Loading...
HomeMy WebLinkAboutItem 17 Approval of Septic-To-Sewer Initial Assessment Resolution City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: July 21, 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 Initial Assessment Resolution. (Utilities Director Bolling) Background Summary: The 2017 Downtown Master Plan identified the lack of central sewer as a major barrier to redevelopment, and state-led Wekiva Basin studies identified septic tanks as a major contributor to nutrient loading in Starke Lake. To support downtown redevelopment and work towards meeting mandated state nutrient reduction requirements, the City has completed multiple central sewer projects downtown over the past several years. In 2025, thirty-nine properties using 41 septic tanks were found to have sewer service available but not yet connected to central sewer. A recently awarded Florida Springs Grant covers 100% of the on-property construction costs needed to connect to sewer but does not fund the City’s one-time sewer capital fee. To provide flexibility in paying this fee, the Commission approved three options on April 7, 2026: 1. Standard cash payment at time of connection 2. Interest free 24-month payment on the utility bill (statutorily required) 3. A 10-year non-ad valorem assessment under the City’s home rule authority and Section 197.3632, F.S. The sewer capital fee is calculated based on the Equivalent Residential Unit (ERU) methodology as established in Chapter 173 City Code. The City Commission approved the sewer capital fee of $7,811/ERU. Document recording fees for financing totals $120. Two properties have already connected to the City’s sewer system. Fourteen property owners have chosen to pay the sewer capital fee using the one-time payment option. Four property owners have chosen to use the interest-free 24-month payment plan on their utility bills. The remaining nineteen properties will finance their capital fees through the 10-year non-ad valorem assessment at 3% interest. Issue: Should the Honorable Mayor and City Commission adopt the Septic-To-Sewer Initial Assessment Resolution for the FY 2026-27 and set a September 1, 2026, public hearing date to adopt the Final Assessment Resolution? City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Recommendations: Staff recommends that the Honorable Mayor and City Commission adopt the Septic-To-Sewer Initial Assessment Resolution for the FY 2026-27 establishing a per ERU method of apportionment and schedule a public hearing on September 1, 2026, for adoption of the Final Assessment Resolution. Attachments: 1. IAR Septic to Sewer Financial Impacts: Costs to mail certified letter is budgeted under 401-531-00-4200. Type of Item: Consent CITY OF OCOEE, FLORIDA SEPTIC-TO-SEWER INITIAL ASSESSMENT RESOLUTION ADOPTED JULY 21, 2026 i TABLE OF CONTENTS PAGE ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01. PURPOSE AND DEFINITIONS ...................................................... 2 SECTION 1.02. AUTHORITY ................................................................................... 5 SECTION 1.03. LEGISLATIVE FINDINGS ............................................................... 5 ARTICLE II NOTICE AND PUBLIC HEARING SECTION 2.01. ESTIMATED CAPITAL AND PROJECT FEES ............................... 9 SECTION 2.02. ASSESSMENT ROLL ..................................................................... 9 SECTION 2.03. PUBLIC HEARING .......................................................................... 9 SECTION 2.04. NOTICE BY PUBLICATION .......................................................... 10 SECTION 2.05. NOTICE BY MAIL ......................................................................... 10 ARTICLE III ASSESSMENTS SECTION 3.01. DESCRIPTION OF ASSESSMENT AREA ................................... 11 SECTION 3.02. IMPOSITION OF ASSESSMENTS ............................................... 11 SECTION 3.03. ASSESSMENT UNITS .................................................................. 11 SECTION 3.04. PREPAYMENT AMOUNTS .......................................................... 12 SECTION 3.05. COMPUTATION OF ASSESSMENTS .......................................... 12 SECTION 3.06. PREPAYMENT OPTION ............................................................... 14 SECTION 3.07. MANDATORY PREPAYMENT...................................................... 14 ARTICLE IV GENERAL PROVISIONS SECTION 4.01. METHOD OF COLLECTION ......................................................... 17 SECTION 4.02. APPLICATION OF ASSESSMENT PROCEEDS .......................... 17 SECTION 4.03. CONFLICTS .................................................................................. 17 SECTION 4.04. SEVERABILITY ............................................................................. 17 SECTION 4.05. EFFECTIVE DATE ........................................................................ 