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FY 2012 Stormwater Management Utility Fee RateMasterpiece on the Mississippi TO: Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Stormwater Management Utility Fee Rate DATE: March 10, 2011 Dubuque head All-America City 1 I 2007 The purpose of this memo is to give an update on the recommended Stormwater Utility User Fee increases for FY 2012 -2016. This Fiscal Year budget recommends continued funding for the Bee Branch Restoration Project. The monthly fees, as recommended in FY 2012 are as follows: The monthly stormwater user fee is recommended to increase from $5.25 in FY 2011 to $5.60 in FY 2012. The current recommended maximum stormwater user fee will reach $7.90 in FY 2016, instead of the previous projection of $8.30. There have been changes to the prior year recommended stormwater user fee rate projections 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 and an additional $1.6 million in property acquisition costs. Even with this additional cost, the City has been able to decrease the previously projected maximum rate of $8.30 to $7.90 due to receiving a $3.95 million I -Jobs grant and approximately $127,000 in fundraising revenue. In addition, the City was recently awarded a $2.25 million Vision Iowa RECAT grant for the Bee Branch Creek Restoration Project. The City is competing for a $4.5 million forgivable State Revolving Loan from the Iowa Department of Natural Resources and will know next week if the application was successful. The forgivable State Revolving Loan is designated for projects that address green infrastructure and other environmentally innovative activities. FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Previously Projected Rates $5.25 $6.85 $7.00 $7.40 $7.47 $8.05 $8.30 FY12 Recommended Rates $5.25 $5.60 $6.44 $6.79 $7.81 $7.90 $7.90 % Reduction 0% 18% 8% 8% (5 %) 2% 5% Masterpiece on the Mississippi TO: Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Stormwater Management Utility Fee Rate DATE: March 10, 2011 Dubuque head All-America City 1 I 2007 The purpose of this memo is to give an update on the recommended Stormwater Utility User Fee increases for FY 2012 -2016. This Fiscal Year budget recommends continued funding for the Bee Branch Restoration Project. The monthly fees, as recommended in FY 2012 are as follows: The monthly stormwater user fee is recommended to increase from $5.25 in FY 2011 to $5.60 in FY 2012. The current recommended maximum stormwater user fee will reach $7.90 in FY 2016, instead of the previous projection of $8.30. There have been changes to the prior year recommended stormwater user fee rate projections 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 and an additional $1.6 million in property acquisition costs. Even with this additional cost, the City has been able to decrease the previously projected maximum rate of $8.30 to $7.90 due to receiving a $3.95 million I -Jobs grant and approximately $127,000 in fundraising revenue. In addition, the City was recently awarded a $2.25 million Vision Iowa RECAT grant for the Bee Branch Creek Restoration Project. The City is competing for a $4.5 million forgivable State Revolving Loan from the Iowa Department of Natural Resources and will know next week if the application was successful. The forgivable State Revolving Loan is designated for projects that address green infrastructure and other environmentally innovative activities. If the City is awarded the forgivable SRF Loan from the IDNR, the City would need to submit design plans to the IDNR in July of 2011 to determine which elements of the Upper Bee Branch project will be allowable for SRF funding. In addition, the City would need to bid the Upper Bee Branch Creek Restoration project in September 2011 prior to determining the impact on stormwater user fees of both the IDNR SFR forgivable loan of $4.5 million and the $2.25 million Vision Iowa grant, but they will both positively impact the FY 2013 user fee and beyond. During. the Fiscal Year 2013 budget process, the Stormwater User Fee will be reviewed and the stormwater user fee will be recommended to change based on the bid results and the costs allowed for SRF funding by the IDNR. JML cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jenny Larson, Budget Director Gus Pshoyos, City Engineer Deron Muehring, Civil Engineer II