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Home My WebLink About7.c. Storm Water Utility Fee Rate Increase CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: April 16, 1996 AGENDA ITEM: Storm Water Utility Fee Rate Increase AGENDA SECTION: Old Business PREPARED BY: Bud Osmundson AGENDA ITEM # 7 c City Engineer/Public Works Director ATTACHMENTS: Utility Commission Executive Summary, APPROVED BY: Fee Comparison & Springsted Letters & Tables This item is on the agenda for Council consideration of a Storm Water Utility Fee rate ' crease. Staff is proposing that the fees be raised a minimum of $1 .50 on the single family home rate and an equal percentage increase on all other categories. The reasons for the increase are due to funding for Capital Improvement Projects. In the past four years since the Storm Water Utility Fee was initiated, the City has funded numerous Capital Improvements including Hawkins Pond; Valley Oak Pond Outlet plus the acquisition and construction of two additional ponds; the Wachter 186A Outlet (or Carrollton 4th); the trunk outlet through O'Leary's Hills to Wachter Lake; the Schwarz Pond Outlet; the Armory/Community Center pond and improvements. In addition, Storm Core and Utility Funds were used for projects where the State Aid funds did not cover the total cost of storm sewer improvements, including three 145th Street Projects, Diamond Path Improvements, and Trunk Highway 3 Improvements. Attached is a list that shows future storm water improvement projects which will be necessary as we continue to develop. The Storm Water Utility is also used for maintenance purposes in the storm water area including ditching in the rural areas, pumping of ponds and similar tasks. When the Storm Water Utility was initiated the fees initially proposed were two to three times higher than what was established. At that time, Staff realized that there were numerous large scale projects which were on the horizon. As you can see from the attached rate comparisons, Rosemount's annual rate is relatively low compared to other cities. A $4.00 a year increase in the SFR rate would still leave us below the average of area cities. The Commercial/Industrial rate comparison shows that we are much lower than Apple Valley, but higher than Lakeville. (Lakeville does not use their SWU fees for anything other than water Quality projects) When the Surface Water Management Plan is complete, Staff will be bringing it to the Council with recommendations regarding trunk area charges or STAC fees. It is Staff's estimate that those fees will need to be increased also. The rate increase is recommended by City's Financial Consultant, Springsted, Incorporated. The Utility Commission recommended the $1.50 increase now and again in January, 1998. Staff recommends that the fees per raised per the attached chart and that they be reviewed again in the Fall of 1997.. RECOMMENDED ACTION: MOTION TO ADOPT A RESOLUTION AMENDING THE FEE RESOLUTION REGARDING THE STORM WATER UTILITY FEES. COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1996 - A RESOLUTION AMENDING THE FEE RESOLUTION REGARDING THE STORM WATER UTILITY FEES WHEREAS, the City has been collecting Storm Water Utility Fees on all properties since 1992, and WHEREAS, the Storm Water Utility Fees fund storm drainage improvements which benefit the entire City, and WHEREAS, the Staff and City's financial consultant have reviewed the existing Storm Water Utility Fees and have advised that they be increased. NOW THEREFORE BE IT RESOLVED, that the 1996 Fee Resolution No. 1996-5 be amended as shown on the attached table. ADOPTED this 16th day of April, 1996. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted against: Storm Water Utility Fees General Site Total Services Specific Fee Proposed Land Use Description Component A Component B A+B Rate RR Rural Residential Lot $ 5.40 0 $ 5.40 $ 7.00 RL R-1 R-2 Single Family Y Residential Lot $ 5.15 0 $ 5.15 $ 6.65 R-3, R-4 Multi-Family Residential Acre $19.15 0 $19.15 $24.75 C-1, C-2, C-3, C-4, BP1,2,3,4 Commercial Acre $23.90 0 $23.90 $30.85 IP,IG Industrial Acre $26.05 0 $26.05 $33.65 AG Agricultural (Zoned) Lot $ 5.90 0 $ 5.90 $ 7.60 U * Undeveloped Acre $ 0.10 0 $ 0.10 $ 0.10 P Churches, Schools, Hospitals, Government Buildings Acre $19.15 0 $19.15 $24.75 PK Parks, Golf, , Courses, Cemeteries Acre $ 1.05 0 $ 1.05 $ 1.40 PL * Parking Lots Acre $26.10 0 $26.10 $33.70 * Not presently a zoning designation Note: Minimum charge of$1.00 per account STORM WATER UTILITY FEE RATE COMPARISON All Rates below are as of 4-1-96 for a Single Family Residential Home. CITY RATE ANNUAL TOTAL Apple Valley $3.98 Month $47.76 Burnsville $5.60 Quarter $22.40 Eagan $5.40 Quarter $21 .60 Farmington $6.00 Quarter $24.00 Lakeville 1" $3.75 Quarter $15.00 Savage $3.70 Month $44.40 • Bloomington $2.77 Month $33.20 Average of Above $29.77 Rosemount Now $5.15 Quarter $20.60 Proposed $6.65 Quarter $26.60 C/I EXAMPLE ANNUAL FEES APPLE VALLEY ROSEMOUNT LAKEVILLE"' EAGAN A. Using Existing 1996 Rates Parcel is zoned Commercial 4 Acres Gross .75% Impervious 3 Acres Impervious $2,078.52 $382.40 $252.00 $414.72 B. Using Proposed osed Rates Same Parcel as Above $493.60 1" Lakeville only uses their Stormwater Utility for water quality projects and maintenance, but does not use it for capital improvements. • CITY OF ROSEMOUNT - • EXECUTIVE SUMMARY FOR ACTION UTILITY COMMISSION MEETING DATE: April 8, 1996 AGENDA ITEM: Storm Water Utility Rates AGENDA SECTION: New Business PREPARED BY: Bud Osmundson AGENDA NO. City Engineer/Public Works Director 6a. ATTACHMENTS: Future Project List, Storm Water Utility APPROVED BY: Fee Rate Comparison and Spreadsheet Information from Springsted As we have discussed previously, Dan O'Neill from Springsted, Inc., the City's bonding consultant, investigated the debt service for the City's Storm Sewer funding. This is in relation to borrowing money to complete the 1996 Street & Utility Reconstruction Project. The total amount of funding required from the Storm Water Utility and Core Funds is $1,035,000 for this project,well under the original estimate. We are expecting a letter from Springsted which we will hand out at the meeting on Monday night with their recommendations. After discussing the situation with Springsted, the City Administrator, the Finance Director, we have come to the conclusion that we need to raise the Storm Water Utility Fees. The attached Storm Water Utility Fee Rate Comparison shows how Rosemount compares to the other area cities in their Storm Water Utility Rates. We are comparatively low at $20.60 for a single family home per year. The City needs to raise approximately another $70,000 per year just for debt service for the 1996 Project and