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HomeMy WebLinkAbout10.b. Stormwater UtilityCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: MARCH 19, 1991 AGENDA ITEM: STORMWATER UTILITY DISCUSSION AGENDA SECTION: ADMINISTRATOR'S REPORT PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDA NQ r n E K4 ATTACHMENTS: 2ND DRAFT - STORMWATER UTILITY I AP VED BY: , 7p� This item consists of an update on the discussion and consideration of the proposed Stormwater Utility. The Utilities Commission has received and reviewed the 2ND DRAFT of the Proposed Stormwater Utility and will consider finalizing it at a special Utility Commission meeting on March 25, 1991. We will review the 2ND DRAFT with you and discuss the process for public review and your adoption of the program. RECOMMENDED ACTION: None COUNCIL ACTION: None. Rosemount Public Works Department Financing Storm Water Projects Using a Surface Water Management Utility Preliminary Report March 11, 1991 - . t b Table of Contents Letter of Transmittal__ Section 1: Summary .................................... Section 2: Introduction .................................. What Is a Surface Water Management Utility? How Will the Utility Benefit the Community? The Financing Dilemma ............................... Selecting the Best Option .............................. Section 3: Fee Basis ..................................... Philosophy ................. Cost Recovery .............. Capital Improvements Budget (CIB) Typical Charges ............. Cost Comparison .................................... Credits........................................... Exemptions Section 4: Administration ................................ Section 5: Model Ordinance .............................. Surface Water Management Utility ....................... City Policy ........................................ Section 6: Public Information Program ...................... Education Process ................................... Results........................................... Public Information Meeting ............................ Questionnaire ...................................... Public Hearing ..................................... References ............................................ 2319125\f swp.rpt/klh Section 1: Summary Paying for storm water drainage projects has become more complex in recent years. Additionally, the costs related to water quality management and wetland protection continue to rise. Special assessments against benefitted properties financed most of the necessary improvements but those assessments are being challenged in court more often. For example, benefits are difficult to demonstrate for properties on high ground, and assessment hearings can create irreconcilable differences between neighbors. Consequently, many communities lack the proper funding to undertake water -related projects. Traditional methods of financing storm water improvements through City general funds are becoming less viable (Krempel, 1988). Instead, user or utility charges that have been used by communities to finance sanitary sewer and water main programs are now being applied to storm water projects (Jouseau, 1983). The utility approach is gaining recognition as the most equitable way to finance storm water projects (Honchell, 1986). This report is intended to provide guidance to City representatives and citizens for understanding and implementing a surface water management utility. The report defines what a utility is, how it benefits the City, and how it is implemented. Why Consider a Utility? (Krempel, 1988) A. Fairness Charges are based on how much the property contributes to the problem. B. Dependability A utility produces consistent funding and is more easily projectable. C. Dedicated Funds These funds can be used only to finance projects related to surface water management. Page I D. Unrestricted Use of Funds Funds can be used for any type of administrative, planning, engineering, maintenance, construction or other uses associated with drainage system operation, water quality, and wetland protection. E. Legal Defensibility Special assessment projects are being challenged more often in courts. Benefits are difficult to demonstrate for high ground properties that drain downstream. The utility limits legal challenges by not having to consider the market value increase of property. By implementing the utility, the need for public assessment hearings and lengthy assessment proceedings can be avoided for many projects. F. Tax Levy Reduction Because municipalities are no longer funding these activities with tax -supported general funds, tax levies can be reduced or applied elsewhere. G. Simplicity and Flexibilitv Forming a storm water utility is not difficult. Typical activities are securing City approval, developing a charge system, explaining the system to the public, and adding an extra line on utility bills. In addition, the fee system is adaptable to local situations. H. Financing Replacement Facilities Storm water drainage facilities deteriorate over a relatively long period of time (25-100 years). Therefore, most municipalities have not considered or planned for replacing facilities when they do deteriorate. Storm sewer facilities are also replaced during redevelopment. Presently all over the metropolitan area, storm sewer systems are being replaced in the "older parts of town' where less affluent and elderly people live. Storm sewer assessments can be devastating for the residents and businesses in these areas. Through a utility, the City can plan and budget for system replacements while the residents and businesses can budget for the small quarterly payments. Page 2 Section 2: Introduction What Is a Surface Water Management Utility? The utility is based on the premise "users pay' (Honchell, 1986). The "utility fee' or "user charge" is like sanitary sewer and water utilities operated by communities. A utility fee is a service charge used to finance the City's drainage system and projects to control or improve water quantity and water quality. A quarterly fee is typically charged against all contributing parcels within the City. The