Casselberry approves utility-rate ordinance after hearing worries from residents on fixed incomes

The Casselberry City Commission on Feb. 9 approved the second reading of Ordinance 26-16-28, a package of updates to the city's water, sewer and reclaimed-water fees that staff and their consultant said are needed to fund a multi-year capital plan.

Utilities Director Tara Lamoreaux introduced the ordinance, and consultant Trevor McCarthy of Rentalis presented the utility rate study that underpins it. McCarthy said the city's capital improvement plan identifies about $111,000,000 in projects over the forecast period to replace aging water and sewer infrastructure and recommended rate adjustments to fund operations, debt service and capital needs. "For water and wastewater rates, we're recommending a 3.25% adjustment effective 04/01/2026," McCarthy said, adding the study recommends larger multi-year increases thereafter to preserve fiscal flexibility.

The study also proposes changes to reclaimed-water pricing, noting reclaimed rates would average about 6.2% in the first step and 12.1% thereafter as the city moves toward a "one-water" approach that treats reclaimed water as a resource rather than simply a low-cost disposal option. McCarthy said the plan assumes using State Revolving Fund loans when available but leaves flexibility to issue bonds if SRF funds are not accessible.

Staff noted the ordinance includes a set of housekeeping updates: replacing references to the public works department with the utilities department, updating irrigation restrictions to match St. Johns River Water Management District requirements, and revising hydrant-meter and construction-cost charges. The study showed the city's projected cash balances will remain above the city's minimum policy of 90 days of operating expenses and above staff's recommended 120 days of O&M reserves, despite planned spend-down of existing cash (about $22,500,000 at the start of FY2025).

On fees and miscellaneous charges, McCarthy said most tap and meter fees would be unchanged, some fees would be inflation-adjusted, and certain deposits would be recalculated on the FY2026 monthly rates. He and staff also flagged a fats/oil/grease (FOG) charge that the study developed: staff said they are recommending a $30 FOG fee (the study modeled it but the fee will be brought forward in a separate ordinance).

During public comment, Mark Gardner, president of the English Woods Homeowners Association, asked about annexation language and was told the changes do not automatically bring unincorporated Seminole County properties into the city. Alicia, a resident who said she lives in Maitland, urged the commission to consider residents on fixed incomes who might struggle with higher bills: "What do we tell these people when we have a homeowners association meeting tomorrow? They can't afford water," she said.

After questions and discussion, the commission moved, seconded and approved the ordinance on second reading unanimously. Staff recommended implementing the new rates and system development charges effective April 1, 2026, and continuing routine review of rates every three to five years.

Implementation steps include posting the ordinance, codification, and staff bringing any separate ordinances (such as the FOG fee) back to the commission for consideration. The ordinance's public hearing notice was advertised in the Orlando Sentinel on Jan. 29, 2026.