Ocala City Council outlines $116M five-year capital improvement plan for water systems

Ocala's City Council is taking significant steps to ensure the sustainability and efficiency of its water and wastewater systems, as discussed in a recent work session focused on a comprehensive water rate study. The council is committed to maintaining a balanced budget while addressing the growing needs of the community.

During the meeting, city officials outlined a five-year financial plan that anticipates annual expenditures will exceed revenues, necessitating strategic investments and staffing adjustments. To maintain service levels and accommodate new customers, the city plans to phase in several new employee positions over this period.

A key highlight of the plan is the construction of Water Treatment Plant Number 2, which is projected to cost nearly $50 million. This facility is expected to be operational midway through the five-year timeline, leading to increased operational expenses. The overall capital improvement program will require approximately $116 million in investments, with major projects like the new water treatment plant and master plan improvements making up 60% of the total needs.

To finance these initiatives, city staff are considering long-term debt options, including the State Revolving Fund loan program, which offers low-interest rates and flexible repayment terms. This approach allows the city to manage costs effectively while planning for future rate adjustments.

Additionally, the council discussed wastewater system improvements, including the design of Wastewater Reclamation Facility Number 3, with an average annual cost of $2 million for the first three years of the study period. To mitigate sudden increases in service rates, the city is exploring the possibility of utilizing discretionary reserve funds and participating in the wastewater SRF loan program.

As Ocala moves forward with these critical infrastructure projects, the city aims to ensure that its water and wastewater systems can meet the demands of a growing population while maintaining fiscal responsibility. The council's proactive planning reflects a commitment to the long-term health and sustainability of the community's essential services.