Oviedo in the News

Oviedo city COUNCIL TO DECIDE ON TWO FEES TO HELP OFFSET RISING COSTS OF PROVIDING SERVICES TO CITY RESIDENTS

The Oviedo City Council is expected to decide on two separate fees for City residents. 

The proposed fees will help generate revenue to combat the rising costs of providing two services to City residents: water and sewer utilities; and fire services. 

The Council discussed the two, separate fees at its January 10 Work Session. Read on for more details.
 

UTILITY RATES, SERVICE CHARGES AND FEE SCHEDULES

The City Council is expected to hear Resolution No. 4174-22, Utility Rates, Service Charges and Fee Schedules, at its Tuesday, January 18 City Council meeting. The meeting begins at 6:30 p.m. at City Hall, located at 400 Alexandria Blvd. in Oviedo.

Notice of the proposed increase and January 18 meeting was included in your most recent utility statement. 

Rising Costs
Costs of providing water and sewer utilities have increased over the last fiscal year. Resolution No. 4174-22 would help generate revenue to offset those rising costs. 

• Projected chemical increases for the Fiscal Year 2021-22 budget are approximately $148,400. 
• In addition, due to the ongoing labor shortage and increased competition within the job market, it is anticipated that the City will need to move to the mandated $15 per hour minimum wage much sooner than planned. 

Included in the Amendment
Each year, the City’s Water and Sewer utility rates are automatically adjusted according to the Consumer Price Index for All Urban Customers (CPI-U). The automatic annual increase has a minimum floor of 3 percent and a maximum increase of percent. Should the increase be greater than five percent, City Council approval is required. 

Through the Adopted Budget, City Council previously approved the minimum 3 percent increase totaling $459,323 effective October 1, 2021. However, that increase has not been implemented due to the CPI-U increase being 5.3 percent, .3 percent above the cap and requiring the City Council’s approval - generating the need for this Amendment to include the total 5.3 percent increase and a measure to allow for a more streamlined process in the future. 

To develop the utility rate, The City worked with Willdan Financial Services, a financial consultant, to determine if revenues were adequate to support the City’s utilities over a ten-year forecast period such that all the required operating expenses, debt service, capital expenses, and transfers could be funded by reserves and revenues of the utility system. The 5.3 percent increase is expected to generate $540,980 in revenue for the remainder of the year, helping alleviate the impact of the projected increased costs.

The Amendment also includes a measure that would align the timing of rate calculations that will allow staff to facilitate discussions with Council ahead of its budget process.

If the proposed 5.3 percent increase is approved, the new utility rates will become effective February 1, 2022. 

For more information, review the associated materials in the January 18 packet online. To watch Council discuss this topic, view the January 10 Work Session video. To review associated materials from that meeting, the January 10 Work Session packet is available online. 

Please see the below section "Resources for Residents" to learn more on how you may participate in your local government.

FIRE ASSESSMENT DISTRICT

At its January 10 Work Session, City Council also discussed creating a Fire Assessment District. This Non-ad Valorem assessment would be a fee levied on real property but not based on the value of your property (like property taxes). 

Non-ad Valorem assessments are charged to cover the costs associated with a specific benefit to the property. In this case, fire protection services.

The Need for a Fire Assessment District
Since the great recession of 2008, the City of Oviedo’s Ad-Valorem, or property tax revenue, has not covered the cost of the City’s Public Safety Services.  As illustrated in the chart below, over this period, public safety expenses have increased at a greater rate than Ad Valorem (property tax) revenue.  If adopted, the Non-Ad Valorem Fire Assessment will help close this gap and provide a more stable operational foundation for Fire protection services.

Funding fire protection services through a Non-Ad Valorem Fire Assessment ensures that all property owners that benefit from the service contribute to the cost of the service. If passed, each property owner in the City of Oviedo would pay a proportional share of the costs of fire services. The goal of a Non-Ad Valorem Fire Assessment program is to create a more stable funding source that does not fluctuate with economic cycles and the change in assessed value of real property.

Read more online in the Fire Assessment District FAQ. 

What's Next
The City must first establish the boundaries of a Fire Special Assessment District by ordinance. The boundaries of the Fire Special Assessment District will be the city limits of the City of Oviedo.  

The City, with assistance from financial consultant Willdan Financial Services, will refine the details of the Non-ad Valorem fire assessment methodologies and select a preferred methodology that will be used to calculate the Non-ad Valorem Fire Assessment.

All official actions in respect to the establishment of the Non-Ad Valorem Fire Assessment will be presented to the City Council for consideration. These actions will appear on future City Council work session and regular meeting agendas. Agendas and packets that contain associated materials are published five days prior to a meeting date. You may also sign up for City meeting alerts. 

At its January 10 Work Session, Council discussed the Fire Assessment District. To view that discussion, watch the January 10 Work Session video. To review associated materials from that meeting, the January 10 Work Session packet is available online. 

Please see the below section "Resources for Residents" to learn more on how you may participate in your local government.

RESOURCES FOR RESIDENTS:

• Watch the January 10 Work Session via the City's YouTube channel. The meeting begins at the 15:00 mark. Watch all live or recorded City public meetings on the City's YouTube channel.
• Read related materials in the January 10 Work Session Agenda and Packet. All City public meeting materials are housed on the PrimeGov website.
• Subscribe to the Calendar "City Public Meetings," where you can select to receive text and/or email alerts for City Public Meetings. 
• Attend future City Council meetings and provide public comment. View the City calendar for more information.
• Correspond with your elected officials. The City of Oviedo has an at-large form of council government. All members of the City Council represent all residents. Click on each elected official to read their bio and view contact information.