North 1 East project area.

CITY OF CAPE CORAL

The cost to bring water and sewer services to the next phase of the city of Cape Coral’s utility expansion project will be in excess of $32,000 for a standard residential parcel.

Cape Coral City Council approved the initial assessment resolution for the North 1 East UEP Wednesday , giving notice to property owners of the coming cost to extend city utilities — potable water, reuse water, and sewer.

The assessment is for the North 1 East Project area – east of Del Prado, south of Kismet Parkway, down to North Pine Island Road — affecting approximately 3,800 parcels.

The pending assessment does not include the cost of connection or the cost of dismantling existing septic tanks or other private devices.

Designs and Construction Manager Bill Corbett said the utility expansion project is responsible for extending water, sewer and irrigation throughout the city through phases that include special assessments and water fees to fund the project.

The long-ongoing UEP eliminates the need for individual potable water wells and septic systems, while also improving a reliable quality of service, environmental benefits and extended customer base, officials said.

“The majority of those improvements have been through assessments,” Corbett said. “They are paid through UEP assessments using a similar methodology of what we are looking at today.”

There are two components of the assessment – the first – the line of extension assessment (SF) and the capital facility expansion charge (CFEC). He said the CFEC covers shared facilities, pump stations and larger treatment and transmission.

SF is based on the equivalent parcel method for water and irrigation distribution mains and wastewater collection mains, while CFEC is based on the equivalent residential unit method for treatment and transmission.

The line extension is based on an equivalent parcel, which is 10,000 square feet.

“There are 3,800 EP parcels that will be impacted and brought online,” Corbett said.

Corbett said there are five contract areas in North 1 East which currently estimates $175 million just for the construction cost. He said contract 10 bid opens next week and contract 11 is still to be determined.

The soft total cost is $227.5 million, which includes a variety of utilities, including fiber optics and storm drain replacements.

Financial Services Director Crystal Feast said the estimated assessment for a standard EP is $8,221 for water, $9,607 for sewer, $7,710 for irrigation for an estimated total of $25,538. The CFEC estimates is $1,106 for water, $3,390 for sewer, $2,254 for irrigation for a total of $6,759. The total for both EP and CFEC is $32,288.

Grant money has mitigated some of the costs.

“The city has been awarded the septic to sewer grant, lowering the overall cost,” she said, adding that the North 1 East, with the grants already awarded, has reduced the overall assessments. “We have received grants for North 1 West. During the final reconciliation, it will reduce the overall assessment by $4,000. North 1 East will come in $4,000 higher than North One West will be.”

In addition to the assessment there also will be connection costs — $3,000 for the average plumbers connection, $100 for the septic abandonment permit, $325 for the water meter purchase and install and $225 for the deposit on a city utility account.

There are certain categories that will receive exemptions including properties owned by the city, county, state and federal government. In addition, a partial exemption is given to churches, private schools and hospitals because of the public benefit they provide.

“The property will be removed from the annual contribution if it fails to cover their portion, or classification changes,” Feast said, adding that the city will be expected to cover $1.6 million.

Payment options

There are multiple options for payments – initial repayment, interim prepayment and amortized – billed annually on a tax bill for 20, 25, or 30 years. The first billing will occur in November 2026.

The initial prepayment is $32,288, and interim prepayment is $33,142 The annual payment for a 20-year term is $3,961, 25-year term is $3,616 and the default 30-year term is $3,385 every year.

Feast said the 30-year term offers the most flexible terms for property owners.

“The annual (payment) includes principal and interest,” she said, adding that the maximum interest allowed is 6.25%. “By the time we issue the debt we expect it to be lower.”

Assistant City Manager Mark Mason said they will not issue the debt for the project for six to nine months.

“We need to be able to forecasts something that may be there. Currently the tax-exempt debt is in the 4.9% range. Our estimate is 6.25% to identify and set the assessment at the maximum assessment amount – the maximum amount that will ever show up on your tax bill. If it comes down in the future, you still have the maximum amount, but it could be some number lower than that.”

One resident said there should be no interest tacked onto the assessment, as it is a losing investment because the entire value of the home does not go up more than $30,000.

“It’s a bad situation to put homeowners in – a bad investment,” the resident said.

Many residents voiced their concerns about the amount of the assessment. One resident said homeowners cannot afford the assessment and will lose their homes due the amount that will be added to their property tax bills if they opt for one of the financing options.

“All you are doing is hurting city residents by doing this and a lot of people are losing their homes,” the resident said. “A lot of people are selling and moving out. You are losing your residents.”

There are hardship programs available for qualified owners and Community Development Block Grant for very low-income families to connect from meter to home, septic abandonment fee and the water meter fee.

Councilmember Joe Kilraine said they are looking for additional funding from the state and federal government to fund the project, but they have not been real successful.

“We are pushing like heck upstairs to get additional money. The delay in executing these projects exasterbates the costs moving forward,” he said. “It is important to try to continue to execute these in a rapid manner as in the long run it reduces the overall costs.”

Councilmember Dr. Derrick Donnell told those in attendance that they have his commitment that the city will get the assessment as low as it possibly can. He said their job is to continue to give the public confidence that they are working to get that number down.

Councilmember Rachel Kaduk agrees the amount is a tough pill to swallow.

“I wish we had the 2007-2008 prices. We have to rip the Band-Aid,” she said.

Kaduk asked city staff how much it would cost a homeowner if a well goes dry.

City Manager Michael Ilczyszyn said it could cost roughly $23,000 to $25,000 just for water due to the depth, size of pump and horsepower, electricity bill increase and salinity improvements of the water.

“This sucks. It is better to get it done now sooner rather than later,” Kaduk said.

Mayor John Gunter said they are paying the price now for temporarily stopping the UEP.

“It’s an unfortunate situation that we find ourselves in. We are paying the price now for stopping the UEP for five years,” he said.

There will be a homeowner information meeting held on Nov. 6 providing attendees with the opportunities to hear from contractors regarding the work to be done, as well as city staff members to speak on assessments and financial terms.

The final public hearing will take place on Nov. 19 with the notice to proceed for construction in December 2025.

Feast said information is also being sent to residents in the mail – detailed information, so they stayed informed during the process.  

To reach MEGHAN BRADBURY, please email news@breezenewspapers.com