Code of Ordinances Amendment - Title 13_Stormwater Management Utility Fee RateMasterpiece on the Mississippi
TO: Michael C. Van Miliigen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: February 20, 2014
SUBJECT: Stormwater Management Utility Fee Rate Change
Dubuque
kat:A
All -America City
'1111'
2007 • 2012 •2013
INTRODUCTION
The purpose of this memo is to outline a 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 2015 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 2012, the City Council adopted Ordinance 21-12 establishing the
Stormwater Management Utility Rates for FY2013 to FY2033.
DISCUSSION
With the adoption of the Fiscal Year 13 CIP Budget, funding was established and
supported by a stormwater utility fee rate structure to implement improvements
associated with the Bee Branch Watershed Flood Mitigation Project as well as other
various stormwater management activities. But as promised, the City continued to seek
outside funding offset the cost of the stormwater management projects and activities.
Three additional funding opportunities were being pursed in Fiscal Year 2014.
Therefore, the City Council adopted Ordinance 9-13 with the FY2014 Budget to
maintain the Stormwater Management Utility Rate for FY2014 at the current rate of
$5.60 per SFU with the understanding that future adjustments would be required
depending on the City's success in securing the additional funding being sought for
stormwater management projects.
In August of 2013 the City was awarded $1,227,138 from the U.S. Economic
Development Administration for the Upper Bee Branch Creek Restoration.
Authorized under the Flood Mitigation Bill in 2012, the Flood Mitigation Program is
administered by the Iowa Department of Homeland Security on a competitive basis by a
citizen board that began considering applications on November 21, 2013. It is funded
through state sales tax revenues. The program provides funding to cities and counties
to implement long-term flood mitigation projects. Specifically, the funds are an annual
sales tax increment, ora percentage of the increase in state sales tax revenue
generated within the city or county. On December 4, 2013, the Iowa Flood Mitigation
Board voted to approve the City's application for $98.5 million to be used towards the
construction of the $179.0 million, 12 -phase Bee Branch Watershed Flood Mitigation
Project.
Due to the costs associated with maintaining the current stormwater management
system and implementing the Bee Branch Watershed Project over the next 20 years,
the proposed stormwater utility rate will increase gradually until it reaches $9.00 per
month on July 1, 2021. Prior to the state grant program, the rate was set to rise to $9.00
per month on July 1, 2016. Table 1 shows the proposed rate schedule proposed with
the FY2014 budget compared to the rates adopted with the FY2013 budget. Without the
state funding, it would have taken 50 years or more to complete the improvements. With
the state grant, the improvements will be completed in 20 years and most completed
over the next six years. The protection will be provided sooner at a lower cost to
Dubuque residents and businesses.
Table 1. Proposed Stormwater Management Utility Fee rate versus the rate adopted with the
FY2013 budget.
Adopted by Resolution 21-12 in March of 2012 with the FY2013 Budget
RECOMMENDATION
I recommend amending the City Code of Ordinances to establish the Stormwater Utility
Fee rate as set forth in Table 1.
2
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
(& Beyond)
Adopted'
$8.00
$8.50
$9.00
$9.00
$9.00
$9.00
$9.00
$9.00
Proposed
$5.98
$6.38
$6.81
$7.27
$7.76
$8.29
$8.85
$9.00
Adopted by Resolution 21-12 in March of 2012 with the FY2013 Budget
RECOMMENDATION
I recommend amending the City Code of Ordinances to establish the Stormwater Utility
Fee rate as set forth in Table 1.
2
BUDGET IMPACT
The rate changes will increase the Stormwater Utility Management fee revenue by an
estimated $285,000 in FY2015, $592,000 in FY2016, $928,000 in FY2017, $1,294,000
in FY2018, $1,691,000 in FY2019, $2,127,000 in FY2020, $2,597,000 in FY2021 and
$2,813,000 in FY2022 and beyond.
REQUESTED ACTION
I respectfully request passing the attached ordinance amending Section 13-4-5 (D) of
the City Code of Ordinances to establish the stormwater management utility fee rates
set forth in Table 1.
Attach.
