7.1. SR 08-15-2011 - Laserfiche WebLink

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(3% annual increase per resolution 94-910) $98/residential lot (rural) $196/residential lot (urban) $1,179 /acre (multifamily, commercial, and industrial) FINDINGS There are currently two options being utilized by other communities throughout the State. In researching other communities, a majority of them charge their residents a monthly fee. The fees range from $1.03 (Little Falls) to $11.09 (Minneapolis). These fees are typically billed bi-monthly on the residents' utility bill. Most of these communities also have a fee structure set up for commercial, industrial, and institutional properties. Those fees vary considerably depending on the community. The fees cover the costs to implement the NPDES permit, maintain the existing Stormwater infrastructure, such as catch basins and storm water pipes, excavating sediment in storm ponds, the installation of water quality projects, and overall maintenance of the storm sewer system. The other option being utilized is through a tax levy. The estimated cost to meet the minimum permit requirements in 2012 has been determined to be $160,350. This amount will cover the costs of the equipment and services needed to do the necessary work to improve the system. For the 2012 budget, if the tax levy remains the same, there is enough money for doing the requirements. However, in 2013, there will not be sufficient funds to meet the requirements of this program. This program has been funded primarily through development but with the lack of development, the funds are diminishing even though the Ciry still needs to maintain its Stormwater system. In order to continue meeting the requirements of the permit, a fee structure would need to be instituted or an increase in the tax levy would be required in 2013. CONSIDERATIONS Two options to be considered are: Set up a rate structure for all property owners (residential, commercial, industrial, institutional, etc). a. Based on conversations with other communities, this will be very labor intensive. Staff would be requesting at a minimum an additional $30,000 to conduct a study in 2012 to determine the impervious surface/acreage for all properties within the City limits. The reason for doing this is to ensure that property owners are being treated fairly and not being charged a fee if they are currently treating all their Stormwater. The other communities allow for fee exemptions to those properties. This would be funded out of the Surface Water Management Fund. The City of Rogers paid approximately $20,000 to have this type of study completed. b. There would be administrative costs associated with Elk River Municipal Utilities doing the billing for the City. c. Ordinance amendment would be required 2. Increase the tax levy in future years to cover the costs of the program Staff is open to further discussing options on how to proceed with funding the City's Stormwater program.