fee is based on how much water the parcel of land contributes to the storm water drainage system. Where land is undeveloped, much of the rain soaks into the ground or drains to small depressions. Where development is prevalent, impervious surfaces like rooftops, driveways, and parking lots prevent rainfall from soaking in, and the rain runs off into street gutters, ditches, sewers, ponds, and lakes. This increased runoff impacts (1) the sizing of storm drainage facilities, and (2) the quality of water downstream. Therefore, the developed property should pay more for the storm drainage system and water quality improvement projects. The user charge is not associated in any way with property value or property taxes. All properties are subject to the utility charges, including tax-exempt parcels and City -owned lands. Operation and maintenance of storm drainage facilities requires more and more tax money. A surface water utility provides the means to handle increasing costs by having the users of the drainage facilities pay. This consistent and dependable revenue source helps manage the storm drainage system without increasing property taxes or using controversial assessments. Page 3 How Will the Utility Benefit the Community? The utility benefits the community by providing a dedicated fund for surface water management activities, including planning, inventories, capital expenditures, personnel, equipment, and administration of the utility. The utility provides a continuous source of revenue for surface water management without competing with the general fund. In fact, with the utility in place, the tax levy that supports the general fund can be reduced or applied elsewhere. Also, as described on the previous page, the overall cost of individual projects is significantly reduced because (1) extensive and expensive assessment rolls do not have to be prepared, and (2) the number and potential for legal challenges are significantly reduced. The benefits associated with surface water management include: • Reduced costs • Flood control • Drainage system maintenance • Better surface water quality • Enhanced recreational opportunities • Wetland protection • Erosion and sediment control • Community education The Financing Dilemma Paying for storm water management projects has become more complex in recent years. In the past, special assessments against benefitted properties financed most of the necessary improvements. However, with recent legislation, the financial options have broadened considerably. The question is, which method best suits the needs of the City? There are several funding sources besides a storm water management utility (or user charge). Described next are these major funding sources: 1. Ad Valorem Taxes 2. Special Assessments 2. Building Permits, Land Development Fees, and Land Exaction 4. User Charges 5. Grants Page 4 6. Cost Sharing Ad Valorem Taxes A. General Taxes General taxation is the most common revenue source used to finance government services, including minor maintenance for drainage and water quality facilities. Using -- -property tax has the effect of spreading the cost over the entire tax base of the community. The State legislature has made this avenue very difficult with the levy limit requirements. Therefore, to fund projects that exceed general tax limits, a bond referendum would have to be passed. This process can be very time consuming and expensive. B. Special Tax District (M.S. 473.875 to 473.883) The tax district is similar to the administrative structure under general taxation except that all or part of the community may be placed in the tax district. The principle is to better correlate improvement costs to benefitted or contributing properties. Special Assessment (M.S. 429) Special assessments are used to finance special services ranging from sidewalk maintenance to construction of capital improvements. The assessments are levied against properties benefitting from the special services. The philosophy of this method is that the benefitted properties pay in relation to benefits received. In this case, the benefit is the increase in the market value of the properties. The disadvantage of this method is that it is difficult to determine and defend benefit. Building Permits, Land Development Fees, and Land Exaction_ As land is developed or built upon, surface water runoff and pollution loading increase. Administrative and capital costs can be recovered at the time of building permit issuance or land development approval. A city can require dedication of land for ponding or drainage purposes. The land, however, must be part of the parcel being developed. The disadvantage of this method is cash flow. Expenses are incurred upfront while revenue comes in based on development rate. Page 5 User Charges (M.S. 444.075) User charges, such as those developed through a storm water utility fee, are a mechanism by which a city can generate funds through billings similar to water and sewer billings. The principle of this method is to charge for services rendered to properties generating runoff, as well as for services to properties protected from the effects of runoff, - - without considering an increase in market value of the property. Grants State grants are available for surface water management and non -point source pollution. It is generally not a good financial practice to rely on grants for a service program. This source of revenue is not dependable and requires constant speculation as to its availability. Grants are useful but should only be used to supplement a planned local revenue source. A. Minnesota Pollution Control Agency (MPCA) Previously, the MPCA had federal matching funds for preserving and protecting lakes and for enhancing their public use and enjoyment, under the Federal Clean Lakes Program. MPCA is optimistic that funding will continue to be available. Currently, MPCA is involved in the State Clean Water Partnership (CWP) Program. The CWP provides matching funds for lake improvement projects and non -point source pollution reduction. There is a great deal of competition for the available CWP dollars. B. Minnesota