Council adopts 10-year stormwater project list; consultants propose phased rate increases

The City of Orange City council on Monday adopted a 10-year stormwater capital projects list and received a presentation from consultants who recommended phased stormwater-rate increases to fund the plan.

The council approved Resolution 374-25, which establishes the 10-year stormwater project list that staff and engineers prioritized during a recent stormwater workshop. Council action authorizes staff to move to the next step: finalizing a non-ad valorem (assessment) rate study and a proposed rate ordinance for future council consideration.

Why it matters: City staff and the consultant said the stormwater fund’s current revenues will not cover projected operating costs, capital needs and existing debt while preserving required reserve levels. The plan aims to finance nearly $9.9 million in stormwater projects over the 10-year horizon, address recurring flooding, and add staff to perform maintenance and project work.

Details of the plan and projections: Bilal, Public Services Director, summarized the adopted project list and told the council it reflected comments gathered in the stormwater work session and a prior engineer presentation by Pegasus Engineering. The consultant team from Raftelis — introduced by Sean Ocasio, senior manager — said the analysis used the city’s 2025 adopted and 2026 proposed budgets, billing records and the capital improvement program.

Raftelis’ recommendations include: - Fund a $9.9 million capital program (escalated in the plan at roughly 5% annually) that highlights four large projects: Industrial Drive drainage/utility/roadway improvements (about $3.3 million), Silverstone Court (about $1.4 million), North Thorpe Avenue and South Park Avenue (each just under $1 million). - Add up to five full‑time equivalent (FTE) stormwater staff in 2026–2027 to support operations and maintenance. - Use a combination of grants, existing SRF loan proceeds, a proposed additional SRF loan, available cash reserves and rate revenue to pay project costs.

On rates: Raftelis modeled a 5‑year rate path (2026–2030). The current annual assessment per Equivalent Billing Unit (EBU) is $17.06. The consultant proposed raising the EBU charge to $23 in 2026, then to about $27 by 2027 and modest additional increases later in the forecast. Raftelis estimated the average residential parcel (about 4 EBUs) would see an annual bill move from roughly $68.24 at today’s rates to about $92 in 2026 and increasing over the five‑year window.

The presentation noted that even with proposed rate increases there is a near‑term dip in fund balance in 2025–2026 that would be covered with cash on hand; balances are projected to recover by 2028 as rate revenue ramps up and debt is managed. Raftelis also flagged the need to monitor project costs and recommended revisiting the study within three to five years.

Reaction and next steps: Mayor Kelly Marks and multiple council members thanked staff and Raftelis for the analysis. Council members said they did not relish raising rates but accepted the projections as realistic given infrastructure needs and recent storm frequency. The consultant, Sean Ocasio, summarized the conclusion: “The revenues of the system are projected to be insufficient to cover the projected operating costs and revenue requirements of the system during the forecast period we’re evaluating,” and recommended the council proceed to a final rate study for adoption.

The council instructed staff to return with a final rate study and proposed non‑ad valorem assessment ordinance at a later meeting; no rate ordinance was adopted on Monday.