Stormwater Management Utility SubsidyTHE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Stormwater Management Utility -Residential Farm Subsidy
DATE: March 10, 2009
Dubuque
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City Engineer Gus Psihoyos is recommending increasing the existing residential farm
stormwater fee subsidy from 50 percent to 75 percent effective March 17, 2009.
The City Council approved amending the FY 2010 Stormwater Subsidy -Residential
Farms CIP from 50 percent to 75 percent on March 9, 2009.
This recommendation amends the FY 2009 CIP to increase from 50 percent to 75
percent at a cost of $520 in FY 2009.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michae C. Van Milligen
MCVM/jl
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
T
Dubuque
THE CITY OF
DUB E i ' i
MEMORANDUM
Masterpiece on the Mississippi
zoos
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer ~
SUBJECT: Stormwater Management Utility, Residential Farm Subsidy (CIP#7201906)
DATE: February 17, 2009
INTRODUCTION
The purpose of this memo is to recommend that the Stormwater Management Utility
subsidy for residential farms be increased from fifty to seventy five percent.
BACKGROUND
In February of 2003, Ordinance 7-03 was passed establishing a Stormwater
Management Utility. The City began billing for the associated stormwater utility fee at
the beginning of FY2004.
The FY2004 CIP Budget also included a 50 percent subsidy for property tax exempt
organizations and low-to-moderate income residents. A subsidy does not reduce the
collected Stormwater Management fee for a property. Instead, funds from the General
Fund are used to pay for 50 percent of the fee.
With the adoption of the FY2008 CIP Budget, a subsidy was created for residential
farms. At that time, there were about thirty such farms in the city.
DISCUSSION
One of the reasons that the farm subsidy was initially created was due to feedback from
the owners of agricultural property considering annexation. During the latest annexation
of properties on the west end of Dubuque, the issue was raised once again. The
stormwater utility fee represents a new fee that can deter annexation.
The current recommendation is to increase the level of the farm subsidy from 50 to 75
percent. The proposed FY2010 CIP Budget reflects this change. See attachment.
recommend making the change starting in March of 2009 to coincide with the first utility
bills to be sent out to the recently annexed west side properties.
Table 1 shows the cost of the projected farm subsidy if it remains at 50 percent. Table 2
shows the projected cost of the subsidy if it is increased to 75 percent in March of 2009.
The projected difference is a $520 increase.
Table 1. Proiected cost of current 50 percent farm subsidv.
7/1/08 throu h 2/27/09 3/1/09 throu h 6/30/09 Total
Existin $1,440 $720 $2,160
Annexed - $320 $320
Total $1,440 $1,040 $2,480
Table 2. Proiected cost of nrooosed 75 percent farm subsidv startina in March of 2009.
7/1/08 throu h 2/27/09 3/1/09 throu h 6/30/09 Total
Existin $1,440 $1,080 $2,520
Annexed - $480 $480
Total $1,440 $1,560 $3,000
RECOMMENDATION
recommend increasing the existing residential farm subsidy from 50 percent to 75
percent and that the change is made starting in March of 2009.
BUDGET IMPACT
Changing the farm subsidy from 50 percent to 75 percent in March of 2009 will cost an
additional $520 in FY2009.
The FY2009 farm subsidy budget (CIP#7201906) is $4,300, enough to cover the
increased subsidy.
ACTION TO BE TAKEN
I respectfully request that the farm subsidy be increased from 50% to 75% starting in
March of 2009.
Attach.
Prepared by Deron Muehring
cc: Jenny Larson, Budget Director
Deron Muehring, Civil Engineer II
DEPARTMENT: STATE`PROGRAM:
Engineering Business Type
EXP PRIOR ESTIMATED pROJECT BUDGET
TO FY 08 FY 08
A. EXPENDITURE ITEMS
Design & Engineering
Land and R.O.W.
Construction
$ 3,500 Other
$ - $ 3,500 TOTAL
B. PROJECT FINANCING
$ 3,500 General Fund
$ - $ 3,500 TOTAL
PROJECTTITLE: PROGRAM: 8C TOTAL
Stormwater Subsidy -.Residential Fauns DEPARTMENT: 55 PROJECT
FD/CIP NO:' .720-:1906 COST...
$ .33,558
2008-09 2009-10 2010-11 2011-12 2012-13 BEYOND
2013
$ 4,300 $ 5,400 $ 5,940 $ 6,858 $ 7,560 $ 7,560
$ 4,300 $ 5,400 $ 5,940 $ 6,858 $ 7,560 $ 7,560
$ 4,300 $ 5,400 $ 5,940 $ 6,858 $ 7,560 $ 7,560
$ 4,300 $ 5,400 $ 5,940 $ 6,858 $ 7,560 $ 7,560
PROJECT DESCRIPTION
This project provides funds to subsidize the stormwater management utility fee for residential farms (a mix of commercial and residential property) identified by the County
as Class B farms. The project funding levels are based on the rate established by ordinance 23-06: Fiscal Year 2009: $4.00; Fiscal Year 2010: $5.00; Fiscal Year 2011:
$5.50; Fiscal Year 2012: $6.35 Fiscal Year 2013: $7.00. The 50% subsidy would apply to a residential farm's stormwater utility fee. The City already provides assistance
to property tax exempt organizations (Project #7201364) and low- to moderate-income residents (Project #7201378).
JUSTIFICATION
This project lessens a barrier for agricultural properties considering annexation.
RELATIONSHIP TO OTHER PROJECTS
This project implements the Comprehensive Plan's Environmental Quality Element: Goal 2.1; and Infrastructure Element: Goal 11.3.
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