Establishing Stormwater Management Utility Fee Rates under City of Dubuque Code of Ordinances for Fiscal Year 2024Copyrighted
March 23, 2023
City of Dubuque
Special Meeting Action Items # 04.
IT E M T I T L E:Establishing Stormwater Management Utility Fee Rates under City of
Dubuque Code of Ordinances for Fiscal Year 2024
S UM M ARY:O RD I NANC E A mending City of Dubuque Code of Ordinances Section
13-4-5 (D) S F U Rate, Charges; Utility Revenues
S UG G E S T E D
D I S P O S I T I O N:
Suggested Disposition: Receive and F ile; Motion B; Motion A
AT TAC H ME N TS:
Description Type
Staff Memo Staff Memo
Ordinance Ordinance
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Stormwater Management Utility Fee Rate Change
DATE: March 20, 2023
INTRODUCTION
The purpose of this memo is to outline a recommendation to modify Section 13-4-5 (D)
of the Code of Ordinances, thereby adjusting the stormwater utility fee rate as proposed
with the Fiscal Year 2024 budget.
BACKGROUND
In February of 2003, Ordinance 7-03 was passed establishing a Stormwater Management
Utility and established the associated user fee. Even after establishing the stormwater
utility fee, stormwater management activities were funded from several sources: 15%
from the stormwater utility fee, 22% from property taxes, 5% from sales tax, and 58%
from DRA distribution funds. Since the adoption of the FY2009 budget, the Stormwater
Management Utility has been a self-supporting enterprise fund – all stormwater
management activities have been funded exclusively by the stormwater management
utility and permit fees.
In March of 2012, the City Council adopted Ordinance 21 -12, establishing that the
Stormwater Management Utility Rate for a single-family home would increase to $9.00 on
July 1, 2016.
In March of 2014, the City Council adopted Ordinance 16 -14 establishing that the
Stormwater Management Utility Rate for a single-family home would not increase to $9.00
until July 1, 2021.
In June of 2020, in response to the economic uncertainty associated with the COVID -19
pandemic, the City Council adopted Ordinance 21-20 establishing that the rate would not
increase in FY21.
In March of 2021, the City Council adopted Ordinance 10-21 establishing the Stormwater
Management Utility Rate at $8.85 for a single-family home for FY22.
In March of 2022, the City Council adopted Ordinance 13-22 establishing the Stormwater
Management Utility Rate at $9.00 for a single-family home.
DISCUSSION
To fund the operational and capital costs of the public stormwater management system,
including improvements such as the Bee Branch Creek Restoration Project, the City
Council adopted Ordinance 21-12 which established that the stormwater utility fee would
increase to $9.00 per month on July 1, 2016. Subsequently, the Iowa General Assembly
created the Flood Mitigation Program which provides funding for flood mitigation projects
undertaken by approved local governments such as the City of Dubuque. Managed by
the Iowa Flood Mitigation Board, the funding source involves taking a portion of the
incremental growth of State sales tax revenue collected within a city and diverting from
the State General Fund to the approved city for a flood mitigation project. Having updated
the Drainage Basin Master Plan in the fall of 2013, which outlined the improvements
associated with the 12-phase Bee Branch Watershed Flood Mitigation Project, the City
was successful in securing $98.5 million in State sales tax increment funding. With the
infusion of funding, the City Council adopted Ordinance 16 -14 in March of 2014
establishing that the stormwater utility fee would not reach $9.00 per month until July 1,
2021 – five years later than previously scheduled.
The City was able to provide stormwater management services each fiscal year thereafter
within the rate structure established by Ordinance 16-14. Due to the uncertain economic
impacts of the current COVID-19 pandemic, the rate structure was reconsidered for Fiscal
Year 2021. With some adjustments to planned Capital Improvement Program projects,
reducing some budgets and delaying others, the planned increase for FY21 was delayed
such that the rate did not reach $9.00 per month until FY23, seven years later than
previously scheduled.
The FY24 CIP Budget provides $3.9 million in additional funding for the Bee Branch Gate
& Pump Replacement Project (Phase V of the Bee Branch Watershed Flood Mitigation
Project). The project would provide for the replacement of the flood gates and pumping
station that function as part of the John C. Culver Floodwall/Levee system that prevents
the Mississippi from flooding the Bee Branch Watershed. The planned improvements
include replacement of the existing flood gates and the installation of a secondary gate,
removing the existing pumps that have been in service for more than 50 years – before
completion of the floodwall/levee system circa 1970 – and replacing them with pumps
with twice the pumping capacity, replacement of the electrical service to the pump station,
and the installation of an additional back-up generator. The project improvements will
provide a system that can accommodate the flooding that has been occurring since 1999,
flooding that has resulted in six presidential disaster declarations due to public and private
property damage, flooding that has impacted m ore than 1,300 homes and businesses. It
will also provide for additional resiliency options as rainstorms increase in both depth and
intensity. To fund the flood mitigation improvements, the City secured $2.5 million in U.S.
