meter installation. After an initial payment of $1,355.00, residents may elect to have the remainder of the meter installation allocated over a 12 month period. The monthly cost for this option is $ 41.67.
Please note, connections associated with these looping projects are for potable water supply only, and do not include sewer connections. In compliance with Senate Bill 712 NPU has developed a separate long-term sewer shed connection plan and has begun a portion of the first phase with the assistance of grants including $2.3M from the Environmental Protection Agency and $3.0M from the Department of Environmental Protection. As per prior Commission direction, the City will provide subsidies to residents that enter into a connection payment agreement for the sewer through this program to limit connection costs to capacity fees only. The line extension costs and onsite work will be included as part of this early incentive agreement.
An agenda item on this topic was requested by Commissioner Stokes.
Strategic Plan Pillar
Infrastructure & Facilities Integrity
Financial Impact
New customer connections will generate revenue through capacity fees and line extension charges. Capacity fees are intended to support long-term capital planning and will be reserved for future system expansion as additional service capacity is required.
The water line extension fees are considered a component of gross revenues since it is a reimbursement of capital costs that are not included in the capacity fee charged to the customer. Line extension will be returned to the fund where the applicable construction costs originated per City Code Sec. 78-31(b)(3)d. The total spent between 2014 and 2025 for these looping projects is $4,244,087 from Surtax and $1,284,537 from Utilities.
Because customers have the option to either finance these charges over time or pay them as a lump sum, the precise timing and consistency of revenue collection cannot be reliably projected. As a result, revenue streams may vary in both amount and timing.
Procurement
Not applicable.
Attachments:
1. Water Connection Memo
Prepared by: Michelle Tipp, Senior Business Manager
Tricia Wisner, Director
Department Director: Tricia Wisner, Director