The Ocala City Council held a work session on April 29, 2025, focusing on a comprehensive water rate study aimed at adjusting utility charges and ensuring financial stability for the city's water and wastewater services. The meeting highlighted several key recommendations that could impact both residential and commercial customers.

One of the primary discussions centered on private fire protection services. The study proposed implementing minimum monthly base charges for these services, which are typically provided to commercial properties. Additionally, a new impact fee for private fire protection services for new connections to the city's utility system was recommended. This fee is projected to be approximately $5,957 per connection by the fourth year of implementation, representing a modest increase compared to neighboring utility systems.

The study also suggested a systematic increase in monthly service rates, proposing a 5% annual increase over the next four years. By the end of this period, the average residential water and wastewater bill is expected to rise by about $4.33 per month. For commercial accounts, the anticipated increase is between 6% and 6.5%. Furthermore, starting in the fifth year, the council is encouraged to consider an annual index provision based on maintenance service costs.

In addition to rate adjustments, the council discussed miscellaneous utility charges that have not been updated in recent years. The study identified several services currently provided without associated fees, such as customer-requested disconnects and reconnects, which have incurred significant costs for the utility department. To address this, new fees were proposed, including a $65 charge for regular business hour service requests and a higher fee for after-hours services.

The council's discussions underscored the importance of maintaining a strong financial position for the utility system, ensuring that revenues meet expenditure requirements and that adequate reserves are maintained. The proposed changes aim to enhance the city's ability to manage its water resources effectively while providing necessary services to the community.

As the council considers these recommendations, the implications for residents and businesses in Ocala will be closely monitored, particularly regarding the affordability and reliability of water services in the coming years.