Orange County outlines $1.7B five-year CIP, prioritizing alternative water supplies and reclamation
Orange County Utilities, Florida · Meeting date: July 16, 2026 · Published: July 21, 2026
Facing state-mandated groundwater caps, the Central Florida utility is advancing major brackish and surface water partnerships alongside an $81 million water reclamation facility expansion, supported by 7.7% annual rate increases.
Key points
- The utility's $305.9 million FY27 capital budget includes $40 million for water reclamation and $18 million for water projects, part of a $1.7 billion five-year plan.
- To comply with rules capping traditional groundwater withdrawals at 2025 levels, the county is advancing the Cypress Lake and Taylor Creek Reservoir alternative water supply projects to secure 24 MGD of new capacity.
- An $81 million expansion at the Eastern Water Reclamation Facility (Phase 6A) will be completed next month, adding 12 million gallons of reclaimed water storage.
- The board previously approved a five-year rate plan featuring 7.7% annual increases for water and wastewater systems to sustain financial viability and fund infrastructure.
- A predictive modeling analysis saved the utility $1.4 million by statistically demonstrating the system contains no lead, copper, or galvanized pipes requiring replacement.
Full report
Orange County Utilities is advancing a $1.7 billion five-year capital improvement program (CIP) heavily focused on alternative water supplies, system resiliency, and wastewater capacity to support its rapidly growing service area.
Presenting the fiscal year 2026-2027 budget to the Board of County Commissioners on July 16, Deputy Director for Utilities Tim Armstrong outlined a $420.2 million operating budget and a $305.9 million capital budget for the upcoming fiscal year. The CIP encompasses 339 projects, driven largely by regional growth and an influx of 1.5 million weekly visitors.
A critical driver of the utility's long-term strategy is compliance with Central Florida Water Initiative regulations, which capped traditional groundwater availability at 2025 demonstrated demand levels. To secure future capacity, Orange County is partnering on two major alternative water supply projects. The Cypress Lake project, a partnership with Toho Water Authority, St. Cloud, and Polk County, will utilize treated brackish groundwater to provide the county with an additional 9 million gallons per day (MGD) of potable water. The utility has already secured the permit for this project. Concurrently, the Taylor Creek Reservoir project—a collaboration with the City of Cocoa, East Central Florida Services, OUC, Toho, and the St. Johns River Water Management District—will treat surface water to yield an additional 15 MGD.
On the wastewater side, the utility has budgeted $40 million for FY27 and $560 million over the next five years across 36 projects. A centerpiece of this effort is Phase 6A of the Eastern Water Reclamation Facility. The $81 million project, scheduled for completion next month, adds 12 million gallons of reclaimed water storage capacity, alongside a new high-service pump station and effluent pumps.
The utility is also adapting to tightening biosolids regulations that restrict land application. Armstrong noted the county has procured a five-year contract with a vendor to collect, haul, and treat biosolids into commercial-grade fertilizer, with plans to develop a long-term regional solution to drive down treatment costs.
To fund the extensive CIP and maintain its AAA bond ratings, the utility is relying on a recently approved five-year rate plan. Beginning October 1, water and wastewater customers will see a 7.7% overall system increase annually through FY31. Reclaimed water rates and capacity maintenance fees are also budgeted for a 3% increase.
In a notable operational efficiency, the utility saved $1.4 million by leveraging predictive modeling and consultants to analyze its distribution network. The analysis statistically demonstrated that the system contains no lead, copper, or galvanized pipes requiring replacement.
The county is also advancing stormwater and water quality initiatives through its Planning, Environmental and Development Services (PEDS) department. The PEDS capital improvement program includes $13.9 million for water quality projects, highlighted by $5.8 million for the Little Wekiva Storm Treatment Area. This project features a pump station and sedimentation basin designed to remove nitrates and phosphates to meet Basin Management Action Plan requirements for Wekiva Springs and Rock Springs Run.
This summary was generated by AI based on the source document and may contain errors.
Source: Board of County Commissioners, Orange County Utilities