Setting water utility rates that incorporate the recovery of the costs associated with standard operating expenses and debt obligations is essential to ensuring the short-term and longer-term financial stability of the utility. Once these costs are covered, many publicly owned utilities make transfers to the General Fund (a practice known as “sweeping”) ostensibly to help pay for governmental services that do not generate revenue (e.g., roadway maintenance, public safety, etc.) and to help keep property taxes lower. Keeping property taxes low often means higher municipal utility rates to balance the general budget, a habitual practice that burdens utility customers with cross-subsidies and normalizes underinvestment in infrastructure.

Construction is a cornerstone of Florida's economy, contributing $97 billion (5.7 percent) to the state's GDP in 2024. However, rising material costs are presenting significant challenges to the industry, impacting everything from large-scale infrastructure projects to residential home building and affordability for Florida taxpayers. This report from Florida TaxWatch examines the national and statewide trends driving these price increases and their potential consequences.