WORKSHOP ITEM: 4 - Jim Hafner, Stormwater Manager
Title
EXPLANATION OF 2012 STORMWATER BUDGET AND UPDATE ON STORMWATER PROGRAM
Background
With the inception of the MS4 permit in 2003, cities have managed municipal storm sewer systems separately from sanitary sewer systems. The MS4 permit requires six program areas which are:
· Public education
· Public involvement
· Illicit discharge detection and elimination
· Construction oversight
· Long term maintenance of stormwater BMPs, and
· Good housekeeping program from municipal facilities.
In 2008, the City Council implemented a Stormwater Utility Fee (SUF) to cover the costs of the stormwater program. With a base fee of $21 annually for residential properties and an average of $221 per acre for commercial properties the stormwater fund has realized annual revenue of about $850,000. Initially, the fund was designed to pay the costs of wages/benefits for employees in the stormwater program, system repairs and maintenance, and the street sweeping program. Subsequent decisions were made to include a share of administrative costs and a reserve for system depreciation. The two latter costs and wages now consume about $850,000 annually. Costs of some system repair projects have been paid from the reserve. However, that fund is needed for future system replacement projects that will be quite costly. This is substantiated by recent repairs in the areas of the city where the system is old and repairs are becoming more frequent.
Since 2008, minimum maintenance has been performed on the system. Catch basin repairs have been made each year (50 to 100 each year) as old structures are beginning to fail. Other repairs have been made due to immediate need resulting from system failures. Preventative maintenance in needed system wide and includes ponds and ditches as well as pipes and culverts. Many of these features are in or adjacent to streets and their failure presents safety concerns in addition to potential flooding. Improvements are also needed in several areas of the city to decrease the volume of runoff and reduce incidents of flooding in larger rain events.
Street sweeping was included in the stormwater program since it was determined that the major benefit of sweeping was keeping sediment and debris out of the storm sewer system. This decision is supported by the water quality benefits afforded street sweeping by the state and federal regulatory programs. Cities can realize financial savings that increase cost benefit ratios of sweeping programs. This fact adds significant justification to the need for a top quality sweeping program.
When the SUF was first implemented, Council encouraged the fee be kept low, asked to see the benefits of the program, and did not want to be constantly raising the fee. It was agreed to operate the program for 5 years and then evaluate the progress and need. 2012 will be the fifth year of the program. The SUF has funded the program without the need for special assessments and has removed some of the burden on the general fund. As the system ages and more frequent projects are necessary, including ditch maintenance, we are seeing eh need to increase revenue. The average SUF across the Metro area is just over $40 annually for single family residential properties. Cities with SUF adjacent to Blaine are at $30 or more annually. Many cities routinely increase their SUF to keep up with increasing costs and system needs.
The SUF implemented in 2008 has allowed the City to launch a stormwater program that is minimally complying with state and federal regulations. This program has shown public benefits through repairs to the system, identifying future needs, and laying the groundwork for increased maintenance that will improve the function and life span of the storm sewer system. A presentation at Council workshop January 5 will provide additional explanation on the accomplishments of the SUF and stormwater program to date and the costs associated with current and future work.
Recommendation
Staff recommends that Council begin consideration of a Stormwater Utility Fee increase for the 2013 fiscal year.