Deltona raises stormwater assessment to plug deficit, eyes $14.5m debt issuance for CIP

Deltona raises stormwater assessment to plug deficit, eyes $14.5m debt issuance for CIPThe Florida municipality is hiking its annual stormwater fee from $190 to $210 as it relies heavily on general fund transfers to support operations, with almost $18 million in capital projects on the horizon.

The city's stormwater assessment will rise to $210, marking the third year of a five-year plan to reach $250 per equivalent residential unit.

Deltona's general fund is currently subsidizing stormwater operations by nearly $2 million.

Staff highlighted almost $18 million in needed stormwater capital projects, which would require a $14.5 million debt issuance to complete.

The city will suspend the Lake McGarity annual assessment, utilizing $103,000 in existing fund balances to cover the next decade of maintenance.

Separately, updated water and wastewater rates are confirmed to take effect on October 1, 2026.

During a June 22, 2026, special commission meeting, the City of Deltona, Florida, reviewed its upcoming fiscal year 2026-2027 budget, zeroing in on a structural deficit in its stormwater enterprise and the need for significant debt to fund upcoming capital improvements. As part of a previously approved five-year rate trajectory, the city will increase its annual stormwater assessment from $190 to $210 per equivalent residential unit (ERU). The phased increases stem from a stormwater feasibility study completed two years ago, which recommended gradually raising the assessment to $250 to achieve full cost recovery. Currently, the utility's revenues fall short of its operational and capital needs. A staff member noted that the city's general fund is heavily subsidizing the stormwater system, transferring close to $2 million in the current year to support ongoing projects. The proposed stormwater budget for the upcoming fiscal year sits at $6.7 million, a slight decrease from the current year's $7.4 million, reflecting a temporary dip in near-term capital outlay. However, the city faces a backlog of infrastructure needs. Staff pointed to a recent Capital Improvement Plan (CIP) workshop that identified nearly $18 million in necessary stormwater projects. To execute this pipeline, Deltona will need to secure a $14.5 million debt issuance, adding to its current annual debt service obligations of approximately $572,000. In a related water management move, staff recommended suspending the Lake McGarity annual assessment. The specific fund currently holds $103,000 in reserves from maintenance and administrative fees, which officials estimate will cover lake maintenance costs for the next 10 to 15 years. Additionally, officials confirmed that new, previously adopted water and wastewater rates are slated to go into effect on October 1, 2026. Staff noted that broader macroeconomic factors, including volatile fuel prices, continue to heavily impact operational costs across the city's water, sewer, and stormwater departments, necessitating regular rate studies every two to four years.