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Agenda 02/24/2026 Item #11A (The Board of County Commissioners, as the ex officio Governing Board of the Collier County Water-Sewer District, accept the Water, Wastewater, Irrigation Quality Water and Wholesale Potable Water User Rate)2/24/2026 Item # 11.A ID# 2026-213 Executive Summary Recommendation that the Board of County Commissioners, as the ex officio Governing Board of the Collier County Water-Sewer District, accept the Water, Wastewater, Irrigation Quality Water, and Wholesale Potable Water User Rate and Fee Study and direct the County Manager or her designee to advertise a Resolution amending Schedules One, Two, Three, and Four of Appendix A to Section Four of the Collier County Water-Sewer District Uniform Billing, Operating, and Regulatory Standards Ordinance No. 2001-73, as amended, with effective dates of October 1, 2026, October 1, 2027, October 1, 2028. OBJECTIVE: The public purpose is to ensure revenues are sufficient to recover system-wide operation, maintenance, and repair costs; fund capital improvement projects to rehabilitate, replace, and upgrade aging system infrastructure in line with the county’s strategic plan of asset preservation; and to make debt service payments and meet rate covenants as required by bond resolution. This action is to accept the user fee rate study with updates to the rates for potable water, wastewater, irrigation quality water, wholesale potable water and miscellaneous charges as recommended by the county’s rate consultant Raftelis Financial Consultants, Inc. ("Raftelis") and provide for advertisement of a resolution to adopt those rates at a later Board meeting. CONSIDERATIONS: On December 12, 2023 (Agenda Item 17.C), the governing board (the "Board") approved the last user fee rate study and adopted Resolution No. 2023-227. This established rates through Fiscal Year 2026. On July 8, 2025 (Agenda Item 11.G), the Board endorsed the plan to design, construct and deliver a water reclamation facility in Golden Gate City, a potable water treatment facility and a wastewater reclamation facility on the northeast utility site, and a human resourcing plan to deliver the program and operate the facilities in compliance with all regulatory requirements. On January 27, 2026 (Agenda Item 9.A), the Board approved the 2025 Annual Update and Inventory Report ("AUIR"), which includes the Capital Improvement Projects in the 2026 to 2030 window in addition to the 2031 to 2035 capital planning horizon. To meet the financial needs for the required investments, the Collier County Water Sewer District (the "CCWSD") initiated a user fee rate study incorporating all operating, capital and debt service expenditures required to meet the established schedules in accordance with the predicted demand identified in the 2025 AUIR. Consulting firm Raftelis was hired to develop a ten-year financial investment plan with this user fee rate study incorporating the cash requirements from 2026 to 2035. Raftelis’ conclusions and recommendations are included in the attached Executive Summary Report. Raftelis also recommended commencing an update to the Water and Sewer Impact Fee Rate Study immediately following this process. On February 5, 2026, the county’s Finance Committee reviewed the financial plan and the rate study recommendations. The financial plan prepared by Raftelis, in conjunction with the county’s financial consultants PFM, recommends increasing the CCWSD’s commercial paper revolving credit line from $200 million to $300 million. This allows a more flexible, nimble financing plan and is part of a long-term strategy to commence fixed term debt borrowing later in the program. The Finance Committee unanimously approved the recommended increase in commercial paper. The committee also reviewed the capital spending plan included in the User Fee Rate Study and endorsed the study 4 to 1. Revenues from user fees fund operating and maintenance costs, renewal and replacement of aging infrastructure and implementation of new regulatory requirements. User fees fund the capital plan that supports asset management. The comprehensive ten-year financial plan provides a framework for delivering utility services efficiently and effectively. On April 23, 2025, Fitch Ratings affirmed CCWSD’s AAA credit rating, citing robust liquidity, disciplined rate setting, and service area growth. Maintaining this top-tier rating is critical because it directly saves money. The AAA rating allows CCWSD to borrow at very favorable interest rates, reducing the cost of financing major projects. Preserving the AAA rating ensures these future needs are met at the lowest possible financing cost, protecting ratepayers and supporting long-term financial stability. Lower borrowing costs mean more funds remain available for operations and capital improvements. CCWSD anticipates issuing new debt within the rate-setting timeline to fund capacity expansion Page 208 of 3023 2/24/2026 Item # 11.A ID# 2026-213 at the Golden Gate City Wastewater Treatment Plant, investment at the Northeast Utility Program, and operating costs for staffing and running new facilities. Recognizing there are financial, operating, staffing and program delivery constraints, staff collaborated with the Raftelis consultants to develop a strategy prioritizing operating and capital needs based on three critical elements: • Regulatory Requirements: projects necessary to meet treatment permits or other compliance obligations • Growth: investments to provide additional capacity to meet increasing demand • Tier 1 (High Risk): Reinvestment in critical infrastructure based on operational risk management, focusing on assets with a high likelihood of failure within the first five years of the planning horizon. This rate study only includes capital projects for repair, rehabilitation and replacement that are necessary to meet regulatory requirements, address growth-related demand and reinvestment in aging infrastructure identified as high risk of failure within five years. Through a planned program prioritization strategy, 49 programs included in the AUIR, are to begin outside the five-year timeframe and will be operationally managed on a risk basis. The 49 capital programs that are not funded in this rate study, but should be considered for inclusion beyond the rate study five-year planning timeline include: • South County Regional Water Reclamation Facility Treatment Technology Improvement • Naples Park Utility Renewal - that has not received grant funding • Palm River Utility Renewal - that has not received grant funding • Lely Golf Estates Public Utility Renewal – that has not received grant funding • Conversion of automated meter reading systems to Advanced Metering Infrastructure (AMI) • Extended the rollout of Air Release Valve (ARV) replacements over a longer period • Selected lift station renewal projects instead of full basin program Continuing cost increases and cumulative inflationary impacts (beyond the Consumer Price Index) on utility operations and construction significantly contribute to the rate structure. Electricity, chemicals, parts, labor, professional services, utility relocations, Payment In Lieu of Taxes ("PILT") and property insurance are the major cost drivers for the utility. The CCWSD has taken steps to mitigate the continual increase in costs: • Maximize revenues: o Ensure accurate billing and capture all earned revenues through ongoing meter accuracy testing and replacement of aging meters with the latest technology o Pursue grant funding for Public Utilities Renewal projects and the 2026 Legislative Session to include a $1 million grant for wastewater inflow and infiltration mitigation and a $10 million request for construction of the Golden Gate City Water Reclamation Facility to support septic to sewer conversion • Lower banking and processing costs by offering multiple electronic payment options, pass credit card processing fees only to customers who choose to pay by credit card • Reduce lost water through leak detection programs and system pressure monitoring o Pressure monitors across the water distribution system provide real-time detection of potential sources of water loss o Monitor automatic water flushing stations to maintain water quality and reduce required flushing • Recover the full cost utility infrastructure damage through proactive claims management • Keep staff turnover low by investing in training and development to retain talent and reduce retraining costs o Hosting trainers on-site increases staff participation and eliminates travel costs • Manage overtime efficiently to control labor costs and maintain operational efficiency • Prioritize in-house resources over outsourcing whenever feasible: o Direct-purchased odor control and degasifier media and completed change-outs at the North County Regional Water Treatment Plant o Utilize senior plant staff for construction oversight to reduce costs associated with external engineering firm expense Page 209 of 3023 2/24/2026 Item # 11.A ID# 2026-213 o Hydrant repair and replacement utilizing in-house staff saves $15,000 per hydrant o Performed sod replacement and paver repairs in-house after pipeline projects instead outsourcing • Modernize plant processes to improve energy efficiency and reduce chemical use: o Converted carbon dioxide from gaseous to aqueous injection system, reducing CO2 chemical costs o Added an additional sulfuric acid injection point on the permeate treatment train, reducing chemical usage by 42% o Developed design for variable total dissolved solids (TDS) reverse osmosis (RO) skids to increase water recovery from 75% to 80% o Aeration blowers at the wastewater treatment plants were replaced with high-efficiency ABS Sulzer blowers with variable frequency drives (VFDs) resulting in a 30% reduction in energy consumption o Improved wastewater biological processes by retrofitting anoxic mixing zones with ABS submersible propeller mixers designed for low-energy operation reduced energy consumption compared to older mixing technologies o Targeted application of Sodium Hydroxide used to control hydrogen sulfide gas associated with raw sewage at the headworks ensures effective odor control when temperature, seasonal conditions and wastewater characteristics impact chemical usage o Monthly raw water well rotation ensures cost-effective production and reduces energy consumption o VFDs are being replaced in the north water plant reverse osmosis wellfield to further reduce energy consumption • GIS-based asset management enables scheduled maintenance planning, allows faster response times with readily available utility maps, and allows for fast post activity documentation, leaving more available wrench time • Deliver best value by ensuring the lowest cost for goods and services through a rigorous, transparent and competitive procurement process • Direct material purchases for large projects to achieve tax savings and eliminate mark-up • Implemented inventory controls to prevent overstocking, reduce waste and ensure that it is just in time availability for operational needs • Standardize critical equipment through the annual Utilities Standards Ordinance review to lower inventory carrying costs and minimize staff training needs • Supervisory Control and Data Acquisition (SCADA) systems use automation and remote monitoring to reduce manual labor, improve response time and enhance system oversight o Remote troubleshooting minimizes unnecessary callouts, helping control overtime or shift differential costs o Reduces sanitary sewer overflow incidences, minimizing clean-up activities and avoiding regulatory fines • Utilizing technology: o Consolidated compliance licensing software (KLEAR) to reduce exposure to compliance risks and potential fines o Acoustic pipeline inspection technology (SL-RAT) reduces systemwide inspection from ten to three years • Maintain an AAA utility bond rating that secures the most favorable borrowing rates and minimizes interest costs. Conclusion To remain in compliance, meet demand and posture for the future, staff and Raftelis propose the following user fee rates for Board consideration to be adopted for Fiscal Years 2027, 2028 and 2029 (Proposed rates for Fiscal Years 2027 and 2028 are consistent with the recommended rates in the 2023 Rate Study). Page 210 of 3023 2/24/2026 Item # 11.A ID# 2026-213 The table below demonstrates the effect of the recommended rate adjustment on the typical residential customer using 5,000 gallons for each billing cycle. The overall 5.7% increase is equivalent to 28 cents per day. Water, Wastewater, and IQ user rates are included in Schedules One, Two, and Three of Appendix A to Section Four of Collier County Ordinance No. 2001-73, the Collier County Water-Sewer District Uniform Billing, Operating, and Regulatory Standards Ordinance, as amended. The CCWSD currently has no wholesale water agreements. However, rates are established for use in an emergency or on an as-needed basis. The rate, last adjusted on October 1, 2025, is $6.63 per thousand gallons. Raftelis recommends maintaining this rate throughout the planning period for emergency water sales to neighboring utilities. Miscellaneous service charges included in Schedule Four of the Ordinance (represented by Table ES-4 in Raftelis’ executive summary) are billed to customers to recover the actual costs for parts, staff labor, and county equipment incurred for specific services provided by the District at the request of a customer. These charges are customary in the industry and provide a mechanism for the District to recover direct costs associated with services that benefit one individual