Economic Development Administration (EDA) grant funding. In addition, State sales tax
increment funds are also to be used. But the economic downturn associated with the
COVID-19 pandemic resulted in the City receiving $1.5 million less in State sales tax
funding than scheduled. And the recent inflationary costs associated with construction
materials and labor have increased the anticipated cost to build the improvements.
Therefore, a $2.6 million State Revolving Fund (SRF) loan is planned along with a $1.4
million DRA distribution in the FY23 budget. However, when the City took bids in the
spring of 2022, the low bid was $24,650,000, 56% over the estimate/budget. The City is
exploring two ways to move forward, an alternative design involving a smaller, auxiliary
pump station that would augment the existing facility and the potential for additional
funding opportunities with state and federal partners.
The proposed rate for FY24 would involve an increase from $9.00 to $10.00 per month
for the average homeowner. Table 1 compares the rates adopted in 2012, 2014, 2020,
and 2021 to the rate proposed with the FY 2024 budget.
Table 1. Proposed FY24 Stormwater Management Utility Fee rate compared to rates adopted with previous
budgets.
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Adopted Per
Ordinance 21-12 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00
Adopted Per
Ordinance 16-14 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 $9.00 $9.00
Adopted Per
Ordinance 21-20 $— $— $— $— $8.29 $8.29 $8.29 $8.29
Adopted Per
Ordinance 10-21 $— $— $— $— $— $8.85 $8.85 $8.85
Adopted Per
Ordinance 13-22 $— $— $— $— $— $— $9.00 $9.00
FY 2024 Proposed $— $— $— $— $— $— $— $10.00
% Change From
Ordinance 21-12 -24.33% -19.22% -13.78% -7.89% -7.89% -1.67% 0.00% +11.11%
RECOMMENDATION
I recommend amending the City Code of Ordinances to establish the Stormwater Utility
Fee rate for FY24 at $10.00.
BUDGET IMPACT
The proposed rate change to $10.00 per month for the average homeowner in FY24.
ACTION TO BE TAKEN
I respectfully request passing the attached ordinance amending Section 13-4-5 (D) of the
City Code of Ordinances to establish the stormwater management utility fee rate at
$10.00 starting July 1, 2023.
Attach.
Prepared by Deron Muehring
cc: Jenny Larson, Chief Financial Officer
Crenna Brumwell, City Attorney
Deron Muehring, Civil Engineer
Prepared by Gus Psihoyos City Engineer, 50 W. 13`" St Dubuque IA 52001 (563) 589-4276
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100
ORDINANCE NO. 14-23
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 13-4-5 (D)
SFU RATE, CHARGES; UTILITY REVENUES
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That City of Dubuque Code of Ordinances Section 13-4-5 is
amended to read as follows:
(D) The SFU rate to be applied to residential and nonresidential properties
shall be $10.00 per SFU.
Section 2. This Ordinance shall take effect on the 1st day of July, 2023.
Passed, approved and adopted this 23rd day of March 2023.
'Egad-M. C v' g
Attest: h, Mayor
Adrienne Breitfelder, CMC, City Clerk
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF' PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/ 11/2023
and for which the charge is 11.85
Subscribed to before me, a Notary Public in and for
Dubuque County, Iowa,
this 1 lth day of April, 2023
Notary
R
ub c in and for Dubuque oun
lR,, a JANET K. PAPE
o Y Commission Number 199859
z ' My Commission Expires
1211112025
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Iowa.
Ad text :
CITY OF DUBUQUE
OFFICIAL PUBLICATION
ORDINANCE NO. 14-23
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 13-4-5
(D) SFU RATE, CHARGES; UTILITY REVENUES
NOW, THEREFORE, BE IT ORDAINED BY THF, CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That City of Dubuque Code of Ordinances Section
13-4-5 is amended to read as follows:
(D)"The SFU rate to be applied to residential and
nonresidential properties shall be $10.00 per SFU.
Section 2. This Ordinance shall take effect on the 1st day
of July, 2023.
Passed, approved and adopted this 23rd day of March 2023.
/s/Brad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, CMC, City Clerk
Published officially in the Telegraph Herald newspaper on
the l lth day of April, 2023.
/s/Adrienne N. Breitfelder, City Clerk
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