Okaloosa County advances $128.3M water and sewer budget, targets Garniers lift stations

Okaloosa County advances $128.3M water and sewer budget, targets Garniers lift stationsThe Okaloosa County Board of County Commissioners has adopted a tentative FY 2026-2027 budget that features a 36.4% funding increase for its Water and Sewer Department, primarily fueled by bolstered reserve balances.

The proposed FY 2026-2027 Water and Sewer Department budget is set at $128,355,653.

The 36.4% year-over-year increase is primarily driven by higher reserve balances within the enterprise fund.

Major capital activities for the upcoming fiscal year will include the replacement of aging lift stations in the Garniers Service Area.

The unincorporated Municipal Services Taxing Unit (MSTU) millage rate was maintained at 0.2880 to support the public works stormwater division.

The Okaloosa County Board of County Commissioners unanimously approved its tentative Fiscal Year 2026-2027 budget on September 3, 2026, advancing a significant funding boost for municipal water and wastewater services. The county's Water and Sewer Department, led by Mike Hackett, will see its budget rise to $128,355,653. This represents a 36.4% increase over the previous year, which county documents attribute primarily to higher reserve balances within the enterprise fund. During the budget hearing, County Administrator John Hofstad highlighted the financial stability of the county's utilities, noting that the enterprise funds remain "very healthy." Capital upgrades are a central focus of the newly adopted spending plan. According to the budget summary, major FY 2027 activities will feature the replacement of aging wastewater lift stations in the Garniers Service Area. The department provides potable water and sanitary sewer service to several franchise areas throughout the county, exclusive of those served by municipal utilities. Additionally, the board approved an unincorporated Municipal Services Taxing Unit (MSTU) millage rate of 0.2880. Hofstad noted during the meeting that this separate millage rate applies to unincorporated properties to support the public works department's stormwater division, alongside parks maintenance. The $775 million countywide budget will take effect October 1, following a final adoption hearing scheduled for September 15.