Ordinance FY 2010 SFU Stormwater Management Utility Fee Rate ChangeDubuque
THE CITY OF
DT Tj„~ ~ All-AmedcaCllV
lJ l~ ~ f
Masterpiece on the Mississippi
2007
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer ~~
SUBJECT: Stormwater Management Utility Fee Rate Change
DATE: February 16, 2009
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 adjusting the stormwater utility fee
rate proposed with the Fiscal Year 2010 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.
When the Stormwater Management Utility User Fee Fund was created in Fiscal Year
2004, stormwater management activities were funded from a number of sources: 15%
from the stormwater utility fee, 22% from property taxes, 5% from sales tax, and 58% from
DRA distribution funds. With the adoption of the FY2009 budget, the Stormwater
Management Utility became for the first time aself-supporting enterprise fund; all
stormwater management activities are now funded exclusively by the stormwater
.management utility and permit fees.
DISCUSSION
With the preparation of each annual budget, projected revenue is compared to the cost of
providing the level of stormwater management service that Dubuque citizens have come to
expect. The reduction of other revenue streams over the past few years and particularly in
FY08 and FY09 resulted in rate increases. In contrast, a rate decrease is proposed for the
FY2010 budget.
There are two primary reasons for the reduced rates. First, the FY2010 balance sheet
more accurately takes into account other revenue streams such as the erosion and
sediment control permit fee implemented two years ago. Secondly, the issuance of debt
for stormwater management projects did not occur as soon as anticipated due to project
delays not related to financing. This has resulted in lower debt service payments than
projected.
Table 1 below shows the proposed rate schedule compared to the rates adopted in March
of 2008 with the FY2009 budget. As Table 1 shows, the proposed rate is less than the
previously adopted rates for FY2010 through FY2014. Since the current rate is $4.00, the
proposed rate change would mean that there would not be a rate increase in FY2010.
Table 1. Proposed Stormwater Management Utility Fee rate versus the rate adopted with the FY2009
budget
FY09 FY10 FY11 FY12 FY13 FY14 FY15to
FY33
Adopted $4.00 $5.00 $5.50 $6.35 $7.00 $7.00 $7.00
Proposed $4.00 $4.00 $5.25 $5.60 $6.85- $6.90 $7.00
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 decrease the Stormwater Utility Management fee revenue by
approximately $540,000 in FY2010, $135,000 in FY2011, $405,000 in FY2012, $81,000 in
FY2013, and $54,000 in FY2014.
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 FY2010 budget and outlined in Table 1.
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
ORIDINANCE NO. 16-09
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, 2010 the SFU
rate shall be $4.00 per SFU;
(2) For the period July 1, 2010 through June 30, 2011 the SFU
rate shall be $5.25 per SFU;
(3) For the period July 1, 2011 through June 30, 2012 the SFU
rate shall be $5.60 per SFU.
(4) For the period July 1, 2012 through June 30, 2013 the SFU
rate shall be $6.85 per SFU.
(5) For the period July 1, 2013 through June 30, 2014 the SFU
rate shall be $6.90 per SFU.
(6) For the period July 1, 2014 through June 30, 2033 the SFU
rate shall be $7.00 per SFU.
Passed, approved and adopted this day of , 2009.
~~oy D. Boul, Mayor
~c+•
nne F. Schneider, CMC, City Clerk
®e
~ ° ~ ~
~ ~ ""
~~ ~ 3
~,~
cad U ~ 4~
~ O
a--i ~ N O
O
vi
® `+-~ cd U
~ ~
.~~~3N
~ ~ ~ ~
~ ~~ ~
U ~ ~ ~ ~~
~ ~ ~ a~
,.~~Q.~ ~
N O ,~ U
~~~.~ ~
0
~ rr. ~ ~~
~ U ~ U
`~ U
o ~ ;~
~ ~
~ ~ ~°
~~ ~~~~
O
~~ Q .~"r ~
.~ 041.E
~ ~" w~' V O
cd .~ U ~_ N
d? ~ U ~ M
,~ ~ .s1' U ~--~
R1 mss-, ~' U
~" o U'~-'
N ~" ~
~ '-~ ~~
~ O ~ ~ ~
~~ W WWLLI ~_ O ~ ~- ~~ cll
~ V - c6
F^ (LJ 66 ~ (~}~ W ~ ~ U N (0 •' (6 Q
UQ~jttlfa k~ Om~~ ~ ov m m ~ a
~(~~~~~~ =ZZ W ~(J Ua ~ 1 N
~~~Ci~^CS` (n~CCU ~ ~~ N f- ~ U1
~~~~~~~~~~~~2(n ro ~ ~~ QO
G1 C]NCJ L1I r~~U~ ~ C.~ ~ (Q C
r' ~~ ~
0
O
U
U
a~"'
..~ Q
Q O
.~
.~
a
~'
0
U
41
Q
U ~
O
'~
U
U
~ ~
~ '~
L6] ~
_o
~-.,
O
U
U
~''
~ -
Q
_:
z~
U
."
G-a
S~i
o _ , __
_ _~
-N D - N NL
- N -~ r O~ N r p 9 r 0~ C U ~, N .L-~ Q. U 'Np ~
r09 r0~ r~~ C~9 >,~_ TN_ ro ~ cd ~ C ~ cC '~U
a N
-7j CNL '~ NL ~ ~ ~ ~ ~ N ~ C N ~ ~ ~ j~ O U N~ p UU
c u~ ~ ~ ~ o ~ ~ ~ m o-~i N o-~ N oL ~ rn .~~ ~ ~
iri o~°> o-~~ o-~N o-~~ ~ is am m i~~cc ~U
`° ~ `° N L Q ~° m a ~
r ~~
~ ALL ~- al ~WLL N 7lLW N ALL (nL O(n (n t, O(n~-O"O O N ~ NLN (C
N
N O o L QO'J L_ D_O'JL Q~yL aLLy "JO W y yO Cd aUW N N(~9 Q1.L.m~
aN
ttl~00 ENO rNC7OOI[~~000O ~~OOCD~NN(Aa fO~ S~UaF-NO
T {
L--00~I"'OOtn =' NNEfl NNEA --
N NN(A NNE NN(f) _ _ _.