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HomeMy WebLinkAboutItem 12 Approval to Advertise Resolution of Intent to Use the Uniform Method of Collection for Non-Ad Valorem SpecialMeeting Date: November 18, 2025 Item #: 12 Contact Name: Jen Bolling Department Director: Jen Bolling Contact Number: Ext. 4021 City Manager: Craig Shadrix Background Summary: The Ocoee Downtown Master Plan (2017) was developed through a six-month public process to shape the future of Ocoee's historic downtown, nearby neighborhoods, and the lakefront. Within this comprehensive streetscape plan, the lack of sewer service was identified as a major hindrance to redevelopment, with septic tanks also significantly contributing to the nutrient loading of Starke Lake. Improvements along Bluford Avenue, including the installation of a new lift station and gravity sewer, were completed as the first phase of the project and provided the necessary connection points to expand central sewer service to the downtown area. With this framework established, expansion of the central sewer has continued. The Downtown Alleyway, Floral Avenue, and Cumberland Avenue projects have been completed. Oakland Avenue is nearing completion, and there are future sewer expansions planned over the next 5 to 10 years. At present, forty-one customers in the downtown area have sewer service available but are not yet connected to the system. Parcels located within areas where sewer is available are required to connect pursuant to state law (Section 381.00655(1)(a), Florida Statutes) and as a condition of the 2016 Bond, which funded much of the downtown sewer construction. To assist customers with the cost of connection, the Utilities Department applied for and received a Florida Springs Protection Grant. This grant covers the construction costs on private property to connect to the sewer system. However, the grant does not cover the required sewer capital fee, which is mandated by the City Code and the 2016 Bond. The sewer capital fee is a one-time charge for all new connections to the sewer system that is paid by all new customers or new developments to cover the capital improvements costs associated with the addition of their new wastewater flow to the Ocoee Wastewater Treatment Plant. As a condition of the Florida Springs Protection Grant, which provides up to $700,000 for customer construction costs, all forty-one parcels must connect to the sewer system and abandon their septic tanks no later than May 2028. Based on the current sewer capital fee, which increases annually on February 1, the fee for each residential home is $7,811. For commercial properties, the fee ranges from $7,811 to $48,050 depending on water use. The typical cost for a residential home is $18,000 to $20,000 for construction of the sewer connection on their property (yard piping, abandonment of the septic tank, and restoration) and the required sewer capital fee. The grant reduces the customer's cost by more than 50%. To best assist residents with the required capital fee, the Utilities Department is exploring payment options for the Commission's consideration. One option is the use of a non -ad valorem tax assessment, which would allow customers to make installment payments through their tax bill. The tax assessment process requires advertisement for the Resolution of Intent to Use the City of Ocoee ®1 N. Bluford Avenue . Ocoee, Florida 34761 Phone: (407) 905-3100 a www.ocoee.org Page 196 of 356 Uniform Method of Collection for Non -Ad Valorem Special Assessment for four consecutive weeks prior to Commission action, with resolution adoption occurring before January 1, 2026. The Resolution VfIntent to Use the UDifO[nO Method of Collection for Non -Ad \/8|On8Dl Special /\SS8SSnOeOL 3||OVvS the CO[ODliSSiOD flexibility in the decision -making process for payment options to assist customers and does not obligate the Commission move forward with 8tax assessment. At this time, staff isrequesting approval to advertise the Resolution of Intent to Use the Uniform Method of Collection for Non -Ad Valorem Special Assessment. The resolution must be advertised for a four (4) week period prior to this resolution being brought before the Commission. To meet the 2O20tax assessment and grant commitments, this resolution will be brought to the Commission on December 16, 2025. Issue: Should the Honorable Mayor and City Commissioners approve the advertisement for the Resolution OfIntent to Use the Uniform Method of Collection for Non Ad Valorem Special Assessment? Recommendations: Staff recommends that the Honorable Mayor and City Commissioners approve to advertise the Resolution of Intent to Use the Uniform Method of Collections for Non -Ad Valorem Special Assessment. Attachments: 1. Draft Resolution 2. Downtown Sewer Connections Overview Map Area 1 3. Downtown Sewer Connections Overview Map Area 2 4. Downtown Sewer Connections Overview Map Area 3 Financial Impacts: Nofinancial impact bzadvertise Resolution ofIntent. Type of Item: Consent 111110111111111.1m r#11111 ", ,,, A - - 0 4 0 . Page 197 of 356 RESOLUTION NO. A RESOLUTION OF THE CITY OF OCOEE, FLORIDA, ELECTING TO USE THE UNIFORM METHOD OF COLLECTING NON -AD VALOREM