Stormwater Rates Increased
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MEMORANDUM
February 16, 2006
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psi hoyos, City Engineer
SUBJECT: Stormwater Utility Rate Change
INTRODUCTION
The purpose of this memo is to outline Engineering staff's recommendation to modify
Section 44-274(d) of the Code of Ordinances, thereby modifying the stormwater utility
fee rate to reflect the funding scenario for the Drainage Basin Master Plan (DBMP) and
other stormwater management activities recommended with the Fiscal Year 2007
budget.
BACKGROUND
In December of 2001, the City Council formally adopted the Drainage Basin Master Plan
(DBMP) prepared by HDR Engineering (Omaha, NE). Based on the study,
approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of
flood damage. The DBMP recommends several capital improvement projects that
would reduce the threat of flood damage. They are the Carter Road Detention Basin,
W. 32nd Street Detention Basin, and an open waterway from 16th Street to 24th Street.
The open waterway project represents the restoration of the Bee Branch/Couler Creek
and has been termed the Bee Branch Creek Restoration Project.
On May 19, 2003, the City Council approved the selection of Camp Dresser & McKee
(CDM) with WHKS and Conservative Design Forum (CDF) to provide engineering and
design services for the alignment of the Bee Branch Creek Restoration Project from
16th and Sycamore to 24th and Elm. The study was to identify where the waterway
would be built and identify what properties would be impacted. In August of 2003, the
City Council established the roster of the Bee Branch Citizen Advisory Committee
(BBCAC). The BBCAC provided input to CDM with regard to the social and economic
concerns and needs of the impacted neighborhoods, help establish the criteria to be
used to evaluate alternative alignments/preliminary designs for the open waterway, and
ultimately make a alignmenUpreliminary design recommendation to the City Council.
Between September of 2003 and June of 2004, the BBCAC convened six times.
A City Council work session was held on May 17th, 2004. Preliminary BBCAC
recommendations were outlined and individual BBCAC members presented their
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personal thoughts about the study and potential solutions to the flooding problems.
Although the BBCAC recommended a closed pipe solution between Garfield and 24th
Street, the consensus from the City Council was that City staff and the City's consultant
should proceed with the study as previously directed: provide a preliminary design for
the open waterway that establishes what it would look like and how it would function.
Eight BBCAC recommendations were presented to the City Council in June of 2004
In July of 2004, the City Council established a building permit moratorium based on the
alignment preferred by the BBCAC.
On November 1, 2004 the City Council approved the inclusion of the Bee Branch Creek
Restoration Project from Garfield Avenue to 24th Street as part of the Drainage Basin
Master Plan and to directed that a work session be scheduled. The work session was
held on December 13, 2004. Discussions revolved around the open waterway
alignment, appearance, performance, and impacts to existing infrastructure.
On December 20th, 2004, the City Council established the alignment for the Bee Branch
Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington
Streets, and established a building permit moratorium for the properties impacted based
on the alignment. The $31.8 million estimate to construct the project as outlined by the
preliminary design was also presented.
Besides funding the DBMP, DRA revenue and Utility revenue are also used to fund six
stormwater management activities. The programs are: 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. In Fiscal Year 2004, the first year of the Stormwater
Management Utility, they totaled $581,000 and they are escalated at 2.5% each year
thereafter.
DISCUSSION
With the presentation of the proposed Fiscal Year 2006 budget, the Engineering
Department outlined a funding plan for the DBMP that included GO Bonds to construct
the improvements and a combination of DRA and Utility Fee revenue to retire the debt.
Subsequently, on March 8, 2005, the City Council amended the City Code of
Ordinances (Ordinance 19-05) to establish the Stormwater Utility Fees for the next 25
years to help fund the Drainage Basin Master Plan, including the $31.8 million Bee
Branch Creek Restoration.
A decrease in the revenue projections from the Dubuque Racing Association of
$14,089,543 over the next five years and an increase in sales tax that did not meet
projections have meant less operational and capital resources in Fiscal Year
2007 than was anticipated when the projections were done last year.
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The implementation of the Bee Branch Creek Restoration Project is the key to saving
over 1,100 homes from flooding during severe rainstorms that seem to come all too
frequently. By accelerating the part of the project from the 16th Street Detention Basin
through the damming affect of the railroad tracks just south of Garfield will allow for a
quicker redevelopment of the former Dubuque Pack site and timelier flood relief for
North End residents. The FY07 budget recommendation includes an accelerated rate of
increase of the Stormwater Management Utility Fee. The current proposal is to have the
fee cap out at $5 00 in Fiscal Year 2012 instead of $3 50 in Fiscal Year 2013. Table 1
below illustrates the differences between the Stormwater Utility rates established last
year and the rates recommended in FY07 to fund the $38.7 million DBMP.
Table 1. Stormwater Utility SFU Rate Comparison for the Current, and Recommended
FY04.
1 O-year Project Funding Scenario for the DBMP. Utilitv was establish in
Years Years Years
2-5 6 - 10 11-29
Plan FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY19-23
FY04-13 $1.29 1.79 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.50+
I (Current)
FY04-13 2.25 3.25 4.00 4.25 4.25 5.00 5.00 5.00+
I (Proposed)
+Rate would remain until the debt is retired in FY2032.
RECOMMENDATION
I recommend modifying the City Code of Ordinances to reflect the Stormwater Utility
Fee rates proposed in Table 1.
BUDGET IMPACT
The recommended funding plan for the DBMP involves the issuance of GO Bonds to
fully construct the projects by 2013. Along with DRA funds, the increase in the
Stormwater Utility Fee will be utilized to retire the debt
ACTION REQUESTED
I respectfully request the amendment of the City Code of Ordinances to reflect the
Stormwater Utility Fees recommended to fund the $38.7 million DBMP.
attachment
CC: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Dawn Lang, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
Page 3 of 3
ORDINANCE NO. 23-06
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, 2006 through June 30, 2007 the SFU
rate shall be $2.25 per SFU;
(2) For the period July 1, 2007 through June 30, 2008 the SFU
rate shall be $3.25 per SFU;
(3) For the period July 1, 2008 through June 30, 2009 the SFU
rate shall be $4.00 per SFU;
(4) For the period July 1,2009 through June 30,2010 the SFU
rate shall be $4.25 per SFU;
(5) For the period July 1, 2010 through June 30, 2011 the SFU
rate shall be $4.25 per SFU;
(6) For the period July 1, 2011 through June 30, 2033 the SFU
rate shall be $5.00 per SFU.
Passed, approved and adopted this 2nd day of March
,2006.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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