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Storm Water Fee Information Bowen Collins & Associates 6/22/20 ---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 $820,000 Operations $748,000 Capital Expenditures $1,526,000 Debt Service $410,000 Total $3,572,000 ---PAGE BREAK--- Historic and Projected Revenue and Expenses $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Emergency Expenses Unfunded Needs Public Works Yard Capital Expenditures Operations Administration Proposed Revenue Recommended General Fund Budgeted Expenses Note: Years listed are the beginning of the fiscal year (e.g. 2020 is the July 2020 - June 2021 fiscal year). ---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 an average of about 4,000 SF of Impervious Area • 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 at 4366 1500 E ---PAGE BREAK--- Customer Breakdown Customer Class ERUs Share of ERUs Class 1: Single Family Residential with lots under 11,000 Square Feet 8,814 30.2% Class 2: Single Family Residential with lots over 11,000 Square Feet 6,928 23.8% Class 3: Commercial, Institutional, Civic, and Mixed Use 8,275 28.4% Class 4: Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) 3,516 12.1% Class 5: Multi-Family Residential (Townhomes) 1,607 5.5% Total 29,140 100% ---PAGE BREAK--- Fee Credits May be Offered Credits may be offered for privately maintaining a detention system, privately maintaining a retention system, and privately conducting storm water quality training A Hardship or Active Duty Military (deployed) 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--- $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) Maximum $9.32 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 The Recommended Fee for Class 1 customers is $8.83 per month Storm Water Utility Fees in Utah ---PAGE BREAK--- Recommended Fee & Projected Revenue Fiscal Year Recommended Rate ($/ERU per month) Projected Revenue 2020-2021 $9.81 $3,292,519 2021-2022 $10.04 $3,385,088 2022-2023 $10.27 $3,480,260 2023-2024 $10.50 $3,578,108 2024-2025 $10.74 $3,678,706 This is less than the maximum fee of $10.36 per ERU. After two years, the actual revenues from the fee will be compared to revenue needs and the fee re-evaluated if needed. ---PAGE BREAK--- Typical Fee – Class 1 Single Family Residential with lots under 11,000 Square Feet • 0.9 ERUs • $8.83 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 • $15.70 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 • $9.81 per ERU per month • (Prior to applying credits) Example Fee Per Month St. Marks Hospital $1,866 Churchill Jr. High $696 Motor Sports Land $76 Verizon $36 Wasatch Jr. High $494 Church (1100 E and Lorraine Ave.) $133 *Fees per month are estimates and may change prior to billing ---PAGE BREAK--- Typical Fee – Class 4 Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) • 0.4 ERUs • $3.92 per month ---PAGE BREAK--- Typical Fee – Class 5 Multi-Family Residential (Townhomes) • 0.8 ERUs • $7.85 per month ---PAGE BREAK--- Customer Class ERUs Fee per Month Class 1: Single Family Residential with lots under 11,000 Square Feet 0.9 ERUs $8.83 Class 2: Single Family Residential with lots over 11,000 Square Feet 1.6 ERUs $15.70 Class 3: Commercial, Institutional, Civic, and Mixed Use Custom Calculation $9.81 per ERU Class 4: Multi-Family Residential (Stacked Housing, Condominiums, and Apartments) 0.4 ERUs $3.92 Class 5: Multi-Family Residential (Townhomes) 0.8 ERUs $7.85 2020-2021 Fee per Month by Customer Class Quick Reference Summary ---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 $10.36 = $341.39/month for this Complex