17 APPENDIX A: FORM OF PUBLISHED NOTICE ................................................. A-1 APPENDIX B: FORM OF MAILED NOTICE ........................................................ B-1 APPENDIX C: DESCRIPTION OF TAX PARCELS LOCATED IN THE SEPTIC-TO-SEWER ASSESSMENT AREA .............................. C-1 1 RESOLUTION NO. 2026-_____ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, RELATING TO FUNDING CONNECTION TO THE CITY’S SEWER EXPANSION PROJECT; PROVIDING FOR PURPOSE AND DEFINITIONS, AUTHORITY, AND CERTAIN LEGISLATIVE FINDINGS; ESTABLISHING THE CAPITAL AND PROJECT COSTS; DIRECTING THE PREPARATION OF AN ASSESSMENT ROLL; ESTABLISHING A PUBLIC HEARING TO CONSIDER IMPOSITION OF THE PROPOSED ASSESSMENTS AND THE METHOD OF COLLECTION; DIRECTING THE PROVISION OF NOTICE THEREOF; DESCRIBING THE PROPOSED ASSESSMENT AREA; PROVIDING FOR IMPOSITION OF ASSESSMENTS; ESTABLISHING PREPAYMENT AMOUNTS AND DESCRIBING THE TERMS AND CONDITIONS FOR PREPAYMENTS; PROVIDING FOR THE COMPUTATION OF ASSESSMENTS; PROVIDING FOR COLLECTION; PROVIDING FOR APPLICATION OF ASSESSMENT PROCEEDS; PROVIDING FOR CONFLICTS, SEVERABILITY, AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: 2 ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01. PURPOSE AND DEFINITIONS. (A) This Resolution constitutes the Initial Assessment Resolution as defined in the Ordinance. (B) Unless the context indicates otherwise, words imparting the singular number include the plural number, and vice versa; the terms "hereof," "hereby," "herein," "hereto," "hereunder" and similar terms refer to this Resolution; and the term "hereafter" means after, and the term "heretofore" means before, the effective date of this Resolution. Words of any gender include the correlative words of the other gender, unless the sense indicates otherwise. (C) All capitalized words and terms not otherwise defined herein shall have the meanings set forth in the Ordinance. As used in this Resolution, the following terms shall have the following meanings, unless the context hereof otherwise requires: "Adjusted Prepayment Amount" means the amount required to prepay the Assessment for each Tax Parcel located in the Assessment Area, as computed pursuant to Section 3.04(B) hereof and revised annually pursuant to Section 3.05(E) hereof. "Annual Capital Connection Component" means the amount computed for each Tax Parcel pursuant to Section 3.05(A) hereof. "Assessment" means an annual special assessment imposed against propert y located within the Assessment Area to fund the Project Cost for connection to the City’s Sewer Expansion Project constructed to serve the Assessment Area and related expenses, computed in the manner described in Section 3.05 hereof. 3 “Assessment Area” means the Septic-to-Sewer Assessment Area described in Section 3.01 and Appendix C hereof. "Assessment Period" means the time period estimated by the City during which Assessments are imposed unless otherwise prepaid as provided herein. The Assessment Period for the Assessments shall be ten (10) years. "Assessment Roll" means a non-ad valorem assessment roll relating to the Project Cost for connection to the City’s Sewer Expansion Project to serve the Assessment Area and related expenses. "Capital Cost" means, as defined in the Ordinance, all or any portion of the expenses that are properly attributable to the connection to the City’s Sewer Expansion Project and imposition of the Assessments under generally accepted accounting principles; and including reimbursement to the City for any funds advanced for Capital Cost and interest on any interfund or intrafund loan for such purposes. "City" means the City of Ocoee, Florida. "City Interest Rate" means the rate of interest established by the City for the advance funding of the Capital Cost for connection to the City’s Sewer Expansion Project, as set forth in Section 1.03(H) hereof. "Collection Cost" means all or any portion of the estimated cost to be incurred by the City during any Fiscal Year in connection with the collection of Assessments. "Collection Cost Component" means the amount computed for each Tax Parcel pursuant to Section 3.05(B) hereof. "Commission" means the City Commission as the governing body of the City of Ocoee, Florida. 