Oviedo CRA approves 2025-26 budget; directs staff to plan city-fronted financing for Franklin Street extension

The Oviedo Community Redevelopment Agency board on Aug. 18 approved its fiscal year 2025-26 budget and gave staff direction to prepare a financing plan so the city can front the remaining cost of the Franklin Street extension, subject to required permits, right-of-way acquisition and competitive bidding.

The board adopted a recommended CRA budget of $1,758,918 after staff recalculated TIF revenue based on final property-appraiser values. At the same meeting staff said the Franklin Street project’s total cost is about $2,245,000, with roughly $1.4 million already allocated to signal improvements; that leaves a funding gap of about $773,040 for the CRA’s share.

Why it matters: the Franklin Street extension adds a fourth leg to an intersection signal downtown and links to other mobility projects; how the project is funded affects both the CRA’s near-term cash flow and the city’s capital plan. Board members also flagged pending state legislation that could limit future CRA projects, making the timing of borrowing or project commitments potentially important.

City staff presented three financing approaches discussed at earlier meetings: (1) use existing cash, (2) have the city borrow and the CRA reimburse the city later under an interlocal agreement, or (3) pursue external financing with the city as borrower and the CRA making payments. "We really don't need to finance this," said Mr. Cobb, a city staff member leading the presentation, adding staff's recommendation to rely on existing resources where possible. Mr. Tyndall, a city finance analyst, told the board that if borrowing were used the city would likely be the borrower and the CRA would make payments under a formal agreement.

Board members expressed support for moving forward this year rather than waiting. "I'd be in favor of starting now," said Councilman Britton. Multiple other members voiced similar support for beginning the permitting and bidding process immediately.

Staff outlined a likely schedule: roughly three months to obtain required state permits for the trail crossing and related approvals, a multi-week bid period, and about 10 to 11 months for construction once awarded. Staff also said the city still must formally acquire a right-of-way from a church under an existing developer's agreement; staff characterized that acquisition as covered by the developer's agreement and said no city purchase price was anticipated.

On the budget, Kelly (finance staff) told the board final property values were slightly lower than earlier estimates, which reduced TIF revenue and prompted a small reduction — about $15,000 — in the Franklin Street allocation. Kelly recommended adoption of the budget as presented.

The board approved the recommended FY25-26 CRA budget at the meeting. "Everything else has remained the same," Kelly said, summarizing the recommended package.

Members also discussed the longer-term status of the CRA and a potential state-law risk. Bond counsel George Smith had prepared a memorandum the board reviewed that said recent statutory language shortened certain CRA termination references and that the council could pass a resolution to extend the CRA termination date to 02/1940 if it chose. Board members noted a bill that failed last year would have prohibited new projects for CRAs without debt and warned that losing the county revenue share — identified in staff materials as roughly $779,000 — would reduce future capacity for projects.

As a next step staff were directed to draft a financing plan and an interlocal or MOU-style agreement that would document when the CRA would reimburse the city if the city fronts funds; staff were also asked to proceed with permitting, finalize the right-of-way, and return with timing and financing options at a future meeting. The board left the Sept. 15 meeting date on the calendar but said staff should confirm whether that meeting will be needed.

Votes at the meeting included approval of minutes and the consent agenda before the Franklin Street and budget items. The budget motion carried and the board set direction for staff to prepare the city-fronted financing option and related agreements; staff emphasized no funds would move until the project goes to bid and is awarded.

The board will continue reviewing project priorities and a project list to respond quickly should the legislature reintroduce restrictions on CRAs or county revenue sharing.