customer rather than the overall customer base. Revenues resulting from these fees serve to reduce the amount that must be recovered from all customers via user rates. The District’s miscellaneous service charge schedules were last modified effective January 1, 2024, in accordance with Resolution No. 2023-227. Adjustments are recommended so that hourly labor rates are consistent with the county’s Fiscal Year 2026 pay and classification plan while fees for equipment are consistent with the Federal Emergency Management Agency’s current Schedule of Equipment Rates. This item is consistent with the Collier County strategic plan objective to safeguard rate payer money by promoting fiscal stewardship and sound budget oversight. FISCAL IMPACT: The Fiscal Year 2026 revenue budget was prepared using the currently approved user rates and fees for miscellaneous charges. Incremental Water revenue of $5 million, Wastewater revenue of $8.6 million, and IQ revenue of $0.8 million will be projected in the Collier County Water-Sewer District Operating Fund (4008) in Fiscal Year 2027 as a result of the proposed user rates. Revenue from miscellaneous service charges represents approximately $2 million annually, or less than one percent of the total annual District revenue derived from rates and fees established in Schedules One through Four of Appendix A of the Ordinance (represented by Tables ES-1, ES-2, ES-3, and ES-4 of Raftelis executive summary). GROWTH MANAGEMENT IMPACT: There is no growth impact for this action. Page 211 of 3023 2/24/2026 Item # 11.A ID# 2026-213 LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. ---SRT RECOMMENDATION(S): To accept the Water, Wastewater, Irrigation Quality Water, and Wholesale Potable Water User Rate and Fee Study and direct the County Manager or her designee to advertise a Resolution amending Schedules One, Two, Three and Four of Appendix A to Section Four of the Collier County Water-Sewer District Uniform Billing, Operating, and Regulatory Standards Ordinance No. 2001-73, as amended, with effective dates of October 1, 2026, October 1, 2027, October 1, 2028. PREPARED BY: Joseph Bellone, Director Utilities Finance ATTACHMENTS: 1. 11.G July 8, 2025 Northeast Interim Facilities Program and Resourcing Strategy 2. CCSWD 2026 Rate Study Exec Summary 3. Reso 2026 March 02.18.26 revd Page 212 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 Executive Summary Recommendation that the Board of County Commissioners, as the ex officio Governing Board of the Collier County Water-Sewer District, approve the Northeast Interim Facilities Program and associated resourcing strategy providing the capacity to execute the Program, authorize staff to include the recommended full time equivalents, vehicles and equipment for the Program and the requirements for operation of the Golden Gate Water Reclamation Plant in the Public Utilities Department Proposed Fiscal Year 2026 Budget, and approve the necessary Budget Amendment to the Fiscal Year 2025 Adopted Budget. OBJECTIVE: The public purpose is to provide water, wastewater and irrigation quality (IQ) services to meet demand in the growing utility service area of the County and to stay in compliance with regulatory requirements. This action is to outline the Northeast Interim Facilities Program (“Program”) components that will be bound by time and activity through Fiscal Year 2031 (FY31). This Program also outlines the associated personnel requirement and includes a sequence of successive construction projects to deliver these components. Concurrently, construction of the Golden Gate Water Reclamation Facility will commence in FY26. CONSIDERATIONS: The Northeast Interim Facilities Program and accompanying resourcing plan are comprehensive and anticipate growth demand in the northeast area and elsewhere in the CCWSD service area. To meet this demand, two new regional plants on the northeast site will be constructed. A third plant will be constructed on the Golden Gate plant site. These plants, and the related infrastructure required to support them, requires a significant investment in time, people and money. The Program is a systematic approach by the Collier County Water Sewer District (“CCWSD”) to evaluate the projected demand to confirm the supply capacity required to meet the service demand. The program incorporates the Annual Update and Inventory Report (AUIR) established levels of services against population growth. Validation of engineering modeling efforts for water, wastewater, and IQ commodities determine the program components that include deliverables inside and outside the regional plant site. The Program will be reviewed and validated each year in concert with the AUIR. 1. Background In the early 2000s, the Board of County Commissioners (BCC) recognized the necessity of water and wastewater facilities in the northeast section of the County. Collier County Water Sewer District (CCWSD) acquired land for the Northeast Utility Facilities contracted with Carollo Engineers, Inc. to provide design and related consulting services for the construction of the Northeast County Water Reclamation Facility (NECWRF) and the Northeast County Regional Water Treatment Plant (NECRWTP). A slowdown in population growth and services demand prompted a suspension of the program in 2010. Upon reactivation of the program in 2017 and eastward expansion of the CCWSD utility service area in 2018, CCWSD coordinated with the development community to understand the future infrastructure service demands in the northeastern portion of the County. Subsequently, the BCC entered into five utility agreements to provide water, wastewater, and IQ water services in the northeast service area. Additional utility agreements are anticipated as new development projects are initiated. On June 24, 2025, as agenda item 11A, the BCC approved Amendment 10 to the Carollo contract to complete the design of the Northeast Water Reclamation Facility and the Northeast Water Treatment Plant. 2. Current Infrastructure CCWSD has completed the initial water, wastewater and IQ pipelines to the required point of connection to each of the five approved utility service areas. This meets the preliminary obligation components outlined in the five Board approved utility agreements. CCWSD also completed a 1.5 million gallon per day (MGD) interim wastewater facility and 7.5 MG potable water tank and associated high service pumps to provide utility services through 2031. 3. Future Infrastructure Staff evaluated the associated costs and developed an acquisition strategy to deliver the Interim Facilities Program by FY2031. Multiple, interrelated projects, many containing multiple independent sub-projects, will be sequenced to deliver Page 213 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 the program components in a time/delineated fashion to meet the future demand as the county's population grows (See Exhibit A for supply/demand curve for water, wastewater and irrigation quality water). The program components and current rough order of magnitude (“ROM”) cost estimate through 2031 is approximately $754M. A ROM is an initial estimate of the program cost. The ROM provides a general idea of the project’s budget with an expected accuracy range of -25% to +75%. The component list and costs are outlined below: Implementing the Program components requires a deliberate strategy to achieve the capacity to execute the Program and set conditions for operation of the Golden Gate Water Reclamation Facility. 4. Personnel Staffing In order to achieve the intended result of providing critical utility services to a growing population, the necessary human resources are requisite. Within the six-year planning horizon, the District will deliver a new 4 MGD wastewater reclamation facility on the Golden Gate City site. The Program will deliver two additional regional treatment plants along with the raw water northeast wellfield, deep injection wells, and other utility appurtenances necessary to be operation-ready in 2031. The District is also providing distributed and bulk irrigation quality water services. Developers in the five Board-approved villages and towns will install and convey utility infrastructure requiring routine maintenance. The capacity to execute requires human and financial resources to meet these demands. 5. Implementing Plans for Human Resources, Equipment and Financial Resources. I. Human Resources to: 1. Provide capacity to deliver Capital Improvement Projects, related to both expansion and rehabilitation/replacement 2. Operate and maintain the three new regional plants in three shifts 24/7/365 with licensed, certified operators and plant mechanics 3. Provide regular maintenance of wellfields and conveyed utility assets within the District’s service area per the CCWSD’s Strategic Resourcing Plan and Asset Management requirements Page 214 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 4. Provide regulatory compliance lab services to meet state/federal requirements Human resourcing plans are divided into three sections. A. The BCC approved the Operations Resourcing Strategic Plan on November 10, 2020 (Exhibit B) as a standard for personnel resources required to provide the capacity to execute annual inspection and maintenance on assets conveyed to the utility by developers anywhere within the CCWSD service area. Based on these standards, the requirements to achieve these tasks include seven staff in FY25/FY26 and 15 additional through FY31 B. The next section identifies the human capacity required to operate the Golden Gate City 4 MGD Water Reclamation Facility 24/7/365 and provide routine facility maintenance C. The final section, dedicated to the Northeast Expansion Program, identifies: 1. Project management resources needed to deliver the projects on time and within budget, including support staff 2. Plant staff to operate the treatment facilities 24/7/365, plant maintenance and irrigation quality water system delivery A. Human resources include six staff in FY25 and one in FY26: • In FY25, the conversion of four current KeyStaff providing service as part of the ongoing backflow replacement program of 34,000 backflows in the system is recommended. The utility initially hired an outside contractor to replace 235 backflow devices with an average cost of $1,823.43 per device. Understanding the entire program cost would be prohibitive, the utility hired and trained four KeyStaff to execute the replacement program at an average cost of $406.47 per device. Staff must be certified in backflow repair/maintenance. An outside workforce does not guarantee consistent performance compared to full-time equivalents. Personal services costs are partially offset by savings in temporary labor • One Industrial Pretreatment Inspector in FY25 is required to meet the obligations of Collier County Page 215 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 Ordinance Chapter 134 and the adoption of Title 40 Code of Federal Regulations (CFR), Part 441 by the Environmental Protection Agency (EPA) adding record keeping and inspection requirements for 120 dental facilities • One water compliance laboratory technician in FY25 for expansion of the potable water distribution system combined with the upcoming regulatory changes, including Revised Total Coliform Rule (RTCR); Lead and Copper Rule Revisions; Per- and Polyfluoroalkyl Substances (PFAS) regulations and the addition of two new injection wells in the northeast service area requiring sampling and analysis to meet permit requirements • One wastewater Instrumentation/Electrical Technician in FY26 to conduct annual inspection and regular maintenance of the generators. In addition to the generators conveyed to the utility by developers within the CCWSD service area, wastewater anticipates receiving 53 generators through the FEMA Hazard Mitigation Grant Program Total personal costs for the seven requested staff is $582,300. Beyond FY26, the Operations Resourcing Strategic Plan identifies 15 additional full-time equivalent resources for the period through FY31 (two to three per year) to meet anticipated demand in the field for maintenance of utility infrastructure conveyed to the CCWSD during that time period. These include: • two meter services Utility Specialists to maintain the utility’s cash registers and provide annual compliance testing on backflow prevention devices • nine wastewater staff including three Instrumentation/Electrical Technicians and six Utility Specialists for maintenance of conveyed assets including but not limited to gravity lines, manholes, force mains, lift stations, air release valves and generators • four Utility Specialists to maintain potable water mains, system valves, wells and fire hydrants In summary, the Operations Resourcing Strategic Plan identifies a need for a total of 22 positions to maintain the capacity to meet the Collier County Strategic Focus of Asset Management to optimize the useful life of utility infrastructure through proper planning and preventative maintenance. The recommendation is to approve six for FY25 and one for FY26 with 15 additional in FY27 to FY31 based on work demand. B. Golden Gate 4 MGD Water Reclamation Facility Expansion The Golden Gate 4 MGD Water Reclamation Facility is the sole focus of the second section of the human resources capacity plan. The construction award is anticipated in the first quarter of FY26. This plant is anticipated to be on-line in FY28 and will be the first membrane wastewater plant in the CCWSD inventory and will be Advanced Water Treatment ready when regulations require it. A plant of this size requires 24/7/365 operation with licensed operators. A licensed Plant Operator III requires 3 years of experience. These positions have been difficult to recruit and hire in Collier County. The resourcing plan includes a total of 18 positions over the 6-year period. • The FY26 plan includes a total of seven resources - five Plant Operator I positions to train for plant operations plus two Utility Specialist II positions to train for facility maintenance • The FY27 plan requests nine resources, including one chief Operator, two Plant Operator III, four Plant Operator I, one Plant Mechanic and one chemist for compliance testing requirements for startup in 2028 • The Fiscal Year 2029 plan requests two Utility Specialists for the site including the plant and two deep injection wells The recommendation is to approve the seven resources identified in the plan for inclusion in the FY26 Proposed Budget of $543,100, with the balance of 11 resources based on timing and demand. Page 216 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 C. Northeast Interim Facilities Program The human resourcing plan represents a significant element with 59 new human resources. 