TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Interim Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Resolution No. 18-0082 Approving the Annual Storm Water Service Fee for Fiscal Year 2018-2019 (Interim Finance Director Charelian).
a) CONDUCT PUBLIC HEARING
b) ADOPT RESOLUTION NO. 18-0082
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing regarding the annual storm water service fee for fiscal year 2018-2019 and adopt Resolution No. 18-0082.
FISCAL IMPLICATIONS:
The storm water fee currently generates approximately $345,000 annually. As indicated in the adopted 2018-2019 budget, a General Fund subsidy of $1,248,046 will be required to fund operations of $905,767 and capital improvements of $710,000.
The projected cumulative subsidy over the next five years is $6,273,312. Under present conditions, the General Fund subsidy offsetting Storm Drain deficits will continue indefinitely. As costs escalate due to mandates for clean water and storm water treatment, the General Fund transfers will also grow unless action is taken to increase the fee or alternative revenue sources are identified and approved by voters.
Without additional revenues, Storm Water subsidies will ultimately exhaust the entire General Fund Unreserved Fund Balance and begin consuming Economic Uncertainty Reserves 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 operations 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 engineering group. The typical annual fee is $19.12 per year per single family residence. The fee has remained unchanged sin...
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