HomeMy WebLinkAbout17 Approval of Septic-to-Sewer Connection Fee Financing Options
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: April 7, 2026
Item #: 17
Contact Name: Jen Bolling Department Director: Jen Bolling
Contact Number: Ext. 4021 City Manager: Craig Shadrix
Subject: Approval of Septic-to-Sewer Connection Fee Financing Options. (Utilities Director
Bolling)
Background Summary:
The Downtown Sewer Master Plan established the framework for extending central sewer service to the
downtown area, and several phases of this work have already been completed. In 2024, staff conducted a
parcel-by-parcel review of properties within the sewered area and identified 41 parcels that have not yet
connected to the central sewer system.
Connection to sewer, when available, is mandatory under Section 381.00655, Florida Statutes, as well as the
City of Ocoee 2016 Bond requirements. The downtown area is also located within the Wekiva River Basin
Management Action Plan (BMAP) and the Wekiwa and Rock Springs BMAP and Priority Focus Area. These
are state designated water quality restoration zones subject to enhanced regulatory requirements aimed at
reducing nutrient loading to springs and surface waters. Septic tank remediation is required in these areas,
with connection to central sewer identified as the preferred remediation method.
To support compliance and reduce financial costs for residents, staff applied for and received a $700,000
Florida Springs Protection Grant Program award. This grant covers 100% of the customer-side construction
costs, including:
• Connection to the City-provided sewer clean out
• Abandonment of the existing septic tank
• Site restoration
The grant does not cover the sewer capital fee, which is required by City Code.
The current sewer capital fee is $8,030 (effective February 1). Staff recommends charging the prior year’s rate
of $7,811, which was in effect when the Florida Department of Environmental Protection (FDEP) notified the
City of the grant award. To assist property owners with the mandatory connection fee, the Utilities Department
evaluated available payment mechanisms and recommends offering the following three options:
1. Standard Cash Payment (paid in full) at time of connection;
2. Interest free payment on the utility bill in equal monthly installments for 24 months (statutorily required);
and
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City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
3. Non-Ad Valorem Assessment pursuant to the City’s home rule authority and Section 197.3632, Florida
Statutes.
Option 3, placement of the capital fee on the annual property tax bill, provides the lowest annual payment
impact, long-term affordability, and flexibility for early payoff without penalty.
Income-qualified homeowners can also apply directly to the Orange County Homeowner Housing
Rehabilitation Program for financial assistance. The Housing Rehabilitation program assists qualified
homeowners with repairs to eliminate existing life, safety, health and code violations. To be eligible,
homeowners must have owned and lived in the home for a minimum of one year and meet very low-income
guidelines.
Issue:
Should the Honorable Mayor and City Commission approve offering the sewer capital fee payment options for
a standard cash payment, 24 months of interest-free payments, and a non-ad valorem assessment for a 10-
year period at 3% interest rate, and authorize the use of the prior year’s sewer capital fee rate of $7,811, and
authorize staff to prepare the non-ad valorem assessment resolution for the 41 downtown properties included
in the Florida Springs Grant?
Recommendations:
Staff recommends that the Honorable Mayor and City Commission approve offering the sewer capital fee
payment options for a standard cash payment, 24 months of interest-free payments, and a non-ad valorem
assessment for a 10-year period at 3% interest rate, and authorize the use of the prior year’s sewer capital fee
rate of $7,811, and authorize staff to prepare the non-ad valorem assessment resolution for the 41 downtown
properties included in the Florida Springs Grant?
Attachments:
None
Financial Impacts:
No financial impact at this time. The mandatory capital fees shall be collected; however, the timeline for
payment receipt will vary based on property owner selection and will be no longer than 10 years.
Type of Item: Consent
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