Ocala Water and Sewer Rates Rose Oct. 1: What the 5% Increase Means for Your Bill

Water and sewer bills for City of Ocala utility customers went up on Oct. 1, 2026. Rates rose 5.0% for residential customers and 6.0 to 6.5% for commercial customers, according to a notice on the city's Water Resources Department page.

For the average residential customer using 6,000 gallons a month, the city estimates the change adds about $4.53 a month. Commercial costs vary with usage and account type, the city says.

AI-generated illustration. Not a photo of a City of Ocala customer's home.

Why Rates Went Up

The increase is not a new decision. It is the second step of a multi-year rate plan that Ocala City Council approved on June 17, 2025.

That night, council adopted Resolution 2025-31, which set new water, sewer and reclaimed water rate schedules, according to the meeting minutes. The vote was 4-0, with Council Member Barry Mansfield absent.

The minutes summarize the case made by Murray Hamilton of Raftelis, the consulting firm city staff engaged on Jan. 16, 2024, to do a new rate study:

• Rising costs. The utility system has been hit hard by inflation in operating expenses and by capital needs.


• Four years of 5% steps. The plan sets rates through Fiscal Year 2029 with 5% annual adjustments. Hamilton also asked council to approve a yearly index increase of no less than 4% starting in Fiscal Year 2030.


• A commercial "true-up." Commercial customers were paying 17% less than the system average, so the plan raises their share over five years. That is why the commercial increase is higher than the residential one.

The first step took effect Oct. 1, 2025. The Oct. 1, 2026, step is the second. Under the rate table, the next increases are scheduled for October 2027 and October 2028 (5% each), then 4% in October 2029.

The New Rates

The full schedule is in Table 1 of the rate study, which is attached to Resolution 2025-31 in the city's June 17, 2025, meeting record. For a typical home inside city limits with a standard 5/8-inch meter, the main monthly charges changed like this on Oct. 1:

• Water base charge: $15.29 to $16.05


• Sewer base charge: $37.09 to $38.94


• Water use, lowest tier: $1.19 to $1.25 per 100 cubic feet (one hundred cubic feet is about 748 gallons)


• Sewer use: $3.60 to $3.78 per 100 cubic feet, for metered water use up to 13 units per home


• Flat-rate sewer: $62.50 to $65.63

Higher water-use tiers rose by about the same 5%. The highest tier went from $12.04 to $12.64 per 100 cubic feet. Reclaimed water rates also went up. The retail base charge rose from $7.65 to $8.03.

The table covers customers inside city limits. A footnote says customers outside city limits pay an extra 25% surcharge.

Who Is Affected

The increase applies to customers of the City of Ocala's water and sewer utility. Marion County Utilities is a separate utility that publishes its own rate schedule, and the city's rate change does not apply to its customers. The quickest way to tell which utility serves you is to look at who sends your water bill.

People moving to Ocala should check this before setting up service. Utility costs are part of the cost of living in Ocala, and they differ by provider.

Lawn Watering Is Still Limited to One Day a Week

The same city page carries a second notice. Because of the ongoing drought, the city says, the St. Johns River Water Management District has issued a Phase III Extreme Water Shortage advisory for most of Marion County, including the City of Ocala.

The district's executive director signed the Phase III order on May 11, 2026. It covers Marion and 10 other counties. The order says that, as of May 6, every county it covers was in extreme drought on the U.S. Drought Monitor, the widest extreme-drought coverage in Florida since the monitor began in 2000. As of Oct. 11, the district's watering restrictions page still lists the Phase III rules for Marion County.

Under the rules posted on the city's irrigation schedule page:

• Odd-numbered address or no address: Saturday only


• Even-numbered address: Sunday only


• Non-residential property: Tuesday only


• Never between 8 a.m. and 6 p.m.


• Limits: no more than three-quarters of an inch of water per zone, and no more than one hour per zone, on your watering day

Some watering is exempt from the one-day limit. That includes hand-watering with a hose that has an automatic shutoff nozzle, drip and other micro-irrigation, reclaimed water, and new plants under a shortened 60-day establishment schedule. The city says all of Marion County follows the St. Johns rules except The Villages and the City of Dunnellon, which follow Southwest Florida Water Management District rules. The St. Johns district's watering restrictions page lists its irrigation hotline as 386-329-4545.

For background on the drought and the pressure on the aquifer, see our report on where Ocala's water comes from. Tips for keeping a yard alive on one day a week are in our Ocala lawn care guide.

Contact

City of Ocala Water Resources is at 1805 NE 30th Ave., Building 600, and can be reached at 352-351-6772. To report a leak, call 352-351-6775. For more on city and county offices, see our Ocala and Marion County government guide.

Sources: City of Ocala Water Resources page and irrigation schedule page; City of Ocala City Council minutes, June 17, 2025 (Resolution 2025-31); Raftelis rate study Table 1, "Existing and Proposed Water and Wastewater Rates - Inside City Limits," attached to Resolution 2025-31; St. Johns River Water Management District Phase III Water Shortage Order (May 11, 2026) and watering restrictions page. Checked Oct. 11, 2026.