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Utilities lays out $306M CIP and 5‑year rate plan as growth drives demand
Summary
Utilities proposed a $305.9 million capital program for FY27 and a 5‑year water/wastewater rate path (7.7% system increase annually) to fund infrastructure and regional water projects, while maintaining AAA bond ratings.
Deputy director Tim Armstrong presented Orange County Utilities’ FY27 operating and capital plans, describing the department as an enterprise fund supported by rates rather than general tax revenue. The proposed FY27 operating budget is about $420.2 million and the FY27 capital improvement program totals $305.9 million across 339 projects.
Armstrong highlighted several near‑term projects including Eastern Water Reclamation Facility Phase 6A (an $81 million project adding 12 million gallons of storage and pump station upgrades), a suite of transmission and treatment projects, and alternative water‑supply partnerships (Cypress Lake and Taylor Creek Reservoir) that add regional potable capacity. He said the utility is AAA‑rated by both Standard & Poor’s and Fitch.
To sustain the CIP and operations, staff outlined a five‑year rate plan previously approved by the board: a 7.7% system increase path for water and wastewater, a 3% increase for other system charges and a 4% solid‑waste tipping‑fee increase for FY27 (with automatic indexing thereafter). Armstrong said Utilities is pursuing targeted operating efficiencies, more grants and long‑term funding strategies to limit rate pressure.
