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Storm Water Fee Presentation Bowen Collins & Associates City Council Meeting 6/8/20 ---PAGE BREAK--- Overview/Objectives – Answer 4 Questions: • What is a storm water fee? • Why does Millcreek need a storm water fee? • How will the proposed storm water fee work? • What is the recommended storm water fee? ---PAGE BREAK--- What is a storm water fee? ---PAGE BREAK--- Other City Needs Current Approach Storm Water Operations, Maintenance, Capital Projects, and Regulatory Compliance CUSTOMERS Taxes (General Fund) ---PAGE BREAK--- Other City Needs Storm Water Utility Approach Storm Water Operations, Maintenance, Capital Projects, and Regulatory Compliance Storm Water Fee Taxes (General Fund) CUSTOMERS AND TAX- EXEMPT BUSINESSES ---PAGE BREAK--- Approach of Neighboring SL County Entities ---PAGE BREAK--- Why does Millcreek need a storm water fee? ---PAGE BREAK--- Aging Infrastructure Current Infrastructure Problems Include: Cracked Pipe Clogged Pipe Flooding Walled-Off Pipe • There is currently 21,500* linear feet of Corrugated Metal Storm Water Pipe in Millcreek, most of which was installed before the 1980’s. • There is currently 173,000* linear feet of Reinforced Concrete Storm Water Pipe in Millcreek, much of which is not mapped *Inventory of pipe based on a 2018 JUB study, not confirmed by City Engineering ---PAGE BREAK--- Municipal Separate Storm Sewer System (MS4) Compliance • Federal and State regulatory requirements • Includes litter prevention and cleanup, public education, regular water testing, code enforcement, and other pollution monitoring and prevention activities • Millcreek needs to have the full program in place by 2022 ---PAGE BREAK--- Reliability of Funding Source • Dedicated funding is fiscally sustainable • Road funds are no longer needed to fund storm water projects • The Storm Water Program does not compete with other critical budget items ---PAGE BREAK--- To be Equitable and Defensible, All Customers Pay • Current Situation • Only taxable properties participate in funding storm water needs • With new fee, all users pay ---PAGE BREAK--- Recommended Budget (in 2020 Dollars) Administration $895,000 Operations $741,000 Capital Expenditures $1,526,000 Debt Service $410,000 Total $3,572,000 ---PAGE BREAK--- Historic and Projected Revenue and Expenses ---PAGE BREAK--- How will the Storm Water Fee Work? ---PAGE BREAK--- Impervious Area • Impervious area correlates to storm water runoff • Average Single-Family Resident in Millcreek has 4,198 SF of Impervious area, rounded to 4,000 SF for simplicity • 1 ERU = 4,000 SF of Impervious Area ---PAGE BREAK--- Customer Classes • Class 1: Single Family Residential with lots under 11,000 Square Feet • Class 2: Single Family Residential with lots over 11,000 Square Feet • Class 3: Commercial, Institutional, Civic, and Mixed Use • Class 4: Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) • Class 5: Multi-Family Residential (Townhomes) Class 3 Example: Church with Park ---PAGE BREAK--- Customer Breakdown Customer Class ERUs Share of ERUs Class 1: Single Family Residential with lots under 11,000 Square Feet 8,777 28.5% Class 2: Single Family Residential with lots over 11,000 Square Feet 6,926 22.5% Class 3: Commercial, Institutional, Civic, and Mixed Use 10,067 32.6% Class 4: Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) 3,439 11.2% Class 5: Multi-Family Residential (Townhomes) 1,599 5.2% Total 30,808 100% ---PAGE BREAK--- Fee Credits May be Offered Credits may be offered to only Customer Class 3 (commercial / institutional / civic / mixed Use) for privately maintaining a detention system, privately maintaining a retention system, and privately conducting storm water quality training A Hardship Waiver will be offered to Customer Classes 1, 2, 4, and 5 (residential) in the case of financial hardship or active military household member ---PAGE BREAK--- What is the Recommended Fee? ---PAGE BREAK--- Recommended Fee & Projected Revenue Fiscal Year Recommended Rate ($/ERU per month) Projected Revenue 2020-2021 $10.03 $3,552,000 2021-2022 $10.26 $3,652,000 2022-2023 $10.50 $3,755,000 2023-2024 $10.74 $3,860,000 2024-2025 $10.99 $3,968,000 ---PAGE BREAK--- $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Cottonwood Heights Holladay South Salt Lake Lehi Tooele Cedar City Taylorsville West Point West Valley Woods Cross Clinton St. George Alpine Bluffdale West Jordan Murray Springville Salt Lake City American Fork North Salt Lake Riverton Sandy Payson Salem Bountiful Farmington Herriman Orem South Jordan Layton Pleasant View Midvale Ogden Centerville Draper Millcreek Spanish Fork South Ogden Provo Cedar Hills North Ogden Ivins Pleasant Grove Park City Typical SFR Storm Water Fee Data Source: Official website of referenced entity (accessed between January 2020 - March 2020) Storm Water Utility Fees in Utah $9.03 per month for Class 1 Customers (Single-Family Residences under 11,000 Square Feet, or 0.25 acres). These account for 75% of Single-Family Residences in Millcreek ---PAGE BREAK--- Typical Fee – Class 1 Single Family Residential with lots under 11,000 Square Feet • 0.9 ERUs • $9.03 per month • 75% of Single Family Residential Properties ---PAGE BREAK--- Typical Fee – Class 2 Single Family Residential with lots over 11,000 Square Feet • 1.6 ERUs • $16.05 per month • 25% of Single Family Residential Properties ---PAGE BREAK--- Typical Fee – Class 3 Commercial, Institutional, Civic, and Mixed Use • Based on measured impervious area • $10.03 per ERU per month • (Prior to applying credits) Example Fee Per Month St. Marks Hospital $1,908 Churchill Jr. High $712 Motor Sports Land $78 Verizon $37 Wasatch Jr. High $505 Church (1100 E and Lorraine Ave.) $136 ---PAGE BREAK--- Typical Fee – Class 4 Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) • 0.4 ERUs • $4.01 per month ---PAGE BREAK--- Typical Fee – Class 5 Multi-Family Residential (Townhomes) • 0.8 ERUs • $8.02 per month ---PAGE BREAK--- Questions ---PAGE BREAK--- School Example • Custom Calculation for each Commercial, Institutional, Civic, and Mixed-Use property • Example Calculation • William Penn School has 139,010 SF of Impervious Area • 139,010 SF 4,000 SF per ERU = 34.7525 ERUs • Bill based on 34.8 ERUs (round to nearest tenth) • 34.8 X $10.03 = $349.04/month for this Complex