4 "City Manager" means the chief administrative officer of the City under Article IV of the Charter of the City of Ocoee, or such person's designee. “ERU” means the Assessment Unit, as defined in the Ordinance, to be used in calculating the Assessment, as assigned for each Tax Parcel in accordance with Section 3.03 hereof to serve as a proxy for each Tax Parcel’s estimated sewer usage based on the estimated average flow of 270 gallons per day. "Final Assessment Resolution" means the resolution described in Section 4.06 of the Ordinance that imposes Assessments within the Assessment Area. "Fiscal Year" means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the City. "Initial Prepayment Amount" means the amount computed pursuant Section 3.04(A) hereof for each Tax Parcel located in the Assessment Area. "Ordinance" means City of Ocoee Ordinance No. 2026-10, as codified in Chapter 105 of the City of Ocoee Code of Ordinances. "Project Cost" means, as defined in the Ordinance: (A) the Capital Cost of for connection to the Sewer Expansion Project; (B) interest accruing on any internal loans to fund the connection cost; and (C) any other costs or expenses related thereto. "Sewer Expansion Project" means the pipes, mains, lift stations, vacuum stations, and other facilities constructed by the City to provide wastewater collection services to all Tax Parcels located in the Assessment Area. "Statutory Discount Amount" means the amount computed for each Tax Parcel pursuant to Section 3.05(C) hereof. 5 "Tax Parcel" means a parcel of property to which the Property Appraiser has assigned a distinct ad valorem property tax identification number. "Tax Roll" means the real property ad valorem tax assessment roll maintained by the Property Appraiser for the purpose of the levy and collection of ad valorem taxes. "Uniform Assessment Collection Act" means Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes authorizing the collection of non -ad valorem assessments on the same bill as ad valorem taxes, and any applicable regulations promulgated thereunder. SECTION 1.02. AUTHORITY. This Resolution is adopted pursuant to the provisions of the Ordinance; the City of Ocoee Home Rule Charter; Article VIII, Section 2 of the Florida Constitution; Sections 166.021 and 166.041, Florida Statutes; and other applicable provisions of law. SECTION 1.03. LEGISLATIVE FINDINGS. It is hereby ascertained, determined and declared that connection to the Sewer Expansion Project to be funded by the Assessments provides a special benefit to property and is fairly and reasonably apportioned among all benefited properties based upon the following legislative findings: (A) Pursuant to Article VIII, Section 2 of the Florida Constitution, and Sections 166.021 and 166.041, Florida Statutes, the Commission may exercise any governmental, corporate, or proprietary power for a municipal purpose except when expressly prohibited by law, and the Commission may legislate on any subject matter on which the Legislature may act, except those subjects described in (a), (b), (c), and (d) of section 166.021(3), Florida Statutes. 6 (B) The City has obtained state grants to provide for the Sewer Expansion Project to extend central City sewer services to certain properties within the City that are currently being served by septic systems. (C) While the City’s grants fully funded the Sewer Expansion Project, the grants did not include funding to cover the costs of connecting existing properties to the Sewer Expansion Project. Accordingly, to assist property owners with the financial burden associated with the costs to connect to the Sewer Expansion Project, the Commission has enacted the Ordinance to provide for the creation of Assessment Areas and authorize the imposition of Assessments to fund the construction of local improvements and the provision of essential services to serve the property located therein. (D) The City seeks to develop a cost-effective sewer program with the intent of reducing the impact of pollutants on the natural environment and preserving groundwater quality, and to finance the extension of its centralized sanitary sewer facilities through the imposition of Assessments and available grant funding. Section 381.00655, Florida Statutes, requires property owners to connect to an available publicly owned s ewage system within one year of notification of availability. (E) Every property owner proposed to be served by the Sewer Expansion Project was provided with various financing options by the City to fund the connection costs, with one option being the Assessments provided for herein. The Commission desires to create the Assessment Area for the purpose of funding the costs of connection to the Sewer Expansion Project to serve the Tax Parcels within the boundaries of the Assessment Area who either voluntarily elected the Assessment funding option or did not actively select any other funding option. 