Administration - Alison Bong, Deputy Finance Director; Nick Fleischhacker, Deputy Public Works Director
Title
Title
Adopt 2023 Storm Sewer Fund Budget and 2023-2027 Capital Improvement Program (CIP)
end
Executive Summary
Staff recommends that council adopt the proposed Storm Sewer Fund 2023 Capital Budget and 2023-2027 Capital Improvement Program (CIP). Finance and Public Works presented the 2023-2027 Storm Sewer CIP and the 2023 Storm Sewer Budget at a workshop on November 14. The council had an opportunity to ask questions and discuss different projects within the budget.
Background
Council reviewed the proposed 2023 Storm Sewer Budget and 2023-2027 CIP at the November 14, 2022, workshop. Council gave guidance to proceed with the staff recommended storm rates for 2023.
Rates
Storm rates presented are quarterly residential; the base commercial rate is the same as the residential rate with a Residential Equivalency Factor (REF) applied to the rate. The REF takes into account total property area as well as the total impervious surface area of the property.
|
|
2022 |
2023 Recommended |
|
Residential |
10.50 |
11.55 |
Fund 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. The Council approved a storm water utility fee in 2007 and implemented it in January 2008.
The City’s storm drainage system includes over 185 miles of storm sewer pipes, almost 111 miles of ditches, and numerous catch basins, outfalls, manholes, weirs, culverts, and ponds. The system serves roughly 23,000 parcels throughout Blaine. The storm sewer operation is a division of the City’s Public Works Department with 7.5 full-time equivalent (FTE) positions. These FTEs consist of a Surface Water Manager and 5 Public Service Workers, with half FTEs allocated to Supervisor, Foreman, and Project Engineer. The proposed budget includes the other half of the Public Service Worker referenced in the sanitary sewer section.
Revenues
The Storm Sewer Utility Fund receives the bulk of its funding through fees charged to customers. Total revenues budgeted for 2023 using the recommended rates are $2.3 million, plus a debt issuance to fund capital expenses of $1.8 million.
Expenses
Budgeted operating expenses (not including depreciation) are proposed to increase by $222,260 (10.9%) from the 2022 budget.
• Personal services - increasing $60,810 (7.5%)
o Addition of 0.5 of a Public Service Worker (split with sanitary sewer)
o 3% general wage increase
• Contractual services - increasing $28,200 (15.9%)
o Emerald Ash Borer mitigation
• The other category - increasing $46,250 (10.8%)
o Administrative chargebacks
o Building Maintenance internal service fund
Capital Improvement Plan
The 2023-2027 five-year plan includes $5.5 million in capital improvements, with an additional $0.4 million beyond 2027. The 2023 proposed capital budget includes $1.8 million in improvements. A summary of the plan by category can be found below, and a detailed listing of the capital improvement program is included as a supplemental attachment.
|
Project Category |
2023 Budget |
2024-27 |
Beyond 2027 |
Project Total |
|
Capital Equipment* |
$860,000** |
$600,000 |
$150,000 |
$1,610,000 |
|
Culvert Replacement |
$0 |
$150,000 |
$0 |
$150,000 |
|
Drainage Improvements |
$0 |
$100,000 |
$0 |
$100,000 |
|
Infiltration Basin Construction |
$400,000 |
$150,000 |
$150,000 |
$700,000 |
|
Other Improvements |
$100,000 |
$400,000 |
$0 |
$500,000 |
|
Outfall Replacement |
$50,000 |
$350,000 |
$0 |
$400,000 |
|
Storm Pipe Lining |
$350,000 |
$900,000 |
$100,000 |
$1,350,000 |
|
Storm Pipe Maintenance |
$0 |
$500,000 |
$0 |
$500,000 |
|
Storm Pond Improvements |
$35,000 |
$590,000 |
$0 |
$625,000 |
|
Grand Total |
$1,795,000 |
$3,740,000 |
$400,000 |
$5,935,000 |
* Capital equipment from 2024 and on has not been fully accounted for in this plan; a long-range capital equipment plan will be created during the 2024 budget cycle
** 2023 storm sewer capital equipment includes purchase of a vac-con truck for $625,000 as staff are switching from two vac-con trucks to one vac-con and two jetters (one jetter included in 2023 sewer capital equipment), which decreases the total equipment investment needed to clean sewer and storm infrastructure. The current vac-con is unreliable, and needs replacement to ensure emergencies can be addressed
5-Year Projections
Staff continues to work with Baker Tilly, and a finalized rate model with 5-year projections will be presented to the council at a workshop in the second quarter of 2023. Significant progress has been made to date that has greatly improved the city’s current rate model. Finance, Public Works, and Engineering staff have collaborated in-depth to produce a preliminary long-range capital plan.
Strategic Plan Relationship
Adoption of annual budgets contributes to the overall financial stability of the City.
Board/Commission Review
N/A
Financial Impact
The proposed budget, if adopted, would fully fund storm sewer operations and capital needs for 2023 as well as help to stabilize the fund’s reserves.
Public Outreach/Input
N/A
Staff Recommendation
Approve the 2023 Storm Sewer Utility Fund Budget and 2023-2027 Capital Improvement Plan through the adoption of the following resolution.
Attachment List
Storm Sewer Utility Fund Budget Summary
Storm Sewer Utility Fund CIP
Body
WHEREAS, the proposed Storm Sewer Utility Enterprise Fund Budget and 2023-2027 Capital Improvement Plan for the fiscal year commencing January 1, 2023 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Storm Sewer Utility Enterprise Fund Budget and 2023-2027 Capital Improvement Plan; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Storm Sewer Utility Enterprise Fund Budget and 2023-2027 Capital Improvement Plan they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Storm Sewer Utility Enterprise Fund Budget and 2023-2027 Capital Improvement Plan attached hereto are approved; and
2. That the 2023 appropriations attached hereto are approved; and
3. That the 2023 funding sources and fee adjustments identified and attached hereto and reflected in the City’s fee schedule are approved.
4. That the City’s 5-Year Capital Improvement Plan be updated to reflect the approval of projects included in the proposed 2023-2027 Capital Improvement Plan; and
5. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Storm Sewer Utility Enterprise Fund Budget and 2023-2027 Capital Improvement Plan.
PASSED by the City Council of the City of Blaine this 5th day of December 2022.