Oakland Park previewed $52 million water and sewer capital needs; consultants recommend phased rate increases

Oakland Park commissioners on June 18 heard a preview of a water and wastewater system assessment and a draft rate plan that would fund significant capital reinvestment and operations for the city‑owned portion of water distribution and wastewater collection.

Public works director Albert Carbon introduced consultants Tim Hall of Craven & Thompson (system assessment) and Trevor McCarthy of Reftellus/Rate consultant (rate analysis). Hall summarized the engineering findings and McCarthy presented a draft finance plan: a $52 million, 10‑year capital program (about $30 million for sewer; about $22 million for water) and a recommendation for phased rate increases to fund operating and capital needs.

Why the review matters Oakland Park owns and operates much of the water distribution piping and the wastewater collection system; the city purchases potable water from the City of Fort Lauderdale and sends wastewater to Fort Lauderdale or Broward County treatment plants. That structure makes Oakland Park’s costs vulnerable to rate changes by those suppliers, consultants said, but it also leaves the city responsible for pipe upkeep, lift stations and inflow and infiltration (I&I) remediation.

Key takeaways from the consultants - Capital needs and funding approach: The consultants presented a 10‑year capital funding program of roughly $52 million (approx. $30 million sewer, $22 million water). McCarthy said the plan assumes pay‑as‑you‑go funding and no new debt in the short term; rate revenue and reserves would fund the capital program. - Suggested rate path: McCarthy summarized a recommendation of 4% annual rate revenue increases for the water system and 7.5% annual rate revenue increases for the wastewater system, phased over multiple years, with the consultant and staff proposing a rate design change in 2026 to strengthen conservation pricing and protect low‑use residential customers. McCarthy said the proposed 2026 design change would yield an average residential bill increase of roughly 4.9% in 2026; later years would apply the 4.0% and 7.5% escalation factors. - Inflow & infiltration (I&I): Tim Hall emphasized there are notable I&I flows in the wastewater system and recommended I&I remediation as a priority. McCarthy’s analysis assumed a possible 50% reduction in I&I if identified projects are implemented; that assumption translates to estimated avoided wastewater treatment costs of about $1.2 million per year at the end of the forecast period. - Miscellaneous fees: The consultants recommended updating user fees and deposits to better align cost recovery with direct beneficiaries. Examples discussed were raising the water deposit from $110 to $170, a hydrant deposit increase (to cover meter costs), and higher after‑hours charges.

Risks and external dependencies Staff and consultants repeatedly flagged the city’s exposure to supplier rate changes. Carbon and the city manager noted that Fort Lauderdale sets wholesale water and sewer charges for master‑meter customers and Broward County also affects portions of the service area; those wholesale rates would be pass‑through adjustments outside the city’s direct control. The city manager and commissioners discussed the importance of continued engagement with Fort Lauderdale and Broward County on future rate proposals.

Next steps Staff said the report is draft and a final report is expected in a few weeks; staff will return with a formal ordinance and public hearings to set new rates and adopt revised miscellaneous fees as part of the FY 2026 budget process.

Ending The assessment identified large capital needs and a funding path staff said is intended to avoid borrowing and to limit rate shock through phased increases and conservation‑oriented rate design. Commissioners asked for additional comparisons to alternative suppliers and asked staff to keep working with Fort Lauderdale and Broward County on wholesale pricing and potential off‑ramps.