7 (F) Connection to the Sewer Expansion Project will provide a special benefit to the Tax Parcels located within the Assessment Area and will possess a logical relationship to the use and enjoyment of property by providing: (1) access to central wastewater treatment facilities to the owners and occupants of property for the proper, safe, and cost effective treatment and disposal of wastewater generated on such property, which improves the utilization, marketability, and development potential of said properties; (2) better, consistent and environmentally compliant service to owners and occupants; (3) the enhancement of environmentally responsible use and enjoyment of property; and (4) the protection of property and rental values and the health and safety of the owners and occupants of property. (G) The rate of Assessment for connection to the Sewer Expansion Project for all Tax Parcels in the Assessment Area shall be expressed in terms of ERUs. The per ERU method of apportionment is a fair and reasonable method of apportionment because the City currently utilizes ERUs to measure and calculate sewer capacities, as well as capital charges and connection fees for both residential and commercial developments within the City. (H) Due to the relatively small number of property owners in the Assessment Area, the City has decided to reduce the financial impact to connect to the City’s sewer system by providing a ten (10) year internal loan to the real property owners to allow financing for their share of the Project Cost for connection. Based on current market conditions, the City has decided that the maximum interest rate that will be charged is 3% per year, based on its expectation with respect to the average investment rate and the availability of funds over the term of the Assessment. 8 (I) The Assessments associated with the connection to the Sewer Expansion Project provide an equitable method of funding those costs by fairly and reasonably allocating the cost to specially benefitted property, based upon the number of ERUs attributable to each Tax Parcel, in the manner hereinafter described. (J) Each property within the Assessment Area will be benefited by connection to the Sewer Expansion Project in an amount not less than the Assessment imposed against such property, as computed in the manner set forth in this Initial Assessment Resolution. 9 ARTICLE II NOTICE AND PUBLIC HEARING SECTION 2.01. ESTIMATED CAPITAL AND PROJECT COST. (A) The estimated Capital Cost for the Sewer Expansion Project is $164,031.84. (B) The estimated Project Cost of the Sewer Expansion Project is $194,968.21. The Project Cost will be funded through the imposition of Assessments against each property located in the Assessment Area in the manner set forth in Article III hereof. SECTION 2.02. ASSESSMENT ROLL. (A) The City Manager is hereby directed to prepare, or direct the preparation of, a final estimate of the Capital Cost and Project Cost for connection to the Sewer Expansion Project and to prepare the preliminary Assessment Roll in the manner provided in the Ordinance. (B) The City Manager shall apportion the Capital Cost and Project Cost among the parcels of real property within the Assessment Area in conformity with Article III hereof. (C) The estimate of Capital Cost, Project Cost, and the Assessment Roll shall be maintained on file in either the City’s Utilities Department or the City Manager’s office (as designated by the City Manager) and open to public inspection. The foregoing shall not be construed to require that the Assessment Roll be in printed form if the amount of the Assessment for each Tax Parcel can be determined by use of a computer terminal available to the public. SECTION 2.03. PUBLIC HEARING. A public hearing will be conducted by the City Commission on September 1, 2026, at 6:15 p.m., or as soon thereafter as the matter 10 can be heard, in the City Commission Chambers, 1 N. Bluford Avenue, Ocoee, Florida or such other location designated by the Commission, to consider: (A) creation of the Assessment Area; (B) imposition of the Assessments; and (C) collection of the Assessments pursuant to the Uniform Assessment Collection Act commencing with the Tax Bill to be mailed in November 2026. SECTION 2.04. NOTICE BY PUBLICATION. The City Manager shall publish a notice of the public hearing authorized by Section 2.03 hereof in t he manner and the time provided in Section 181-24 of the Ordinance. Such notice shall be in substantially the form attached hereto as Appendix A and published no later than August 11, 2026. SECTION 2.05. NOTICE BY MAIL. (A) In the time and in the manner specified in Section 181-25 of the Ordinance, the City Manager shall provide first class mailed notice of the public hearing authorized by Section 2.03 hereof to each property owner proposed to be assess ed at the address indicated on the Tax Roll. Such notice shall be in substantially the form attached hereto as Appendix B and mailed by first class mail no later than August 11, 2026. (B) For any Tax Parcels with exempt “home addresses” pursuant to Sectio n 119.071(4), Florida Statutes, the City Manager shall work with the Property Appraiser and Tax Collector to provide notice. 