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
3
ORDINANCE NO. 16-14
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC
UTILITIES, CHAPTER 4 STORMWATER MANAGEMENT, SECTION 5 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 Title 13 Public Utilities,
Chapter 4 Stormwater Management, Section 5 SFU Rate, Charges; Utility
Revenues is amended to read as follows:
(D) Rates Established: The SFU rate to be applied to residential and
nonresidential properties shall be as follows:
(1) For the period July 1, 2014 through June 30, 2015 the SFU,
rate shall be $5.98 per SFU;
(2) For the period July 1, 2015 through June 30, 2016 the SFU
rate shall be $6.38 per SFU;
For the period July 1, 2016 through June 30, 2017 the SFU
rate shall be• $6.81 per SFU:
(4) For the period July 1, 2017 through June 30, 2018 the SFU
rate shall be $7.27 per SFU._
For the period July 1, 2018 through June 30, 2019 the SFU
rate shall be $7.76 per SFU:
(6) For the period July 1, 2019 through June 30, 2020 the SFU
rate shall be $8.29 per SFU:
For the period July 1, 2020 through June 30, 202'1 -the SFU
rate shall be $8.85 per SFU.
(8) Beginning on July 1, 2021 the SFU rate shall be $9.00 per
SFU.
(3)
(5)
(7)
Passed, approved and adopted this 5th day of March, 2014
Attest:
Firnstah , City Clerk
Roy D. Bud, Mayor
IN THE DISTRICT COURT OF IOWA IN AND FOR DUBUQUE COUNTY
Certification of Publication
OFFICIAL
PUBLICATION
ORDINANCE ND, 16-14,.,,
AMENDING CITY Ori,
DUBUQUE CODE ,OF
ORDINANCES TITLE
13 PUBLIC UTILITIES,
CHAPTER 4 STORM -
WATER MANAGE-
MENT, SECTION 5 SFU
RATE, CHARGES;
UTILITY REVENUES
NOW, THEREFORE, BE
IT ORDAINED BY THE
CITY COUNCIL OF THE
CITY OF DUBUQUE, l0-
WA: '
Section 1. That City of
Dubuque Code of Ordi-
nances Title 13 Public
Utilities, Chapter 4
Stormwater Manage-'
. ment, Section 5 SFU
Rate, Charges; Utility
Revenues is amended
to read as follows:
(D) Rates Established:
The SFU, rate to be ap-
plied to residential and
nonresidential proper-
ties shall be as follows:
(1) For the period July
1, 2014 through June
30, 2015 the SFU rate
shall be $5.98 per, SFU;
tZJ For the period July
1, 2015 through June
30, 2016 the SFU rate
shall be $6.38 per SFU;
(3) For the period July
1, 2016 through June
30, 2017 the SFU rate
shall be $6.81 per SFU.
(4) For the period July
1, 2017 through June
30, 2018 the SFU rate
shall be $7.27 per SFU.
(5) For the period July
1, 2018 through June
30, 2019 the SFU rate
shall be $7.76 per SFU.
(6) For the period July
1, 2019 through June
30, 2020 the SFU rate
shall be $8.29 per SFU.
(7) For the period July
1, 2020 through June
30, 2021 the SFU rate
shall be $8.85 per SFU.
(8) Beginning on July
1, 2021 the SFU rate
shall be $9.00 per SFU.
Passe d,approved and
adopted this 5th day of
March, 2014.
/s/Roy D. Buol, Mayor
Attest: /s/Kevin S.
Firnstahl, City Clerk
Published officially In
the Telegraph Herald
newspaper on the llth
day of March, 2014.
/s/Kevin S. Firnstahl, '
CMC, City Clerk
1t 3/11
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 newspappe�r on
the following date(s): i arc,1/1 /� / Zf9 !� and for which the charge is $ l (rJr57o
Subscribed to before m a Notary Public in and for Dubuque County, Iowa,
/410this �day of 7paAedf , 20 /9- .
Notary
is
MARY K, WESTERMEYER
Commission Number 154885
My Comm, Frp, FEB. 1, 2017
in and for Dubuque
nty, Iowa