Ocala approves utility fee updates, impact‑fee increases and multi‑year rate plan

The Ocala City Council adopted several utility-related measures after presentations by city staff and consultant Raftelis/Rupertalis (presenter Murray Hamilton). The council approved updated miscellaneous utility charges, revised water/wastewater impact fees, and a multi-year rate schedule to address operating and capital cost increases.

City Engineer Sean Lanier and consultant Murray Hamilton summarized the studies and recommendations. The miscellaneous fees package (ordinance 2025-26) updates charges for industrial wastewater testing, industrial permit fees, temporary water-service deposits (hydrant meters), meter-test fees, tampering fines, and other customer-requested services. The council adopted the ordinance after the presentations.

The council also adopted amended water/wastewater impact fees (ordinance 2025-27). The consultant explained impact fees recover costs for system capacity needed to serve new development and are phased in under Florida statute. The presentation noted a methodology-derived cost of service of about $7,052 per equivalent residential connection in year four, with a proposed adopted fee of $5,957 in that year under the phase-in schedule.

Finally, the council adopted a rate plan and schedule (resolution 2025-31) based on the financial forecast. The plan includes a 4‑year phase-in schedule (example: 5% annual adjustments for the first four years) and a commercial true-up to align commercial customers' shares of system costs. For a typical residential customer using 6,000 gallons per month, the consultant estimated a first-year monthly bill increase of about $4.33. The recommendation also included an annual indexing provision beginning fiscal year 2030 (minimum 4% per year, tied to a water/wastewater maintenance index).

Roll calls following the public hearings recorded aye votes. For the miscellaneous fees ordinance and cost-of-service presentations the roll call recorded council support; subsequent votes on the impact-fee ordinance and rate resolution were adopted by roll calls recorded in the meeting minutes.

Why it matters: The actions adjust fees to reflect current operating costs, recover specific service costs, and phase in changes to reduce sudden impacts on customers while addressing system needs and inflationary pressures.

What the council adopted: (1) Ordinance 2025-26 (miscellaneous utility charges and revised service fees), (2) Ordinance 2025-27 (amended water/wastewater impact fees with multi-year phase-in), and (3) Resolution 2025-31 (multi-year water/wastewater rates and commercial true-up). Staff and the consultant said the changes are necessary to balance the utility fund and fund capital improvements.

Next steps: Staff will implement the adopted fee schedule and rate changes per the ordinance/resolution timelines; staff indicated they will provide comprehensive fee schedules and further documentation at the next council meeting.