Establishing Stormwater Management Utility Rates for Fiscal Copyrighted
April 28, 2026
City of Dubuque ACTION # 4.
City Council
ITEM TITLE: Establishing Stormwater Management Utility Rates for Fiscal
Year 2027
SUMMARY: City Manager recommending City Council adopt the
ordinance establishing stormwater management utility rates
for Fiscal Year 2027.
ORDINANCE Amending City of Dubuque Code of
Ordinances Section 13-4-5 (D) SFU Rate, Charges; Utility
Revenues
SUGGUESTED Receive and File; Motion B; Motion A
DISPOSITION:
ATTACHMENTS:
1. 2026-4-24 FY27 Recommend Storm Utility Rate Change - GNP Approval Memo to
City Manager
2. Ordinance_FY2027_Stormwater Utility_Adjustment
Page 614 of 654
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: April 24, 2026
SUBJECT: Fiscal Year 2027 Recommended Stormwater Management Utility Fee
Rate Change
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 2027 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 615 of 654
Phase Description Status
1 Carter Road Detention Basin Complete
2 West 32nd Street Detention Basin Complete
3 Historic Millwork District Complete
4 Lower Bee Branch Creek Restoration Complete
5 Flood Mitigation Gate & Pump Replacement Under Contract
6 Impervious Surface Reduction 1/3 of alleys converted to
"Green Alle s"
7 Upper Bee Branch Creek Restoration Com lete
Railroad Culverts p
8 22nd Street Storm Sewer Improvements Complete from Elm Street to
N. Main
9 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
12A 17th Street Storm Sewer Improvements Complete from Elm St. to
Heeb St.
12B 17t" Street/ W. Locust Street Reconstruction Complete Design in 2026,
Construct in 2027
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 2027-2031 Capital Improvement Program Budget
includes an additional $5,121,112 for the Flood Mitigation Gate and Pump Replacement,
a key component of the Bee Branch Creek Restoration Project (Phase 5 of the Bee
Branch Watershed Flood Mitigation Project). Combined with funding allocated in prior
fiscal years (FY24-FY26), the total project investment is $28,456,106.
The recommended Fiscal Year 2027-2031 Capital Improvement Program Budget
includes $12,275,000 shared across four funding sources to complete final design work
in Fiscal Year 2027 and begin construction in Fiscal Year 2028 for the 17th/W. Locust
Street Reconstruction Project, part of the Bee Branch Creek Restoration Project (Phase
12B of the Bee Branch Watershed Flood Mitigation Project). Design for this project
was largely completed in the late 2010s and early 2020s, but progress was paused due
to funding challenges during the COVID-19 pandemic.
Page 616 of 654
Fiscal Year 2027 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
2027 Stormwater User Fee is proposed to increase from $11.03 per SFU to $12.02 per
SFU, a 9.00% 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
Fiscal Year 2026 - Adopted Per Ordinance 14-25 $11.03
Fiscal Year 2027 - Recommended $12.02
RECOMMENDATION
I recommend amending the City Code of Ordinances to establish the Stormwater Utility
Fee rate for FY27 at $12.02.
BUDGET IMPACT
The proposed rate increases to $12.02 per month for the average homeowner in FY27.
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
$12.02 starting July 1, 2026.
cc: Jenny Larson, Chief Financial Officer
Laura Bendorf, Budget Manager
Crenna Brumwell, City Attorney
Robert Schiesl, Assistant City Engineer
Page 617 of 654
ORDINANCE NO. 18-26
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
hereby amended to read as follows:
(D) The SFU rate to be applied to residential and nonresidential properties
shall be $12.02 per SFU.
Section 2. This Ordinance shall take effect on the 1st day of July, 2026.
Passed, approved and adopted this 28th day of April 2026.
Brad M. C.v:''�g , ayor
Attest:
Trish L. Gleason, Assistant City Clerk