Department of Natural Resources (MDNR) The MDNR has available funding through its Flood Hazard Mitigation Grant Assistance Program. The program provides financial support for planning and implementing structural and non-structural flood damage reduction measures. The program includes matching funds through either a general fund or a bonded fund. C. Minnesota State Board of Water and Soil Resources This board has limited matching funds available for erosion control projects. Most often these monies are administered through the county Soil and Water Conservation District. Cost Sharing Page 6 Certain studies and projects, from time to time, benefit or, are consistent with other government agency needs, such as drainage improvements between two municipalities. A project might also benefit the county in which it lies, and may also be consistent with state or federal needs. A project that might not be possible for one municipality to undertake may be possible by "cost sharing" with other affected government bodies. Cost sharing reduces the amount of funds the City has to raise for the project, but the City still has to use one of the five other funding sources to finance its portion. Selecting the Best Funding Option In evaluating funding options, we should consider the following criteria: • Fairness • Dependability • Legal Defensibility • Simplicity • Burden • Flexibility The surface water management utility or user charge method is preferred because it meets these criteria: 1. Fees are assessed against properties based on the properties' contribution of runoff. 2. The utility represents a steady and reliable source of revenue. 3. The utility significantly reduces the potential for legal challenges to assessments, as was frequently the case when special assessments were levied against properties. The utility also eliminates the need to demonstrate benefit or fair market increase for properties within a project area. 4. The simplicity of the utility makes this financing method attractive, and gaining approval and public support is much easier. Adding an additional charge to existing utility billings is a simple process (Honchell, 1986). The quarterly charge is an approach that generally meets with more public acceptance than a one-time charge, mainly because it is easier for individuals to finance and plan for. Lastly, the utility method is flexible, making it easier to administer projects. Page 7 Section 3: Fee Basis The general philosophy behind the storm water utility program is simple -- contributors and users pay (Jouseau, 1983). To develop a fee basis that is fair to all properties, the City must determine which properties pay what amounts. Therefore, the utility fee should be based on how much runoff from a particular parcel contributes to the drainage system needs. There are many factors that must be considered to determine contribution, such as: 1. The amount of rainfall 2. The area of hard or impervious surfaces 3. The area of pervious surfaces (e.g., grass, gardens, fields, bare ground) 4. The slope of the land For example, an area developed as single-family residential generally has less runoff than an industrial area of equal size. Therefore, an industrial area contributes more runoff and requires more system capacity than a single-family residential area of equal size. To summarize Rosemounes drainage system, the City's Drainage Plan calls for the drainage systems to be designed for the 100 -year storm. This means the combination of storm sewers, streets, overland drainageways, and storm water detention ponds work together to provide 100 -year capacities. Rosemount's storm sewers are designed to pass the 10 -year storm, so flows in excess of that storm are controlled by storm water detention basins. By far, the largest cost in the storm drainage system is the construction and maintenance of storm sewers. The cost of the basins is generally secondary to the cost of storm sewers since the basins are usually planned where there are lakes, ponds, and other natural depressions. In many instances, there will be virtually no cost for basin construction. Also, land or easement costs for many of the basins are not expected to be high because historically these areas have been dedicated for ponding by developers to meet density, green space, or parkland requirements. Because most system costs area result of a 10 -year storm design, the utility fee for a parcel should therefore be based on its 10 -year storm event runoff. Page 8 Cost Recovery As discussed above, the majority of the storm drainage system costs are for constructing and maintaining the system storm sewers. These storm sewers are designed to handle the 10 -year storm. For the Rosemount area, the critical 10 -year storm is a 2.1 -inch rainfall in a 1 -hour period (U.S. Department of Commerce, 1961). Not all of the 2.1 -inch rainfall runs off the land and drains to the storm sewers. Some of the rainfall is intercepted by trees, plants, buildings, etc. Some is pooled in minor depressions, some infiltrates into the ground, some evaporates, and some is used by plants for growth. Besides the amount of rainfall, the amount of precipitation that actually runs off the land is directly related to: 1. The Area of Impervious Surfaces This is the area covered by streets, sidewalks, parking lots, buildings, and other impervious surfaces. The greater the impervious area the more runoff. For example, there is usually more runoff from an industrial area than from a single- family residential area of the same size. 2. The Area of Pervious Surfaces Pervious surfaces are land that allow water to infiltrate into the ground. This includes bare ground, grassed yards, croplands, boulevard areas, parklands, ballfields, and greenspace areas. Because of rainfall infiltration, there is less surface runoff from pervious land than from impervious land. 3. The Infiltration Rate of Pervious Surfaces Pervious surfaces vary in how quickly they allow rain to infiltrate. For example, sandy soils have a much higher infiltration rate than silty or clayey soils. (The shallow or surface soils in the Rosemount area tend to be very sandy.) 