11 ARTICLE III ASSESSMENTS SECTION 3.01. DESCRIPTION OF ASSESSMENT AREA. (A) The Assessment Area shall include the property described in Appendix C attached hereto and incorporated herein by reference. (B) The Assessment Area is created for the purpose of improving the use and enjoyment of all properties located therein by funding the connection of properties currently served by septic tanks to the Sewer Expansion Project to provide access to central wastewater collection and treatment services. SECTION 3.02. IMPOSITION OF ASSESSMENTS. (A) Assessments shall be imposed against property located within the Assessment Area for a period of ten (10) years. The first annual Assessment will be included on the ad valorem tax bill mailed in November 2026. (B) In accordance with Section 181-8 of the Ordinance, when imposed, the Assessment shall constitute a lien upon the Tax Parcels located in the Assessment Area, which lien shall be equal in rank and dignity with the liens of all state, district, or municipal taxes and special assessments. Except as otherwise provided by law, such lien shall be superior in dignity to all other prior liens, mortgages, titles, and claims, until paid. SECTION 3.03. ASSESSMENT UNITS. To reflect the relative amount of special benefit to be derived from construction of the Sewer Expansion Project, all Tax Parcels shall be assessed based on the number of ERUs assigned to the Tax Parcel in accordance with the City’s standard utility policies and procedures. 12 SECTION 3.04. PREPAYMENT AMOUNTS. (A) Upon adoption of the Final Assessment Resolution, an Initial Prepayment Amount for each Tax Parcel located within the Assessment shall be calculated as the sum of: (1) the amount computed by (a) dividing the number of ERUs attributable to such Tax Parcel by the total number of ERUs attributable to all Tax Parcels within the Assessment Area; and (b) multiplying the result by the estimated Project Cost of the Sewer Expansion Project. (B) The Initial Prepayment Amount for each Tax Parcel shall be revised annually pursuant to Section 3.05(E) hereof . SECTION 3.05. COMPUTATION OF ASSESSMENTS. The annual Assessment shall be computed for each Tax Parcel that has not prepaid in the manner set forth in this Section 3.05. (A) ANNUAL CAPITAL CONNECTION COMPONENT. The Annual Capital Connection Component shall be calculated for each Fiscal Year in which the Initial Prepayment Amount (or Adjusted Prepayment Amount, if applicable) of the Tax Parcel is outstanding as the annual installment of principal and interest due based on a debt service schedule prepared with the Initial Prepayment Amount for such Tax Parcel as the beginning balance and utilizing the City Interest Rate such that the principal and interest are payable in equal installments over a 10-year period. (B) COLLECTION COST COMPONENT. The Collection Cost Component shall be computed each Fiscal Year for each Tax Parcel by: (1) dividing (a) the Adjusted Prepayment Amount for such Tax Parcel by (b) the sum of the aggregate Adjusted 13 Prepayment Amount remaining in the Assessment; and (2) multiplying the result by the Collection Cost determined by the City. (C) STATUTORY DISCOUNT AMOUNT. The Statutory Discount Amount shall be computed for each Tax Parcel as the amount determined by the City based on the amount the City is allowed by law to budget receipts, which shall also include the maximum discount for early payment of ad valorem taxes and non-ad valorem assessments. Such amount shall be calculated by deducting: (1) the sum of (a) the Annual Capital Connection Component and (b) the Collection Cost Component, from (2) the amount computed by dividing (a) the sum of (i) the Annu al Capital Connection Component and (ii) the Collection Cost Component, by (b) 0.95. (D) ASSESSMENT. The annual Assessment for each Tax Parcel shall be computed as the sum of: (1) the Annual Capital Connection Component; (2) the Collection Cost Component; and (3) the Statutory Discount Amount. (E) REVISION OF ADJUSTED PREPAYMENT AMOUNT. Upon certification of the Assessment Roll each Fiscal Year, the revised Adjusted Prepayment Amount for each Tax Parcel shall be computed by deducting: (1) the principal component of the Annual Capital Connection Component determined in Section 3.05(A) above and included on the Assessment Roll for the Tax Parcel, from (2) the Adjusted Prepayment Amount, as initially set pursuant to Section 3.04(A) hereof and thereafter revised pursuant to this Section 3.05(E) (or for the initial Assessment Roll, the Initial Prepayment Amount), utilized to compute the annual Assessment included on the Assessment Roll for such Tax Parcel. 