Temple Terrace preview: 10% water/sewer rate increase on the table as city plans major water-treatment work

City staff told the council the preliminary FY27 budget contemplates a 10% water and sewer rate increase — a step recommended by consultant Stantec to generate capital cash flow for planned water-treatment plant improvements and potential financing.

Mister Baillier said the preliminary budget “contemplates that 10%,” adding that staff will flesh out outstanding technical and cost questions at an August 11 workshop. The administration noted the water-treatment-plant master plan currently shows capital needs in excess of $8 million that will be discussed in detail at the August session.

Staff described several fund-specific capital items already included in enterprise budgets: a SCADA upgrade for roughly $375,000 to modernize controls on 49 lift stations, a chlorine monitoring system transition related to a move from gaseous to liquid disinfectant (about $150,000), and a proposed retrofit of a camera truck (about $300,000 rather than buying an entirely new vehicle). The presentation also listed a GPS utility-locating unit and final phase of hydrant telemetry (I-hydrant) work.

On temporary or interim water-treatment fixes (for example, short-term filtration or softening to address PFAS), staff said those items were not included in the $8M master-plan figure and would be provided as supplemental cost estimates during the August workshop. Council member Kravitz and others requested clearer cost breakdowns and the impact to residential bills before adoption.

Staff additionally requested one new FTE in enterprise funds: a GIS specialist to support mapping of underground infrastructure and asset-management efforts, budgeted at approximately $81,295 total compensation.

Next steps: staff will return on August 11 with a detailed water/sewer workshop and recommend next steps and rate options for council direction prior to formal hearings.