4. The Slope of the Land Water flow velocities are higher on steep slopes than flat slopes. Therefore, rain falling on steep slopes will result in higher rates and volumes of runoff than flatter slopes of a same size area. Page 9 The City's Drainage Plan was prepared using the Barr Engineering Co. Watershed Model, which considers the effects of each of these parameters for each type of land use. The following chart presents a comparison of 10 -year runoff amounts for various land uses in Rosemount. Land Use Description Runoff Volume (inches) Ratio** RR Rural Residential 0.83 0.86 RL, R-1, R-2 Single -Family Residential 0.97 1.00 R-3, R-4 Apartments 1.20 1.24 C-1, C-2, C-3, C-4 Commercial 1.50 1.55 IP, IG Industrial 1.64 1.69 AG Agriculture (zoned) 0.53 0.55 U Undeveloped 0.53 0.55 P Churches, Schools, Government Buildings, Hospitals 1.20 1.24 PK* Parks, Golf Courses, Cemeteries 0.67 0.69 PL* Parking Lots 1.64 1.69 * Not presently a zoning designation ** The ratios in the column are the ratio of the runoff for the land use in question divided by the runoff for the single family land use. i.e. Rural Residential = .83/.97 = .86 Given the philosophy that "contributors pay," it is then logical that utility fees for properties should be based on how much these properties affect the system sizing. Therefore, the storm water utility fee should be a function of the land use and the amount of drainage area within that land use. The ratios shown in the above chart provide a relative weighting for land uses affecting system design in the Rosemount area. Again, this is based on the design storm, which is a 2.1 -inch, 10 -year frequency, 1 -hour duration, rainfall event. Page 10 Capital Improvements Budget (CIB) The following table illustrates the anticipated 5 -year CIB to be financed with the surface water management utility. The budget includes: Construction and Maintenance Costs For: - • Planning • Engineering inventories • Capital expenditures • Financing for projects to be constructed before funds are available • Personnel • Equipment Contingency Account For: • Unanticipated projects • Necessary maintenance and repairs resulting from storm damage • Special pumping from the City's landlocked ponds • Purchase of drainage and utility easements • Replacement of systems as they deteriorate The utility will not eliminate contributions from new developments. All new plats will continue to pay for or provide their own storm water management features. New development will also continue to pay connection charges. 5 -YEAR CIB Construction $5,926,500 Operations and Maintenance 772,500 Contingency Account 1,512,600 TOTAL $8,211,600 Page 11 Typical Charges To determine typical charges for different properties, the estimated expenditures for a given period of time are apportioned according to the percentage of total runoff attributed to that property type. 1,00 The charge for agricultural and undeveloped property has been set at per acre to keep the quarterly charges at an acceptable level. The following table shows the calculated charge per acre per quarter to recover the five-year CIB above. LAND USE DESCRIPTION RR Rural Residential RL, R-1, R-2 Single Family Residential R-3, R-4 Apartments C-1, C-2, C-3, C-4 Commercial IP, IG Industrial P Churches, Schools, Government Buildings, Hospitals PK Parks, Golf Courses, Cemeteries PL Parking Lots AG Agricultural (Zoned) U Undeveloped *This land use to receive special consideration, see credits section on page 13. 6_5 7- Z "&A"4 CHARGE $ 17.98 $20.91 $25.93 $32.41 $35.34 $25.93 $ 14.43 $ 35.34 D OC C/ /-)/ Page 12 Cost Comparison Several metropolitan communities have established storm water utility rates. The following table provides a comparison of proposed Rosemount quarterly rates with other community rates. 'This rate is per residential lot per quarter "This rate is per acre per quarter When comparing rates with other communities, it is important to recognize that the actual rates are dependent on the required quarterly revenue, the established City policy regarding which property should pay what amount, and the philosophy used for the basis of rate setting. Therefore, rates should be established that are acceptable and will result in the appropriate level of funding. Credits Credits may be applied for to reduce the utility fee for individual parcels. Credits are available: 1. Where runoff is retained on a single parcel 2. When an individual has inadequate income to pay the fee 3. Where a qualified conservation program (agricultural) is implemented 4. Over the area of a parcel occupied by a "wet pond" Page 13 Single -Family Residential' Commercial" Industrial` Rosemount 6.97 32.41 35.34 Richfield 4.35 108.75 108.75 Eagan 4.56 21.84 21.84 Roseville 4.38 66.30 66.30 'This rate is per residential lot per quarter "This rate is per acre per quarter When comparing rates with other communities, it is important to recognize that the actual rates are dependent on the required quarterly revenue, the established City policy regarding which property should pay what amount, and the philosophy used for the basis of rate setting. Therefore, rates should be established that are acceptable and will result in the appropriate level of funding. Credits Credits may be applied for to reduce the utility fee for individual parcels. Credits are available: 1. Where runoff is retained on a single parcel 2. When an individual has inadequate income to pay the fee 3. Where a qualified conservation program (agricultural) is implemented 4. Over the area of a parcel occupied by a "wet pond" Page 13 A "wet pond" is defined as a pond or inundation area that can store standing water below the elevation of the outlet pipe or where the water would overflow when there is no outlet pipe. Wet ponds have been documented as a benefit to surface water and groundwater systems because they serve as sediment and nutrient traps. Where a "wet pond" is established, the utility fee credit should be applied only to the area occupied by the "wet pond." - - There should be no credit given for a "dry pond." - A "dry pond" is defined as a pond- or ond or inundation area that cannot store