Stormwater Management Utility Fee Rate change
THE CITY OF Dubuque
DUB E "'
Mr~ster~iece on the Missi~s7~rpi
2007
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Stormwater Management Utility Fee Rate Change
DATE: February 25, 2008
INTRODUCTION
The purpose of this memo is to outline the Engineering staff's recommendation to modify
Section 44-274(d) of the Code of Ordinances, thereby modifying the stormwater utility fee
rate proposed with the Fiscal Year 2009 budget.
BACKGROUND
In February of 2003, Ordinance 7-03 was passed establishing a Stormwater Management
Utility and associated fee. At that time, the Stormwater Management Utility Fee helped
fund the administration of the Stormwater Utility, NPDES Compliance Program, Storm
Sewer Improvements/Extensions, Stream-bank Stabilization Assistance Program,
Detention Basin Maintenance, and Stormwater Ditch Maintenance & Remediation.
DISCUSSION
When the Stormwater Management Utility User Fee Fund was created in Fiscal Year
2004, stormwater management activities were funded from a number of sources, which
included general, sales tax, and DRA distribution funds, as well as stormwater user fees.
As Figure 1 shows, DRA funded 57.6%, property taxes funded 21.8%, and sales tax
funded 4.6%.
As proposed with the FY2009 budget, the Stormwater Management Utility will become for
the first time a self-supporting enterprise fund. This means that all stormwater
management activities will be funded by the stormwater management utility and permit
fees. Figure 2 shows the funding for stormwater management activities proposed with the
FY2009 budget.
A number of factors have impacted the need to have the Stormwater Utility Fund exist as a
self-supporting enterprise fund, including the projected decrease of DRA funding, lack of
state and federal Grants, and an increase in the original costs to implement the Bee
Branch Drainage Master Plan.
Figure 1. Sources that funded stormwater management activities when the stormwater Management Utility was established in FY2004.
Figure 2. As proposed with the Fiscal Year 2009 budget, only user and permit fees will fund stormwater management activities.
Sales Tax
Permit Fees
Utility Fees
Property Taxes
DRA
Fiscal Years 04-08
Fiscal Year 2009
Table 1 below shows the proposed rate schedule, illustrating the differences between the
Stormwater Utility rates established previously and the rates recommended with the
proposed FY2009 budget.
Table 1. Previously adopted Stormwater Management Utility Fee rate versus the rate
proposed with the FY2009 budget.
FY08 FY09 FY10 FY11 FY12 FY13 FY14to
FY33
• • • - • $3.25 $4.00 $4.25 $4.25 $5.00 $5.00 $5.00
' • • • - • $3.25 $4.00 $5.00 $5.50 $6.35 $7.00 $7.00*
The General Fund will continue to provide a 50% subsidy for the stormwater management
utility fee charged to property tax exempt properties, low- to moderate-income residents,
and residential farms.
RECOMMENDATION
I recommend modifying the City Code of Ordinances to reflect the Stormwater Utility Fee
rates proposed in Table 1.
BUDGET IMPACT
The rate changes will change the Stormwater Management Utility into aself-supporting
enterprise fund. DRA revenue, property taxes, and sales tax will no longer be used to fund
stormwater management activities.
ACTION TO BE TAKEN
I respectfully request passing the attached ordinance amending Section 44-274(d) of the
City Code of Ordinances to reflect the stormwater management utility fee rate proposed
with the FY2009 budget.
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
ORDINANCE NO. 21-08
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 44-
274(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 44-274(d)
is amended to read as follows:
(d) The SFU rate to be applied to residential and nonresidential properties
shall be as follows:
(1) For the period July 1, 2008 through June 30, 2009 the SFU
rate shall be $4.00 per SFU;
(2) For the period July 1, 2009 through June 30, 2010 the SFU
rate shall be $5.00 per SFU;
(3) For the period July 1, 2010 through June 30, 2011 the SFU
rate shall be $5.50 per SFU;
(4) For the period July 1, 2011 through June 30, 2012 the SFU
rate shall be $6.35 per SFU.
(5) For the period July 1, 2012 through June 30, 2033 the SFU
rate shall be $7.00 per SFU.
Passed, approved and adopted this 13th day of M ch , 2008.
Roy D. Boul, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk