The commission first examined the option of retaining control over the Eastern utility, which would maintain service levels and ensure existing developer agreements remain intact. This path offers the city a balanced budget and the ability to plan for future growth, particularly since the Eastern utility system is identified as a key area for development. However, this option also presents risks, such as the need for additional capital from other city revenue streams if the customer base were to shrink. The synergies between the Eastern and city systems, particularly in reclaimed water discharge, add another layer of complexity.

Selling the utility to a private investor could yield an upfront payment between $1 million and $5 million, but would relinquish city control over rates and service levels, potentially leading to public discontent and affecting growth in the Eastern area. The valuation of the utility, complicated by developer contributions, poses additional challenges in determining a fair market price.

The public-to-public transaction, while offering a financial influx, would likely increase rates for Eastern customers to cover any cash received by the city. Discussions also suggested the formation of a special utility district to govern the Eastern customer base, potentially eliminating the current 25% surcharge and allowing greater control over pricing, though this would involve negotiating complex reclaimed water disposal agreements.

The meeting shed light on the operational and financial risks of each option, with the commission expressing the need for comprehensive analysis to guide future decisions.

In another significant topic, the commission examined residential water and sewer rate structures, particularly the 25% surcharge for customers outside city limits. With utility revenue between $24 million and $28 million, the surcharge affects $948,000, representing a small fraction of the total rate revenue. The potential loss of this surcharge seemed unlikely, minimizing immediate impacts on the city’s financial standing. However, the commission acknowledged that the surcharge does not fully cover the costs of providing these services, prompting a proposal for a uniform rate without a surcharge, leading to a slight increase for non-city customers and a decrease for city residents.

The commission also discussed the implications of divesting the Eastern Utility in terms of staffing and general fund transfers. A examination revealed that only one full-time equivalent position would be eliminated, with remaining staff required to manage the city customer base. The general fund transfer of $2.3 million would likely remain unchanged, though divestment could necessitate budget rebalancing and potential rate increases for remaining customers.

As the meeting progressed, discussion turned to the possibility of creating a special utility district to allow for more flexible rate adjustments. This district could facilitate fair pricing and redirect funds into city initiatives such as park development or city hall construction. The commission recognized the complexities of establishing such a district, emphasizing the need for careful consideration of operational agreements to maintain effective management of the utility system.

The commission further debated the proposal to allow backyard chickens within city limits. The proposed ordinance would require permits ranging from $25 to $75, with specific conditions for coop size, location, and maintenance to ensure compliance and minimize community impact. The commission considered a pilot program to assess community response, with the potential to issue 15 permits over two years and allow a maximum of five chickens per permit.

In addition to these discussions, the commission recognized local achievements, including a proclamation honoring Dr. William Hawkins Jr. for his 46 years of service at Gethsemane Missionary Baptist Church. The Future Business Leaders of America chapter at Eustis High School also received recognition for their contributions to the community, and plans for upcoming local events and initiatives were shared.