Though no formal vote took place, the Apopka City Council agreed at a Sept. 9 special meeting to increase the water, wastewater, and reclaimed services rates by the proposed 15.5% in 2026. The increase will be followed by 9% in 2027 and 6% annually in 2028 and 2029.
As requested last week, the City Council evaluated two additional scenarios during the special meeting.
Commissioner Alexander H. Smith gave the scenario that the City Council agreed on at the special meeting. Commissioner Nick Nesta’s proposed the following alternative scenario: FY26, 9%; FY27, 9%; FY28, 9%; and FY29, 9%.
Both scenarios adjust the capital improvement project to make them work, with updated 2026 budget information increasing operating costs by $2.5 million, according to Shawn Ocasio, senior manager for Raftelis Financial Consultants. Raftelis conducted the utility rate study and recommended rate increases for fiscal year 2026.
“That being said, we also had additional information about $2.5 million of additional grant funding that wasn’t built into the plan previously that we just got information on, so we netted that against the capital projects,” Ocasio said. “And then we also made adjustments of about $8.7 million to pay-as-you-go capital or rate-funded ongoing capital related projects.”
Last week, on Sept. 3, the council voted 5-0 to table adopting Raftelis’ recommended 15.5% increases on water, wastewater and reclaim services.
However, at the same meeting, the City Council voted 4-1 to increase the sanitation rate by 15% for the same year, effective Oct. 1. Commissioner Nadia Anderson was the lone opposing vote. The proposed rate adjustments include a 15% increase for residential and a 25% increase for commercial.
At the Sept. 3 meeting, Ocasio presented his firm’s study recommending that, after the 15.5% rate increase for 2026, the same amount should apply for 2027, followed by 3.5% increases in 2028 and 2029.
The rate increases were recommended because the city’s current water rates are not sufficient to cover rising operating costs, major capital improvement projects, and increased debt service from planned borrowing, Ocasio said. Additionally, the city needs to maintain required cash reserves and meet debt coverage ratios to ensure financial stability and qualify for future financing.
Ocasio and Henry Thomas, Raftelis senior vice president, presented the utility rate and impact fee study at three meetings this summer, most recently on Sept. 3.
In September 2024, the City Council adopted a 23.75% increase for water, wastewater, and sewer rates for fiscal year 2025-26.
Public comments on Sept. 3 highlighted concerns about the proposed rate increases, including affordability and whether developers are sharing costs in the city growth.
The city’s tentative main utility operating fund – called the 401 budget – includes $9.8 million in capital improvements, and the tentative impact fee fund – called the 403 budget – has $26.3 million, according to Radley Williams, interim city administrator.
Mayor Bryan Nelson said within the 401 budget, $3.7 million has been allocated for a lift station, numbered 17, which was over 50 years old and therefore had been replaced. That money came from the operating fund. He pointed to another lift station, called the master lift station, that cost $2.5 million. This was funded by new residents who paid the impact fee.
Many projects will require funding from both the 401 and 403 funds, according to Nelson.
“I just want to highlight that, just because I think sometimes we get lost in the big numbers and more drill down as to how that how we come up with that number,” Nelson said.
The City Council will vote on the final budget for fiscal year 2026 on Sept. 17.