14 SECTION 3.06. PREPAYMENT OPTION. (A) Following adoption of the Final Assessment Resolution, the Commission may elect to allow the owner of each Tax Parcel subject to the Assessments to prepay all future unpaid annual Assessments. If allowed by the Commission in its sole discretion, the owner of each Tax Parcel subject to the Assessments shall be entitled to prepay all future unpaid annual Assessments upon payment of an amount equal to the sum of : (1) the Adjusted Prepayment Amount for such Tax Parcel , and (2) interest on the Adjusted Prepayment Amount, computed at the City Interest Rate. (B) During any period commencing on the date the annual Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the City may reduce the amount required to prepay the future unpaid annual Assessments for the Tax Parcel by the amount of the Assessment that has been certified for collection with respect to such Tax Parcel. (C) The amount of all prepayments made pursuant to this Section 3.06 shall be final. The City shall not be required to refund any portion of a prepayment if : (1) the Capital Cost or Project Cost is less than the amount upon which such Adjusted Prepayment Amount was computed; or (2) annual Assessments will not be imposed for the full number of years anticipated at the time of such prepayment. SECTION 3.07. MANDATORY PREPAYMENT. (A) The owner of a Tax Parcel subject to the Assessment shall immediately prepay all future unpaid annual Assessments for such Tax Parcel if (1) the Tax Parcel is to be acquired or otherwise transferred to an entity for which Assessments cannot be 15 collected pursuant to the Uniform Assessment Collection Act through condemnation, negotiated sale or otherwise, (2) the Tax Parcel is subject to annexation by a governmental unit, or (3) a tax certificate has been issued and remains outstanding in respect of the Tax Parcel and the City, at its sole option, elects to accelerate the Assessment. In the case of (1) or (2) above, the owner of the Tax Parcel prior to condemnation, sale or other transfer must notify the City at least 30 days prior to the proposed acquisition or transfer date in order to allow the City sufficient time to determine the final amount due. Failure to provide such notice shall cause an automatic acceleration of such Assessment the effective date of which is 10 days prior to the proposed acquisition or transfer date. (B) The amount required to prepay the future unpaid annual Assessments will be equal to the sum of: (1) the Adjusted Prepayment Amount for such Tax Parcel, and (2) interest on the Adjusted Prepayment Amount, from the most recent ad valorem ta x bill, computed at the City Interest Rate. (C) During any period commencing on the date the annual Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the City may reduce the amount required to prepay the future unpaid annual Assessments for the Tax Parcel by the amount of the Assessment that has been certified for collection with respect to such Tax Parcel. (D) The amount of all prepayments made pursuant to this Section 3.07 shall be final. The City shall not be required to refund any portion of a prepayment if : (1) the Capital Cost or Project Cost is less than the amount upon which such Adjusted 16 Prepayment Amount was computed; or (2) annual Assessments will not be imposed for the full number of years anticipated at the time of such prepayment. (E) Collection by the City of mandatory prepayments pursuant to this Section 3.07 is supplemental and in addition to any other legally available remedy the City may seek for repayment of the Assessments. 17 ARTICLE IV GENERAL PROVISIONS SECTION 4.01. METHOD OF COLLECTION. The Assessments shall be collected pursuant to the Uniform Assessment Collection Act commencing with the Tax Bill mailed in November 2026. SECTION 4.02. APPLICATION OF ASSESSMENT PROCEEDS. The revenue derived from the Assessments will be utilized to fund the provision of sewer capacity and other costs for connection to the Sewer Expansion Project. SECTION 4.03. CONFLICTS. This Initial Assessment Resolution shall prevail in the event of any conflicts with any other Resolution of the City of Ocoee. SECTION 4.04. SEVERABILITY. In the event any portion of this Initial Assessment Resolution is deemed invalid by any court of competent jurisdiction, the invalid portion shall be considered severed, and the remainder of this Initial Assessment Resolution shall continue in effect. SECTION 4.05. EFFECTIVE DATE. This Initial Assessment Resolution shall take effect immediately upon its passage and adoption. PASSED AND ADOPTED this 21st day of July, 2026. 18 APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Melanie Sibbitt, MMC, City Clerk Rusty Johnson, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY on this day of , 2026. FISHBACK DOMINICK By: Richard S. Geller, City Attorney APPENDIX A FORM OF NOTICE TO BE PUBLISHED A-1 APPENDIX A FORM OF NOTICE TO BE PUBLISHED To Be Published by August 11, 2026 NOTICE OF HEARING TO IMPOSE AND PROVIDE FOR COLLECTION OF SPECIAL ASSESSMENTS [ INSERT MAP OF ASSESSMENT AREA ] Notice is hereby given that the City Commission of the City of Ocoee, Florida, will conduct a public hearing to consider creation of the Septic-to-Sewer Assessment Area ("Assessment Area"), as shown above, and to impose special non-ad valorem assessments against certain parcels of property located therein. The hearing will be held at 6:15 P.M., or as soon thereafter as the matter can be heard, on September 1, 2026, in the City Commission Chambers, 1 N. Bluford Avenue, Ocoee, Florida for the purpose of receiving public comment on the proposed assessment area, the assessments and their collection on the tax bill. 