Apopka pushes through 6% water rate hike to back $230m capital plan and FDEP compliance

Apopka pushes through 6% water rate hike to back $230m capital plan and FDEP complianceThe Florida municipality is utilizing $36 million in State Revolving Fund loans—including $19 million in full principal forgiveness—to soften rate impacts while advancing critical wastewater pond repairs under a state mandate.

City commissioners unanimously approved a 6% rate increase for water, wastewater, and reclaimed water services for FY2027.

The rate hike supports an expanded $230 million multi-year capital improvement program, driven by inflation, system expansion, and debt service.

Apopka is racing to meet FDEP consent order deadlines for the Golden Gem Pond facility, with pump station construction starting in September.

The city successfully secured two SRF loans totaling $36 million, significantly reducing the originally projected double-digit rate increases.

The city is advancing two 30-inch pipeline extension projects to address water pressure bottlenecks in its northern service area.

The Apopka City Commission unanimously approved a 6% rate increase for water, wastewater, and reclaimed water services on September 2, as the city tackles a ballooning $230 million capital improvement program (CIP) and state-mandated wastewater repairs. The FY2027 rate adjustment is part of a multi-year financial plan developed by financial consultant Raftelis. Shawn Ocasio, representing Raftelis, noted the city's CIP grew from an initial $188 million to approximately $230 million following subsequent updates. The rate increase is designed to cover rising operating expenses, fund eight additional full-time equivalent positions, and support the debt service required for long-lived infrastructure assets. Originally, the consultant projected a 15.5% hike for 2026 and 9% for 2027. However, Finance Director Blanche Sherman explained that securing major State Revolving Fund (SRF) loans allowed the city to ease the burden on ratepayers. The city secured a $19 million loan that is 100% forgiven and a $17 million loan with 50% principal forgiveness, which allowed the city to reduce the initial rate shock and smooth out the increases to 10% in 2026 and 6% for 2027. The capital influx is critical for regulatory compliance. Apopka is operating under an April 2026 Florida Department of Environmental Protection (FDEP) consent order requiring major repairs at the Golden Gem Pond facility. Public Works Director Vladimir Simonovski reported that the city has 365 days to complete pond repairs and 720 days for pump station installation. Pump station construction is set to begin on September 8. While the smaller West Pond is nearing 100% design for mitigation, the city anticipates filing an administrative request with FDEP for a time extension on the larger East Pond. Beyond wastewater compliance, the city is addressing severe water pressure bottlenecks in its northern section. Simonovski detailed plans for two 30-inch pipeline extensions to improve transmission. One project will connect Rogers Road to Jason Dwelley Road in coordination with a local developer, while a second $5.7 million 30-inch extension is planned for Plymouth-Sorrento Road. The city recently submitted an application to the FDEP seeking a 50% reimbursable grant for the latter project. Separately, the commission ratified a $54,854 emergency purchase with Cornerstone H20, LLC for liner repairs at the North Shore Slow Sand Filter Pond, bringing the total repair project cost to $93,877 after additional damaged sections were discovered during initial inspections.