the 1997 Project(s) which may include Birger Pond Outlet and others. This is a conservative estimate as noted on the Springsted spreadsheet where the analysis did not include connection charges for commercial and industrial development. Any C/I fees collected would be in addition to the Storm Core Fees which are collected for single family and multi-family housing which total approximately $266,500 for 200 homes per year. We are recommending that Rosemount raise the single family rate (for zoning including SF, RR and C/I) $1.00 per quarter for the next billing cycle and also schedule raises for the next two years in the same amount. This will be reanalyzed on a yearly basis but this rate increase is needed. RECOMMENDED ACTION: MOTION TO RECOMMEND THAT CITY COUNCIL INCREASE THE STORM WATER UTILITY FEE RATE AS RECOMMENDED. COMMISSION ACTION: �,4 t5� /Vo c w $l.5-0 4- ,q.G,4.,N ,,,j �J A'v•��_ 3 ,. -• FUTURE STORM WATER IMPROVEMENT PROJECTS ......................• ...............i,......... ..... . �� •ti:iip}i•< :'ry:.j:.."i 4: M1111001111.111Adatallinillearr. .:.......................:.......:..::ii 4:•ii:.: .: .. ....... ... f: i,$tiv v:.{y.A..�;�, L..y ii.•.;......ni:•i}}ii:.4:•:i?•:biii:i4i:ivi}}•:::::, :::w:..::;:v:: .v.,..v.. /. l � ..... ::rf•i:...fir% / •..i�:�i:�Y�kii:i i:::::::::•1 :.:::::•:i.:..::a.;:. .. .... ...,...,•::•::::;.,i,•.i:::•:.•:.,+:::::....... r /.r{. i .:.:::<:.:?.:::.::::,:::::�.:.�::<:.::..:.ii:.:.�.:PR#�JE•Ik:`':�.>:<:v<:.<.::::::::.»:::>.+::.i iii:.i:::::::.::,:.•,.� �.:•.�///.1120Hitailiterral 1�. II��. . .. .:.:. • - 1996 Street & Utility Reconstruction Project $1,035,000 Birger Pond Outlet $2,000,000 Hawkins Pond Outlet $400,000 Wachter Lake Outlet $400,000 Shannon Pond Outlet $400,000 160th Street Reconstruction (A.V. to TH 3) $200,000 1997 Street & Utility Reconstruction Project $150,000 OTHERS: 145th Street Reconstruction - Biscayne to RR Connemara Trail - Shannon Parkway to Biscayne Biscayne Avenue Construction (to Connemara) Biscayne Avenue Construction (So. of CSAH 42) Twin Puddles Area Project 160th Street Construction - East of TH 3 County Road 38 & County Road 72 (Akron Avenue) Diamond Path (CR 33) - 160th Street to CSAH 42 Diamond Path (CR 33) - North of Connemara Shannon Oaks Outlet Keegan Lake Outlet CMC East/"Keegan Lake" Basin Pond Outlets 04/08/96 16:24 FAX 612 223 3002 brx1N(ab1F.U1 irrc. I uuciuuo BS E.SEVENTH PLACE,SUITE 100 SAINT PAUL,MN 55101-2143 612-223.3000 FAX:612.223.3002 Iv SPRINGSTED Public Finance Advisors April 8, 1996 Mr. Bud Osmundson, City Engineer City of Rosemount Rosemount City Hall PO Box 510 Rosemount, MN 55068-0510 Re: Storm Water Utility Rates Dear Bud: Please find enclosed the schedules we discussed this past week relating to the proposed 1996 and 1997 storm water bond offerings and their impact upon storm water utility rate structure. The basic assumptions include: • Housing market maintains its current pace of approximately 205 new single-family dwellings annually, would be advanced by inflation at a rate of 3.5% and • The storm water utility costs wo Y • City would issue $1,035,000 in general obligation storm water bonds in June of 1996 and $2,000,000 in general obligation storm water bonds in June of 1997. It is apparent from the material attached that storm water utility rates will need to be raised to meet the 1997 and subsequent-year obligations. If