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 at (407) 905-3105 at least forty-eight (48) hours prior to the date of the hearing. All affected property owners have a right to appear at the hearing and to file written objections with the City Commission within 20 days of this notice. If a person wishes to appeal any decision made by the City Commission with respect to any matter considered at the hearing, such person will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. The City seeks to develop a cost-effective central sewer program with the intent of reducing the impact of pollutants on the natural environment and preserving groundwater A-2 quality. The City obtained grants to fund the construction of a sewer system expansion necessary to serve properties on septic tanks, but the grants did not include fundi ng to cover the costs of connecting existing properties to the new sewer system. To assist property owners with the financial burden associated with the costs to connect to the sewer expansion project, the Assessments have been proposed to fund the costs of connection to the City’s sewer expansion project and related expenses that will provide the properties within the proposed Assessment Area with central wastewater collection services. The assessment for each parcel of property will be based u pon the number of “ERUs” on the parcel. Each tax parcel will be assigned these assessment units in accordance with the City’s standard utility policies and procedures. A more specific description is set forth in the Initial Assessment Resolution adopted by the City Commission on July 21, 2026. Copies of the Initial Assessment Resolution and the preliminary assessment roll are available for inspection at Office of the City Clerk located at 1 N. Bluford Avenue, Ocoee, Florida. The annual assessment will include each property’s share of the connection costs, interest, collection costs, administrative costs, and the amount Florida law requires the City to discount receipts for its annual budget. The proposed maximum annual assessment is $929.76 per ERU. The City Commission intends to collect the assessments in ten (10) annual assessments, the first of which will be included on the ad valorem tax bill to be mailed in November 2026. Future annual assessments may be prepaid if allowed by the City. The assessments will be collected on the ad valorem tax bill, as authorized by Section 197.3632, Florida Statutes. Failure to pay the assessments will cause a tax A-3 certificate to be issued against the property which may result in a loss of title. Unless proper steps are initiated in a court of competent jurisdiction to secure re lief within 20 days from the date of City Commission action at the above hearing (including the method of apportionment, the rate of assessment, and the imposition of assessments), such action shall be the final adjudication of the issues presented. If you have any questions, please contact the City Clerk at (407) 905-3105, Monday through Friday between 8:00 a.m. and 5:00 p.m. CITY COMMISSION CITY OF OCOEE, FLORIDA APPENDIX B FORM OF NOTICE TO BE MAILED APPENDIX B FORM OF NOTICE TO BE MAILED August 11, 2026 [Property Owner Name] [Street Address] [City, State and zip] Re: Parcel Control Number [Insert Number] Septic-to-Sewer Assessment Area Dear Property Owner: As required by section 197.3632, Florida Statutes, and the direction of the City Commission of the City of Ocoee, notice is given that an annual special assessment to fund the connection costs associated with connecting your property to the City’s central sewer system using the tax bill collection method may be levied on your property contained. The use of an annual special assessment to fund improvements benefiting property located within the assessment area is a fair, efficient and effective means of funding these improvements, which are needed to bring the central sewer services to unserved and underserved properties within the City. You have either elected to participate in this assessment program by entering into a Mandatory Wastewater Connection Financing Agreement with the City or been included within this program as a default due to failure to select an alternative financing option offered by the City. The City obtained grants to fund the construction of a sewer system expansion necessary to serve properties on septic tanks, but the grants did not include funding to cover the costs of connecting existing properties to the new sewer system. To assist property owners with the financial burden associated with the costs to connect to the sewer expansion project, the special non-ad valorem assessments have been proposed to fund the costs of connection to the City’s sewer expansion