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HomeMy WebLinkAboutA001 - Council Action Form dated May 10, 2016 l ITEM # 48 DATE 05-10-16 COUNCIL ACTION FORM SUBJECT: 2016 STORM WATER UTILITY RATE ADJUSTMENTS BACKGROUND: The development of land in the City has resulted in an expanded amount of impervious surface which has increased the cost of both operations and capital for the Storm Water utility. The increased expenditures will help to reduce overland flooding and maintain compliance with storm water runoff regulations. On February 2, 2016, staff presented City Council with an overview of the Storm Water Drainage Utility Fund. At the end of the discussion, City Council directed staff to prepare a rate increase ordinance. The increase would be effective for utility bills mailed on and after July 1, 2016. The attached rate table from Ordinance Section 28.802 accomplishes the City Council's direction and supports the CIP projects previously approved by the City Council. The proposed rate changes in the ordinance were reviewed in several steps of the budget process including the budget public hearing. City staff presented several options to Council and direction was provided to maintain the established rate tier structure and proceed with a single rate increase. While the percentage increase in rates will be over 30%, the dollar impact and percentage increase associated with a customer's total City utility bill will be small. ALTERNATIVES: 1 . Approve the attached rate ordinance on first reading, thereby increasing storm water utility rates effective July 1 , 2016. 2. Direct staff to make modifications to the rate ordinance. 3. Do not take any action to adjust storm water utility rates at this time. MANAGER'S RECOMMENDED ACTION: The proposed rate increases are necessary to fund the on-going operations and maintenance budget plus the anticipated capital improvements projects. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby approving on first reading the attached rate ordinance increasing storm water utility rates effective July 1, 2016.