Orange County advances stormwater utility fee to plug $55m funding gap

Orange County advances stormwater utility fee to plug $55m funding gapFacing stricter state water quality regulations and aging infrastructure, Orange County commissioners have approved the next phase of community outreach for a proposed tiered stormwater fee to reach a Level of Service B target.

The county's current $50 million stormwater program faces a $55 million annual deficit to hit its targeted Level of Service B for capital projects over a 25-year implementation period.

Regulatory pressures, including revised NPDES permits and increased Basin Management Action Plan (BMAP) requirements, are driving the need for new water quality investments.

The proposed fee would use a three-tier structure based on residential impervious surface area, with full implementation potentially costing residents up to $19 per month.

Commissioners unanimously approved moving forward with community outreach in May and June, ahead of a pivotal June 30 decision on Phase 3 implementation.

The board also awarded a $10.7 million contract to TLC Diversified for the Pine Hills Master Pump Station 3000.

Orange County, Florida, is moving closer to implementing a new stormwater utility fee as it grapples with a $55 million annual funding shortfall for essential capital projects. During a May 5 meeting, the Board of County Commissioners unanimously directed staff to proceed with community outreach for the proposed fee, paving the way for a potential final decision on implementation by late June. Julie Borders, a project manager from the utilities department's Fiscal and Operations Support Division, outlined the pressures straining the county's existing $50 million stormwater program. Recent state-level regulatory changes to the county's National Pollutant Discharge Elimination System (NPDES) permit will require additional inspection and reporting for all structures. Furthermore, increased requirements under Basin Management Action Plans (BMAPs)—particularly for local springs—mandate additional capital projects to reduce pollutant loads. Currently, the county's capital program for stormwater sits at roughly $11 million annually. To reach the board's previously identified goal of "Level of Service B"—a 25-year phased implementation of projects—the county requires an additional $55 million per year. The proposed utility fee structure would classify residential properties into three tiers based on impervious surface area. Under the maximum modeled scenario, which funds both the existing program and the capital improvements needed for Level of Service B, the fee would reach approximately $19 per month. A credit policy is also under development, which would offer reductions for properties that already pay into a Municipal Service Benefit Unit (MSBU) or utilize on-site treatment and low-impact development to reduce runoff to the stormwater system. The proposal arrives amid broader financial and political tensions. Several commissioners expressed concern over the burden a new fee would place on residents, particularly given the county's high volume of tourists. One commissioner argued that the county should continue lobbying the state legislature to allow Tourist Development Tax revenues to be used for destination infrastructure, noting that 75 million annual tourists contribute to the strain on the county's systems. Despite concerns over costs, commissioners acknowledged the critical need for flood mitigation and water management, particularly in older neighborhoods built prior to modern stormwater rules. The board approved moving forward with community meetings in May and June to gather public feedback on project priorities, the fairness of the tiering system, and willingness to pay. Staff will return to the board on June 30 to present the Phase 2 report and seek direction on drafting ordinance revisions for a targeted October public hearing. In separate water infrastructure business, the board unanimously approved two major wastewater contracts via its consent agenda. TLC Diversified, Inc. was awarded a $10.7 million contract for the Pine Hills Master Pump Station 3000 project, while Metro Equipment Service, Inc. secured a $2.2 million contract for the Hunters Creek Boulevard Manhole Replacements project.