TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Adoption of Annual Storm Water Service Fee for Fiscal Year 2016-2017 (Finance Director Moe).
a) CONDUCT PUBLIC HEARING
b) ADOPT RESOLUTION NO. 16-0025
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing on the annual storm water service fee for fiscal year 2016-2017, and adopt Resolution No. 16-0025.
FISCAL IMPLICATIONS:
The storm water fee currently generates approximately $345,000 annually. As indicated in the adopted 2016-2017 budget, a General Fund subsidy of $745,967 will be required to fund operations of $890,267 and capital improvements of $210,000.
Under present conditions, the General Fund subsidy offsetting Storm Drain deficits will continue indefinitely. In addition to the subsidy there is unreimbursed overhead support from the General Fund of $161,191 as determined by the periodic cost allocation plan. As costs escalate due to mandates for clean water and storm water treatment, the General Fund support will also grow unless action is taken to increase the fee or alternative revenue sources are identified and approved by voters.
Without new revenues, Storm Water subsidies will require the use of Economic Uncertainty Reserves, which will be virtually exhausted within five years due to the continued subsidies.
BACKGROUND:
The City levies an annual storm water service fee on each parcel of real property in the City. The fee is levied to finance the costs of on-going operation and maintenance of storm water facilities and services. The fee is based on an engineering analysis of the City's storm drain requirements performed in 1996 by an outside consultant. The typical fee is $19.12 per year per single family residence. The fee has remained unchanged since the passage of Propos...
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