Stormwater Management Utility RateMasterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Stormwater Management Utility Fee Rate Change
DATE: February 24, 2012
INTRODUCTION
Dubuque
katid
All- America City
1
2007
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 2013 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.
In March of 2011, the City Council adopted Ordinance 25 -11 establishing the Stormwater
Management Utility Rates for FY2012 to FY2033.
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, FY09, and FY12 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.
A rate increase is recommended with the FY2013 budget. There are significant changes in
the FY 2013 budget associated with the Bee Branch Creek restoration Project:
• $1,153,000 for acquisition expenses associated with the proposed parking lot,
public restroom facility, maintenance facility property. One property was assessed
for $130,000 more than the original estimate and the second property appears to
play a key role in the operation of an adjacent business which may require the City
to acquire additional property. This increase provides funds for that contingency.
• $347,000 more in funding to acquire approximately 1.5 acres of the CP railroad
property for a total of $947,000.
• $105,000 more in funding for the renovation of ten (10) properties on Washington
Street. The properties were purchased as the City required the back half of the lot,
including their garages. These properties are being renovated and will be resold to
the public. The revenue from the sale of these properties is reflected in the project
budget.
• $73,000 more in funding for relocation benefits expenses that exceeded the
previous budgeted amounts.
• $503,000 budget increase for property to be acquired on 22nd Street and Prince
Street. The City Council authorized the acquisitions in late FY2011 in order to
provide space for off - street parking that could be utilized to visit Audubon School,
the Heritage Trail, or the amphitheater to be constructed adjacent to Audubon
School as part of the Bee Branch Project.
• $480,000 budget increase for property to be acquired on Washington Street and
24th Street. The City Council authorized the acquisitions in late FY2011 in order to
provide a safe, compelling connection between the new Bee Branch Creek linear
park attraction, Comiskey Park, and the Heritage Trail.
• $1,008,000 budget increase to construct two scenic overlooks along the Bee
Branch Creek south of 16th Street. The overlooks are part of the amenity package
associated with the $2,250,000 Vision Iowa River Enhancement Community
Attraction and Tourism (RECAT) grant, also reflected in the FY2013 budget.
• $200,000 budget increase to construct a floating island in the Bee Branch Creek
south of 16th Street. The floating, bio- island is part of the amenity package
associated with the aforementioned RECAT grant.
• $249,000 budget increase to construct a pervious, green alley from 24th Street to
25th Street. The alley is between Washington and Elm Streets.
• $830,000 budget increase to construct the level control, pumping facility at Garfield
to prevent high Mississippi river stages from inundating and damaging the Upper
Bee Branch greenway from Garfield Avenue to Comiskey Park.
• $300,000 to construct the thirty (30) stall parking lot at 22nd and Prince Street.
• $1,070,000 to a scenic overlooks at 24th Street; improves sight distances on 24th
Street with expanded parkways, and improvements to associated underground
utilities.
• $2,100,000 increase in the cost to construct the bridge /boring culverts through the
CP railroad property. The adopted budget to construct the bridge /culverts is based
on an open trench construction method that CP would require $5,900,000 in track
upgrades. The City has modified its approach, opting to construct the
bridge /culverts while leaving the tracks in place. However, this construction method
is more expensive requiring the $2.1 million increase to the project budget.
• $1,600,000 increase in engineering and legal fees to coincide with the
aforementioned property acquisition and construction costs.
As reflected in the proposed rates, these budget increases were off -set to some degree as
a result of securing the following grants:
• $3,965,500 I -JOBS II grant for the disaster prevention portions of the Lower Bee
Branch Creek Restoration Project.
• $2,250,000 RECAT grant for the public amenity portions of the Bee Branch Project.
It also includes the $120,000 in private donations as part of the America's River III
fundraising campaign.
• $4,400,000 forgivable loan for the green project, water quality improvements
associated with the Upper Bee Branch Creek Restoration Project.
• $1,000,000 National Scenic Byways Program grant and a $100,000 Iowa
Recreational Trails grant for the trail system associated with the Upper Bee Branch
Creek Restoration Project.
In addition to the Bee Branch Creek Restoration Project changes, the FY2013 budget
includes increased funding for the City's efforts to remain compliant with the City's National
Pollution Discharge Elimination System Storm Water Permit. It also reflects funding to
upgrade North End storm sewer systems.
Table 1 below shows the proposed rate schedule proposed with the FY2013 budget
compared to the rates adopted with the FY2012 budget.
Table 1. Proposed Stormwater Management Utility Fee rate versus the rate adopted with the
FY2012 budget.
FY11
FY12
FY13
FY14
FY15
FY16
FY17to
FY33
Adopted
$5.25
$5.60
$6.44
$6.79
$7.81
$7.90
$7.90
Proposed
$5.25
$5.60
$7.00
$7.50
$8.00
$8.50
$9.00
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 increase the Stormwater Utility Management fee revenue by
$308,000 in FY2013, $397,000 in FY2014, $108,000 in FY2015, and $348,000 in FY2016.
It will also increase the revenue by $651,000 in FY2017 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 FY2013 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. 21 -12
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 13 -4 -5
(0) 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, 2012 through June 30, 2013 the SFU
rate shall be $7.00 per SFU;
(2) For the period July 1, 2013 through June 30, 2014 the SFU
rate shall be $7.50 per SFU;
(3) For the period July 1, 2014 through June 30, 2015 the SFU
rate shall be $8.00 per SFU.
(4) For the period July 1, 2015 through June 30, 2016 the SFU
rate shall be $8.50 per SFU.
(5) For the period July 1, 2016 through June 30, 2033 the SFU
rate shall be $9.00 per SFU.
Attest:
Passed, approved and adopted this 7th day of
Kevin Firnstah , C y Cle
March , 2012.
oy D. Boul, Mayor
OFFICIAL
PUBLICATION
ORDINANCE NO. 21-12
AMENDING CITY OF
DUBOQUE CODE OF
ORDINANCES SEC-
, TION 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, 2012 through June
30, 2013 the SFU rate
shall be $7.00 per SFU;
(2) For the period July
1, 2013 through June
30, 2014 the SFU rate
shall be $7.50 per SFU;
(3) For the period July
1, 2014 through June
30, 2015 the SFU rate
shall be $8.00 per SFU.
(4) For the period July
1, 2015 through. June
30, 2016 the SFU rate
shall be $8.50 per SFU.
(5) For the period July
1, 2016 through June
30, 2033 the SFU rate
shall be $9.00 per SFU.
Passed, approved and
adopted this 5th day of
March, 2012.
/s /Roy D. Buol, Major
Attest /s/Kevin S
Firnstahl, City Clerk
Published officially in
the Telegraph Herald
newspaper on the 14th
day of March 2012.
_ /s /Kevin S. Firnstahl,
City Clerk
It 3/14
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: March 14, 2012, and for which the charge is $11.80.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this 7 ) day of /le" , 20 /.2 .
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154885
Cent !1r