standing water below the elevation of the outlet pipe or where the water would overflow when there is no outlet pipe. The utility fee for the area occupied by dry ponds should be the same as for undeveloped property. All credits should be evaluated by a staff -co -remittee and the City Council will hear all appeals of utility charges. Procedures for receiving credits and appealing charges should be established by City policy. Exemptions These are lands that should be exempt from utility fees: 1. Areas occupied by City, county, and state street and highway rights-of-way 2. Non -income producing City -owned parcels 3. Lakes 4. Landlocked basins A landlocked basin is a basin that is (1) designated as such in the City's Storm Water Management Plan or (2) determined to be_ "landlocked" by a majority vote of the City Council. Page 14 Section 4: Administration Administering the surface water management utility will require several phases: Phase 1: Draft of a final ordinance to provide the legal basis of implementation of the utility. Phase 2: Establishment of the individual property charges based on acreage, land use, and the rate as established by ordinance. Phase 3: Modification of the current billing procedure. Phase 4: Creation of an account into which utility funds would be paid, and from which revenues can be made available for City -approved expenditures. Phase 5: Identification of the administration process of the surface water management utility, including: A. Identification of the administrator. B. Establishment of a storm water utility capital improvements program (CIP) and a storm water utility capital improvements budget (CIB) for which recovery of costs are obtained through the utility. The CIP may include both water quantity and water quality projects. C. Establishment of the process for changing rates on parcels based on land use changes. 4. Creation of the initial billing roll. A major effort in administering the utility will be to expand the billing process to include properties that do not currently receive City water and sewer service. Implementation of the utility should closely follow the ordinance and adoption of City policy regarding the utility. The utility would take affect in , 1991, with fees payable as part of the first utility billing cycle. Page 15 Section 5: Model Ordinance (Roseville Storm Water Utility Ordinance) 00. Surface Water Management Utility 00.0010. General Operation. The City surface water system shall be operated as a public utility (hereinafter called the surface water management utility), pursuant to Minnesota Statute Section 444.075, from which revenues will be derived subject to the provisions of this Chapter and Minnesota Statutes. 00.0020. Definitions. Utility Factor. The utility factor is defined as the ratio of runoff volume (in inches) for a particular land use, to the runoff volume (in inches) for an RL, R-1, or R-2 residential lot. This runoff volume is based on 2.1 -inch, 10 -year frequency, 1 -hour duration rainfall and the Barr Engineering Co. Watershed Model. Credit Factor. The credit factor is defined as the percent reduction of the utility fee rate for properties receiving fee rate credits. Surface Water Management Fee. The surface water management fee is defined as the quarterly charge developed for each parcel of land. It will be billed quarterly at the same time sewer and water fees are billed. Storm Water Utility Capital Improvements Program (CIP). The CIP is defined as a 5 - year program which (1) identifies construction and maintenance projects to be performed along with their corresponding costs, and (2) estimates the funds to be designated for a Contingency Account. Ouarterly Surface Water Utility Revenue. This revenue is the total funds estimated to be received quarterly for funding the Capital Improvements Program (CIP). The quarterly surface water utility revenue resulting from surface water management fees shall be established for a period of time as set by City policy and shall be no less than three years and no more than five years. Page 16 00.0030. Surface Water Management Fees. The utility factors for various land uses are as follows: Classification Land Use Utility Factor 1 Rural Residential (21/2 -acre lots) 0.86 2 Single -Family Residential (1/3 -acre lots) 1.00 3 Mixed Low- and Medium -Density Residential 1.24 4 Apartments, Institutions (schools, churches, government buildings, hospitals) 1.24 5 Business/Commercial 1.55 6 Industrial 1.69 7 Agricultural 0.55 8 Undeveloped 0.55 9 Parks, Cemeteries, Golf Courses, Arboretum 0.69 10 Parking Lots 1.69 The surface water management fee shall be determined by the following steps: Step 1. Prepare a five-year Capital Improvements Budget (CIB) amount and divide this CIB by 20 to determine a quarterly CIB. Step 2. Determine the total amount of land that has established fixed quarterly rates (i.e., agricultural or undeveloped). Then compute the amount of quarterly revenue to be received from fixed-rate parcels. This is done by multiplying the total area (of each specific fixed rate) by the fixed rate assigned for those areas. For example, if the total amount of agricultural and undeveloped lands is 450 and 600 acres, respectively, and the corresponding fixed rates are $0.50 and $0.60, the total quarterly revenue for fixed-rate lands is [(450)(.5)] + [(600)(.6)] _ $225 + $360 = $585. Page 17 Step 3. Determine the total amount of land within each of the above ten land use categories that do not have fixed rates. Step 4. Determine the total amount of land receiving "credit" or "exempt" status. Step 5. Convert the total amount (x) of land in each land use into an equivalent (hypothetical) amount of single-family land. This is done by multiplying the total area of a particular land use by the corresponding utility factor shown in the above table. Convert the total amount (y) of credited land into an equivalent (hypothetical) amount of single-family land. This is done by multiplying the total area of each type of credit by the credit factor for that corresponding credit. Add x + y to determine the total equivalent single-family land (z) within the City. Step 6. Determine the unit fee for single-family land. This is done by subtracting the Step 2 total fixed fee revenue from the Step 1 quarterly CIB. Then divide this number by "z" (Step 4). Step 7. Determine the unit fee for all other land use categories and credited land by multiplying the single-family unit fee (Step 5) by the corresponding "utility factor" or "credit factor." 