08-09-2021 Council Packet - Laserfiche WebLink

Home Search

The costs of operating this system are currently funded by property taxes. As a result of federal requirements, implementation of the SWPPP and aging infrastructure, costs for management of the storm water system have continued to increase. The City Council has been reviewing the potential of adopting a Storm Water utility with revenues dedicated solely to funding storm water related activities. The City Council authorized preparation of a storm water utility feasibility study in January of 2021. The report was presented to the City Council on July 6, 2021. ANALYSIS The Minnesota Legislature authorized local governments to create “storm water utilities” (Minnesota Statutes section 444.075) in 1983. Funds obtained through a storm water utility fee must be dedicated to the purpose for which they were obtained. This allows a community to fund programs necessary to meet local needs and federal and state requirements for storm water management. Establishment of a utility has become more common with implementation of the federal storm water management requirements. Nearby communities that operate a storm water utility include Blaine, Shoreview, Centerville, and Circle Pines. The basic premise behind the storm water utility is that users pay including tax exempt properties. Charges are based on the volume of storm water runoff and land use, not property value. The base unit represents a single family residential home. Multi-family, commercial, industrial, and institutional properties are assigned a fee based on the number of acres of impervious surface on the property. The proposed quarterly cost for a residential parcel (including single family, duplex, townhome and rural residential properties) is $12.00 which equates to $48.00 per year. Nonresidential properties including multi-family apartments, commercial, industrial, and institution properties will be charged a quarterly fee of $175 per acre of impervious (hard) surface. The utility rates are proposed to become effective January 1, 2022. Budget The City currently spends an estimated $380,000 annually on storm water management, which is funded by property taxes. The Storm Water Utility budget is estimated at $579,200 and includes approximately $199,000 in additional funding to meet current needs. These needs include an increase of $78,000 in improvement funding and $61,000 annually for equipment debt service. Credit Policy The Storm Water Utility feasibility study included proposed procedural requirements for obtaining credits. Fees may be adjusted for multi-family apartment buildings, commercial, industrial, and institutional uses that have onsite, privately maintained BMP’s and that meet City requirements and enter into a maintenance agreement with the City. A maximum 25% credit is available for qualifying properties. There is no proposed credit for single family residential uses.