Workshop Item - Joe Huss, Finance Director/Asst. City Manager
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Proposed 2022 Storm Drainage Fund Budget
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Background
The City’s Storm Sewer Utility Enterprise Fund accounts for the operations of the City’s storm drainage system. The fund was created in 2006 as staff began separately accounting for storm drainage activity. Prior to that, storm sewer operations were accounted for in the Sanitary Sewer budget. A storm water utility fee was approved by Council in 2007, and implemented in January 2008.
As an enterprise fund, the utility is designed to recover the cost of maintaining the City’s storm drainage system, which includes over 100 miles of storm sewer pipes, and almost 80 miles of ditches as well as numerous catch basins, outfalls, manholes, weirs, culverts, and ponds. The system serves roughly 23,000 parcels throughout Blaine. The storm sewer operation functions as a division of the City’s Public Works Department under the direction of the Deputy Public Works Director and input from the Storm Water Coordinator.
The division has an authorized staffing level of 6.5 fulltime equivalent (FTE) positions, which in addition to the Storm Water Coordinator includes ½ FTE for supervision, ½ Working Foreman, and 4½ Public Service Workers. The proposed budget also includes requests to fund 1.5 new FTE positions in 2022 - one Public Services Worker and ½ of a proposed Project Manager.
2021 Projections
Revenue collections are projected to reach $1,930,000, which is about $70,000 more than budgeted. Operating expenditures are projected to come in under budget by about $143,000. Capital project expenses are expected to be under budget by approximately $830,000 as a number of planned projects were deferred in 2021with plans to commence those projects after the first of the year.
2022 BUDGET
Revenues
Total revenues are expected to increase in the 2022 fiscal year. Charges for service revenues will need to be increased in order to support adequate maintenance and improvements to the system. The accompanying model includes a recommended $2.00 increase in the annual basic rate, from $40 to $42 per year. This is consistent with the five-year model presented to the Council over the last few years. It is expected that this will generate an additional $128,000 for fiscal 2022. All other revenues are expected to remain the same for 2022.
Expenditures
Budgeted operating expenses (less depreciation) in 2022 will increase by 142,000 over 2021 appropriations.
• Personal services allocation are expected to increase by $82,000 compared to 2021 budgeted values. This figure includes a 3% general wage increase for all personnel, plus the addition of ½ of a capital project manager position, and one Public Service Worker to perform enhanced system maintenance.
• The reduction of the supplies allocation by $20,000 provides more accurately for operational needs.
• Contractual services appropriation totals increase $4,300 and are mostly associated with a small increase in the Institutional Corrections Work Crew (ICWC) program.
• Administrative charges are increasing $45,000, which reflects the increasing cost of administrative/supervisory support of the storm drainage utility by general fund operations. The $31,000 increase in other services and charges is attributable to the increase in facilities maintenance charges, plus the maintenance of bio-retention and wetland mitigation sites, and membership with Clean Water Minnesota/Adopt-a-Drain.
• Capital equipment budget is set at $122,000 and consists of 42,000 for a forestry tool to be used with an existing skid-steer, $10,000 for a truck-mount manhole lifter, $10,000 for a leaf box for a hook truck, and $60,000 for a scale to accurately measure salt use within environmentally sensitive drainage areas.
• Capital project appropriations totaling $786,000 consist of $260,000 for a containment system to manage the washdown from cleaning equipment at public works and the cold storage site; $26,000 for the city’s share of the Coon Creek Watershed District impairment study; $150,000 for an infiltration basin at Oak Creek Park; $100,000 for the redesign of the outfall at 106th and Fillmore; and $250,000 for cast-in-place lining at 99th Street between Pleasure Creek and Jackson Street. A supplemental report providing additional details on these projects is attached.
Long-term Outlook
The attached budget model outlines the resources required to operate and maintain the city’s storm drainage system over the next five years under the proposed 2022 budget and five-year outlook. The five-year model in general, and the capital plan in particular, is based on recommendations from the surface water management plan. The five-year plan has been updated for 2022 and reflects financial stability through the duration of the plan.
Staff Recommendation
Staff is seeking Council direction on proceeding with the 2022 Storm Water Utility Fund Budget.
Attachment List
Stormwater Fund Narrative
PowerPoint