Oviedo staff present balanced budget and multi‑fund capital plan; stormwater faces FEMA timing shortfall

City Manager Cobb said the administration will bring a balanced budget forward and recommended keeping the General Fund reserve near policy targets while funding capital priorities across four funds.

The presentation centered on why staff recommends a balanced budget and how several enterprise funds will be managed. “We—re bringing to you a balanced budget tonight,” City Manager Cobb told the council, noting an amended beginning General Fund balance of $20,677,000, a planned use of fund balance of roughly $3,500,000 and a projected ending balance of about $17,035,000.

Why it matters: the package affects operating capacity, vehicle replacements, water/sewer rates and stormwater operations. Cobb said the General Fund reserve remains inside the city—s internal policy and well above the Government Finance Officers Association target he cited as 16.67 percent.

Key details: staff described four funds: - General Fund: staff proposed no large structural reductions; the recommended ending fund balance is about $17.0 million and the operating millage schedule will return to council July 21 for a preliminary millage rate discussion. Cobb said the total millage being used for book preparation is 6.075 mills (operating 5.961 mills; G.O. bond 0.114 mills). - Fleet Fund: staff proposed roughly $1.2 million in vehicle replacements funded largely from charges for services and some fund balance use; the presentation included a $60,000 police drone purchase and the police chief explained procurement choices tied to national vendors. - Water & Sewer Fund: staff said the recommended rates include a 9 percent increase tied to the utility study by Willdan Financial Group, and a proposed $2.5 million bond anticipation note to smooth capital timing. Total water/sewer revenues were presented near $26.1 million with a small projected use of fund balance ($364,000). - Stormwater Fund: staff reported total revenues near $4.5 million and net operating results near $580,000, and announced establishment of a stormwater renewal-and-replacement fund to accumulate monies for maintenance and replacement over time.

Stormwater shortfall and FEMA: staff said the stormwater fund is in a temporary deficit because the city is awaiting roughly $3,200,000 in FEMA reimbursements tied to storm events (about $2.9 million for McKinnon and roughly $300,000 for Lake Riverside). The city—s position, Cobb said, is to absorb the timing gap until FEMA processes the claims; staff discussed possible interim borrowing from ARPA but did not recommend a specific move tonight.

Capital priorities and schedule: staff reviewed a list of capital items to be funded from available funds and bonds. Several council members pressed for a consolidated schedule to track dozens of stormwater and utility projects; staff said they plan to hire or expand consulting support and to provide a project schedule to council.

Smaller items and questions: council asked about the Round Lake tennis courts (staff said two north courts need full resurfacing/reasphalting because of safety cracks), park signage (replacement is in the budget but relocating the sign to the park entrance was not included), and a suggested $4,000 participation in a UF/H2O Save program (staff said the city could likely fund $8,000 up front and seek reimbursement per the program rules).

Next steps and timing: staff said the budget numbers discussed will be placed in the budget book for publication and that the council will consider a preliminary millage rate at its July 21 meeting. Staff also said more detailed project schedules and financing documents (including the BAN and future bond issuance) will return to council when required.