EUSTIS, Fla. – The floodwaters that swept through Spring Ridge Estates last fall have receded, and the damaged culvert has been restored. Nearly a year later, however, the financial fallout remains unresolved as homeowners wait to learn how much they may have to pay.
After severe flash flooding struck in October 2025, the City of Eustis used $676,747 from its General Fund to repair the privately owned culvert. City records show Eustis expects the Spring Ridge Estates Homeowners Association to repay the full cost of the work. The expense was included in the city budget along with an offsetting receivable from the HOA.
On Thursday night, city officials offered one of their clearest explanations so far of how that repayment plan could take shape.
Eustis City Attorney Taylor Tremel told commissioners that the HOA received a draft cost-recovery agreement in May. Turnover on the association’s board, along with questions raised by the HOA, has delayed progress, he said. City and HOA representatives have tentatively arranged another meeting for Sept. 22. The City of Eustis website lists Tremel as its current attorney.
Tremel said many of the association’s outstanding questions focus on how payments would be collected and credited to individual homeowners, ensuring residents are not charged more than their share.
One version of the proposed agreement calls for a seven-year repayment period averaging about $84 per month, Tremel said. Extending the schedule to 10 years could reduce the average payment to roughly $65 per month. He cautioned, however, that interest and other variables could affect the final amount.
Those estimates addressed a central question raised by residents who spoke with News 6 earlier Thursday.
‘What is it gonna cost us?’
Theodis “Theo” Bob has lived next to the culvert for nine years and has longstanding connections to Eustis. He told News 6 that he and his wife have called the city home for decades and previously served in city government.
For Bob, the night the floodwaters arrived remains a vivid memory.
He said rain continued pouring down, the culvert began giving way and emergency officials quickly converged on the neighborhood. Some neighbors across the culvert had to leave their homes for roughly two weeks after water service was shut off, he said.
Bob praised the city for its response, saying crews appeared to be working “night and day” until residents could return home.
Now, he said, the concern is different.
“Now the aftermath, what is it gonna cost us as residents, as citizens to repay?”
Bob said the HOA had been discussing the issue at meetings, but residents had not been given a final amount or individual payment figure.
“We haven’t been told as residents, ‘Here’s what the total number is and here’s your share.’”
Before Thursday night’s commission discussion publicly laid out the roughly $84- or $65-a-month examples, Bob told News 6 he feared the eventual expense could be far larger. He said a several-thousand-dollar assessment would be difficult for many families to absorb.
“It could be devastating,” Bob said, adding that any substantial unexpected expense would be difficult in the current economy.
Tremel specifically addressed concerns about larger figures during Thursday’s meeting, telling commissioners the draft agreement does not contemplate homeowners suddenly paying thousands of dollars each year.
Why Eustis paid to repair private infrastructure
The question of who pays stems from an extraordinary flooding event last October.
Eustis received more than 19 inches of rain within several hours, according to city officials interviewed by News 6 at the time. The culvert system serving Spring Ridge Estates later partially collapsed, and 20 homes were evacuated. City officials said additional deterioration threatened nearby city-owned utility lines.
The Spring Ridge culvert is privately owned by the HOA, according to city records. But on Nov. 6, commissioners authorized the city manager to procure the labor, materials, equipment and services necessary to stabilize the collapse and secure and restore city utility service. The authorization also contemplated a cost-recovery agreement requiring restoration costs to be reimbursed to Eustis.
At the time, Fire Chief Michael Swanson said the city’s immediate concern was protecting its utilities and getting displaced residents home before Thanksgiving. Earlier estimates placed the repair between $500,000 and $700,000. News 6 reported then that the city and HOA were negotiating reimbursement terms while insurance and possible state and federal assistance were also being explored.
By January, the final bill was known.
A Jan. 8 city budget amendment put the restoration cost at $676,747. The city engineer had reviewed and approved the invoice, and the city used General Fund balance to pay it. The same memorandum said the city expected to be reimbursed for the entire restoration cost after the cost-recovery agreement was executed.