SPECIAL ASSESSMENTS LEVIED WITHIN THE INCORPORATED AREA OF THE CITY OF OCOEE, FLORIDA; STATING A NEED FOR SUCH LEVY; PROVIDING FOR THE MAILING OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Ocoee, Florida (the "City") is contemplating the imposition of special assessments to fund the provision of central wastewater utility services, facilities, and programs within the incorporated area of the City; and WHEREAS, the City intends to use the uniform method for collecting non -ad valorem special assessments for the cost of providing central wastewater utility services, facilities, and programs within the incorporated area of the City as authorized by section 197.3632, Florida Statutes, as amended, because this method will allow such special assessments to be collected annually commencing in November 2026, in the same manner as provided for ad valorem taxes; and WHEREAS, the City held a duly advertised public hearing prior to the adoption of this Resolution, proof of publication of such hearing being attached hereto as Exhibit A. NOW, THEREFORE BE IT RESOLVED by the City Commission of Ocoee, Florida, as follows: 1. Commencing with the Fiscal Year beginning on October 1, 2026, and with the tax statement mailed in November 2026 and continuing until discontinued by the City, the City intends to use the uniform method of collecting non -ad valorem assessments authorized in section 197.3632, Florida Statutes, as amended, to fund the cost of providing central wastewater utility services, facilities, and programs. Such non - ad valorem assessments shall be levied within the incorporated area of the City. A legal description of such area subject to the assessments is attached hereto as Exhibit B and incorporated by reference. 2. The City hereby determines that the levy of the special assessments is needed to fund the cost of providing central wastewater utility services, facilities, and programs within the incorporated area of the City. 3. Upon adoption, the City Clerk is hereby directed to send a copy of this Resolution by United States Mail to the Florida Department of Revenue, the Orange County Tax Collector, and the Orange County Property Appraiser by January 10, 2026. 1 Page 198 of 356 4. This Resolution shall be effective upon adoption. PASSED AND ADOPTED this day of December, 2025. ATTEST: CITY OF OCOEE, FLORIDA Melanie Sibbitt, MMC, City Clerk Rusty Johnson, Mayor (SEAL) ADVERTISED 32025 READ FIRST TIME AND ADOPTED , 2025 UNDER AGENDA ITEM NO. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY on this day of 2025. FISHBACK DOMINICK En Richard S. Geller, City Attorney 2 Page 199 of 356 EXHIBIT A TO RESOLUTION 1=16161;K0120MMLICIM moil Page 200 of 356 EXHIBIT B TO RESOLUTION [ INSERT LEGAL DESCRIPTION OF CITY ] Page 201 of 356 Appendix B IMQN ,K6121i1=14M:1:407NI [oil d[a] Page 202 of 356 NOTICE OF INTENT TO USE UNIFORM METHOD OF COLLECTING NON -AD VALOREM ASSESSMENTS The City of Ocoee, Florida (the "City") hereby provides notice, pursuant to section 197.3632, Florida Statutes, of its intent to use the uniform method of collecting non -ad valorem special assessments to fund the cost of providing central wastewater utility services, facilities, and programs within the incorporated area of the City, commencing with the Fiscal Year beginning on October 1, 2026 and continuing until discontinued by the City. The City will consider the adoption of a resolution electing to use the uniform method of collecting such assessments authorized by section 197.3632, Florida Statutes, at a public hearing to be held at 6:00 p.m. on December 2, 2025, in the City Commission Chambers, 1 N. Bluford Avenue, Ocoee, Florida. Such resolution will state the need for the levy and will contain a legal description of the boundaries of the real property subject to the levy. Copies of the proposed form of resolution, which contains the legal description of the real property subject to the levy, are on file at the City Clerk's Office, 1 N. Bluford Avenue, Ocoee, Florida between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday In the event any person decides to appeal any decision by the City with respect to any matter relating to the consideration of the resolution at the above -referenced public hearing, a record of the proceeding may be needed and in such an event, such person may need to ensure that a verbatim record of the public hearing is made, which record includes the testimony and evidence on which the appeal is to be based. In accordance with the Americans with Disabilities Act, persons needing a special accommodation or an interpreter to participate in this proceeding should contact the City Clerk at (407) 905-3105 at least forty-eight (48) hours in advance of the scheduled hearing. DATED this day of , 2025. By Order of: CITY OF OCOEE, FLORIDA Publish in a newspaper of general circulation on: Page 203 of 356 LC i —ty of Ocoee Downtown Sewer Connections 1 31 Legend Sewer Service Status Sanitary Sewer Features Septic: R sid ntical toOcoee Lift Station 00 2 Connect (21 Properties) Sewer Gravity Main Septic Commercial to M. Connect t (14 Properties) 100 Connected to Sewer ( l Properties} r, z Vacant (t 1 Properties) Overview Map 6 I S I 9