the utility moves promptly on the rate change, the ongoing incremental alteration will be less dramatic. If you have any further questions, please do not hesitate to call. Best regards, C. Daniel T. O'Neill Executive Vice President sms Enclosures SAINT PAUL.MN • MlNNEAPOUS.MN • OvE.tt A)D PARK,KS - ettOOKF1ELD.WI • WASHINGTON.DC • IOWA CITY,IA 04/08/96 16:24 FAX 612 223 3002 SPRINGSTED INC. lI 003/005 CITY OF ROSEMOUNT, MINNESOTA STORM WATER CORE - April 1996 ousing,Units/Mix Housing Household Housing Unit - Y2.ar population, EZ.8 Units increase January 1, 1090 1,337 3.5 382 107 January 1, 1980 5,083 3.5 1,452 133 January 1, 1990 8,822 3.1 2,781 205 January 1, 1995 11,800 3.1 3,806 205 January 1, 1996 12,570 3.1 4,055 205 January 1, 1997 13,206 3.1 4,260 205 January 1, 1998 13,841 3.1 4,465 205 January 1, 1999 14,477 3.1 4,670 205 January 1. 2000 15,113 3.1 4,875 205 January 1, 2001 15,748 3.1 5,080 205 Assumes a housing unit mix(0'80%single-family, 20%multi-family. • • 04/08/96 16:25 FAX 612 Z2-3-3(102 SrstsiINIWX 1 ssv�. IMUU4/uu3 CITY OF ROSEMOUNT, MINNESOTA STORM WATER UTILITY April 1996 REVENUES ($thousands) 1993 12E4 1991 1996 12,27 1998 1999 2QQ4 2001, Special Assessments $ 0.77 $ 10.3 $ 7.0 $ 7.0 $ 7.0 $ 7.0 $ 7.0 $ 7.0 $ 7.0 Interest Earnings 5.2 11.9 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Utility Charges 263.8 276.2 286.0 300.0 308.7 383.5 454.7 463.8 473.6 Penalties 4.6 0.5 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Other 0.6 0.3 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Transfer _QS _IQ ____0.1 3.5 _Ill 0.0 0.0 0Q 0.0 Total Revenues $274.9 $299.2 $301.0 $318.5 $323.7 $398.5 $469.7 $478.8 $488.6 EXPENDITURES ($thousands) 1993 1994 1995 1996 1997 1998 1999 : 2000 2001 Salaries and Wages $ 0.0 $ 20.1 $ 67.6 $ 79.8 $ 82.2 $ 84.7 $ 87.2 $ 89,8 $ 92.5 Legal and Engineering 15.1 13.9 95.0 30.0 31.5 33.0 34.7 36.5 38.3 General Administration 12.1 12.5 13.1 13.1 13.5 13.9 14.3 14.7 15.3 Transfers(Debt Service) 82.1 54.0 76.5 116.7 114.9 182.5 246.1 247.3 248.7 Contract R&M 2.9 13.6 25.0 25.0 25.0 25.0 25.0 25.0 25.0 Depreciation uip nt 154.5 154.6 2 .4 53.9 56.6 59.4 62A 65.5 68.8 Equipment and Other �,� Total Expenditures $271.2 $286.9 $323.6 $318.5 $323.7 $398.5 $469.7 $478.8 $488.6 04/08/96 16:25 FAX 612 223 300-2— 5111.11vtlbLU. 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ID w .i6 .- aT o of m o co o► a 0 C II a r`tioa, � o � a, � a, o � oaiaDoo r 1 . r 8pp pp pp pp pp 8 § § 8288800 0 U ji O r N M .4. ulrt ar- icy ol .ar00 b O J4 : 01 0 0 0o a0 °o oa o 00 o 0 ao 0 0 0 0 0 0 0 0 0 o m C 0000QQ000000 $ $g 8 • NS . 5Ri5Rilu3 4:445R5343aP. rm• 53 ao3425ga o `a d r A P. 0OD O1- 0401 w1l wPO 0 a- NitidU) P O eeeeeeeeeie zr � � , cl g g g g 0 0 0 0 0 0 r N d1 Q 0 0 n 0 Co 0 — N M Q' O m r~ co O R STORMWATER UTILITY A. REVENUES 1995 Revenues RR $ 9,000 AG 4,000 SF & MF 70,000 C/I/IP 207.000 TOTAL $290,000 B. EXPENDITURES 1. Projects/Capital Purchased: • 6" Pump Purchase • Vactor Truck Debt Service for: • White Lake Outlet • Diamond Path Stormwater Project • Hawkins Pond • Valley Oak Pond Outlet • Schwarz Pond Outlet • Armory/CC Pond & Storm Drain Piping • 3 - 145th Street Improvement Projects 2. Annual • Culvert thawing • Pond pumping • Ditching • VRWMO Dues • Staff time to investigate issues • Culvert cleaning • Vacuuming CB's • Engineering Fees Stormwater Management Plan