Orange County commissioners direct staff to advance phase 2 of proposed stormwater utility

Orange County commissioners on Tuesday directed staff to move forward into Phase 2 of a proposed countywide stormwater utility, after staff said current funding levels leave a large capital shortfall and many aging stormwater systems need retrofits.

Staff presented options including adopting level-of-service B as a countywide goal, a 25-year phased funding approach, and a recommended rate structure described as “option 3” — a single-family method that uses tiering based on relative impervious area. Brett (staff member) summarized the Phase 2 scope: “we'll be finalizing that impervious area, creating a credit policy, performing community outreach, drafting a billing file, and then at the end, bringing all of this information back to you all to decide whether or not we're going to move to that implementation phase.”

The recommendation responds to what staff described as a large capital need compared with current annual spending. Staff said the county’s identified capital improvement needs total about $1,380,000,000 based on today’s dollars, while the county’s stormwater annual budget is roughly $10.8 million, which would fund those needs over a period measured in decades at current levels. Commissioners and staff referenced examples of aging infrastructure and emergency repairs, including the Long Lake/ Beggs Road pump station project, which required reallocating capital funds and delaying other projects.

Commissioners asked for more district‑specific examples and clearer public‑facing materials. Commissioner Moore said she needed concrete, district-level examples to explain the proposal to residents: “You want us to raise taxes, we need to tell them specifically what you're talking about and where.” Staff answered that Phase 2 outreach would include district‑level briefings and that the county can map 311/flood reports and other planning data to show local impacts.

The proposed rate design would include a credit policy for existing Municipal Service Benefit Units (MSBUs) and similar local assessments so property owners are not double‑charged. Brett explained that “almost legally” storm utilities require a credit system and that MSBU recipients typically receive credits for pond maintenance; the staff plan is to account for those credits when finalizing rates.

Commissioners asked about prioritization and fairness. Staff said basin planning tools are being developed to rank neighborhood needs, and that prioritization decisions would be part of program design and board review. Commissioners also raised concerns about whether state or Department of Transportation assets contribute to observed problems; staff said they coordinate with state agencies but have not completed a countywide analysis of state-owned conveyances as part of this Phase 1 presentation.

Next steps: staff requested direction to enter Phase 2. Commissioners expressed general consensus to proceed with the more detailed Phase 2 tasks — community outreach, development of credit policy, refinement of impervious-area calculations, drafting a billing file and a formal rate proposal — and staff said it expects to return with Phase 2 results in late 2025 or early 2026. The board emphasized that Phase 2 should include district‑level project lists and public education materials showing what would be accomplished with the proposed revenue.

A formal ordinance, public hearings, and a final decision on rates and implementation would follow Phase 2 if the board chooses to move to implementation.