Stormwater Rate Study

The City has contracted with Integrated Science and Engineering (ISE) to perform a Stormwater Utility Rate Study. The purpose of this study is to basically determine if the rates being charged are keeping up with the services required to be performed. In other words, are the funds collected keeping up with the expenses needed to maintain the stormwater system (storm drains, ponds, etc.). The last time this was performed was 2013.

In order to evaluate this, there will be a multi-step process that will take several months. The steps are as follows:

1. Evaluate the existing utility customer account database.
2. Evaluate the existing billing unit, the Equivalent Residential Unit (ERU)
3. Review existing rate structure
4. Perform new rate analysis
5. Evaluate credit structure
6. Present rate study for consideration and potential adoption.

For step 1, The consultant will be looking at the existing customer account database categorize all into Single Family Residential (SFR), Attached Residential (AR), and Non-single Family Residential (NSFR).

For step 2, ISE will take the City’s Geographic Information System (GIS) files for impervious surfaces and perform statistical analysis on impervious areas to determine a new ERU.

For Step 3, ISE will be taking all the date from steps 1 and 2 and explore options for possibly changing the rate structure and making billing more efficient and equitable.

For Step 4, ISE will analyze the stormwater utility rate to determine the revenues versus expenditures and identify potential short falls based on current fees collected. ISE will look at all expensed line items, including Capital Improvement Plan items, and develop rate model scenarios that will fully fund the City’s Stormwater Management Program.

For Step 5, ISE will review the City’s current credit policy and make recommendations for any additions, deletions, or changes.

For Step 6, ISE will prepare a preliminary rate study for the City to review and will contain recommendations for potential adjustments to the billing rate (ERU), a future Capital Improvement Program with recommended funding strategies, along with potential credit adjustments and other appropriate program modifications.

Staff will review the proposed rate study and ultimately make recommendations to City Council for adoption. There will be pubic meetings scheduled in the future for the public to weigh in.

The proposed time line for completion of the rate study is 7-8 months from initiating.