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Rising utility costs drive water, WRF and RO plant investments in Oldsmar's budget
Summary
Staff flagged large increases in utility input costs—property insurance up ~82.1%, carbon dioxide for the RO plant up 177.8%, sludge hauling up ~80%—and proposed resiliency investments and equipment to maintain service continuity.
City staff told the council that utility operations face sharply higher input costs that influence rate and budget choices. City Manager Donnelly and utility directors pointed to an 82.1% increase in property insurance since FY2022, a 177.8% jump in carbon dioxide costs needed for reverse osmosis treatment, and nearly an 80% increase in biosolids hauling.
To manage those pressures, the proposed FY27 utility budgets include resiliency and redundancy projects: $1.8 million for WRF resiliency improvements, $600,000 to improve the RO plant carbon dioxide system, $220,000 for blending disinfection improvements, and investments in asset management software and meter replacement. Staff also noted a planned transfer from water/sewer impact fees to the operating fund for capacity projects and said they will continue pursuing grants where possible.
