Oviedo delays vote on multi‑year utility rate package after lengthy CIP, stormwater presentations

City staff and their consultant presented a 10‑year capital improvement plan and accompanying rate study on Jan. 21 as part of Resolution 4559‑25, asking the City Council to adopt phased increases to stormwater, water, sewer and reclaimed‑water utility rates and to authorize a financing plan that mixes short‑ and long‑term debt with pay‑as‑you‑go funding.

The council voted 3‑0 to continue consideration of Resolution 4559‑25 to the Feb. 3 regular meeting (with additional discussion at an upcoming work session) rather than adopt rates that night. Council members present were Mayor Megan Sladek, Council Member Alan Ott and Deputy Mayor Natalie Tooker; Council Members Britton and Butterford were absent.

Why it matters: staff said the proposed increases are intended to fund long‑deferred repairs, required environmental projects and a large treatment upgrade the city projects over the next decade. Without new revenue or borrowing, staff projected the utilities would be unable to meet operating, reserve and capital needs over the 10‑year horizon.

What staff presented: Public works staff described an inventory of projects and the cost drivers. "The water utility is potable water, wastewater, and reclaimed water. It's they're all in the same fund. Stormwater is in a separate fund," a Public Works presenter explained. Consultant Tara Hollis of Willdan Financial Services summarized the stormwater findings: "Over the next 10 years, you're looking at, for the storm water system, approximately $43,000,000 worth of capital in vehicles and replacement that needs to be done." Hollis said the water/sewer/reclaimed ten‑year CIP totals roughly $110,000,000, of which approximately $50,000,000 is an advanced water‑treatment upgrade at the existing plant.

Financing and rate proposals presented: For stormwater, the consultant proposed borrowing an initial tranche and phasing rate increases to avoid an immediate ‘‘rate shock.’' The stormwater plan shown first would raise the monthly equivalency charge (staff cited the existing $11.72 per‑equivalency figure) with a 25% increase effective Feb. 1, 2025, another 25% Oct. 1, 2025, and smaller percentage increases in following years (staff described later 15%, 12% and 10% steps in the model). The presentation described short‑term borrowing to cover early CIP needs (roughly $9.5 million) with conversion to a 15‑year long‑term issuance and a total stormwater borrowing example of about $17.5 million (principal) and an estimated principal+interest repayment of about $23.4 million.

For the water/sewer/reclaimed fund, staff recommended a first rate adjustment of 9% effective Feb. 1, 2025, followed by annual Oct. 1 adjustments (9% in early years, tapering to 6% in later years in the 10‑year model). That package included a proposed long‑term borrowing of roughly $58.6 million (staff used a 5.5% illustrative interest rate), with a 15‑year repayment example showing roughly $78 million in principal and interest over the term.

Sample bill impacts shown: staff used an 8,000‑gallon residential example. The combined water/sewer bill at that usage under rates effective last October was $123.46; the model showed a February 1, 2025 adjustment raising that example to $129.63, with larger cumulative increases in the later years of the plan as debt service and capital costs begin to phase in.

Staff and council discussion: questions focused on which projects are highest priority, how to sequence design versus construction, reserve policy and the effect of transfers on credit rating. Finance and bond counsel representatives emphasized existing city financial policy (120 days cash on hand target) and told council that shifting general‑fund dollars to cover stormwater reserves would likely be viewed negatively by rating agencies. Council members and residents in public comment urged clarity, transparency and more time for public review; some speakers said the cumulative cost shown in the model felt too high for households.

Council action: Council voted to continue Resolution 4559‑25 (motion by Council Member Alan Ott, seconded) to the Feb. 3 meeting to allow fuller review and additional public discussion. The roll call on the continuation was: Alan Ott — aye; Mayor Megan Sladek — aye; Deputy Mayor Natalie Tooker — aye. The motion carried 3‑0.

Votes at a glance (items discussed during the presentation) - Resolution 4559‑25 (utility/stormwater rates): continued to the Feb. 3 meeting (motion carried 3‑0). No rate changes were adopted at this Jan. 21 meeting. - Consent agenda item (Panther Street / Carissa Lane Hurricane Milton repair — engineering study, $137,000): moved from consent, discussed, and approved (motion recorded earlier in the meeting; roll call later reflected votes in favor).

What happens next: staff said design, permitting and project sequencing must proceed for planning and grant or financing eligibility; the council directed the item be continued to Feb. 3 for final action with additional public outreach and a scheduled work session discussion.

Ending: The rate study and CIP presentations are the product of a multi‑month effort with the city's consultants; council emphasized this would be revisited at least every five years and that the specific scope and financing of projects would return for council approval before construction.