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City Council Regular Meeting Minutes January 13, 1998 Page 7 1 storm water utility fees charged in the metropolitan area based on a survey of thirty 2 communities performed by WSB approximately one year ago. This increase would generate 3 approximately $165,000 annually and would not be adequate to fund all improvements. ' 4 Outside funding sources are necessary. It is the opinion of the Task Force that the fee may 5 need to be increased in the future if no outside funding is secured. There is intent to obtain 6 outside funding. The increase in the fee will demonstrate that the community is doing all 7 they can to fund the solution but is unable to do so on their own. 8 Mayor Ranallo questioned if the fee would be the same for smaller lots with inexpensive 9 homes and larger lots with more expensive homes. 10 Mr. Willenbring stated the fee would be the same. He acknowledged the inequity but also 11 noted that the same inequity exists with the current $3 per quarter fee. He stated that 12 generally utility fees have no differential based on the ability to pay or the market value of 13 the property. 14 Faust noted that the amount of run-off from the smaller lot could be higher than that of the 15 larger lot and provide a case for the smaller lot to pay a higher fee. 16__---Mr—Willenbring agreed that it could be looked at either way. He noted it is possible to calculate the impervious surface on each lot and adjust the fee in that manner but that it is 8 difficult and not always accurate. 19 Marks asked if Mr. Willenbring was aware of any cities that adjusted the fee based on the 20 percentage of impervious surface. 21 Mr. Willenbring stated that most utility fees attempt to address this issue through the land use, 22 ex., single-family lot versus multiple-family lot. 23 Cavanaugh noted that this issue was discussed when the original fee was established. It was 24 determined then that a flat fee was the practical was to address the issue and the best for the 25 community. 26 Mr. Willenbring noted that the Task Force is recommending that the increase in the utility fee 27 be implemented in 1998. 28 Mr. Willenbring stated that Task II is to establish a Flood Proofing Grant Program. This 29 program would make $50,000 to $100,000 of City funds available annually over the next 5 30 years. Grant applications would be submitted by property owners who experienced damage as 31 a result of the July 1997 storm event. The grants would be used to provide flood proofing 32 improvements to the homes. The homeowner would pay 35% of the cost of improvements and the City would pay 65%. This percentage is based on the current percentage of payment for street improvement projects (the homeowner pays 35% and the City pays 65%). Also, if 35 the homeowner contributes to the cost of the improvements it will encourage them to keep the 36 cost of the improvements low. The Task Force has suggested that the grant application be