OCALA, FL (352today.com) – As part of a broader update to the city’s utility rate structure, Ocala residents and businesses can expect gradual increases to their water and sewer bills over the next several years.
The Ocala City Council voted unanimously on June 17 to adopt new water, wastewater, and reclaimed water rate schedules, as well as updated service and connection fees. The approved plan stems from a financial forecast developed by the city’s water resources department and Raftelis Financial Consultants, Inc.
“The city’s utility system has been significantly impacted by a rate of inflation, not only on the operating expenses, but also the capital requirements,” said Sean Lanier, City of Ocala engineer and water resources director. He noted that ongoing capital needs have been funded from reserves — a practice the city found unsustainable.
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Raftelis project manager Murray Hamilton said a cost and service analysis revealed that commercial customers are not currently paying their full share of system costs.
“If you might recall from the cost analysis, they’re paying approximately 17% less than the system average,” said Hamilton. “That relationship didn’t come out of alignment overnight, and we’re not suggesting that we’re trying to correct it overnight either. We have a five-year implementation schedule to correct that cost of service over time.”
The plan includes a phased approach for residential and commercial customers. For a typical residential user consuming 6,000 gallons per month, the bill will increase by $4.33 starting in fiscal year 2026 — from $86.46 to $90.79.
For commercial customers, the average increase is expected to fall between 6% and 6.5% annually over the first four years. Each year will include an 11-cent usage rate increase per 1,000 gallons of water metered.
The council also approved a proposal to begin indexing future rates starting in fiscal year 2030, tied to the water and sewer maintenance service index. This adjustment would not fall below 4%, which Hamilton said reflects the 10-year average in that index.
These rate adjustments follow previously approved changes to service-based fees, including connection charges and new fees for customer-requested visits.