Casselberry approves first reading of utility rates ordinance after consultant recommends phased increases

Casselberry City Commissioners on Jan. 12 approved the first reading of Ordinance 26‑1628, which updates monthly water, wastewater and reclaimed water rates, system development charges and miscellaneous utility fees. City consultants from Raftelis told the commission the changes are needed to pay for renewal and replacement of aging infrastructure and projected capital costs.

Trevor McCarthy, a Raftelis manager who presented the rate study, said the city’s forecast covers fiscal 2025–2030 and accounts for customer growth, operating expenses, capital projects and debt service. He said most of the pressure on rates comes from capital needs, including pipeline and wastewater plant work, and projected about $64 million in loans through 2030. McCarthy summarized the planned schedule as a uniform 3.25% adjustment effective April 1, 2026, with additional annual increases each Oct. 1 (averaging about 7.25% on later Octobers) to meet revenue requirements and preserve recommended cash reserves.

McCarthy told the commission that the average Casselberry residential customer uses roughly 5,000 gallons monthly and that the study’s recommended adjustments would raise the typical combined water and wastewater bill by roughly $5.70 to $7 a month for the forecast period. The consultants also proposed shifting reclaimed‑water pricing toward a resource model (phasing reclaimed rates to 65% of potable irrigation rates by 2030), a net increase in the wastewater system development charge (from $2,633 to $2,896), and several fee changes including increasing a hydrant meter deposit from $1,420 to $4,000 and establishing a $30 monthly fats‑oils‑grease (FOG) charge to replace a $100 biannual permit.

City staff and Raftelis emphasized that more than 60% of the projected revenue need is capital‑related. McCarthy said that the forecast assumes use of state revolving fund (SRF) loans when available but provides flexibility to issue bonds or other debt if SRF funding is not accessible.

During public comment, multiple residents said increasing rates will strain households. Felicia Burbrake, a longtime area resident, asked directly, "Do we need to buy sewer line insurance?"—a question that prompted staff to clarify that sewer laterals and private lines on a homeowner’s property are the homeowner’s responsibility; the city said it evaluates claims and would be responsible where city work causes damage. Other commenters asked why reclaimed water was not available in some neighborhoods, urged clearer billing line‑items so customers can see rates, and asked the commission to consider protections for seniors and residents on fixed incomes.

Commissioners said they understood the public's affordability concerns but noted that the city has deferred increases in the past and is now planning phased adjustments to preserve system reliability and avoid sudden large financings. After discussion the commission voted to approve the ordinance on first reading by voice vote; the motion passed unanimously.

What happens next: Ordinance 26‑1628 was approved on first reading; the ordinance sets effective dates for proposed changes (first adjustments effective April 1, 2026, with additional Oct. 1 adjustments) and will follow the city's subsequent ordinance process for final adoption and implementation. Staff also advised residents to speak with the utility department about parcel‑specific questions such as reclaimed water availability and billing details.