15 of those are proposed in the FY25/FY26 period. 1. Eight project management staff in FY25 to deliver a $750+ million northeast expansion capital program over the six-year period coupled with a $100 million per year ongoing capital improvement plan to rehabilitate and replace aging infrastructure. a. Doubling the capital expenditures on an annual basis requires three support staff in the area of contract administration and fiscal management to monitor the procurement process for the delivery of 31 separate acquisition packages and audit pay packages to maintain consistency with the Florida Prompt Payment Act b. With additional utility projects currently underway to develop the wellfield and other utility infrastructure, two Field Inspector II positions in FY25 are required to monitor construction activity in lieu of construction engineering services on smaller projects c. With added resources, span of control becomes an issue, so a request for one Assistant Director is included in the FY25 resourcing plan d. Finally, in FY26 it is necessary to have one additional Technical Support Professional II in the automated systems section as SCADA equipment for compliance driven monitoring is added to the growing utility infrastructure asset base The personnel cost to be included in the Fiscal 2026 Proposed Budget totals $1,812,700 2. In the FY27 to FY31 timeframe, the Collier County Water-Sewer District must hire, train and integrate personnel for plant operations to deliver services in FY31, including potable drinking water, wastewater treatment services and Irrigation Quality Water delivery. To meet this demand and maintain compliance, the resourcing plan identifies 44 additional resources: • FY27 total two resources • one water treatment plant manager to begin training on nanofiltration water plant operation and one Water Distribution Crew Leader to accommodate span of control concerns • FY28 total 15 resources • one accounting technician to manage the growing number of billing cycles as towns and villages grow the number of connections • one wastewater pretreatment inspector and two wastewater plant operator II to train for upcoming plant operations • eight plant operator II resources to train for water treatment plant operations, one utility specialist II for field services, one I/E technician to maintain electrical components of the water distribution system and one field supervisor I to address span of control • FY29 total 17 resources • one stake & locates utility specialist II • For the wastewater plant start-up, one chief operator, one plant operator III, two plant operator I and one plant mechanic • For plant operations, one chief operator, five plant operators III, one plant mechanic; two utility specialist II and two I/E technicians Page 217 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 • FY30 total four resources • one stake & locates utility specialist and three utility specialist II for IQ system maintenance • FY31 total six resources • Two wastewater plant operator I positions and four utility specialists for IQ bulk, distributed and pressurized and distributed systems The recommendation is to approve the FY25 and FY26 resourcing requests and include those in the FY26 Proposed Collier County Water-Sewer District Budget. Personal Services costs of $2,938,100 will be offset in other areas of the proposed budget without changing the total budget proposed at the June Budget Workshop. II. Equipment Additional staffing requires the necessary tools and equipment to perform assigned tasks. An investment of approximately $6.1 million in utility vehicles and rolling stock equipment is envisioned over the six-year period. The recommendation includes $578,000 for 12 utility vehicles in the FY26 Proposed Budget to facilitate the necessary work by the 29 proposed staff in the resourcing plan. The balance of the anticipated vehicle and equipment need will depend on demand and the resourcing requirements necessary to meet that demand and remain in operational compliance. III. Financial Resources 1. Bond funding strategy developed through the County’s Finance Committee, PFM Financial Advisors, Raftelis Financial Consultants and Nabors Giblin Bond Counsel 2. Growth related revenues from impact fees to support debt service 3. Operating revenues from user fees to maintain and replace utility assets The Finance Committee meeting to discuss bonding strategies will take place on July 30, 2025. Raftelis has been working in concert with the county’s financial advisors, PFM, on several options for long term financing and will issue its draft Bond Feasibility Report for discussion at the Finance Committee Meeting. This item is consistent with the Collier County strategic plan objective to plan and build public infrastructure and facilities to effectively, efficiently, and sustainably meet the needs of our community. It further is in support of the Infrastructure and Asset Management Strategic Focus Area’s objectives to optimize the useful life of all public infrastructure resources through proper planning and preventative maintenance. This item is aligned with the Annual Update and Inventory Report (AUIR) and other planning tools that establish and implement plans for availability and adequacy of public facilities and remain in compliance with all regulatory requirements. FISCAL IMPACT: Realignment of the Collier County Water-Sewer District's FY26 Proposed Budget, as presented at the 19 June 2025 Budget Workshop, is necessary to fund this proposal. Adjustments will include an increase in personal services costs of $2,938,100, an increase in operating expenses of $1,160,700, which includes an increase to the transfer to the motor pool capital recovery fund, and an increase to the contingency reserves to maintain a balanced budget within the Utilities Operating Fund (4008). These increases will be offset by savings in temporary labor, and a $5,000,000 reduction in the transfer to the Wastewater Capital Fund (4014). Additionally, to expedite the procurement of vehicles, a FY25 budget amendment, totaling $1,242,600, is required to allocate funding from the Reserve for Motor Pool Capital to the Water/Sewer Motor Pool Project (57408) within the Water/Sewer Motor Pool Capital and Special Assessment Fund (4009). Page 218 of 3023 7/8/2025 Item # 11.G ID# 2025-2209 The Northeast Interim Facilities Program capital investment is currently estimated at approximately $755,000,000, which is impact fee eligible in the Water Impact Fee Fund (4011) and Wastewater Impact Fee Fund (4013). GROWTH MANAGEMENT IMPACT: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities and to remain in compliance with all regulatory requirements. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires a majority vote for approval. -JAK RECOMMENDATION(S): Recommendation that the Board of County Commissioners, as the ex officio Governing Board of the Collier County Water-Sewer District, approve the Northeast Interim Facilities Program and associated resourcing strategy providing the capacity to execute the Program, authorize staff to include the recommended full time equivalents, vehicles and equipment for the Program and the requirements for operation of the Golden Gate Water Reclamation Plant in the Public Utilities Department Proposed Fiscal 2026 Budget, and approve the necessary Budget Amendment to the Fiscal Year 2025 Adopted Budget. PREPARED BY: Matthew McLean, P.E. Director, Public Utilities Engineering and Project Management Division Joe Bellone, Director, Public Utilities Finance ATTACHMENTS: 1. Exhibit A- Supply & Demand Curves 2. Exhibit B - CCWSD Operations Resourcing Strategic Plan 3. BA - CIP 4009 - 57408 - Water Sewer Motor Pool Capital Page 219 of 3023 CCWSD Project Name Start Stop 1 NESA Interim WRF, Tanks, Pump Stations & Pipelines 4/1/2021 10/31/2025 2 NESA Deep Injection Wells (1 & 2) and Monitoring Wells 6/6/2024 11/30/2028 3 NESA Medium Voltage Power (Plant /Wellfields)7/1/2025 9/1/2031 4 NESA South Wellfield - Phase 1 10/26/2020 7/29/2030 5 NESA Perimeter Wellfield - Phase 2 2/13/2024 7/29/2030 6 NECWTP 10mgd - Phase 1 7/1/2025 9/1/2031 7 Utility Mains Expansion Project - TOBC to Horse Trials along Oil Well Road 5/1/2025 12/31/2027 8 Booster Pump/Tank at Camp Keais Project 1/1/2027 5/1/2030 9 Booster Pump/Tank North of Belmar Village 1/1/2027 5/1/2030 Developer Projects Start Stop 10 Construction of Water Mains from Skysail through TOBC to Oil Well Rd*6/1/2025 6/1/2026 11 Construction of Water Mains from Oil Well Rd to Bellmar Village*12/1/2025 12/31/2026 *Per latest schedule provided by engineer on 5/21/2025 TMSD Partner Projects Start Stop 12 Oil Well Rd Widening Improvements Everglades to Big Cypress 8/1/2025 4/30/2030 1 2 3 4 5 6 7 9 10 11 12 8 Definitions: CCWSD Projects: Projects which are executed by Collier County Water Sewer District Developer Projects: Projects which are executed by Developers wherein assets will be conveyed to Collier County Water Sewer District upon project completion. TMSD Partner Projects:Projects which are executed in partnership with the Collier County Transportation Management Services Division. Start: Actual / planned project start date. Stop:Planned finish date for project. Project Completion indicator: X H:\_PUD Capital Project Files\_EPMD PMPs-PRBs\PMPs\NESA\Water WW IQ Supply & Demand Curves\Northeast Supply & Demand Curves w-Projects 06.18.25.xlsx1:31 PM Page 220 of 3023 Page 221 of 3023 CCWSD Project Name Start Stop 1 NESA Interim WRF, Tanks, Pump Stations & Pipelines 4/1/2021 10/31/2025 2 NESA Deep Injection Wells (1 & 2) and Monitoring Wells 6/6/2024 11/30/2028 3 NESA Medium Voltage Power (Plant /Wellfields)7/1/2025 9/1/2031 4 NECWRF 4/6mgd - Phase 1 7/1/2025 9/1/2031 5 Utility Mains Expansion (& MPS at Camp Keais) Project - TOBC to Horse Trials along Oil Well Road 5/1/2025 12/31/2027 Developer Projects Start Stop 6 Construction of WW Mains from Skysail through TOBC to Oil Well Rd*6/1/2025 6/1/2026 7 Construction of WW Mains from Oil Well Rd to Bellmar Village*12/1/2025 12/31/2026 *Per latest schedule provided by engineer on 5/21/2025 TMSD Partner Projects Start Stop 8 Oil Well Rd Widening Improvements Everglades to Big Cypress 8/1/2025 4/30/2030 1 2 3 4 567 8 Definitions: CCWSD Projects: Projects which are executed by Collier County Water Sewer District Developer Projects: Projects which are executed by Developers wherein assets will be conveyed to Collier County Water Sewer District upon project completion. TMSD Partner Projects:Projects which are executed in partnership with the Collier County Transportation Management Services Division. Start: Actual / planned project start date. Stop:Planned finish date for project. Project Completion indicator: X H:\_PUD Capital Project Files\_EPMD PMPs-PRBs\PMPs\NESA\Water WW IQ Supply & Demand Curves\Northeast Supply & Demand Curves w-Projects 06.18.25.xlsx1:32 PM Page 222 of 3023 Page 223 of 3023 Collier County Public Utilities CCWSD Projects Start Stop 1 NESA Interim WRF, Tanks, Pump Stations & Pipelines 4/1/2021 10/31/2025 2 NESA IQ Supplemental Well LTA 9 6/1/2025 8/1/2027 3 NESA Medium Voltage Power (Plant /Wellfields)7/1/2025 9/1/2031 4 NESA South Wellfield - Phase 1 10/26/2020 7/29/2030 5 NESA Perimeter Wellfield - Phase 2 2/13/2024 7/29/2030 6 NECWRF 4/6mgd - Phase 1 7/1/2025 9/1/2031 7 5 IQ Wells at TOBC 6/1/2025 6/30/2030 8 IQ Pipeline Expansion from NECWRF to Everglades Blvd along Oil Well Rd (50%)6/1/2026 5/1/2030 9 IQ Storage Tank at Brightshore Village 6/1/2026 5/1/2030 10 IQ Storage Tank at TOBC 6/1/2026 5/1/2030 Developer Projects Start Stop 11 Construction of IQ Mains from Skysail through TOBC to Oil Well Rd*6/1/2025 6/1/2026 12 Construction of IQ Mains from Oil Well Rd to Bellmar Village*12/1/2025 12/31/2026 *Per latest schedule provided by the developer's engineer on 5/21/2025 TMSD Partner Projects Start Stop 13 Oil Well Rd Widening Improvements Everglades Blvd to Big Cypress Pkwy 8/1/2025 4/30/2030 NORTHEAST IRRIGATION QUALITY (INTERIM WWTP/NECWRF) SERVICE AREA LOS: 120 gpcd *1 -IQ Demand projections based on 30% 0.27 acres per square foot home irrigated 3 times per week (Carollo -May 2025 memo and in accordance with the irrigation standards adopted by the BCC in County Ordinance 2015-27) *2 -IQ Supply based on 81 gpd per home wastewater generation to WRF developer absorption rates (Carollo -May 2025 memo and in accordance with the irrigation standards adopted by the BCC in County Ordinance 2015-27) plus supplemental wells. Definitions: CCWSD Projects: Projects which are executed by Collier County Water Sewer District