Insurance denied; FEMA money not available
Thursday night’s discussion also closed off two potential sources of reimbursement.
Officials confirmed the HOA’s insurance claim was denied. Deputy City Manager Miranda Burroughs said the city also explored outside government funding but found there was no available recovery mechanism for the already-completed work.
Burroughs told commissioners the project did not qualify for FEMA funding, saying city staff had fully explored that option.
That leaves the city and HOA trying to work out repayment directly.
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Tremel also told commissioners that, according to the HOA’s attorney, the water management district is requiring certain improvements and money to be maintained in reserves. He said that obligation is one factor the HOA wants considered as it works through how much it can afford to pay toward the city at the same time. Tremel said he did not yet have details on the reserve requirements.
Another resident questions drainage and nearby development
For longtime Spring Ridge resident Barbara Hill, the repair bill is only part of the concern.
Hill, who said she has lived in the neighborhood since 2008, told News 6 she has watched drainage conditions around her property change over time. She believes nearby development may have affected the way water moves through the area.
Hill was careful to say she does not know what caused the culvert to collapse, but she questions whether the area’s broader drainage system is functioning the way it once did.
“I think part of it is Eustis’ fault,” Hill said, arguing that the city has allowed development without adequately considering infrastructure.
Her assertion about development causing or contributing to drainage changes has not been independently established.
During Thursday’s commission discussion, city officials said the repaired culvert is safe and complete and was restored to its original design. Tremel also noted the extraordinary nature of the storm, telling commissioners that stormwater systems are generally not designed for rainfall approaching the roughly 19 inches Eustis received during the event.
Hill nevertheless said she wants officials to explain what comes next for drainage around the neighborhood.
Asked what she wants the city or HOA to tell residents, Hill said she wants to know their plans for addressing what she still sees as problems in the area.
A special assessment remains possible
The voluntary cost-recovery agreement is not the city’s only option.
Tremel told commissioners that if an agreement cannot be worked out, Eustis could move toward a special assessment for the amount owed. He described that as a lengthier process and recommended allowing the Sept. 22 meeting to take place first.
Several commissioners expressed impatience with how long negotiations have taken.
One commissioner said the city acted immediately when residents needed help but felt the repayment process was now “stalling.” Another recommended allowing the Sept. 22 meeting to occur, then giving the HOA approximately 30 days to provide a firm answer. Commissioners also raised a broader concern: while they want to help residents of Spring Ridge Estates, the city is responsible for roughly 25,000 residents and needs to preserve resources for the next emergency.
No special assessment has been approved.
A city finance official told commissioners that if Eustis ultimately chooses that route and wants an assessment placed on the next property-tax bill, the city would need to complete a notice of intent and an intent resolution by Dec. 31.
The city attorney said the Sept. 22 meeting should take place before the commission’s next regular meeting, allowing staff to return with another update and recommend what should happen if talks fail.
What happens next
For now, the city has a final repair bill: $676,747.
It has an expectation: the HOA reimburses it.
And it now has a framework under discussion that could spread repayment across seven or 10 years rather than requiring residents to absorb a massive bill at once.
What it does not yet have is a finalized agreement.
News 6 reached out to the Spring Ridge Estates HOA seeking an interview and written answers about its position on the city’s reimbursement request, the denied insurance claim, how repayment would be funded and whether residents could face an assessment or higher dues. The HOA had not responded by publication.
That means the next significant date is Sept. 22, when city officials and representatives for Spring Ridge are expected to meet again.
For Bob, who watched city crews race to protect his neighborhood months ago, the tension is simple: he is grateful the city stepped in, but he wants residents to know what happens financially now.
“Here’s what the HOA owes the city,” Bob said he wants officials to clearly establish, followed by a fair repayment timeline.
Later in his interview, Bob summed up the mood more simply:
“We need answers.”
The culvert is repaired. The road is open. The remaining question is how the $676,747 financial obligation moves from the HOA’s books to actual payments — and what each Spring Ridge homeowner will ultimately be asked to contribute.
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