8.5. SR 09-02-2014 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 8.5 Agenda Section Meeting Date Prepared by General Business September 2, 2014 Justin Femrite, P.E., City Engineer Item Description Reviewed by Stormwater Program Funding Tim Simon, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion, funding options and direct staff to proceed with communication effort to engage the resident preference. Background/Discussion When reviewing the proposed stormwater budget on August 18, 2014, the City Council directed staff to bring back options available to fund the program. Projections indicate an annual investment of$500,000 is required to meet stormwater needs and comply with all regulations of our existing permit. Three funding options have been evaluated by staff and are as follows: 1. Eliminate/reduce services provided for within the current tax levy to cover funding shortfall. 2. Increase levy by$450,000 to make up the shortfall. 3. Decrease levy by$50,000 and establish a Stormwater Utility Fee to collect the necessary$500,000. Option 1 would require significant operating changes to existing services and is not considered a viable option. Options 2 and 3 provide reliable,long-term funding solutions to a program that is a mandated core service. It is understood that neither option will be popular;however city financial policies prohibit one- time revenue use for ongoing, operational costs. Staff proposes a community engagement effort to inform, educate and receive feedback on the options to fund the stormwater activity. There are pros and cons to each revenue source. Property taxes shift the burden to the "wealthy," properties/property owners,while a utility fee is more akin to a user fee based upon each property's contribution to the stormwater collection system. If the Council would consider an increased tax levy to fund the stormwater program,the Preliminary Levy,which will be approved on September 15,will need to be adjusted accordingly. The Council may decrease the levy if another option is approved following the community engagement effort. Financial Impact All costs associated with the action will come from the approved 2014 Stormwater Budget. Attachments • July 2, 2012, Stormwater Utility Fee Presentation P a w E A E U s r NaA f RE]