HomeMy WebLinkAbout20100119 - VII-2 & VIII-A-2MEMO
To: Honorable Mayor and City Council
From: Tom Montgomery
Date: January i4, 2010
Re: Storm Water Utility Rates -Public Hearing and Proposed Adoption of
Fee Ordinance Amendment to include Storm Water Utility Fees
If the Council creates a storm water utility, the City's fee ordinance must
be amended to include the storm water utility fees. After the first reading of the
proposed fee ordinance amendment on December nth, Council referred the
proposed fee ordinance amendment along with the proposed storm water utility
ordinance to the Operations Committee for further consideration.
The Operations Committee has recommended adjustments to the
proposed storm water utility amendment that result in a revised fee schedule.
have modified the proposed fee ordinance amendment to incorporate those
changes. I have also enclosed a copy of my December stn memo to the Council
which contains the originally proposed storm water utility fees in the fee
ordinance amendment.
Council Action Requested
Council is requested to hold the public hearing on the enclosed City fee
ordinance amendment establishing storm water utility rates and consider
amendments and adoption of the ordinance.
CITY OF HASTINGS, MINNESOTA
ORDINANCE N0. 2009- ,THIRD SERIES
AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA
AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR
LICENSES, PERMITS, RENTALS, LEASES AND MUNICIPAL SERVICES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OFHASTINGSAS FOLLOWS:
Chapter 34 of the Hastings City Code is hereby amended as follows:
Section 34.03 Fee Schedule.
below:
The fees for license, permits, municipal services, rentals and leases are amended as set forth
Public Works
Storm Water Utility Rates Rates are Rer quarter
Low Density Residential $11.55 Per lot
Medium Density Residential $6.35 Per lot
High Density Residential $45.05 Per acre
Manufactured Housing $34.65 Per acre
Commercial/Of~ce $55.44 Per acre
Industrial $48.51 Per acre
Public/Institutional exempt Per acre
Gol Course $20.80 Per acre
Open Space/Vacant $11.55 Per lot
Agricultural $11.55 Per lot
All other sections shall remain unchanged
MEMO
To: Honorable Mayor and City Council
From: Tom Montgomery
Date: December 2, 2009
Re: Storm Water Utility Rates -First Reading and Order Public Hearing on
City Fee Ordinance Amendment
Enclosed for Council consideration is a proposed amendment to the City's
fee ordinance establishing storm water utility rates. The proposed storm water
utility rates were developed by taking the anticipated funding needs, $46,000,
and spreading that cost over the to property classifications based on their
amount of impervious surface and runoff generated from a to year storm event.
Fundin Needs
The proposed storm water utility rates were established by first developing
the funding needs of the City's storm water system, including staffing, operations
and maintenance, existing and future regulatory requirements, and capital
improvements. A copy of the anticipated funding needs totaling $46~,ooo/year
is enclosed. Approximately $233,000 of the $46~,00o funding needs is proposed
to be transferred to the General Fund as part of the 201o budget.
The original funding needs analysis developed in early September was
$~14,~00. The Operations Committee initially reduced this amount to $552,200
and then further reduced the funding needs to the proposed $46~,20o amount in
late October, reducing the funding needs by almost $250,000.
Rate Comparisons
Currently, there are loo
communities within the greater Twin
Cities metropolitan area who have
established storm water utilities. The
storm water utility rates of other
metropolitan area storm water
utilities were investigated to provide
the City with a comparison of rates.
The following shows a comparison of
low density residential rates for other
municipalities:
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Due to the differences in methodology used to calculate storm water utility fees
for commercial and industrial land use in the various cities used in the
comparison, two comparisons are provided below. The first comparison is based
on 1-acre of the specified land use with the impervious coverage typical for that
land use in the City of Hastings. The second comparison is an actual property
located in the City of Hastings (Wal-Mart and westview Packaging) for which the
storm water utility fees have been calculated for each comparison city.
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Rate Adjustments
If Council wishes to lower the proposed rates, the annual anticipated
funding needs of $46~,00o should be lowered, with these anticipated expenses
either pushed back to future budgets or funded as we are currently doing -
throughthe General Fund or debt levy. I do not recommend adjusting the storm
water utility structure and proposed Residential Equivalency Factors (REF).
Arbitrarily assigning REF for various property classifications could result in a
legal challenge to the storm water utility, as Minneapolis found out when their
original storm water utility that established fees based on domestic water use was
thrown out.
Council Action Requested
Council is requested to hold the first reading and order a public hearing on
the enclosed City fee ordinance amendment establishing storm water utility rates.
CITY OF HASTINGS, MINNESOTA
ORDINANCE N0. 2009- ,THIRD SERIES
AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA
AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR
LICENSES, PERMITS, RENTALS, LEASES AND MUNICIPAL SERVICES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OFHASTINGSAS FOLLOWS:
Chapter 34 of the Hastings City Code is hereby amended as follows:
Section 34.03 Fee Schedule.
below:
The fees for license, permits, municipal services, rentals and leases are amended as set forth
Public Works
Storm Water Utility Rates Rates are Rer quarter
Low Density Residential $10.96 Per lot
Medium Density Residential $6.58 Per lot
Hi~IZ Density Residential $46.03 Per acre
Manufactured Housing $36.17 Per acre
Commercial/Office $62.47 Per acre
Industrial $52.61 Per acre
Public/Institutional $36.17 Per acre
Gol Course $4.11 Per acre
Open Space/Vacant $10.96 Per lot
Agricultural $10.96 Per lot
All other sections shall remain unchanged