Utility Rate Increase Information


The City Council is expected to hear Resolution No. 4174-22, Utility Rates, Service Charges and Fee Schedules, at its Tuesday, January 18 City Council meeting. The meeting begins at 6:30 p.m. at City Hall, located at 400 Alexandria Blvd. in Oviedo.

Notice of the proposed increase and January 18 meeting was included in your most recent utility statement. 

Rising Costs
Costs of providing water and sewer utilities have increased over the last fiscal year. Resolution No. 4174-22 would help generate revenue to offset those rising costs. 

  • Projected chemical increases for the Fiscal Year 2021-22 budget are approximately $148,400. 
  • In addition, due to the ongoing labor shortage and increased competition within the job market, it is anticipated that the City will need to move to the mandated $15 per hour minimum wage much sooner than planned. 

Included in the Amendment
Each year, the City’s Water and Sewer utility rates are automatically adjusted according to the Consumer Price Index for All Urban Customers (CPI-U). The automatic annual increase has a minimum floor of 3 percent and a maximum increase of percent. Should the increase be greater than five percent, City Council approval is required. 

Through the Adopted Budget, City Council previously approved the minimum 3 percent increase totaling $459,323 effective October 1, 2021. However, that increase has not been implemented due to the CPI-U increase being 5.3 percent, .3 percent above the cap and requiring the City Council’s approval - generating the need for this Amendment to include the total 5.3 percent increase and a measure to allow for a more streamlined process in the future. 

To develop the utility rate, The City worked with Willdan Financial Services, a financial consultant, to determine if revenues were adequate to support the City’s utilities over a ten-year forecast period such that all the required operating expenses, debt service, capital expenses, and transfers could be funded by reserves and revenues of the utility system. The 5.3 percent increase is expected to generate $540,980 in revenue for the remainder of the year, helping alleviate the impact of the projected increased costs.

The Amendment also includes a measure that would align the timing of rate calculations that will allow staff to facilitate discussions with Council ahead of its budget process.

If the proposed 5.3 percent increase is approved, the new utility rates will become effective February 1, 2022. 

For more information, review the associated materials in the January 18 packet online. To watch Council discuss this topic, view the January 10 Work Session video. To review associated materials from that meeting, the January 10 Work Session packet is available online

Please see the below section "Resources for Residents" to learn more on how you may participate in your local government.


  • Watch the January 10 Work Session via the City's YouTube channel. The meeting begins at the 15:00 mark. Watch all live or recorded City public meetings on the City's YouTube channel.
  • Read related materials in the January 10 Work Session Agenda and Packet. All City public meeting materials are housed on the PrimeGov website.
  • Subscribe to the Calendar "City Public Meetings," where you can select to receive text and/or email alerts for City Public Meetings. 
  • Attend future City Council meetings and provide public comment. View the City calendar for more information.
  • Correspond with your elected officials. The City of Oviedo has an at-large form of council government. All members of the City Council represent all residents. Click on each elected official to read their bio and view contact information.