Title
QCI Update; Stormwater Utility Fee Implementation
Body
Summary and Background Information:
In January 2013, the Quality Community Initiative (QCI) presented to City Council the results of their year-long process of engaging the community in a series of neighborhood meetings, as well as through mailed surveys to determine long-term capital improvement goals that are well supported by the committee and the community. This presentation also included the committee's recommendations for proposed capital projects and funding mechanisms to achieve these goals. One of the funding mechanisms identified was a Stormwater Utility Fee.
The fee is needed to fund various stormwater and water quality related maintenance activities and capital projects. Many of these activities are un-funded mandates by the State and Federal governments; and, the City does not have funding sources to meet these mandates and must fund through the general fund. The City spends approximately $875,314 annually from the general fund on a stormwater program, which is considered sub-standard and does not meet the same level of maintenance provided to roads and parks. The ultimate goal of the fee is to provide the same maintenance levels of service to City-owned drainage and water quality facilities that roads and parks receive; and, to have funding for future drainage capital improvements that are currently needed or will be needed in the future. Currently, over 20 local communities in the Denver-metro area have similar utility fees to fund these mandates and activities.
In 2012, City Council approved $200,000 for the implementation of a Stormwater Utility Fee. After considerable analysis and presentation to City Council, the fee was not approved. The cost to re-start the implementation with an expanded public outreach program will be $205,000. Currently, there is $110,000 remaining from the previous implementation project, so an additional $95,000 will be required to fund implementation. Due to the deadlines set by the County Treasurer for when data must be submitted to them to include a fee on property tax bills, and with no other available billing system, it is not possible to implement the fee for the 2014 tax year. However, the public outreach program could be started this year in anticipation of fee implementation by December 31, 2014. It will take approximately 20 months for implementation depending on the scope of a Public Outreach Program.
Staff Responsible (Department Head): Daren A. Sterling, P.E. Interim Director of Public Works
Staff Member Presenting: Daren A. Sterling, P.E. Interim Director of Public Works
Financial Impact: $ 205,000 in 2013/2014; Potential yearly revenue of between $413,000 and $3,404,000 ultimately depending on the starting fee in 2015
Funding Source: TBD
Staff Recommendation: No action requested at this time.