TO: Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
Nancy A. Bunt, Assistant County Administrator
Addie Javed, P.E., Public Works Director
FROM: Adam Heltemes, P.E., Roadway Production Manager
DATE: May 9, 2025
SUBJECT: Consideration of a Resolution Electing to Use the Uniform Method for the Levy, Collection and Enforcement of Non-Ad Valorem Assessments for Street Paving in the Oslo Park Area
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BACKGROUND
In response to the Board’s October 19, 2021 directive, staff initiated the process for establishing a Municipal Service Benefit Unit (MSBU) in Oslo Park. Although initially deferred in June 2022, the Board revived the initiative in December 2022. An original estimate of $398 per parcel was revised to $500 per parcel in light of increased construction costs and the desire to expedite improvements. However, former staff never completed any design and engineering to fully understand the actual cost for both the County and community. The total revenue goal was $5 million, representing 25% County participation via the Secondary Roads Fund.
The BoCC on May 16, 2023, denied a draft ordinance and instructed staff to pursue a design-first approach, and attempt to secure 67% resident approval. Subsequently, Carter Associates, Inc. was contracted to provide project survey, design, and cost estimates. The engineering concept included lane paving, shoulders, drainage swales, and a culvert system. Due to adjacent canal hazards, 13th Street SW was excluded.
In September 2024, the estimated cost was submitted at $14.75 million (including contingencies and inflation). This results in an updated assessment of $1,640 per year per parcel for 20 years.
Two outreach meetings and voting opportunities were provided. The residents were also asked the question if they would wish to revisit the project if additional funding could be found. The meetings occurred on December 2, 2024, and April 7, 2025. Only 55 out of 500 owners responded. While 22 supported the current plan, 32 were against the project, and 49 expressed willingness to reconsider if costs were reduced. Resident feedback reflects a strong desire for road and drainage improvements but equally strong opposition to the increased financial burden on a largely low-income population, with many citing affordability concerns and distrust due to prior unfulfilled commitments.
ANALYSIS
The Board may consider and vote in favor of the assessment. However, pursuant to Florida Statutes, notice must be provided by first-class mail to each person owning property subject to the assessment. Additionally, statutes require notice by publication in a newspaper generally circulated within Indian River County will be required. At the public hearing, the Board receives written objections and hears testimony from all interested people.
The draft ordinance will establish the Oslo Park Street Paving District MSBU area with a rough boundary of 11th Street SW to 13th Street SW and 17th Avenue SW to 9th Court SW. The Board would also need to discuss whether to include residents with access to 13th Street SW (which will remain unpaved) and those with access to 11th Street SW (currently paved). As noted in the Background above, the proposed assessment would now be $1,640 per year for twenty years, which would be used to pave all the unpaved roads and construct associated drainage improvements within the MSBU. The draft ordinance would also amend section 200.11 (Street paving) of the Indian River County Code of Ordinances to update the Code to reflect the Oslo Park Street Paving District MSBU.
Alternatively, based on resident concerns over the cost of the project, and the associated annual MSBU assessment, and the inability to secure 67% support for the current project, the Board may vote to close out this project and not proceed forward with the MSBU assessment.
BUDGETARY IMPACT
If the ordinance was to move forward and be approved by the Board as per previous discussion, the cost to the county would be roughly 25% of the $14.75 million ($3.69 million). The remaining $11.06 million would be funded by parcel assessments.
PREVIOUS BOARD ACTIONS
On October 19, 2021, the Indian River County Board of County Commissioners (“Board”) voted to direct the County Attorney and Public Works Director to initiate the process of creating a Municipal Service Benefit Unit (“MSBU”) for a specified area of the Oslo Park to raise funds for future road paving projects. The Public Works Department and the County Attorney’s Office worked together to prepare the proper documents to establish the MSBU for the 500 residential properties in the specified area. The Board considered establishing the MSBU last year, but due to the expected timing of the project, on June 7, 2022, the Board deferred acting.
On December 13, 2022, the Board voted to move forward with initiating the assessment process this year, which would allow for assessments to be collected on the tax bills that will go out in the fall of 2023. In preparation for this public hearing, County staff sent letters to the owners within the proposed MSBU area stating that although it was initially proposed last year that the amount to be levied per parcel would be $398.00 per year for 20 years, the revised amount to be levied per parcel was $500.00 per year for 20 years. The letter indicated that the increase would assist in addressing the desire to accelerate the timing of the improvements and increases in construction costs. The total revenue projected to be collected was $5 million. This proposed assessment is based upon a 25 percent contribution to the cost of construction from the County’s Secondary Roads Fund.
On May 16, 2023, the project and assessment were returned to the Board for approval. County Administrator John Titkanich along with other commissioners raised concerns regarding the $500 per year amount, as the project had not been designed or formally estimated. He suggested pausing this project and pursuing the assessment for paving under a different methodology. Administrator Titkanich proposed staff should be directed to secure the design, engineering, and preliminary estimates; staff would also contact affected residents to try and gather the required 67 percent approval. A motion was made by Commissioner Loar, seconded by Chairman Earman, to deny approval of the draft Ordinance and to pause the existing plan to pave streets in Oslo Park until staff could have the project designed, estimated, and approved by a majority of the residents. The motion was carried.
POTENTIAL FUTURE BOARD ACTIONS
If the Board considers the assessment a Public Hearing is required.
STRATEGIC PLAN ALIGNMENT
Supports Infrastructure and Growth Management Goal. Enhances neighborhood infrastructure, stormwater management, and public safety in underserved areas.
OTHER PLAN ALIGNMENT
Consistent with the Indian River County Comprehensive Plan - Transportation and Public Facilities Elements. Aligns with goals to provide safe, efficient infrastructure and mitigate flooding risks in vulnerable communities.
STAFF RECOMMENDATION
Recommended Action
The Public Works Department recommends that the Board discuss the resolution and vote to either close out the previous MSBU Paving initiative or to schedule a Public Hearing to approve staff to begin a special assessment project under Chapter 206 of the Indian River County Ordinance Code.