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Orange County adopts multi-year utility rate plan after study shows rising CIP and operating costs
Summary
County and consultant presented a rate study linking rising local construction and operating costs to a recommended five-year revenue plan; commissioners voted to adopt updated water and wastewater charge schedules. Typical residential bills are projected to rise roughly $3–$5 per month depending on use.
Facing sharp increases in construction and operational costs since 2020, Orange County utilities and consultant Stantec presented a new five-year rate plan on Jan. 27 that the board adopted that day.
Staff described how electricity, maintenance, chemicals and biosolids handling costs rose substantially during and after the pandemic, and how Central Florida construction cost indices grew faster than national averages. With CIP spending projected at roughly $180–$200 million annually in recent years, consultants said net operating revenue available for capital had declined and that the utility would face heavy borrowing without revenue adjustments.
Stantec recommended a targeted five-year plan (fiscal years 2027–2031) designed to restore debt-service coverage and provide cash funding for capital needs. The consultant presented a mix of adjustments across fixed and volumetric charges; the combined plan was modeled to produce roughly a 7.7% annual revenue increase systemwide, with residential volumetric adjustments near 5% annually and larger commercial increases intended to restore parity.
Customer impact examples prepared for commissioners showed that a low-volume residential customer (4,000 gallons/month) would see a monthly increase of about $3; a typical residential customer (7,000 gallons) would see roughly a $4 monthly increase; high-volume residential accounts were modeled at a $5–$6 increase depending on use and year. Staff also outlined an expanded conservation program and customer incentives — toilet replacement vouchers, irrigation audits and smart-timer programs — intended to lower customer usage and offset bill impacts.
Commissioners discussed the balance of asking enough now to avoid repeated shortfalls versus minimizing the near-term burden on households. After public-comment and staff Q&A, the board voted unanimously to adopt the updated water and wastewater charge schedules and related adjustments to environmental surcharges and program fees; the resolutions were approved on the same day.
Next steps: Utility staff will implement the adopted rate schedule, pursue conservation outreach to eligible customers and incorporate the new revenue projections into long-term CIP and borrowing plans.