project and related expenses that will provide the properties within the proposed Assessment Area with central wastewater collection services. The assessment for each parcel of property will be based upon the number of “ERUs” on the parcel. Each tax parcel will be assigned these assessment units in accordance with the City’s standard utility policies and procedures. A more specific description is set forth in the Initial Assessment Resolution adopted by the City Commission on July 21, 2026. Copies of the Initial Assessment Resolution and the preliminary assessment roll are available for inspection in the Office of the City Clerk located at 1 N. Bluford Avenue, Ocoee, Florida . Information relating to the assessment for the above Tax Parcel is included on the last page of this notice . The City has elected to reduce the financial impact by providing a ten (10) year internal loan to the real property owners to allow financing for their share of the Project B-3 Cost for connection. Based on current market conditions, t he City has decided that the maximum interest rate that will be charged is 3% per year, based on its expectation with respect to the average investment rate and the availability of funds over the term of the Assessment. The total assessment revenue to be collected within the Septic-to-Sewer Assessment Area is estimated to be $195,250. The annual assessment will include your share of the connection costs, interest, collection costs, administrative costs, and the amount Florida law requires the City to discount receipts for its annual budget. The assessments will be collected on the ad valorem tax bill, as authorized by Section 197.3632, Florida Statutes. Failure to pay the assessments will cause a tax certificate to be issued against the property which may result in a loss of title. The City Commission intends to collect the assessments in ten (10) annual assessments, the first of which will be included on the ad valorem tax bill to be mailed in November 2026. If allowed by the City, future annual assessments may be prepaid in whole at the option of the property owner. The City Commission will hold a public hearing at 6:15 P.M., or as soon thereafter as the matter can be heard, on September 1, 2026, in the City Commission Chambers, 1 N. Bluford Avenue, Ocoee, Florida, for the purpose of receiving comments on the proposed assessments, including collection on the ad valorem tax bill. You are invited to attend and participate in the public hearing or to file written objections with the City Commission prior to or during the hearing. If you decide to appeal any decision made by the City Commission with respect to any matter considered at the hearing, you will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, if you need a special accommodation or an interpreter to participate in this proceeding, please contact the City Clerk at (407) 905-3105 at least forty-eight (48) hours prior to the date of the hearing. Unless proper steps are initiated in a court of competent jurisdiction to secure relief within 20 days from the date of City Commission action at the above hearing (including the method of apportionment, the rate of assessment, and the imposition of assessments), such action shall be the final adjudication of the issues presented. Questions regarding your assessment and the process for collection may be directed to the Utility Director at (407) 905-3170. B-4 * * * * * SEND NO MONEY NOW. THIS IS NOT AN INVOICE * * * * * SEPTIC-TO-SEWER ASSESSMENT AREA [Property Owner Name] Parcel Control Number [Insert Number] Total number of ERUs attributed to property: [Insert Number] Initial prepayment amount (excludes financing cost): [Insert Amount] Adjusted prepayment amount (includes financing cost): [Insert Amount] Number of annual payments: 10 Maximum annual payment: [Insert Amount] Expected date of first bill: November 2026 Total amount of annual payments: [Insert Amount] Expected date of last bill: November 2035 _____________________________ * * * * * SEND NO MONEY NOW. THIS IS NOT AN INVOICE * * * * * APPENDIX C DESCRIPTION OF TAX PARCELS LOCATED IN THE SEPTIC-TO-SEWER ASSESSMENT AREA C-1 SEPTIC-TO-SEWER ASSESSMENT AREA PID# Address 17-22-28-6144-04-393 1 E Columbus St 17-22-28-6144-03-491 12 Floral St 17-22-28-6144-02-055 126 N Bluford Ave 18-22-28-4100-00-152 325 N Cumberland Ave 18-22-28-4100-00-153 327 N Cumberland Ave 17-22-28-6144-04-433 650 S Bluford Ave 17-22-28-6144-03-430 102 S Cumberland Ave 18-22-28-0744-00-070 117 S Cumberland Ave 17-22-28-6144-03-302 14 S Cumberland Ave 17-22-28-6144-03-450 17 Sills Aly 17-22-28-6144-03-460 5 Sills Aly 17-22-28-6144-03-340 116 W McKey St 17-22-28-6144-03-160 123 W McKey St 17-22-28-6144-03-273 14 W McKey St 17-22-28-6144-03-470 2 W McKey St 17-22-28-6144-03-280 26 W McKey St 17-22-28-6144-03-271 6 W McKey St 17-22-28-2873-00-030 109 W Oakland Ave 17-22-28-6144-03-050 18 W Oakland Ave