Developer Projects: Projects which are executed by Developers wherein assets will be conveyed to Collier County Water Sewer District upon project completion. TMSD Partner Projects:Projects which are executed in partnership with the Collier County Transportation Management Services Division. Start: Actual / planned project start date. Stop:Planned finish date for project. Project Completion indicator: 1 2 3 4 5 6 11 12 8 9 10 7 13 X IQ Demand (source *1)IQ Supply (source *2)Deficit H:\_PUD Capital Project Files\_EPMD PMPs-PRBs\PMPs\NESA\Water WW IQ Supply & Demand Curves\Northeast Supply & Demand Curves w-Projects 06.18.25.xlsx1:33 PM Page 224 of 3023 Page 225 of 3023 11/10/2020 EXECUTIVE SUMMARY Recommendation to approve future Full Time Equivalent (FTE) positions in the Public Utilities Department at time of asset conveyance based on cumulative asset acquisitions, add 8 FTEs, convert 25 existing contractual labor resources to FTEs, and authorize associated budget amendments. OBJECTIVE: To ensure the Collier County Water - Sewer District (CCWSD) has sufficient permanent labor resources to perform permanent and ongoing demand and compliance driven, public health and safety related essential services as reviewed and approved by the Productivity Committee. CONSIDERATIONS: Productivity Committee reviewed and approved the recommendation including methodology as presented herein. CCWSD operations are compliance driven for public health and safety. Its infrastructure asset base, and associated labor needs, grow with each Board approved utility conveyance. However, the number of FTE resources to meet the maintenance, repair, and compliance needs of the additional conveyed assets is not adjusted at the same time as the increase in asset management and liability is incurred. Staff developed an operations resourcing strategic plan for the CCWSD to address this discrepancy and reviewed it with the Productivity Committee on October 8, 2020. The Productivity Committee voted unanimously to recommend the plan for approval by the Board of County Commissioners. Staff took a data driven approach to developing this strategy. Staff analyzed data collected in CityWorks, the enterprise asset management system, and used the findings to identify manpower drivers and develop formulas that estimate wrench time and by extension FTEs needed to maintain, repair, and perform compliance work on conveyed water and wastewater assets. The calculations which underpin the strategy are based on average available hours, task time percentages, and, specifically, work hours needed on conveyed assets with the highest manpower demand and proportional representation, per mile of water main or wastewater gravity main, for the remaining assets. This results in quantifiable FTE needs with supporting details by work type. Using this information, the CCWSD proposes three actions to bring permanent labor resources into alignment with the maintenance, repair, and compliance work needs of the existing infrastructure asset base and keep it aligned in the future. Request additional operations FTEs at time of asset conveyance based on the cumulative work needs of the conveyed assets Add 8 FTEs to align with the work needs of the existing asset base Convert 25 existing contractual labor resources that currently perform permanent operations work to permanent FTEs According to CityWorks data, CCWSD operations labor resources, including contractual labor, are currently operating at an 8 FTE deficit. Asset acquisition conveyances recorded from FY 2018 through FY 2020 indicate the largest growth in hours needed to support assets occurred in the work types below. Packet Pg. 784Page 226 of 3023 11/10/2020 Work Type Hours FTEs Distribution 7,402.69 1 3.68 Meter Operations 4,456.31 2.21 W'Aellfield 249.61 0.12 ater Power Systems 92.45 0.05 Total 12,201.05 6.06 Total Hour Needs Total FTE Needs Work Type WW Collections Hours FTEs 5,353.17 2.66 Irrigation Quality - 0.00 WW Power Systems 409.25 0.20 Total 5,762.42 2.86 17,963.47 8.93 8 FTEs are requested to bring the CCWSD permanent operations labor resources into alignment with the work needs of the existing asset base - 4 in Water Distribution, 2 in Wastewater Collections, and 2 in Meter Operations. The cost to add 8 FTE positions in FY 2021 is approximately $448,000 plus a one- time investment in equipment of $476,000 for a total of $924,000. The CCWSD workforce includes 25 contractual labor resources that are performing permanent operations work. Twenty perform work to operate, repair, and maintain compliance on the water and wastewater infrastructure. Four operate the water and wastewater plant systems. One assembles cross connection control devices for installation on the water infrastructure. Contractual labor resources are inherently transitory and often have higher turnover which results in lost productivity when positions are vacant and while new workers are brought up to speed. State licensing is required to perform independent work on the potable water system and certifications are strongly preferred and written into job descriptions for wastewater. Due to the inability to find contractual labor resources with these licenses / certifications, these labor resources must work with FTEs instead of performing independent work on the systems. Conversion of the contractual resources to FTEs will overcome these disadvantages and ensure the CCWSD has sufficient permanent labor resources to provide permanent and ongoing demand and compliance driven essential services. Costs to convert the 25 contractual resources to FTE positions approximate $92,000 in FY 2021 and each year thereafter. FISCAL IMPACT: The proposed addition of 8 FTEs including associated equipment along with the conversion of 25 contractual labor positions to regular full-time positions will have an FY 21 fiscal impact of approximately $1,016,000 or 0.51% of the total CCWSD budget of $201.6 million. The recurring personnel cost impact will be approximately $540,000 or 0.27% of the CCWSD budget. Cost containment will accommodate the additional costs without impacting current user rates. Implementation will necessitate realigning existing budgets. Accordingly, budget amendments will be processed as required. GROWTH MANAGEMENT IMPACT: This initiative supports current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities and the ability to remain in compliance with all regulatory programs. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues, and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Water -Sewer District, (1) authorizes the CCWSD to use the methodology outlined above to request additional FTEs based on cumulative asset acquisition at time of conveyance, (2) approves addition of 8 FTEs, (3) approves conversion of 25 contractual labor resources to FTEs and (4) authorizes budget amendments to fund the additional FTEs including associated equipment and conversions from contractual labor to FTEs. Packet Pg. 785Page 227 of 3023 11/10/2020 Prepared by: Amia Curry, Financial Operations Support Manager, Public Utilities Department ATTACHMENT(S) 1. CCWSD Operations Resourcing Strategic Plan - Productivity Committee (PDF) Packet Pg. 786Page 228 of 3023 11.F 11/10/2020 COLLIER COUNTY Board of County Commissioners Item Number: 11.F Doe ID: 13941 Item Summary: Recommendation to approve future Full Time Equivalent (FTE) positions in the Public Utilities Department at time of asset conveyance based on cumulative asset acquisitions, add 8 FTEs, convert 25 existing contractual labor resources to FTEs, and authorize associated budget amendments. (Amia Curry, Utilities Finance Operations Manager) Meeting Date: 11/10/2020 Prepared by: Title: Manager - Operations Support - PUD Public Utilities Operations Support Name: AmiaMarie Curry 10/15/2020 10:04 AM Submitted by: Title: Division Director - Operations Support — Public Utilities Operations Support Name: Joseph Bellone 10/15/2020 10:04 AM Approved By: Review: Public Utilities Operations Support Public Utilities Department Public Utilities Department Public Utilities Department Office of Management and Budget County Attorney's Office Budget and Management Office Budget and Management Office County Manager's Office Board of County Commissioners Joseph Bellone Additional Reviewer Dan Rodriguez Additional Reviewer Drew Cody Level 1 Division Reviewer George Yilmaz Level 2 Division Administrator Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Ed Finn Additional Reviewer Mark Isackson Additional Reviewer Nick Casalanguida Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 10/15/2020 10:30 AM Completed 10/15/2020 2:36 PM Completed 10/15/2020 6:02 PM Completed 10/22/2020 10:14 AM Completed 10/22/2020 10:58 AM Completed 10/23/2020 2:41 PM Completed 11/02/2020 11:24 AM Completed 11/02/2020 12:56 PM Completed 11/03/2020 1:36 PM 11/10/2020 9:00 AM Packet Pg. 787Page 229 of 3023 rs" aL wE C6ru7. 0 ro L. j 3 m cn 0 ufu foC: Ero 0 fucru a0 uDCL Page 230 of 3023 a-- Jro UQ. L. 0m . 5- 1 4- coU) co 3: OL LL o-) a- J 1) 73Q) a LOfu4 a- Jfu . UOV) wcu 70a OL0. ruLroOmUfu4) CO V) 4- J D O a- J O - 0 - Fu 4) C: c E fu O .- W U ' 0 L- •- - o E 3Mfucu O cn to 4 a--) LU U fu iM- C: O 73 LL fu ( 1) a- J V) V) 4 O fu fu-, O U LJJ , fu cn E F Eou fv,) fu L. 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Vfa EN oa) E L 4J fu N a U QoU U) W 4-+ W f U- cn u 01 4- Jc LO O N rum 4-+ fu NN' LL UX O Ln Q 4-- fu O Oro NU UL 4-' Wx NO_ Q O 0 O 0fu NC N 4- 1 N Nca OU fa • X L O3 O M 000 O C NQ OoC O Q Op U NUN I N I ru ra N M Page 242 of 3023 NO* i t SO A Page 243 of 3023 Bob— k-, W PA S ILI '.' W. Jdlm Page 244 of 3023 Fiscal Year 2026 User Rate and Fee Study Executive Summary Report / February 24, 2026 COLLIER COUNTY WATER-SEWER DISTRICT Page 245 of 3023 341 N. Maitland Avenue, Suite 300, Maitland, FL 32751 www.raftelis.com February 24, 2026 Honorable Chairman and Members of the Board of County Commissioners Collier County 3299 Tamiami Trail East, Suite 303 Naples, FL 34112 Subject: Water, Wastewater, and Irrigation Quality Water User Rate and Fee Study for Collier County Water-Sewer District Ladies and Gentlemen: Raftelis Financial Consultants, Inc. ("Raftelis") has completed our review of the water, wastewater, irrigation quality ("IQ") user rates and fees for the Collier County (the "County") Water-Sewer District (the "District") utility system (the "System"), and has summarized the results of our analyses, assumptions, and conclusions in this report, which is submitted for your consideration. This report summarizes the basis for the proposed rates, fees, and charges for water, wastewater, and IQ water service that are necessary, along with other appropriate sources of funds, to meet the near-term expenditure requirements of the utility. The Study involved preparing financial projections of the water, wastewater, and IQ water operations for the ten-fiscal year period of October 1, 2026 through September 30, 2035 (the "Forecast Period"). The District faces the same cost pressures confronting utilities nationwide: persistent inflation in operating costs, significant construction cost escalation, regulatory requirements, and accelerating infrastructure replacement needs. At the same time, Collier County’s continued population growth—projected to exceed 443,000 residents by 2030—requires expansion of system capacity to maintain reliable service. To address these needs, the Board has approved a $1.54 billion capital improvement program through the Annual Update and Inventory Report process. This program was developed using a disciplined prioritization framework that limits the current planning horizon to regulatory compliance, growth-related capacity, and infrastructure at the highest risk of failure—deferring all other projects to future planning cycles. The recommended rate adjustments enable the District to: i) address inflationary impacts on operations while maintaining margins for capital financing; ii) fund critical infrastructure replacement and rehabilitation; iii) support long-term capital facilities for reliable service; and iv) maintain a strong financial position for cost- effective access to credit markets. The multi-year capital program has been structured to manage utility service and environmental risks, and is reflected in the financial and rate implementation plan in this report. Page 246 of 3023 Honorable Chairman and Members of the Board of County Commissioners Collier County February 24, 2026 Page 2 Under the proposed rate plan, the average combined monthly bill for a residential customer using 5,000 gallons increases by approximately $8.35 per month in the first year. The District’s proposed rates for FY 2027 remain at approximately 1.6% of median household income, within the Environmental Protection Agency’s general affordability threshold. The financial forecast projects debt service coverage well above the 2.0× policy target, supporting the continued maintenance of the District’s AAA credit rating, which directly benefits ratepayers through the lowest available borrowing costs on over $1 billion in projected bond issuances. Raftelis also reviewed the District's miscellaneous service charges. Miscellaneous service charges provide a mechanism for the District to recover direct costs associated with a service that benefits one individual customer rather than the overall customer base. Such miscellaneous service charges thereby reduce the revenue requirements that must be recovered from all customers via monthly user rates. Following this letter, we have provided an executive summary that briefly summarizes the results of our Study and outlines our recommendations and conclusions. The accompanying