11-02-2020 Council Work Session Packet

Home Search

1 WS – Item 5 WORK SESSION STAFF REPORT Work Session Item 5 Date: November 2, 2020 To: City Council From: Michael Grochala Re: Stormwater Utility Background In response to City Council budget questions, enclosed is the Executive Summary from the 2010 Financing Storm Water Management feasibility study that discusses establishment of a stormwater utility. Blaine, Centerville, Circle Pines, Shoreview, and White Bear Township are surrounding cities that have implemented a utility. 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 or “Residential Equivalent Unit” (REU) represents a single family residential home. Multi-family, commercial, industrial and institutional properties are assigned multiple REU’s based on the land use and size of property. The 2010 report included an estimated average Stormwater Utility Budget of $533,212 which included funding for personnel, engineering, equipment debt service and contracted maintenance costs. Based on that budget amount, the estimated monthly fee per REU was $2.50 (30.00/year). Staff estimates that a Storm Water Utility could be implemented within 6-9 months from the date Council initiates the project as follows: 1. Revise feasibility study including budgets, revenue forecasts, and rate determination – 2 months 2. Public Education Meetings – 1 to 2 months 3. Public Hearings and ordinance adoption – 1 to 2 months 4. Implementation of the Utility – 2 to 3 months If the Council proposes to move forward with the utility, staff would obtain proposals to update the study.