Oviedo delays police‑annex bond; city projects strong fiscal position for FY2025‑26

City staff told the Oviedo City Council they will delay issuing bonds for the planned police annex until the project’s expenditures fall inside the three‑year federal arbitrage period, and presented updated FY2025‑26 budget projections that leave the city with a projected general‑fund balance of about $16.5 million to $17 million.

Why it matters: delaying the bond avoids a near‑term increase in the city’s millage to cover bond debt, gives staff time to better forecast capital spending and preserves flexibility for next year’s budget when debt service for the police annex is likely to be lower.

At a work session, a city staff member summarized recent advice from bond counsel and a project consultant: “pretty much advised us not to do the bond issue this next year for the police annex,” because the spending schedule means the bonds’ three‑year arbitrage period would not begin in earnest until June or July of next year. The staff member said the city can use pledged sources — $2.2 million of general‑fund cash, ARPA interest and police impact fees — to fund the interim period before bond proceeds would be needed.

The staff presentation projected total…