sections of the report provide additional details regarding the rate and financial analyses conducted on behalf of the District. Appendix A provides the proposed rate schedules, including ES-1 Water, ES-2 Wastewater, ES-3 IQ Water, and ES-4 Miscellaneous Fees. (Remainder of page intentionally left blank) Page 247 of 3023 Honorable Chairman and Members of the Board of County Commissioners Collier County February 24, 2026 Page 3 We appreciate the opportunity to be of service to the County and would like to thank the County staff for their assistance and cooperation during this Study. Respectfully submitted, RAFTELIS FINANCIAL CONSULTANTS, INC. Robert J. Ori Senior Principal Thierry A. Boveri, CGFM Senior Vice President Justin Rasor Senior Manager Michelle Galvin Senior Consultant Page 248 of 3023 Collier County – 2025 Water and Sewer Revenue Bonds Report 1 Executive Summary Key Message Raftelis Financial Consultants, Inc. ("Raftelis") has completed the 2026 User Fee Rate Study for the Collier County (County) Water-Sewer District ("District"), analyzing the water, wastewater, and irrigation quality ("IQ") water systems over the ten-fiscal year period of October 1, 2026 through September 30, 2035. The Collier County is navigating the same headwinds facing utilities nationwide: persistent inflation, accelerating infrastructure needs, regulatory requirements, and construction cost escalation. While District’s rates are currently projected to increase, this reflects the proactive investments in a resilient, high-quality system tailored to Southwest Florida’s unique water sources, growth patterns, and climate risks. The proposed rate adjustments position the District to execute a $1.54 billion capital program while helping to maintain its AAA credit rating and avoiding the deferred maintenance trap and emergency-driven investment that has plagued other utilities. Financial Strength and Credit Position The District’s strong financial position reflects years of discipline rate-setting and fiscal management that have earned the District the highest possible credit rating for a utility system. The District is currently rated “AAA” (the highest credit rating) with a stable outlook as reflected in the most recent credit report dated April 23, 2025. This exceptional rating provides the District with access to the most favorable borrowing terms available, directly benefiting ratepayers through lower debt service costs on the substantial capital program ahead. Fitch identified the following key drivers supporting the AAA rating:  Affordable Rates and Very Favorable, Growing Service Area. The District benefits from independent rate-setting authority and strong customer growth. Fitch assesses rates as affordable for approximately 82% of the service area population, supported by midrange income levels and low unemployment.  Exceptionally Strong Financial Metrics. Financial results continued to yield strong debt service coverage levels, a sustainable liquidity position, and favorable margins.  Excellent Financial Performance. The system’s strong financial profile is evidenced by robust debt service coverage and liquidity. Although cash balances are predicted to decline and capital spending is increasing materially, the District has approved rate adjustment to support the higher spending. Maintaining this AAA rating requires continued investment in system reliability and financial discipline. The District’s rates reflect being ahead of the regional investment curve. Consider the factors that drive higher costs:  Source Water Complexity: Unlike some neighboring utilities (which uses simpler groundwater treatment in a dense area), Collier relies on brackish water sources requiring expensive Reverse Page 249 of 3023 CCWSD 2026 User Fee Study 2 Osmosis treatment. This is a primary driver of both capital and operational costs from other peer utilities.  Proactive Infrastructure Investment: the District has prioritized building a highly reliable system with significant redundancy and facility hardening against hurricane events. Many regional peers are only now beginning to make similar investments.  Service Area Characteristics: the District’s expanding footprint, lower connection density (compared to urban areas), and significant seasonal population swings require building infrastructure for peak demand—which impacts per-customer costs. The primary driver behind the proposed rate adjustments is the District's $1.54 billion capital improvement program over the six-year period from FY 2026 through FY 2031. These capital investments address renewals and replacements of aging infrastructure, expansion of the District's boundaries, and service commitments under BOCC-approved developer agreements. The capital program is consistent with the Board-approved Annual Update and Inventory Report ("AUIR"). Funding this program requires a balanced approach drawing on existing reserves commercial paper, rate revenues, and new debt issuance. The following table summarizes the anticipated funding sources: Table 1: CIP Anticipated Funding Sources Description 6-Yr Total % of Total Water Capital Account (from Reserves / Operations) $264,093,323 17.14% Wastewater Capital Account (from Reserves / Operations) $350,972,068 22.78% Grants $13,731,905 0.89% Previously Issued Bond Proceeds $69,305,537 4.50% Additional Bond Proceeds – Water Projects $338,512,836 21.98% Additional Bond Proceeds – Wastewater Projects $503,761,493 32.70% Total $1,540,377,164 100.00% The District and Raftelis developed a prioritization framework to ensure that only the most critical projects are included in the current planning horizon. Projects were evaluated against three criteria: 1. Regulatory Requirements — Projects necessary to meet treatment permits and regulatory compliance. 2. Growth — Capacity additions to serve new demand, noting that growth pays for growth through separately studied impact fees. 3. Tier 1 Reinvestment — Critical infrastructure identified as high risk of failure within the next five years. Only projects meeting these criteria are funded in the current five-year window. All other capital projects through planned program prioritization, have been moved beyond the current planning horizon and will be managed operationally on a risk basis until they can be incorporated into future planning cycles. The District Page 250 of 3023 CCWSD 2026 User Fee Study 3 has also implemented cost containment strategies including maintaining the AAA bond rating to secure the lowest interest rates, utilizing a $300 million commercial paper program for financing flexibility, upgrading to high-efficiency equipment, and leveraging technology such as SCADA remote monitoring and acoustic pipeline inspections to reduce unnecessary maintenance. Approximately 45% of the capital program is funded from internal sources including capital accounts, reserves, and grant funding. The remainder is associated with additional bond proceeds, which the District's AAA credit rating enables it to secure at the most favorable terms available. The National Rate Environment Water and wastewater utilities across the country are experiencing unprecedented cost pressures. Understanding this national context is essential to evaluating Collier County's position and recognizing that the challenges faced locally are part of a much larger industry-wide trend. Industry-Wide Cost Pressures The cost of providing clean water consistently outpaces general inflation. According to Bluefield Research's analysis of 50 major U.S. cities, combined water and sewer bills increased 4.6% from 2023 to 2024 alone, and approximately 24% over the past five years.1 Based on a survey of 170 utilities serving more than 107 million people, the National Association of Clean Water Agency (NACWA) Cost of Clean Water Index has consistently outpaced general inflation, reflecting structural cost pressures unique to the water and wastewater sector. From 2000 to 2021, wastewater service charges increased at roughly 1.5 to 2 times the rate of the CPI. This gap is expected to persist, with NACWA projecting annual cost increases of approximately 4.0%–6.0%, compared to long-term CPI projections near 2.2%–2.5%. Utilities implementing 5–8% annual adjustments are not outliers, but are aligning rates with the true cost of service., including the replacement of critical infrastructure that is now reaching their service lives. This trend in the NACWA Index as compared to the CPI is shown below: 1 Bluefield Research https://waterfm.com/report-u-s-water-sewer-bills-have-increased-24-in-five-years/ Page 251 of 3023 CCWSD 2026 User Fee Study 4 The infrastructure funding gap is substantial. The EPA's 2022 Clean Watershed Needs Survey identified $630.1 billion in unfunded clean water infrastructure needs nationally—a 73% increase from the previous survey a decade earlier.2 In Florida, the American Society of Civil Engineers (ASCE), through its Report Card for America’s Infrastructure, highlights a consistent challenge: long-standing underinvestment in water and wastewater systems. Florida’s drinking water infrastructure is a complex, aging network serving a rapidly growing and geographically diverse population, with water demand projected to increase by 13%. While utilities have generally maintained reliable service, growth, climate risks, and deferred maintenance are placing increasing strain on system stability. ASCE estimates a funding gap of more than $30 billion for drinking water and $90.5 billion for wastewater infrastructure. New regulatory requirements, including emerging contaminants such as PFAS, along with heightened expectations for resilience, asset management, and nutrient reduction, further underscore the need for continued adaptation. ASCE assigned Florida a grade of B- for drinking water and C+ for wastewater. 2 NACWA press release (May 14, 2024): https://www.nacwa.org/news-publications/news- detail/2024/05/14/epa-clean-watershed-needs-survey-report-reinforces-importance-of-additional-federal- funding-for-water-infrastructure Page 252 of 3023 CCWSD 2026 User Fee Study 5 The Florida Rate Environment Florida utilities face amplified versions of national challenges: rapid population growth, hurricane resilience requirements, seasonal demand fluctuations, and aging infrastructure in a corrosive coastal environment. Regional Utilities Are All Moving in the Same Direction Collier County is not alone in implementing rate adjustments. A survey of regional utilities reveals a consistent pattern of multi-year rate increase programs. As shown below, the District's proposed combined increase of approximately 5.6% for FY 2027 is well within the range of peer utilities. Table 2: Proposed Future Rate Increases Utility Rate Increase Timeframe Englewood Water District 15% per year water & sewer FY 2026 - 2030 Lee County 8% per year water & sewer FY 2026 - 2027 Riviera Beach Utility Special District Water – 10%, 31.85%, 31.85%, 29.78%, 26% Sewer – 8%, 6.09%, 6.09%, 6.09%, 6% FY 2025 - 2029 Manatee County Adopted 5.0% increase and planned for 8.75% FY 2026 - 2030 Pinellas County Water – 5.0% per year Sewer – 4.0% per year FY 2026 - 2032 Hillsborough County Adopted Fixed Rate at 5.0% + Price Index estimate at 2.0% + Purchased Water Pass-through (no change assumed) = 7.0% FY 2026 - 2032 Sarasota County Water – 8.53% in FY 26 and 6.4% plus rate indexing through FY 2029 Sewer – 5.0% through FY 2029 FY 2026 - 2029 Cape Coral 11%, 11%, 11%, 5% per year for water & sewer FY 2024 - Ongoing North Port 10% per year water & sewer FY 2025 - 2028 Hernando County Water – 7%, 7%, 7%, 3.5%, 3.5% Sewer – 3.5% per year FY 2025 - 2029 Collier County (Proposed) 5.58% combined (FY27), Average 4.59% FY 2027 - 2031 As noted above, the District is ahead of the regional curve, reflecting factors such as system complexity, proactive infrastructure investment, and unique service area characteristics—no two utilities are the same. The reginal comparison does not provide the important context of operational characteristics and where each utility sits on its asset lifecycle. Page 253 of 3023 CCWSD 2026 User Fee Study 6 Even with the increases shown above, the District’s rates continue to meet established affordability benchmarks. Based on a median household income of $113,600, the average utility bill represents approximately 1.6% of household income at the proposed FY 2027 rates. This aligns with the EPA’s general affordability threshold and remains well below the 4.5% level that signals potential affordability concerns. For customers on fixed incomes who may experience affordability challenges, the District could consider targeted assistance programs to help offset fixed charges for those most in need. District Infrastructure, system scale and Value The District provides potable water, wastewater, and irrigation-quality (IQ) water services across one of the largest and fastest-growing service areas in the state. Spanning approximately 2,026 square miles, the District serves the 19th-largest permanent population in Florida. According to the Florida Legislative Office of Economic and Demographic Research, the County's population was estimated at 413,292 in 2025. In Fiscal Year 2025, the system provided service to approximately 132,000 equivalent residential connections (ERCs), with average residential water usage of approximately 5,000 gallons per month and total annual system revenues of approximately $250 million. Population growth continues to drive system demands. Collier County’s population is projected to increase from 408,381 in 2024 to more than 443,000 by 2030, with the District’s permanent service population expected to exceed 272,000 residents by 2040. This growth places increasing pressure on infrastructure capacity, reliability, and long-term reinvestment needs. The System encompasses the following major infrastructure:  Potable Water: Two regional Water Treatment Plants provide a combined capacity of 52.0 MGD — the North County Regional WTP (20 MGD) and the South County Regional WTP (32 MGD). A third facility, the Northeast County Regional WTP ("NECRWTP"), is scheduled to come online by Fiscal Year 2033, adding 10 MGD of capacity. The distribution network includes approximately 1,200 miles of water mains, pumping facilities with 45.75 MG of total storage capacity, and infrastructure designed to meet daily demand, peak demand, and fire protection requirements.  