For over 60 years, the Island Water Association (IWA) has provided safe, reliable drinking water to Sanibel and Captiva Islands. As a member-owned, non-profit utility serving these barrier islands since 1965, the IWA’s mission has always been straightforward: deliver high-quality water and exceptional service at the lowest reasonable cost, while planning responsibly for the future.
In the coming weeks, the IWA’s proposed multi-year water rate adjustments will be shared. These adjustments are necessary to position the IWA to continue serving our islands reliably for decades to come.
First, it is important to note that the IWA has not increased water rates in 16 years. The last adjustment in 2009 came during a severe economic downturn, at a time when the IWA also anticipated stagnant or declining water demand due to conservation efforts and improved efficiency. Because water utilities are largely fixed-cost operations, meaning infrastructure, staffing, treatment and maintenance costs do not decrease simply because customers use less water, the 2009 adjustment was based on conservative water sales and revenue projections designed to ensure the utility could meet its required expenses.
However, water demand on the islands did not stagnate. Instead, water demand on Sanibel and Captiva grew steadily, though it remained within the capacity of the IWA’s existing system infrastructure. During that period, additional revenue was used to offset rising operations and maintenance costs and fund basic capital improvements on a pay-as-you-go basis. At the same time, the IWA focused heavily on operational efficiencies to avoid passing extra costs on to our members.
For more than 16 years, the IWA continued to provide reliable service, maintained the water system and kept water rates among the lowest in Southwest Florida, all without increasing rates.
Today, the environment the IWA is operating in looks very different than it did even a few years ago. The COVID-19 pandemic and related population growth, three major hurricanes, redevelopment across the islands, increased water demand for turf and landscape irrigation, and declining source water quality have all created challenges that the IWA must prepare the water system to meet.
Like utilities across the country, the IWA is experiencing rapid escalation in operating and maintenance costs. Materials, treatment chemicals, power, insurance, unfunded regulatory mandates and labor costs have all increased substantially. Much of the infrastructure that has served our islands well for decades is aging and must be renewed or replaced to ensure continued reliability, while meeting increased demand.
At the same time, planning for resiliency has become essential. As a barrier island utility, the IWA must strengthen and harden the water system to withstand future storms and recover more quickly if they occur. These investments are critical to protecting public health, ensuring water availability during emergencies, and safeguarding the long-term viability of the water system and communities.
Planned construction projects include improvements to the water treatment process to eliminate hazardous and difficult-to-transport chemicals, upgrades to the treatment facility’s electrical systems to improve resiliency and prepare for larger production capacity, and distribution system enhancements to maintain water service and fire flow reliability during storm recovery. In total, approximately $122 million in capital improvements have been identified over the next 10 years for system renewal, expansion and critical storm hardening.
To help offset these costs, the IWA has aggressively and successfully pursued outside funding and has been awarded more than $44 million in grants, forgivable loans and zero-interest loans. While this support reduces the financial impact on ratepayers, it does not eliminate the need for rate adjustments.
After completing a comprehensive Water Rate and Fee Study with Raftelis Financial, a professional rate consulting firm, the IWA Board of Directors determined that a multi-year water rate adjustment is the necessary path forward. Following careful consideration, the board approved the recommended 18% increase for each of the years 2026, 2027 and 2028, and is seeking approval from the Sanibel City Council to implement the proposed rates. For a typical household using 5,000 gallons per month, this equates to estimated monthly increases of $5.29 in 2026, $6.26 in 2027, and $7.41 in 2028.
Spreading adjustments over multiple years allows the IWA to address rising costs and critical capital needs while minimizing sudden impacts to household budgets. The board remains committed to careful financial stewardship and transparency and will continue to routinely evaluate rate sufficiency, with a follow-up study planned in 2028.
A public hearing on the proposed adjustments will be held before the Sanibel City Council on March 3, and members are encouraged to attend and participate. Detailed information, including the full rate study and FAQs, is available on the IWA’s website at www.islandwater.com.
The IWA is proud of its long history of serving the Sanibel and Captiva communities and recognizes the impact that any rate increase has on its members. Such decisions are not made lightly. Operating in an increasingly complex and uncertain environment, the IWA must plan and invest in the critical systems that ensure the delivery of safe, reliable drinking water to the islands. By making these necessary investments today, the IWA is protecting public health, supporting island communities, and ensuring that future generations can continue to depend on the same high-quality water service that has been provided for more than 60 years.
Diana Wilson is general manager of the Island Water Association (IWA). The IWA is a non-profit, member-owned water utility serving over 5,300 accounts on Sanibel and Captiva. For more information, visit www.islandwater.com.