Establishing Stormwater Management Utility Rates for Fiscal Year 2026THE C
DUUB__*___TE_E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: April 22, 2025
SUBJECT: Stormwater Management Utility Fee Rate Change
Dubuque
All -America City
2007.2012-2013
2017*2019
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 2026 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. Beginning with 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.
The Stormwater Utility was formed on July 1, 2003, to update and expand the City's
aging infrastructure, comply with the National Pollution Discharge Elimination System
(NPDES) Municipal Separate Storm Sewer System (MS4) permit, and implement the
various elements of the 2001 Drainage Basin Master Plan Stormwater Management
Plan (amended in 2013), which outlined improvements in both the Catfish Creek and
Bee Branch watersheds. The flood mitigation improvements in the Catfish Creek
Watershed have been completed. The improvements in the Bee Branch Watershed are
part of the multi -phased, fiscally responsible, holistic Bee Branch Watershed Flood
Mitigation Project which will mitigate flooding, improve water quality, stimulate
investment, and enhance the quality of life. The City's has been able to garner support
from local, state, and federal partners with over $169 million in outside funding to help
offset the cost of the overall $250 million project. Since 2001, the City has made steady
progress on the various phases of the project.
The phases of the Bee Branch Watershed Flood Mitigation Project are as follows:
Page 227 of 241
Phase Description
Status
1�
Carter Road Detention Basin
Complete
0
West 32nd Street Detention Basin
Complete
3�
Historic Millwork District
Complete
®
Lower Bee Branch Creek Restoration
Complete
0
6
Flood Mitigation Gate & Pump Replacement
Impervious Surface Reduction
Under Contract
1/3 of alleys converted to "Green
Alleys"
7
Upper Bee Branch Creek
Restoration/Railroad Culverts
Complete
p
22nd Street Storm Sewer Improvements
Complete from Elm Street to N.
Main
0
Flood Mitigation Maintenance Facility
Site Cleanup/Preparation
10
North End Storm Sewer Improvements
Initiate Design in 2028
11
Water Plant Flood Protection
Initiate Design in 2024
12
R
17th Street Storm Sewer Improvements
Complete from Elm St. to Heeb
St.
Each of the 12 phases provides some incremental benefit. But the risk of flash flooding
remains until all improvements are implemented. But it is also true that with the
completion of each subsequent phase, the threat of flash flood damage is lessened, and
the resulting damage will be mitigated. When complete, it is expected to prevent an
estimated $582 million in damage over its 100-year design life.
The City has been able to provide stormwater management services within the rate
structure established by Ordinance 16-14.
DISCUSSION
The recommended Fiscal Year 2026-2030 Capital Improvement Program Budget also
includes $13,696,697 for the $28.4 million Flood Mitigation Gate & Pump Replacement
Project (Phase 5 of the Bee Branch Watershed Flood Mitigation Project). The funding
for the project comes from multiple sources, including $16,390,000 in state and federal
grants and $8,254,445 in state sales tax increment funding through the State Flood
Mitigation Program. The funding for the project is as follows:
Page 228 of 241
Fund Description
Fund Amount
Federal EDA Grant
$ 7,700,000
FEMA Grant (Federal)
7,900,000
FEMA Grant (State)
790,000
State Sales Tax Increment
8,254,445
Stormwater User Fees
1,664,964
DRA Distribution
784,052
State Revolving Fund (SRF) Loan
1,452,643
Total Project Funding
$ 28,546,104
The recommended Fiscal Year 2026-2030 Capital Improvement Program Budget also
includes $3,556,000 for construction in Fiscal Year 2028 for the Flood Control
Maintenance Facility as part of the Bee Branch Creek Restoration Project (Phase 9 of
the Bee Branch Watershed Flood Mitigation Project). Additional funding was provided
for the project design in the Fiscal Years 2025 Capital Improvement Program Budget.
In addition, the recommended Fiscal Year 2026-2030 Capital Improvement Program
Budget includes $1,120,000 for the North End Storm Sewer Improvements as part of
the Bee Branch Creek Restoration Project (Phase 10 of the Bee Branch Watershed
Flood Mitigation Project).
Fiscal Year 2026 will be the nineteenth fiscal year that the Stormwater Fund is
recommended to be fully funded by stormwater user fees. The General Fund will
continue to provide funding for the stormwater fee subsidies that provide a 50% subsidy
for the stormwater fee charged to property tax exempt properties, low -to -moderate
income residents, and a 75% subsidy for the stormwater fee charged to residential
farms. The FY 2026 Stormwater User Fee is proposed to increase from $10.50 per SFU
to $11.03 per SFU, a 5.00% increase.
Rate Per
Single Family
Unit (SFU)
Fiscal Year 2021 - Adopted Per Ordinance 21-20
$8.29
Fiscal Year 2022 - Adopted Per Ordinance 10-21
$8.85
Fiscal Year 2023 - Adopted Per Ordinance 13-22
$9.00
Fiscal Year 2024 - Adopted Per Ordinance 14-23
$10.00
Fiscal Year 2025 - Adopted Per Ordinance 14-24
$10.50
Page 229 of 241
Fiscal Year 2026 - Recommended 1 $11.03
RECOMMENDATION
I recommend amending the City Code of Ordinances to establish the Stormwater Utility
Fee rate for FY26 at $11.03.
BUDGET IMPACT
The proposed rate increases to $11.03 per month for the average homeowner in FY26.
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
$11.03 starting July 1, 2025.
cc: Jenny Larson, Chief Financial Officer
Crenna Brumwell, City Attorney
Max O'Brien, PE, Civil Engineer II
Page 230 of 241
Prepared by Gus Psihoyos City Engineer, 50 W. 13'h 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. 14-25
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 $11.03 per SFU.
Section 2. This Ordinance shall take effect on the 1st day of July, 2025.
Passed, approved and adopted this 28th day of April 2025.
�--B ad M. � ; anagh, Mayor
Attest:
ti�z�, &�'41 o
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:
05/07/2025
and for which the charge is 12.41
Subscribed to before me, a Notary Pu is in and for
Dubuque County, Iowa,
this 7th day of May, 2025
Notary 'mac in and for Dubuque County, Iowa.
�rptn/. 8c JANET K. PAPE
o Commission Number 199659
z r My Commission Expires
io W a 12/11 /2025
Ad text :
CITY OF DUBUQUE
OFFICIAL PUBLICATION
ORDINANCE NO. 14-25
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 $11.03 per SFU.
Section 2. This Ordinance shall take effect on the 1st day
of July, 2025.
Passed, approved and adopted this 28th day of April 2025.
/s/Brad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, City Clerk
Published officially in the Telegraph Herald newspaper on
the 7th day of May, 2025.
/s/Adrienne N. Breitfelder, City Clerk
It 5/7