Wastewater: Four treatment facilities provide a combined capacity of 42.35 MGD: the North County Water Reclamation Facility (24.1 MGD), the South County Water Reclamation Facility (16.0 MGD), the Golden Gate Wastewater Treatment Plant (1.5 MGD, expanding to 5.0 MGD by 2027), and the Orange Tree Wastewater Treatment Plant (0.75 MGD). Additional facilities are planned, including the Northeast Interim WWTP (1.5 MGD, scheduled for late 2025) and the Northeast County Regional Water Reclamation Facility (6.0 MGD, by Fiscal Year 2031). The collection system comprises approximately 1,279 miles of gravity and force mains and 994 lift stations.  IQ Water: A reclaimed water system delivering highly treated reuse water through 140 miles of distribution mains, serving 29 bulk customers. Page 254 of 3023 CCWSD 2026 User Fee Study 7 The System represents a significant public investment—gross plant in service exceeds $1.7 billion, with an estimated replacement value exceeding $3.5 billion. Protecting that investment while accommodating continued growth and meeting evolving regulatory requirements requires sustained capital funding. The financial plan and rate recommendations presented in this Study are designed to deliver that funding through a disciplined prioritization framework that focuses ratepayer dollars on the most critical needs first. Revenue Requirements and Forecast Assumptions The revenue requirements of the System represent the total costs that must be recovered from rates and other available sources to operate, maintain, and invest in the water, wastewater, and IQ water systems. These requirements include operating expenses, debt service on existing and projected bonds, capital reinvestment funded from ongoing operations, and deposits to required reserves. Based on the financial forecast developed for the Study, existing rates are not sufficient to fund the projected revenue requirements of the System over the forecast period. The following figure illustrates the growing gap between projected revenues under existing rates and the total revenue requirements necessary to sustain operations and fund the Board-approved capital program. + Cost of Operation and Maintenance + Capital Expenditures and Debt Service + Fund Transfers Out/Covenant Compliance – Other Revenue and Income – Fund Transfers-In and Contributions = Net Revenue Requirements (Funded from Rates) Page 255 of 3023 CCWSD 2026 User Fee Study 8 Figure 1: Combined Revenue Requirement Financial Forecast Assumptions The financial forecast was developed through Fiscal Year 2031, with projections extending through Fiscal Year 2035 for long-range planning purposes. The following assumptions form the basis of the forecast and the resulting revenue requirements:  Customer Growth: The forecast recognizes expansion of District boundaries and service commitments under BOCC-approved developer agreements. Over the five-year period, the District projects a 6.8% increase in equivalent residential connections served — representing over 10,000 additional dwelling units. Average water use per customer has been declining, consistent with regional and national conservation trends.  Operating Expenses: The FY 2026 adopted budget, as approved by the Board through the annual financial planning process, serves as the baseline for operating cost projections. Expenses are adjusted annually for inflation, customer growth, changes in operations associated with new plant additions, and incremental staffing requirements. Over the forecast period, operating expenses are projected to increase at approximately 4.5% annually. Operating expenses account for approximately 66% of total revenue requirements recovered from rates.  Capital Improvement Program: The forecast incorporates the $1.54 billion capital program over six years (FY 2026–2031), consistent with the Board-approved AUIR and developer agreements. Project cost estimates reflect current construction costs adjusted for inflation over the forecast period. Annual deposits to the Capital Accounts are programmed at a minimum of 15% of prior year gross revenues, consistent with the Bond Resolution. Additional deposits above this minimum have been recognized Page 256 of 3023 CCWSD 2026 User Fee Study 9 in the forecast to reduce future borrowing needs and promote long-term rate sustainability. Capital account deposits fund approximately 46% of the total CIP.  Reserves and Debt Service Coverage: Debt service coverage is projected to remain above the 2.0x policy target and well above the 1.25x bond covenant minimum throughout the forecast period. All unrestricted reserve and operating targets are met in each year of the forecast. Capital Program Financing Funding the $1.54 billion capital program requires a balanced approach drawing on existing reserves, ongoing operations, and new debt issuance. Approximately 54% of the total capital program is anticipated to be financed through additional bonds issued in accordance with the Bond Resolution. To provide near-term financing flexibility as the capital program ramps up, the District will utilize a $300 million commercial paper program as unanimously approved by the county’s Finance Committee on February 5, 2026. This approach allows the District to deploy existing cash reserves and bond proceeds currently on deposit before committing to additional long-term debt. The commercial paper program provides the District with the ability to manage cash flow timing as projects move through design and construction, while maintaining optionality on the timing and structure of future bond issuances. The capital financing plan anticipates four additional bond issuances over the forecast period: Table 3: Additional Bond Issuances Bond Series Project Funding Target Issue Date Avg. Interest Rate Term Series 2028 $291M July 2028 5.0% 30 years Series 2029 $246M July 2029 5.0% 30 years Series 2031 $303M July 2031 5.0% 30 years Series 2034 $220M July 2034 5.0% 30 years Total $1,060M The resulting debt service profile is illustrated in the following figure, which shows the annual debt service payments on existing bonds and projected additional bonds through the maturity of the outstanding obligations. Page 257 of 3023 CCWSD 2026 User Fee Study 10 Figure 2: Projected Annual Debt Service Payments Impact Fees are used to offset the growth-related share of debt service payments, reducing the portion that must be recovered from rates. The preliminary plan of finance has been endorsed by the Financing Committee. The Financing Committee, County Financial Advisor, and Bond Counsel will finalize the debt structure at the time of issuance of each series of Additional Bonds. Even with the significant increase in debt associated with the capital program, the District's financial position remains strong. The following figure illustrates the projected all-in debt service coverage throughout the forecast period, which remains well above the 2.0x policy target established to support the District's AAA credit rating and well above the 1.25x minimum required by the Bond Resolution. Page 258 of 3023 CCWSD 2026 User Fee Study 11 Figure 3: Debt Service Coverage Maintaining 2.0 coverage is essential to preserving the District's AAA credit rating, which provides access to the most favorable borrowing terms available and directly reduces the cost of the capital program to ratepayers. A downgrade from AAA would increase borrowing costs on over $1 billion in projected bond issuances, resulting in higher debt service that would ultimately be passed through to customers in the form of higher rates. Operating Cost Drivers The operating cost projections reflect real-world cost pressures being experienced across the water and wastewater industry. The following table summarizes the primary categories driving operating cost increases from FY 2025 actuals to the FY 2026 adopted budget: Table 4: Operating and Maintenance Category Increases Cost Category $ Increase % Change Contractual Services +$8.8M +25% Materials, Supplies & Maintenance +$6.5M +24% Chemicals +$3.3M +33% Utilities (Electricity) +$2.7M +30% Salaries & Benefits +$7.5M +15% These increases are not unique to the District. Since 2021, water and wastewater treatment chemical markets have experienced significant price volatility driven by supply constraints, transportation costs, and supplier concentration. Florida utilities have faced elevated construction and maintenance costs as labor, equipment, and materials prices rose sharply following the pandemic. Ongoing labor market pressures further contribute to higher operating costs as utilities compete for a limited pool of licensed operators, engineers, and skilled technical personnel. Page 259 of 3023 CCWSD 2026 User Fee Study 12 While cost pressures are significant, the District has implemented strategies to offset rate impacts and maximize the efficiency of ratepayer dollars:  Financial Discipline: Maintaining the AAA utility bond rating to secure the lowest available interest rates on over $1 billion in projected debt issuances.  Financing Flexibility: Utilizing the $300 million commercial paper program to provide flexibility in capital spending before committing to long-term revenue bonds.  Plant Modernization: Upgrading to high-efficiency blowers (30% energy reduction), reducing chemical usage (42% reduction in sulfuric acid), and increasing reverse osmosis water recovery rates.  Technology and Asset Management: Using SCADA systems for remote troubleshooting, acoustic inspections (SL-RAT) to reduce unnecessary pipeline cleaning, and GIS-based asset management to optimize maintenance scheduling and extend asset service lives. These efforts demonstrate the District's commitment to managing costs proactively before seeking rate adjustments from customers. Construction Cost Escalation Capital project costs have increased substantially since 2020, affecting utilities locally and nationally. The following table, based on Bureau of Labor Statistics data from February 2020 through December 2025, illustrates the magnitude of these increases: Table 5: BLS Material Increases Material % Change Ready-Mix Concrete +35.5% Steel Products +66.4% Steel Pipe +44.4% PVC Pipe +48.7% Copper Wire +70.3% Aluminum Mill Shapes +71.2% Fabricated Structural Metal +59.9% Fabricated Rebar +53.5% Prefabricated Metal Buildings +45.9% Stainless Steel Pipe +35.8% Diesel Fuel +39.9% Asphalt Products +22.2% Truck Transportation of Freight +27.4% Page 260 of 3023 CCWSD 2026 User Fee Study 13 These material cost increases are embedded in the District's capital improvement program estimates and directly contribute to the revenue requirements that must be recovered through rates. Workforce Investment The forecast includes the addition of approximately 72 positions over the FY 2027–2035 period, increasing personnel costs by approximately $7.6 million by the end of the forecast period. These additions are essential to:  Execute the capital program as it ramps from approximately $100 million annually to over $300 million in FY 2028 and FY 2029, requiring additional project management capacity.  Staff new facilities including the Golden Gate WRF expansion and the Northeast Regional facilities as they come online.  