City of Deltona City Commission Workshop – February 16, 2026: Utility Rate Study Presentation and Discussion

The City Commission held a workshop on February 16, 2026, from 5:30 PM to 7:33 PM, focused on water, wastewater, irrigation, and reclaimed utility rates. Deputy Utility Director Jim Parrish and Finance Director John presented a rate study prepared by GovRates, along with updates on the AMI project and infrastructure needs. Three rate options were discussed, and public comments raised concerns about injection wells, water conservation, and governance. The Commission did not make a final decision but requested a future workshop dedicated solely to utility rates.

Public Comments & Testimony

• Greg Gimbert (Daytona Beach resident) urged the Commission to put the injection well proposal on a ballot for a public vote, expressing skepticism about the safety of injecting treated sewage into the aquifer. He suggested halting new development until a safe water supply is secured.
• Kathy Bryan raised concerns about pharmaceuticals and other contaminants in reclaimed water, questioning whether they accumulate in the environment. She advocated for native xeriscaping, education, and reducing reliance on St. Augustine grass.
• Tim Lodge criticized the lack of progressive water conservation efforts, noting that Deltona should become a water merchant rather than follow others. He shared personal experience with cancer potentially linked to water contamination.
• Christine Peacock asked how injected water would be prevented from traveling through porous limestone and contaminating the aquifer.
• Elbert Bryan called for a town hall with the engineers designing the injection wells, and urged the city to examine its own water usage and update land use codes to promote conservation.

Discussion Items

• AMI Project Update: Deputy Utility Director Parrish reported that the AMI meter project is in its third phase (resident portal and app), which will allow customers to view usage and set alerts. He shared positive customer feedback about proactive customer service.
• Regulatory Mandates and Infrastructure: Parrish detailed challenges from EPA, DEP, and St. Johns Water Management District, including lead service line identification (100% compliant), advanced waste treatment (AWT) at Fisher Plant, septic-to-sewer conversion, PFOS/PFAS removal, and alternative water supply projects (e.g., St. Johns River surface water treatment, aquifer storage and recovery wells). He emphasized that the utility is enterprise-funded and not supported by tax revenue.
• Rate Study Options: Finance Director presented three rate options for the next five years (through FY2030):
  • Option 1: 6% across-the-board increase (recommended by GovRates) – covers fixed charge recovery and meets all revenue requirements.
  • Option 2: 9% increase on base charges and 3% on tiered rates, achieving the same overall revenue as Option 1 but potentially discouraging conservation.
  • Option 3: ENR construction cost index plus 1% (approx. 2.6% initially) – does not provide sufficient revenue for CIP, risking non-compliance with bond covenants and regulatory requirements.
• Bulk Sales and Regional Cooperation: Commissioners discussed maximizing revenue from outside customers (e.g., Volusia County, Stone Island) through bulk rates. Commissioner Nabicht suggested acquiring Del North from the county to expand revenue, but past efforts were deemed too costly. A state bill may eliminate the 25% surcharge on outside customers, potentially reducing revenue.
• Proposal to Sell Utility: Commissioner Howington suggested exploring a sale or transfer of the water utility to the Florida Governmental Utility Authority (FGUA), citing potential debt extinguishment and reduced resident risk. Commissioner Heriot cautioned that FGUA rates are among the highest in the state and the city would still receive complaints. The Commission agreed to investigate.
• Mayor's Request for Additional Workshop: Mayor Avila noted that the Commission had not provided direction on rates and requested a separate workshop focused only on utility rates. City Manager agreed to schedule one.

Key Outcomes

• No formal vote was taken on rate options; the Commission deferred decision pending further discussion.
• The Commission directed staff to investigate the feasibility and impacts of selling the water utility to FGUA, including rate history and performance.
• Mayor Avila requested a dedicated workshop on utility rates only, to be scheduled before the October implementation date.
• Public comments raised significant opposition to injection wells and called for more transparency, conservation, and land use changes.