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Utilities roll out FY2026 budget with AMI meter plan, continued landfill work and alternative‑supply projects
Summary
Orange County Utilities proposed a self‑funded FY2026 operating budget of about $398 million, outlined a multi‑year CIP of roughly $1.5 billion, advanced plans for advanced metering, stormwater reuse projects and landfill cell work, and warned construction and energy costs are pressuring rates.
Orange County Utilities presented its FY2026 budget July 16, describing a financially self‑sustaining operating plan that reflects rising costs for electricity, contracted services and landfill projects while proposing investments in advanced metering, treatment upgrades and alternative water supply projects.
Ed Torres, Utilities director, told commissioners the total operating budget for FY2026 is about $398 million; without a large new franchise hauling contract for solid waste the year‑over‑year increase would have been less than 5 percent. The department is financially self‑supported — utilities operations are paid for by user rates and tipping fees rather than general fund property taxes.
Key takeaways - Rates and revenues: The county is in year three of a previously approved multi‑year water/wastewater rate plan that includes a 3 percent residential water increase this year and planned commercial adjustments to equalize residential/commercial rates over time. Utilities said its FY2026 budget assumes those previously approved rate steps and includes a bond plan to fund CIP needs. Solid waste tipping and the mandatory MSBU refuse rate were discussed; the Board previously approved a tentative $400 per household MSBU for residential collection tied to a new hauling contract. - AMI, cross‑metering and leak detection: Utilities said it is evaluating advanced metering infrastructure (AMI) technologies and plans phased deployment: equip new development first, then large commercial meters, then retrofit existing residential meters at the pace of meter replacements (9,000–10,000/year). AMI will provide customers near‑real‑time usage, faster leak detection and better conservation tools. - Alternative water supply & reuse: Utilities is active in multi‑jurisdictional water planning (Central Florida Water Initiative) and is pursuing alternative supplies, including projects that treat stormwater for reclaimed‑water use. Torres highlighted a pilot that will capture stormwater, treat it to reclaimed standards and either recharge or distribute up to several million gallons per day — a “triple‑benefit” project that reduces local flooding, improves water quality in receiving basins and creates reuse supply. - CIP overview & landfill: Utilities’ FY2026 CIP is about $298 million and the five‑year program approaches $1.5 billion. Large items include wastewater plant upgrades, transmission projects, septic‑to‑sewer conversions and construction of landfill Cell 11 as well as closure costs. Torres urged the board to remember that robust CIP reinvestment increases rate and borrowing needs.
Why it matters: Utilities plans large multi‑year investments to support growth and environmental goals but said inflationary pressures and energy costs increase operational demands. Torres emphasized the need to balance customer affordability with the capital required to maintain system reliability and meet regulatory obligations.
What’s next: Utilities will continue department‑level presentations and the board will consider rates and the franchise hauling contract this year. Utilities officials said they will return with additional detail on AMI deployment, alternative supply timelines and specific projects to be funded by the FY2026 CIP.