Maintain the licensed operator and technical workforce required for regulatory compliance, with investment in training to reduce turnover and the associated costs of retraining and maintaining certifications. Projected Revenue Requirements The following table presents the projected revenue requirements by fiscal year for the combined System under the proposed rate plan: Table 6: Summary of Combined Revenue Requirements Projected Revenue Requirements – Combined System Fiscal Year Ending September 30, 2027 2028 2029 2030 2031 Operating Expenses $185,790,242 $195,490,077 $205,381,001 $216,155,667 $224,153,237 Net Debt Service [1] 6,749,793 15,026,733 29,778,990 38,933,957 43,289,427 Other Revenue Requirements [2] 78,533,314 81,040,019 81,248,337 76,414,755 75,665,244 Gross Revenue Requirements $271,073,349 $291,556,829 $316,408,328 $331,504,379 $343,107,908 Less Other Income [3] 14,991,831 10,581,263 9,283,598 8,647,595 9,160,127 Net Revenue Requirement $256,081,518 $280,975,567 $307,124,730 $322,856,783 $333,947,781 Rate Revenue Under Existing Rates 257,897,986 261,075,158 264,229,623 267,394,685 270,560,252 Revenue Surplus / (Deficiency) $1,816,468 ($19,900,408) ($42,895,107) ($55,462,098) ($63,387,529) Percent of Rate Revenue 0.70% -7.62% -16.23% -20.74% -23.43% Page 261 of 3023 CCWSD 2026 User Fee Study 14 Adjustment Proposed with Full-year Implementation 5.70% 5.72% 4.93% 3.70% 3.71% Additional Rate Revenue – Proposed Adjustments $14,710,309 $30,665,824 $45,585,150 $57,726,010 $70,597,202 Adjusted Revenue Surplus / (Deficiency) $16,526,777 $10,765,416 $2,690,043 $2,263,912 $7,209,673 __________ [1] Includes annual debt service less impact fees used to pay growth-related debt service. [2] Includes funding of capital accounts. [3] Includes unrestricted interest earnings and other operating revenues. Rate History The District has a well-established history of proactive rate management, with the Board consistently taking action to maintain the financial health of the System. The following summarizes the chronological sequence of rate actions and their underlying drivers: Rate Resolution Timeline and Drivers: Resolution 2018-129/2019-103 (2018-2021) o Three-year phasing program concluding in Fiscal Year 2021 o Based on comprehensive rate study recommendations o Established foundation for systematic rate adjustments Resolution 2021-187 (September 14, 2021) o Water rates: 2.9% (Fiscal Year 2022), 4.0% (Fiscal Year 2023), 4.0% (Fiscal Year 2024) o Wastewater rates: 2.9% (Fiscal Year 2022), 5.0% (Fiscal Year 2023), 5.0% (Fiscal Year 2024) o Irrigation Quality rates: 2.9% (Fiscal Year 2022), 9.0% (Fiscal Year 2023), 9.0% (Fiscal Year 2024) o Wholesale water rates: 4.9% annually for three (3) years o Driver: Raftelis consultant study for cost recovery and system improvements o Included CPI indexing provision for mid-cycle adjustments Resolution 2023-120 (June 13, 2023) o Interim 7.07% increase across all rate categories o Driver: Florida Public Service Commission annual price index calculation o Response to dramatic inflation impacting operations (electricity 15%, chemicals 10-150%, equipment 100%) o Interim measure pending completion of 2023 Rate Study Resolution 2023-227 (December 12, 2023) o Comprehensive rate structure effective January 1, 2024 o Continued rate adjustments effective October 1, 2024 and October 1, 2025 o Driver: Updated comprehensive rate study addressing long-term cost recovery needs Page 262 of 3023 CCWSD 2026 User Fee Study 15 The Board also maintains an annual price index adjustment authority under the Rate Resolution, which allows rate adjustments equal to 100% of the percentage change in the Miami-Fort Lauderdale Consumer Price Index for all urban consumers. This mechanism provides an inflationary cost recovery tool between comprehensive rate studies, and the Board exercised this authority in 2023 with the 7.07% adjustment. The District’s water rates also employ a conservation rate structure consistent with the South Florida Water Management District’s water conservation program goals, as required under the District’s water consumptive use permit. The County maintains a consistent record of proactive rate management — spanning three comprehensive studies and multiple Board actions over the past eight years — directly supports the District’s AAA credit rating and positions the System to continue meeting its financial obligations. The rate adjustments proposed in this Study represent the next phase in this ongoing program. Proposed Rate Adjustments Based on the financial forecast and revenue requirements analysis, the Study recommends rate adjustments for the water, wastewater, and IQ water systems over the five-year period beginning October 1, 2026. The first three years of adjustments (FY 2027–2029) are recommended for adoption by the Board. Rates for FY 2030 and FY 2031 are identified as planned adjustments, subject to re-evaluation as part of the District’s ongoing rate evaluation process. Adopted rates must be in effect to satisfy the requirements for issuing Additional Bonds under the Bond Resolution. The following table summarizes the recommended rate adjustments: Table 7: Proposed and Planned Rate Increases Effective Date Status Water Wastewater IQ Water Combined W/WW October 1, 2026 Proposed 4.50% 6.50% 9.50% 5.58% October 1, 2027 Proposed 4.50% 6.50% 9.50% 5.59% October 1, 2028 Proposed 4.50% 5.00% 9.50% 4.78% October 1, 2029 Planned 3.50% 3.50% 9.50% 3.50% October 1, 2030 Planned 3.50% 3.50% 9.50% 3.50% The proposed adjustments include both the annual price index adjustment authorized under the Board's existing Index Resolution and the incremental rate increases necessary to fund system-specific operational and capital requirements. The price index component, based on Congressional Budget Office inflation projections, accounts for approximately 2.2%–2.3% of the total adjustment, with the remainder addressing system-specific needs above baseline inflation. For FY 2027 through FY 2029, the proposed combined water and wastewater adjustments average approximately 5.3%, of which roughly 2.2% reflects the inflationary pass-through and approximately 3.1% represents the system-specific increment needed to fund critical capital investments and rising operating costs. By FY 2030, the total adjustment moderates to 3.5% as the system- specific increment narrows to approximately 1.3 percentage points above the price index. Page 263 of 3023 CCWSD 2026 User Fee Study 16 Proposed Rates Are Lower Than Previously Projected An important outcome of the Study is that the proposed rate adjustments for FY 2027 and FY 2028 are lower than the adjustments identified in the prior 2023 rate forecast. This reflects the District’s continued review of the capital improvement program for efficiency and cost savings since the last study was completed. Table 8: Proposed Rates Comparison Description Water FY27 Water FY28 WW FY27 WW FY28 2023 Forecast 4.5% 4.5% 7.5% 7.5% 2026 Forecast 4.5% 4.5% 6.5% 6.5% Rate Adjustment Change — — (1.0%) (1.0%) The Board was informed of the anticipated rate trajectory through the 2023 rate study and subsequent resolutions. The current recommendations demonstrate that the District has used the intervening period to refine the capital program and reduce projected rate impacts where possible, while still maintaining the investment necessary to protect system reliability and financial strength. Average Monthly Residential Bill Impact For the typical single-family residential customer using 5,000 gallons per month and receiving both water and wastewater service, the proposed rate adjustments result in the following monthly bill impacts: Table 9: Residential Bill Impact Existing FY 2027 FY 2028 FY 2029 Combined Service (Water + WW) 5.6% 5.6% 4.93% Average Monthly Bill at 5,000 Gal. $145.40 $153.75 $162.59 $170.42 Change in Monthly Bill $8.35 $8.84 $7.83 Daily Increase $0.28 $0.29 $0.26 The proposed adjustments translate to an increase of approximately $8.35 per month in the first year— roughly twenty-eight cents per day. Rate increases moderate over the forecast period, stepping down to 3.5% for both water and wastewater by FY 2030. Rate Comparisons and Affordability A common measure of the competitiveness and reasonableness of utility rates is a comparison of typical residential bills among peer utilities in the region. The following comparison reflects the combined monthly water and wastewater bill for a single-family residential customer with a 5/8-inch × 3/4-inch meter using Page 264 of 3023 CCWSD 2026 User Fee Study 17 5,000 gallons per month—which represents the average usage level and the majority of the District’s residential customer base. An important caveat applies to all utility rate comparisons: no two utility systems are the same. Differences in source water quality, treatment technology, system age, service area density, terrain, regulatory requirements, capital investment timing, and financing strategies all affect the cost of service—and therefore the rates customers pay. A direct comparison of monthly bills, while informative, does not reflect these underlying differences in the cost of producing and delivering service. The District's rate position, for example, reflects its reliance on brackish water sources requiring reverse osmosis treatment, proactive infrastructure investment with hurricane hardening and system redundancy, and a large, lower-density service area with significant seasonal population swings that requires building infrastructure for peak demand. Many of the utilities with lower current rates have not yet made comparable investments. With this context, note that the comparison presented is a snapshot in time as most utilities have approved rate increases not represented in this chart. Figure 4: Residential Bill Impact Survey At $145.40 for a typical monthly bill under existing rates, the District's combined water and wastewater rates are among the highest in the Southwest Florida region. The average bill among the surveyed utilities is $117.36. As discussed above, this difference is largely attributable to the District's treatment complexity, infrastructure investment profile, and service area characteristics rather than operational inefficiency. Regional Rate Trends The rate comparison above reflects a single point in time. Equally important is the trajectory. Collier County is not alone in implementing rate adjustments—a survey of regional utilities reveals a consistent pattern of Page 265 of 3023 CCWSD 2026 User Fee Study 18 multi-year rate increase programs driven by the same infrastructure, inflationary, and regulatory pressures facing the District. Table 10: Residential Bill Impact Survey Utility Existing FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Manatee County [1] $89.70 $94.20 $98.95 $103.86 $109.04 $114.48 Pinellas County [2] $98.41 $102.68 $107.17 $111.85 $116.70 $121.83 Hillsborough County [3] $98.12 $104.97 $112.33 $120.20 $128.60 $137.61 Sarasota County [4] $124.85 $132.47 $140.61 $149.26 $153.02 $156.87 Englewood Water Dist. [5] $101.61 $116.87 $134.44 $154.58 $177.74 $182.19 North Port [6] $153.26 $168.60 $185.44 $190.12 194.86 $199.75 Collier County $145.40 $153.73 $162.59 $170.41 $176.38 $182.53 [1] Manatee County has considered 8.75% annual increases, but has recently adopted 5.0% annual increases through FY 2030 followed by an annual price index in FY 2031. [2] Pinellas County has adopted 5.0% annual increases to water rates and 4.0% annual increases to sewer rates through FY 2032. [3] Hillsborough County has adopted annual increases of 5.0% plus a price index (assumed at 2.0%) for a total of 7.0% per year through FY 2032. [4] Sarasota County approved 6.4% annual water increases through FY 2029 and 5% annual sewer rate increases through fiscal year 2028, in addition to an annual indexing provision applied to both water and sewer rates based on the FPSC Price Index, which is based on GDP Price Index. [5] Englewood Water District has adopted 15.0% annual increases through FY 2030 followed by an annual price index in FY 2031. [6] The City of North Port has adopted 10.0% annual water and sewer rate increases through FY 2028 followed by an annual price index. Note: Assumed price indexing at 2.5%. While the District’s rates are currently higher than most peers, the gap is narrowing. Several utilities in the region are implementing annual increases of 7%–15%, compared to the District’s proposed combined increase averaging approximately 4.6% over the five-year period. Englewood Water District, for example, is projected to reach comparable rate levels by FY 2031 after implementing 15% annual increases. This convergence reflects the reality that regional utilities are now facing the same infrastructure investment requirements that Collier County has been addressing proactively. The standard measure for evaluating utility rate affordability is the ratio of the typical annual residential utility bill to the median household income (“MHI”) of the service area. The Environmental Protection Agency considers a combined annual water and wastewater bill of less than 4.5% of MHI to be affordable. A combined bill at or above 2.0% of MHI is considered to signal potential economic impact on residents. Page 266 of 3023 CCWSD 2026 User Fee Study 19 Based on the median household income of $113,600 as estimated by the Collier County Economic Development & Housing Office, the average combined water and wastewater bill proposed rates for FY2027 represents approximately 1.6% of household income. This aligns with the EPA’s general affordability threshold and remains well below the 4.5% upper threshold that signals affordability concerns. Even with the proposed rate adjustments fully implemented through FY 2031, the projected average bill is expected to remain within established affordability thresholds, reflecting the District’s approach of phasing in rate increases to moderate annual impacts on customers. Findings and Conclusions Based on the analyses conducted as part of this Study, Raftelis presents the following findings and conclusions: 1. Existing rates are not sufficient. The current rate structure does not generate revenues adequate to fund the projected operating expenses, debt service obligations, capital reinvestment requirements, and reserve targets of the System over the forecast period. 2. The proposed rate adjustments are necessary and reasonable. The recommended rate adjustments are driven by Board-approved capital investments, documented operating cost increases, and the need to maintain compliance with the rate covenant contained in the Bond Resolution. The proposed adjustments are consistent with the cost pressures being experienced by peer utilities across Florida and nationally. 3. Proposed rates are lower than previously forecasted. The wastewater rate adjustments for FY 2027 and FY 2028 are each 1.0% lower than the adjustments identified in the 2023 rate forecast, reflecting the District’s ongoing review of the capital program for efficiency and cost savings. 4. The District’s financial position supports continued access to favorable credit markets. Under the proposed rate plan, debt service coverage is projected to remain above the 2.0x policy target and well above the 1.25x bond covenant minimum throughout the forecast period. All reserve targets and financial metrics are met, supporting maintenance of the District’s AAA credit rating. 