Okaloosa County adopts sewer-only rate multiplier, board calls for strategic growth plan

Okaloosa County adopts sewer-only rate multiplier, board calls for strategic growth planThe 1.25 multiplier will apply to new developments where the county provides wastewater service but lacks potable water revenues, prompting commissioners to urge a formalized strategy to handle incoming mega-site demand.

The Board of County Commissioners unanimously amended the Water & Sewer Ordinance to apply a 1.25 multiplier to the base and usage charges for sewer-only customers, effective October 1, 2026.

The rate adjustment targets new developments in the Shoal River Ranch basin, an area expecting massive industrial and residential growth where a separate utility currently provides water.

Commissioners stressed the need for a board-approved strategic plan to coordinate with smaller utilities and ensure adequate fire protection and water/sewer infrastructure for thousands of vested subdivision parcels.

In separate actions, the board approved self-performing $3.13 million in water and wastewater upgrades, including the $1.8 million Santa Rosa Boulevard water main relocation.

The Okaloosa County Board of County Commissioners unanimously approved a 1.25 rate multiplier for sewer-only customers during its July 14, 2026, meeting. The amendment to the Water and Sewer Ordinance, effective October 1, 2026, is designed to offset the higher costs of providing wastewater service without the accompanying revenue from potable water sales. Okaloosa County Water & Sewer (OCWS) Director Michael Hackett explained that the multiplier is a standard industry practice. The adjustment will primarily impact new developments in the Shoal River Ranch basin, an area slated for significant economic expansion, including an anticipated $1 billion capital investment. The multiplier will not apply to locations where sewer laterals were installed prior to 2026. The rate change sparked a broader discussion among commissioners about the utility's readiness to handle explosive growth in the county's eastern corridor. With thousands of older, platted subdivision parcels in the area, commissioners voiced concerns that smaller neighboring utilities lack the capital and infrastructure to meet modern fire protection and water demands. The board urged OCWS to formalize a strategic plan to coordinate with—or potentially absorb—smaller systems. Hackett noted that the utility has been planning internally and collaborating with entities like the Auburn Water System and the City of Crestview, acknowledging that the county may eventually need to take a "big brother role" as regional wastewater treatment and disposal costs escalate beyond the financial capabilities of smaller municipalities. In separate utility business, the board authorized OCWS to self-perform several capital projects to expedite construction using in-house staff and equipment. These include the $1.8 million Santa Rosa Boulevard water main relocation, the $880,000 West Sunset Lift Station replacement, and the $450,000 Mariners Lane and Neptune Drive water main upgrades. The board also approved a $250,000 grant agreement with the Florida Department of Environmental Protection, matched by $250,000 in surtax funds, for the Gap Creek Channel Inventory and Planning Study to address stormwater flooding and identify conveyance improvements.