FY 2012 Stormwater Management Utility Fee Rate ChangeMasterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Stormwater Management Utility Fee Rate Change
DATE: February 28, 2011
INTRODUCTION
The purpose of this memo is to outline the Engineering staff's 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 2012 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 a self - supporting enterprise fund; All
stormwater management activities are now funded exclusively by the stormwater
management utility and permit fees.
DISCUSSION
Dubuque
AII- America City
1 1 1 '
m
2007
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 occurred with the
FY10 budget and there was no change with the adoption of the FY11 budget.
Although the proposed rate for FY12 matches the rate established by ordinance for FY12,
the adoption of the FY12 budget results in changes to the stormwater utility management
fee rate beyond FY12. Table 1 below shows the proposed rate schedule proposed with the
FY2012 budget compared to the rates adopted with the FY2010 budget.
Table 1. Proposed Stormwater Management Utility Fee rate versus the rate adopted with the
FY2010 budget.
The changes are recommended due to a combination and timing of factors that include the
bids for the Lower Bee Branch Creek Restoration project exceeding the estimate by $2.1
million, an additional $1.6 million in property acquisition costs, and the I -JOBS 11 grant
award for the project.
RECOMMENDATION
I recommend amending 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
$235,000 and $64,000 in FY2013 and FY2014 respectively. It will increase the revenue by
$481,000 in FY2015. And it will increase the revenue by $544,000 in FY2016 and each
year beyond.
ACTION TO BE TAKEN
I respectfully request passing the attached ordinance amending Section 13 -4 -5 (D) of the
City Code of Ordinances to reflect the stormwater management utility fee rate proposed
with the FY2012 budget as 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
FY11
FY12
FY13
FY14
FY15
FY16to
FY33
Adopted
$5.25
$5.60
$6.85
$6.90
$7.00
$7.00
Proposed
$5.60
$6.44
$6.79
$7.81
$7.90
Table 1. Proposed Stormwater Management Utility Fee rate versus the rate adopted with the
FY2010 budget.
The changes are recommended due to a combination and timing of factors that include the
bids for the Lower Bee Branch Creek Restoration project exceeding the estimate by $2.1
million, an additional $1.6 million in property acquisition costs, and the I -JOBS 11 grant
award for the project.
RECOMMENDATION
I recommend amending 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
$235,000 and $64,000 in FY2013 and FY2014 respectively. It will increase the revenue by
$481,000 in FY2015. And it will increase the revenue by $544,000 in FY2016 and each
year beyond.
ACTION TO BE TAKEN
I respectfully request passing the attached ordinance amending Section 13 -4 -5 (D) of the
City Code of Ordinances to reflect the stormwater management utility fee rate proposed
with the FY2012 budget as 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
ORDINANCE NO. 25 -11
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 (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, 2011 through June 30, 2012 the SFU rate
shall be $5.60 per SFU;
(2) For the period July 1, 2012 through June 30, 2013 the SFU rate
shall be $6.44 per SFU;
(3) For the period July 1, 2013 through June 30, 2014 the SFU rate
shall be $6.79 per SFU.
(4) For the period July 1, 2014 through June 30, 2015 the SFU rate
shall be $7.81 per SFU.
(5) For the period July 1, 2015 through June 30, 2033 the SFU rate
shall be $7.90 per SFU.
Passed, approved and adopted this 10 day of March, 2011.
f'anne
Attest:t F. Schneider, CMC
y Clerk
y D. Boul, Mayor