5. Revenue and customer growth projections are reasonable. The forecasted growth in customer accounts, usage, and corresponding rate revenues were developed based on current economic conditions, recent historical trends, approved developer agreements, and expansion of District boundaries. The projected implementation of rate adjustments is not expected to negatively affect customer growth or the competitiveness of the District’s rates. 6. The District’s rates remain affordable. Based on the median household income of $113,600, the average combined water and wastewater bill at FY 2027 rates represents approximately 1.6% of household income—within the EPA’s general affordability threshold and well below the 4.5% upper threshold that signals affordability concerns. Recommendations Based on these findings, Raftelis recommends that the Board of County Commissioners, acting as the Ex- Officio Governing Board of the Collier County Water-Sewer District: Page 267 of 3023 CCWSD 2026 User Fee Study 20 1. Accept the 2026 User Fee Rate Study and Raftelis’ recommendations. 2. Adopt the proposed rate adjustments for the first three fiscal years (FY 2027, FY 2028, and FY 2029) and direct the County Manager or designee to advertise a Resolution amending the applicable rate schedules of the Uniform Billing, Operating, and Regulatory Standards Ordinance No. 2001-73, as amended, with an effective date of October 1, 2026. 3. Direct staff to conduct a rate re-evaluation in 2028 to assess actual performance against forecast assumptions and refine rate adjustments for FY 2030 and beyond. 4. Initiate a comprehensive Impact Fee Study to evaluate and update the District's water and wastewater impact fees. An updated fee study ensures that existing ratepayers are not subsidizing the cost of system expansion, consistent with the principle that growth pays for growth. Page 268 of 3023 APPENDIX A: Proposed Rate Schedules Page 269 of 3023 Table ES-1 Collier County Water-Sewer District Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Water System Summary of Existing and Proposed Monthly Water User Rates Existing Monthly Rates Proposed Monthly Rates Line Effective Effective Effective Effective No. 10/1/2025 10/1/2026 10/1/2027 10/1/2028 WATER SERVICE BASE CHARGES (Residential, Multifamily, Commercial, and Irrigation-Only) Meter Size: 1 5/8" $32.84 $34.32 $35.86 $37.47 2 3/4" 32.84 34.32 35.86 37.47 3 1" 51.76 54.09 56.52 59.06 4 1-1/4" 66.74 69.74 72.88 76.16 5 1-1/2" 98.67 103.11 107.75 112.60 6 2" 155.15 162.13 169.43 177.05 7 3" 428.29 447.56 467.70 488.75 8 4" 946.04 988.61 1,033.10 1,079.59 9 6" 1,887.75 1,972.70 2,061.47 2,154.24 10 8" 3,300.07 3,448.57 3,603.76 3,765.93 11 10" 5,977.49 6,246.48 6,527.57 6,821.31 12 12" 8,861.14 9,259.89 9,676.59 10,112.04 VOLUMETRIC CHARGE PER 1,000 GALLONS [1] (Residential, Multifamily, Commercial, and Irrigation-Only) 13 Block 1 $4.44 $4.64 $4.85 $5.07 14 Block 2 6.70 7.00 7.32 7.65 15 Block 3 8.89 9.29 9.71 10.15 16 Block 4 11.11 11.61 12.13 12.68 17 Block 5 13.33 13.93 14.56 15.22 18 Block 6 17.74 18.54 19.37 20.24 19 Wholesale Water Rate Per 1,000 Gallons (All Usage) 6.63$ 6.63$ 6.63$ 6.63$ EXISTING BLOCK RATE STRUCTURE (Residential, Multifamily, Commercial, and Irrigation-Only) Consumption Block (Thousands of Gallons) Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 20 5/8" 0 - 5 6 - 10 11 - 20 21 - 30 31 - 50 Over 50 21 3/4" 0 - 5 6 - 10 11 - 20 21 - 30 31 - 50 Over 50 22 1" 0 - 8 9 - 16 17 - 32 33 - 48 49 - 80 Over 80 23 1-1/4" 0 - 11 12 - 22 23 - 44 45 - 66 67 - 110 Over 110 24 1-1/2" 0 - 17 18 - 34 35 - 68 69 - 102 103 - 170 Over 170 25 2" 0 - 27 28 - 54 55 - 108 109 - 162 163 - 270 Over 270 26 3" 0 - 75 76 - 150 151 - 300 301 - 450 451 - 750 Over 750 27 4" 0 - 167 168 - 334 335 - 668 669 - 1,002 1,003 - 1,670 Over 1,670 28 6" 0 - 333 334 - 666 667 - 1,332 1,333 - 1,998 1,999 - 3,330 Over 3,330 29 8" 0 - 583 584 - 1,166 1,167 - 2,332 2,333 - 3,498 3,499 - 5,830 Over 5,830 30 10" 0 - 1,057 1,058 - 2,114 2,115 - 4,228 4,229 - 6,342 6,343 - 10,570 Over 10,570 31 12" 0 - 1,568 1,569 - 3,136 3,137 - 6,272 6,273 - 9,408 9,409 - 15,680 Over 15,680 Footnotes: [1] All water is billed based on water consumption per block based on the size of meter in service. Page 270 of 3023 Table ES-2 Collier County Water-Sewer District Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Wastewater System Summary of Existing and Proposed Monthly Wastewater User Rates Existing Monthly Rates Proposed Monthly Rates Line Effective Effective Effective Effective No. Description 10/1/2025 10/1/2026 10/1/2027 10/1/2028 WASTEWATER SERVICE BASE CHARGES (Residential, Multifamily, and Commercial) Meter Size: 1 5/8" $53.06 $56.51 $60.18 $63.19 2 3/4" 53.06 56.51 60.18 63.19 3 1" 85.33 90.88 96.79 101.63 4 1-1/4" 110.83 118.03 125.70 131.99 5 1-1/2" 165.26 176.00 187.44 196.81 6 2" 261.55 278.55 296.66 311.49 7 3" 727.15 774.41 824.75 865.99 8 4" 1,609.75 1,714.38 1,825.81 1,917.10 9 6" 3,215.07 3,424.05 3,646.61 3,828.94 10 8" 5,622.55 5,988.02 6,377.24 6,696.10 11 10" 10,186.67 10,848.80 11,553.97 12,131.67 12 12" 15,102.30 16,083.95 17,129.41 17,985.88 VOLUMETRIC RATE PER 1,000 GALLONS (Residential, Multifamily, and Commercial) 13 All Usage [2] 7.46$ $7.94 $8.46 $8.88 Footnotes: [1] Monthly individually metered residential usage charges are capped at 15,000 gallons. Page 271 of 3023 Table ES-3 Collier County Water-Sewer District Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study IQ Water System Summary of Existing and Proposed Monthly IQ Water User Rates Existing Monthly Rates Proposed Monthly Rates Line Effective Effective Effective Effective No. Description 10/1/2025 10/1/2026 10/1/2027 10/1/2028 SERVICE BASE CHARGES Meter Size: 1 5/8" $14.06 $15.40 $16.86 $18.46 2 3/4" 14.06 15.40 16.86 18.46 3 1" 23.49 25.72 28.16 30.84 4 1-1/2" 46.83 51.28 56.15 61.48 5 2" 74.95 82.07 89.87 98.41 6 3" 210.95 230.99 252.93 276.96 7 4" 468.75 513.28 562.04 615.43 8 6" 937.67 1,026.75 1,124.29 1,231.10 9 8" 1,640.89 1,796.77 1,967.46 2,154.37 10 10" 2,974.01 3,256.54 3,565.91 3,904.67 11 12" 4,409.87 4,828.81 5,287.55 5,789.87 VOLUMETRIC CHARGE PER 1,000 GALLONS Customer Type: 12 Bulk $0.81 $0.89 $0.97 $1.06 13 Pressurized 1.08 1.18 1.29 1.41 14 Pressurized and Distributed 2.10 2.30 2.52 2.76 Page 272 of 3023 Cost Based Calculations Line No.Description Existing Proposed Meter and Cross-Connection Control Device Installation Charges: With Service Line Installation 1 3/4" Meter $1,839.00 $2,245.00 2 1" Meter 2,148.00 2,498.00 3 1-1/2" Meter 2,960.00 3,388.00 4 2" Meter 3,344.00 3,879.00 Without Service Line Installation (Drop-In or Hang) 5 3/4" Meter $778.00 $783.00 6 1" Meter 1,007.00 999.00 7 1-1/2" Meter 1,671.00 1,695.00 8 2" Meter 1,991.00 2,073.00 Meter Installation Charges: With Service Line Installation 9 3/4" Meter Actual time and material cost Actual time and material cost 10 1" Meter Actual time and material cost Actual time and material cost 11 1-1/2" Meter Actual time and material cost Actual time and material cost 12 2" Meter Actual time and material cost Actual time and material cost Without Service Line Installation (Drop-In or Hang) 13 3/4" Meter Actual time and material cost Actual time and material cost 14 1" Meter Actual time and material cost Actual time and material cost 15 1-1/2" Meter Actual time and material cost Actual time and material cost 16 2" Meter Actual time and material cost Actual time and material cost Cross-Connection Control Device Charge - Meter Already Installed: (formerly known as Backflow Device) 17 3/4" Meter Actual time and material cost Actual time and material cost 18 1" Meter Actual time and material cost Actual time and material cost 19 1-1/2" Meter Actual time and material cost Actual time and material cost 20 2" Meter Actual time and material cost Actual time and material cost Table ES-4 Collier County Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Summary of Existing and Proposed Miscellaneous Service Charges Page 273 of 3023 Cost Based Calculations Line No.Description Existing Proposed Table ES-4 Collier County Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Summary of Existing and Proposed Miscellaneous Service Charges Equipment (Per Hour Rates): 21 $47.00 $69.00 22 45.00 57.00 23 21.00 32.00 24 61.00 61.00 25 29.00 12.00 26 25.00 28.00 27 16.00 10.00 28 47.00 41.00 29 86.00 104.00 30 8.00 11.00 31 37.00 19.00 32 21.00 10.00 33 Actual Cost 9.00 34 92.00 123.00 35 27.00 29.00 36 9.00 14.00 37 21.00 21.00 38 18.00 16.00 39 10.00 11.00 40 Backhoe Boom Truck Bucket Truck Camera Truck Compactor Crew Truck (1 1/2 ton) Dewatering System Generator Large Dump Truck Mudhog Portable By-Pass Pump (Large) Portable By-Pass Pump (Small) Portable Lights Pumper Truck Rehab Electricians Truck Road Saw Track Hoe Trailer Trash Pump Vactor Truck 92.00 92.00 41 14.00 19.00 42 N/A 11.00 43 Pickup Truck Small Loader Large Loader N/A 37.00 44 Soft Dig Truck 81.00 81.00 45 Signs, Barricades and/or Traffic Board Actual Cost 25.00 46 Small Dump Truck 62.00 56.00 Labor (Per Hour Rates): 47 Inventory Specialist II $37.00 $43.00 48 Operations Support Specialist I 40.00 43.00 49 Utility Specialist I 41.00 43.00 50 Utility Specialist II 42.00 45.00 51 Equipment Operator II 49.00 51.00 52 GIS Technician I 44.00 47.00 53 Odor Control Specialist 47.00 50.00 54 Laboratory Technician 44.00 47.00 55 Operations Support Specialist II N/A 52.00 56 Pretreatment Inspector 38.00 54.00 57 Crew Leader I 47.00 50.00 58 Crew Leader II 49.00 56.00 59 Heavy Equipment Operator N/A 52.00 60 Chemist 51.00 53.00 61 Supervisor - Field I N/A 57.00 62 Supervisor - Field II 58.00 62.00 63 Environmental Specialist III 56.00 65.00 (1/2 ton) /Utility Truck Page 274 of 3023 Cost Based Calculations Line No.Description Existing Proposed Table ES-4 Collier County Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Summary of Existing and Proposed Miscellaneous Service Charges Labor (Per Hour Rates) (cont.): 64 Chief Operator N/A $63.00 65 Manager - Meter Services N/A 78.00 66 Manager - Wastewater Collections N/A 91.00 67 Manager - Distribution N/A 94.00 68 Accounting Technician I N/A 42.00 69 Accounting Technician II N/A 45.00 70 Customer Service Specialist II N/A 41.00 71 Investigator N/A 44.00 Miscellaneous Charges: 72 Administration (Per Incident)5% or $100; whichever is greater 5% or $125; whichever is greater 73 Parts Actual Invoice Cost Actual Invoice Cost 74 Sub-contractors Actual Invoice Cost Actual Invoice Cost 75 Right of Way Permits Actual Cost Actual Cost 76 Laboratory Tests (Per Test)$63.00 $89.00 77 New Accounts - Change of Ownership 23.00 31.00 78 Service Turn On or Turn Off at Owner's Request 43.00 50.00 79 Meter Re-Read (if different - charge is $0)39.00 39.00 80 Meter Data Log Analysis 53.00 52.00 Meter Test: 81 Utility Meter Testing Facility $211.00 $192.00 (more than 3% error - charge is $0) 82 Independent Meter Testing Facility 289.00 270.00 (more than 3% error - charge is $0) 83 Meter Lock and Unlock, 1st Event During Calendar Year 66.00 82.00 84 Meter Lock and Unlock, 2nd Event During Calendar Year 99.00 123.00 85 Meter Lock and Unlock, 3rd and Subsequent Events During Calendar Year 132.00 163.00 86 Meter Unlock After Normal Business Hours 74.00 74.00 87 Meter Pull 136.00 153.00 88 Meter Removal Actual time and material cost Actual time and material cost 89 Discontinuance of Service - Meter Removal Actual time and material cost Actual time and material cost 90 Illegal Connection, Unlawful Connection, and Tampering Actual time and material cost, plus consumption*, plus other applicable fees as provided for in Section 2-2044(b) of the Collier County Code of Laws and Ordinances Actual time and material cost, plus consumption*, plus other applicable fees as provided for in Section 2-2044(b) of the Collier County Code of Laws and Ordinances Page 275 of 3023 Cost Based Calculations Line No.Description Existing Proposed Table ES-4 Collier County Fiscal Year 2026 Water, Wastewater, Irrigation Quality (IQ) Water, and Wholesale Potable Water User Rate and Fee Study Summary of Existing and Proposed Miscellaneous Service Charges Miscellaneous Charges (cont.): 91 Temporary Meter Account Deposit $2,486.00 $2,625.00 92 Temporary Meter Failure to Provide Read N/A 79.00 93 Temporary Meter Out of District First Collection N/A 121.00 94 Temporary Meter Out of District Second Collection N/A 182.00 95 Temporary Meter Out of District Third Collection and Subsequent Events During Calendar Year N/A 242.00 96 Duplicate Bill Processing Fee 1.00 2.00 97 Non-Sufficient Funds (NSF) Processing Charge per Florida Statute 832.07: $0 to $50 is a $25 charge; $50.01 to $300 is a $30 charge; over $300 is $40 or 5% of check amount, whichever is greater per Florida Statute 832.07: $0 to $50 is a $25 charge; $50.01 to $300 is a $30 charge; over $300 is $40 or 5% of check amount, whichever is greater 98 Late Payment Penalty 5% of current charges 5% of current charges 99 Lien Searches/Estoppel Requests N/A $25.00 100 Removal of Landscaping to Access Utility Assets Actual time and material cost Actual time and material cost 101 New Customer Enrollment Incentive Program New customers who: 1. Register for the online customer portal, and 2. Enroll in paperless (e-bill) billing, and 3. Enroll in automatic payment (AutoPay) will receive a one-time New Account Fee Credit applied to their utility account. * Consumption charges to be based on meter size, calculated by time connected, or average consumption, or 100,000 gallons ** On an emergency basis only Page 276 of 3023 Page 277 of 3023 Page 278 of 3023 Page 279 of 3023 Page 280 of 3023 Page 281 of 3023 Page 282 of 3023 Page 283 of 3023 Page 284 of 3023 Page 285 of 3023 Page 286 of 3023