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
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ATTACHMENTS: 2ND DRAFT - STORMWATER UTILITY
I
AP VED BY:
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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
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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 ............................................
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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.
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