Oviedo staff warns council of budget risks and outlines police-station financing options amid state tax debate

City finance staff told the Oviedo City Council that the city's general-fund balances have strengthened in recent years — helped by higher consumption-based revenues, ARPA capital allocations and increased investment income — and outlined options to reduce debt exposure ahead of a planned police-station bond.

The finance director reviewed a history of cash balances and one-time revenue sources, and said staff is considering establishing a capital-reserve or capital maintenance fund. Staff recommended maintaining an unassigned general-fund balance in the $15 million to $20 million range as a prudent policy.

The council discussed using available reserves to pay off two remaining general-fund notes (approximately $1.639 million combined) to lower the debt load ahead of a potential GO-bond issuance for a new police station. Staff also presented estimated debt-service and millage equivalents for 15-, 20- and 30-year borrowing scenarios for an $11.4 million bond, noting market volatility could change those numbers.

Separately, staff and lobbyists summarized House Bill 203, a major property-tax reform plan considered in the Florida House that would have exempted many non-school levies for homesteaded properties beginning in fiscal 2027. The Senate had not acted on the measure in the regular session, but staff said versions of the proposal could still be advanced later in the year or referred to a ballot question; under the House version staff modeled a potential non-public-safety shortfall of about $14.6 million.

Council gave staff general concurrence to pursue options to offset millage impacts (including paying off small notes and exploring cash versus bond financing) and asked staff to continue scenario modeling as the FY26-27 budget process moves forward.