00.0040. Credits. The City Council may adopt policies, by resolution, for adjustment of the surface water management fees. Information to justify a fee adjustment must be supplied by the property owner. Such adjustments of fees shall not be retroactive. Credits will be reviewed annually by a staff committee. 00.0050. Exemptions. The following land uses are exempt from the surface water management fee: (a) City, county, and state road and highway rights-of-way (these are covered in the land use fees) (b) Lakes (c) Landlocked basins (d) City -owned facilities Page 18 00.0060. Payment of Fee. The surface water management fee shall be invoiced every three months on or about the — day of the month. The fee shall be due and payable on or before the — day of the month in which the statement is mailed. Any prepayment or overpayment of charges shall be retained by the City and applied against subsequent fees. 00.0070. Appeal of Fee. If a property owner or person responsible for paying the surface - -water management fee believes that a particular assigned fee is incorrect, such a person may -- - -- request that the fee be recomputed. Appeals will be heard by Eity-Council-once a year in accordance with the schedule established for credit applications, in established City policy. 00.0080. Penalty for Late Payment. Each billing for surface water management fees not paid when due shall incur a penalty charge of ten percent of the amount past due. 00.0090. Certification of Past Due Fees on Taxes. If any two consecutive quarters of surface water management fees have not been paid when due, then a penalty as set forth in Section 00.0080 shall be added to the amount due. Any such past due fees may then be certified to the County Auditor for collection with real estate taxes on the following year pursuant to Minnesota Statutes Section 444.075, Subdivision 3. In addition, the City shall also have the right to bring a civil action or to take other legal remedies to collect unpaid fees. Page 19 Rosemount Surface Water Management Utility City Policy Policy Statement All properties within the City of Rosemount shall contribute to the Surface Water Management Utility in an amount proportional to the runoff contributed by each particular parcel except where the properties (1) are exempt lands, (2) have City -established fixed rates, (3) are credit lands, or (4) have received a City -approved fee reduction. These exceptions are described next. 1. Exemptions and Fixed Rates (a) Agricultural Land -- Agricultural (tilled) land will be charged a flat rate of $1.00 per acre per quarter. (b) Undeveloped Lands -- Undeveloped lands, or land in a natural, undisturbed condition, will be charged the rate of $1.00 per acre per quarter. (c) City, County, and State Street and Highway Rights -of -Way -- These public rights- of-way shall be exempt from all charges. (d) Lakes -- Lakes listed by the Minnesota Department of Natural Resources as Natural Environment Waters, Recreational Development Waters, or General Development Waters shall be exempt from all storm water utility charges. (e) Landlocked Basins -- The portions of parcels occupied by (1) basins identified in the City's Storm Water Management Plan as being landlocked or (2) basins defined to be landlocked by a majority vote of the City Council shall be exempt from all storm water utility charges. (f) Non -income Producing City -owned Properties -- City -owned properties that do not income produce shall be exempt from all charges. These properties may include: City Hall, service garages, and nature parks. However, City -owned properties, such as softball fields, where user fees are charged shall not be exempt (see Credits and Fee Reductions section). Page 20 2. Credits and Fee Reductions Surface water management fees may be adjusted under the conditions stated below. It shall be the responsibility of the property owner to provide justification for the fee adjustment. Credits must be applied for by October 31 of the year preceding the year in which the credit is to be considered. Credits will not be retroactive. - - - -(a) Storm Water Retention If it can be demonstrated that an individual parcel retains all or a portion of the rainfall that it receives, the surface water management fee will be reduced by a percentage equal to that percent of the parcel that produces no external runoff. (b) Low Income -- The surface water management fee will be waived for any property owner with income at or below the established minimum income of $ for the year prior to issuance of any charges. This credit can be applied for at any time during the year. However, once issued, the credit must be f applied for each year. The credit will not be retroactive. (c) Agricultural Land with Established Conservation Program -- A 50 percent fee reduction will be granted to the owner of agricultural lands if the land owner has a conservation program filed with the United States Department of Agriculture Soil Conservation Service (SCS), or County Soil and Water Conservation District (CSWCD). This 50 percent reduction shall apply only to the portion of property where the conservation program is implemented. Other areas on the same tract that do not have an established conservation program will not be considered for a fee reduction. To qualify for the credit, implementation of conservation programs must be verified by the SCS or CSWCD. The surface water utility fee will be reduced by 70 percent if the implemented conservation program will meet the soil tolerance levels as established by the SCS of CSWCD. The 50 or 70 percent credit must be applied for by October 31 of the year preceding the year in which the credit is to be considered. Credits will not be retroactive. (d) Water Qualitv Treatment Facilities -- A 20 percent fee reduction will be issued over the area designated as a storm water quality treatment facility, such as sediment basins, grease and oil skimming devices, and water aerators. (e) Wet Ponds -- The portions of parcels occupied by wet ponds will be charged at a rate of one third of the rate for undeveloped lands. A "wet pond" is defined as a Page 21 pond or inundation area that can store standing water below the elevation of the outlet pipe or where the water would overflow when there is no outlet pipe. (f) Dry Ponds -- The portions of parcels occupied by dry ponds will be charged the same rate as for undeveloped lands. A "dry pond" is defined as a pond or inundation area that cannot store standing water below the elevation of the outlet pipe or where the water would overflow when there is no outlet pipe. (g) Income-producing City -owned Properties -- The utility fee for City -owned properties that are income producing through rent or user fees shall be at the same rate as the parks category. If the income through rent or user -fees can not cover the surface water utility charge for that parcel, the City will issue a fee rate credit. That fee rate credit will be determined each year by the City Council and/or its representatives. Fee Basis 1. Land Use The land use for determining the initial surface water management fee on a parcel shall be the existing land use at the date of enactment of the Surface Water Management Ordinance. As land is developed or redeveloped, the fees will be recomputed based on the revised land use. This new fee will be assigned as soon as possible after the land use change has been approved by the City. 2. Rainfall (P) A 2.1 -inch, 10 -year frequency, 1 -hour duration rainfall will be used to determine the "utility factor" in the revenue equation. 3. Revenue Equation The revenue equation for computing the quarterly storm water utility fee is as follows: R = (U,FiAI + U2F2A2 + U3F3A3 + ... U10FIOA10) + U,;FCAC Page 22 where: IM Ul through Uio = U, _ quarterly surface water utility charge for a parcel unit fee per acre for corresponding classifications #1 through #10 shown in the chart in Chapter 00.0030 of this ordinance unit fee per acre established for a credited parcel Fl through Flo = utility factors for corresponding classifications #1 through #10 shown in the chart in Chapter 00.0030 of this ordinance F. = utility factor for parcels receiving a utility credit Al through Aio = total area within corresponding classifications #1 through #10 shown in the chart in Chapter 00.0030 of this ordinance AC = total area within parcels receiving a utility credit Adjustment of Fees Surface water management fees will be adjusted under the following conditions: 1. Revision of Quarterly Surface Water Revenue The estimated Capital Improvement Budget (CIB) for the management of surface water shall be revised at a frequency specified in the ordinance. The fees will be adjusted accordingly and will follow established City procedures for adjustment of other City utility (water and sewer) rates. 2. Credited Parcels Since parcels receiving storm water utility fee credits will be reviewed once each year, fee adjustments on these parcels will be made only once per year, if an adjustment is necessary. Page 23 I Change in Developed Condition of Parcel When the land use, exemption status, or credit status on a parcel is changed, a corresponding fee adjustment will be made by the utility administrator as soon thereafter as possible. Page 24 Section 6: Public Information Program INSERT SECTIONS ON: • Education Process • Results • Public Information Meeting • Questionnaire • Public Hearing • Citizen/Staff Advisory Committee Page 25 References City of Roseville, MN, Storm Water Utility Ordinance. Honchell, Charlie V., 1986. "Creating a Storm Drainage Facility." APWA Reporter, 10-11. Jouseau, Marchel, 1983. "Storm Water Management: Financing Local Storm Water Management," Publication No. 10-83-143. Metropolitan Council of the Twin Cities Area, St. Paul, MN. Krempel, Roger E., 1988. "Storm Water Management by Utility Approach." Proceedings of the 1988 National Conference, Hydraulic Engineering. Steven R. Abt and Johannes Gessler, eds. ASCE: New York, NY, pp. 1234-1239. U.S. Department of Commerce, 1961. "Rainfall Frequency Atlas of the United States for Durations from 30 Minutes to 24 Hours and Return Periods from 1 to 100 Years," Technical Paper No. 40. Page 26 When it rains Roseville plans to use a "new" technique to pay for the costs of managing storm water runoff - - a Storm Drainage Utility. This leaflet is prepared to introduce you to this new utility and answer your questions. Questions??? & Answers!!! Why do we have a storm drainage system? Before people settled in Rose- ville, the natural state of the land was rolling prairie covered with grass and trees. When it rained, the water soaked into the ground or flowed naturally to the rivers and streams. When people came to Roseville, they built homes, stores, offices, churches, and paved the land with streets, parking lots, and driveways. Now, when it rains, the ground cannot absorb the water as easily, and more water flows off. As the development of the land continued, it became increasingly Why is a utility needed? Recent State legislation now re- quires Roseville to take greater and costlier actions to protect water quality in our community than ever before. These actions will include forming two new water management organizations and developing regional and local plans to identify problems. Today, storm water costs are paid for using general tax money —property taxes. These new costs, when combined with the neariv 520000,000 Roseville must spend for ongoing storm drainage main- tenance each year, represents a major expenditure of tax money. /Roseville must find a way to meet 'these rising costs in a fair and equitable manner, without adding additional burden to the property tax rolls. important to control the storm water. Storm drainage facilities had to be built, maintained and renewed in order to: • PROTECT PEOPLE • PROTECT PROPERTY • REDUCE INSURANCE RISKS • IMPROVE PROPERTY VALUES • ENHANCE THE ENVIRONMENT • PROVIDE FOR SAFE TRAFFIC FLOW To control storm waters and receive these benefits, there is a cost. The proposed -storm drainage utility will spread these costs to those who "create the storm water runoff. What is a storm drainage utility? A storm drainage utility is similar to the familiar sanitary sewer utility. The fee is based on the amount of water that is discharged into the system. For instance, a parking lot creates more runoff than a grass area the same size, so it pays a higher rate. Similarly, a large parcel creates more runoff than a small parcel, so it too pays a higher amount. In this way, the citizens of Roseville will pay for the management of storm water in proportion to the amount of water they "contribute". not on the value of their property. What's my share of the costs? The expected quarterly fees in 1954 to various types of properties are shown below: PROPERTY TYPE QUARTERLY RATES Single Family Homes and Duplexes 54.3511ot Cemeteries and Golf Courses .......................... 53.251acre Parks and Parking Lots ................................ 59.7,5/acre Schools and Community Centers 516.251acre Multiple Family Dwellings and Churches .............. 532.501acre Commercialilndustrial ............................... 565.00lacre Your storm drainage fee will be included on the same .eater and sewer bill you receive each quarter. Also, your fee can be reduced if you can demonstrate that your pro- perty has on site facilities which improve water quality or reduce its outtlow rate. What portion of the costs are paid by single family properties? Currently, nearly fifty percent of the citywide costs of managing storm water are received through property taxes to single family homeowners. Under a storm drain- age utility, the overall single family share is reduced to about twenty- five percent. That means the single family share of storm water costs is cut in half with a utility. Other more intensively deve- loped properties will assume an increased share of these costs due to the greater share of runoff they create. Also, an additional ten per- cent of total costs will now be paid by tax exempt properties, who usually pay no property taxes. How will my money be used? 1) Money is needed to operate and maintain the present storm .97i -N drainage system. A large portion of the storm drainage fee will be usec to: • Enhance wetlands 1 1 t 2) Roseville is a changing com- munity, and planning for the future as well as the present is eZtremely important. A storm drainage master plan will be deve- loped and kept up to date to determine: ' • Where changes or repairs to existing facilities need to be made. • Where and when future facilities will be needed. • What should 'be done to protect the quality of water in our Iakes and streams. t�tl ll tf tkill OII%%III itllt 0 City of Roseville 2boo Civic Center Drive Roseville, Minnesota 55113 o c ea it s or,.. wafer and retard flo:rs • Maintain existing storm facilities so they will operate properiv for longer period of time. • Replace existing storm facilities 1r'_- have hahave become unusable oCer the years due to the natural aeterioratier process. • Sweep streets and pick up leaves so this material ,foes not enter th, system. O I want more information! The City Council plans to hold a public hearing on the Storr Drainage Utility on January 9, 1984 at 7:30 p.m. at City Hai' You a" invited to attend. Also, further information can be obtainec by calling the Public Works Department at 484-3371. Bulk Rate PAID St. Paul, t., Permit 2= Or Roseville has adopted a Storm Drainage Utility This January, the City Council established a storm drainage utility for the City of Roseville. Roseville residents will now be charged directly for their share of the community's drainage expenses, instead of paying for these costs through their property taxes. Charges begin the second quarter of 1984 The first charges for storm drainaae will be included in your second quarter sewer and water statement. You will receive that statement in either April, May or June depending on your location. Thereafter, a storm drainage charge will always be included in your utility statement. 1984 Drainage Utility rates The drainage utility bases :ts charges on the amount of runoff created by a ,:parcel. For that reason, several catagories of land uses and rates have been 'created to reflect differences in runoff created. (i.e. parking lots cause i.. ... . . more runoff than grassy front yards) PROPERTY TYPE Single Family Homes & Duplexes $ 4.35/lot Cemetaries b Golf Courses $ 3.25/acre Parks $ 5.75/acre Schools & Community Centers $10.25/acre Multiple Family E Churches $32.570/acre Commercial/Industrial S05.00/acre Credits for water control facilities Some owners in Roseville have constructed special facilities (like ponds) on their property to improve runoff water quality and/or retard its outflow rate. When these facilities are owned and maintained by the property owner, and :Then the owner can SUDDIV informaticn that demonstrates that the facilities are effective, credits can be granted to reduce utility charges. If you think you qualify, you can pick up an applicat*.cn form in the Enaineering Department at City Hall. Applications and required drawings and calculations must be filed with the City no later than March 20, 1984 robe eligible for credits to the initial storm sewer billing. FOR ADDITIONAL INFORMATION CALL THE ROSEVILLE ENGINEERING DEPARTMENT, 484-3371 i C Utility Bill insert Roseville Storm Drainage Utility,\ Charges begin this quarter `' • \` PROPERTY TYPE QUARTERLY RATES Single Family Homes and Duplexes ................ 54.29; fot Cemeteries and Golf Courses ............. .......... " . S3.25/acre Parks and Parking Lots ............................... S9.75/acre Schools and Community Centers ....::................516.25/acre Multiple Family Dwellings and Churches .............532.50/acre Commercial/Industrial ............................... S65.00iacre You can obtain more information on the Storm Drainage Utility by calling the Roseville Public Works Department at 484-3371. L no ty LA Y -c la c7Y w S'L, wo t�4 