Ocoee wins $2.2 million in water grants as county moves to raise wholesale reclaimed rates

The City of Ocoee announced this week that it has received $2,200,000 in grant awards to support reclaimed-water infrastructure and septic-to-sewer connections, while city staff warned that Orange County intends to reclassify the city's reclaimed-water account and raise wholesale rates starting Oct. 1.

The grant package includes a $1,500,000 alternative-water-supply cost-share (50%) that will fund a reclaimed-water main to connect to a new reservoir tank, and a roughly $700,000 Florida Department of Environmental Protection grant to help customers pay for sewer connection work from the cleanout to the home and for septic abandonment and yard restoration, Utilities Director Jen Bowling said.

Those awards arrived as county staff told Ocoee utilities that Orange County will move the city from an "interruptible without storage" customer class to a higher-priority classification that, according to city staff, requires a groundwater backup supply to qualify for reduced wholesale rates. "The county has indicated that we must have a backup supply to reclaim to be able to qualify for a lower rate," Bowling said.

Why it matters: Ocoee buys wholesale reclaimed water from Orange County and resells it to irrigation customers. City staff said the change could raise Ocoee's wholesale price from about $0.60 per thousand gallons to $1.58 per thousand gallons on Oct. 1 if the county's new terms take effect and the city cannot meet the county's backup-supply requirement.

Details and next steps - Grant breakdown: City staff described the awards as a $1.5 million alternative-water-supply grant (50% cost share) for a reclaimed-water main to the new tank and a roughly $700,000 DEP grant to assist customer sewer connections; the combined total is $2,200,000. "That grant is for a $1,500,000 cost share match, 50%, and we're gonna put that money towards the reclaimed water main that we are constructing to bring the interconnect down to the new tank," Bowling said. "The second one's about $700,000." - County reclassification and timeline: City staff said county notices in November asked Ocoee to design and construct backup facilities by Oct. 1, a schedule staff described as infeasible. "November of 2024 to October first of 2025 is not enough time to come up with cost-effective projects, let alone to design and to construct them," Bowling said. City staff have started a rate study and feasibility work on alternatives. - Backup supply requirement and conservation concerns: Staff told the commission Orange County has said the required backup must be groundwater rather than other reclaimed supplies. The city has explored using surplus reclaimed supply from neighboring Winter Garden but said county staff rejected that option. "They are dictating that we would have to do backup with groundwater," Bowling said, adding that requirement "goes against our sustainability policy." City staff said they have discussed the matter with St. John's River Water Management District and are evaluating options. - Customer impact and mitigation: City managers said the city intends to minimize the impact to residents and may absorb some costs while pursuing longer-term projects that could eventually reduce rates. "We will make every effort to try to minimize any rate increase," the city manager said. Staff also noted that customers not on the reclaimed system would not be affected by reclaimed-rate changes.

What the grants do not cover - The DEP grant does not cover sewer connection capital fees for customers; it covers most of the construction cost from the cleanout to the house and yard restoration, Bowling said. Staff said they will return to the commission with the grant agreements for formal approval.

Public information and timing - City staff said they have initiated feasibility studies and a rate study and will provide regular updates to the commission and the community. The county's proposed Oct. 1 rate change and the question of acceptable backup supplies remain central issues.

Speakers quoted in this article are identified from the meeting record.

Ending: The commission requested periodic updates and asked staff to pursue options that reduce financial impact to customers while protecting the city's conservation goals.