City Council approves payment toward South Avenue extension; members debate utility and reimbursement options

The Zephyrhills City Council on Feb. 24 approved a motion to supply city funds toward the South Avenue extension project that will provide access to the former National Guard site and open utility service to nearby industrial parcels.

What the council approved: Council discussed a request to pay roughly $935,600 from transportation impact fees toward the local portion of a multi‑million-dollar project. Council members said the Florida Department of Transportation is funding about $1.9 million of the construction through a state appropriation; the full project cost increased since the appropriation was requested and the city faces a local share for utility extensions and right-of-way expenses.

Why it matters: The extension includes road construction plus water and sewer lines to serve properties north of the Armory. Council members said the utility work will enable future industrial development but also removes some property from the tax roll because the National Guard parcel had been non-taxable while it was a government facility.

Discussion highlights: Councilman Matthew Maggard and others asked whether the city can pursue additional state reimbursement or require future developers who connect to the new utilities to reimburse the city. City staff said some funding already went to design and right-of-way—about $500,000 was spent earlier (roughly $105,000 on design and about $400,000 for right-of-way)—and that contingency and inflation drove the increased construction cost. Staff said the utilities portion of the work is the bulk of the city’s remaining share, and that options include value engineering, using contingency, and exploring utility‑fund participation.

Vote and outcome: After discussion, Councilman William Poe moved approval; the motion was seconded and passed with a recorded vote of 3–1. One council member opposed. Council instructed staff to pursue possible reimbursements, look for value‑engineering opportunities and evaluate whether future developments tying to the extension could contribute to the cost.

Next steps: Staff will seek an extension from DOT for the contract timeline, pursue potential reimbursement discussions with state legislators, and explore funding alternatives from utility or development fees. Council asked staff to return with details on possible developer reimbursement mechanisms, and to continue negotiating with the contractor to reduce cost where feasible.

Ending: Council directed staff to keep pursuing state funding and to present follow-up options; staff said some contingency funds and potential utility‑fund contributions could lower the city’s immediate payment obligation.