Title
An Ordinance to Amend Section 2:69 of Chapter 29 (Stormwater Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-20-16)
Memorandum
Your approval is requested to amend Section 2:69 of Chapter 29 of Title II of the Code of the City of Ann Arbor to increase stormwater fees for upcoming operating and capital needs. The increased rates will help finance the completion of the four-year phased roll in of the level of service increases which began in 2017. The final phase of the level of service increases to be implemented this year for the televising of the stormwater conveyance system (on-going $650,000.00/year). Prior to this fiscal year, services that have started and remain ongoing include; green infrastructure maintenance, implementation of best management practices, increased education and outreach as well as other maintenance and rehabilitation in the stormwater system.
In addition, the revenue requirements driving this increase will be used for capital expenditures required to maintain and rehabilitate the stormwater infrastructure, including lining and other major capital projects associated with the aging infrastructure in the City. The stormwater fund also has planned accumulation of fund balance for some large projects required to control flood risks in areas around the City.
The revenue requirement increase of 11% is projected to increase revenues to the Stormwater Disposal System by $1,250,132.00.
City Customers are billed in conjunction with the sewer and water utility. The increase for the stormwater portion of a customer's bill is an estimated $5.55 per quarter, or $22.20 annually. For the purposes of this comparison, the bill is calculated as a residential customer, in the second tier of the fee structure with billable impervious area between 2,187 and 4,175 ft2. The early payment discount (10%) is not included in this calculation.
Staff
Prepared by: Marti Praschan, Chief of Staff, Public Services
Revie...
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