As Finance Chair I am releasing the latest draft of a Stormwater Capital Plan. The 3-year plan focuses on and provides funding for 14 projects mandated by the Federal Environmental Protection Agency MS4 Stormwater Permit.
I appreciate all the work DPW Director Billips and members of the Finance Committee, Councilors Surprise and Emmershy developing a plan; estimating costs, and considering various rate structures and funding options. A lot of good work has been ongoing on daily basis through the holidays, up until now, including meeting with the Mayor and former Council President John Beltrandi.
The residential rate will increase $10 a year to $30 per year for FY19, retroactive to January 1st 2019. The rate will remain at $30 for FY20, and increase $10 a year in FY21. The rate plan will also sunset in 2021; so it can be reviewed and adjusted.
According to Director Billips, the revenue may be on the conservative side, while the project costs may be on the high side. The DPW cannot budget based on projected revenues, but only on funds it has received. Billips anticipates receiving grant money along the way, with projects that are ready to go.
Once the City can report actual revenues or grant money, the Mayor can determine if additional funds from Free Cash or the Stormwater Undesignated Fund are needed to cover FY20 or FY21. Currently, there is over $800,000 in the Undesignated Stormwater account. A little over $300,000 will be used in FY20 and FY21 to offset the funds needed.
The new plan lifts the cap on commercial rates, but is more fair and equitable for small to medium size businesses. Businesses under 50,000 square feet of impervious surface will see their rate go down from 4.5 cents to 1.4 cents per square foot. The commercial rate for 15,000 sq ft will drop from the current $640 to $199 a year.
Under the old rate, a small business with 15,000 sq. ft. paid the same amount as the largest businesses in town. The new plan lifts the cap on businesses from 80,000 to 150,000 sq ft to $1280 per year; and to $2100 on businesses over 150,000 sq. ft., all at the .014 per square foot.
It includes 3 new personnel to be hired in FY20 to ensure the DPW has the workforce to get the work done, and bring in as much in house as possible.
The new plan will be voted on by the Finance Committee Wednesday, January 9, before being sent to the full Council.
| Money Needed for First Three Years of Capital Plan | |||
| 2019 | 2020 | 2021 | |
| Needed | $ 630,000.00 | $ 904,000.00 | $ 1,017,020.00 |
| Generated | $ 691,680.00 | $ 912,840.00 | $ 1,079,100.00 |
| Money Needed for First Three Years of Capital Plan (supplemented) | |||
| 2019 | 2020 | 2021 | |
| Needed | $ 630,000.00 | $ 904,000.00 | $ 1,017,020.00 |
| Generated | |||
| Residential | $ 307,380.00 | $ 409,840.00 | $ 512,300.00 |
| Commercial | $ 384,300.00 | $ 384,300.00 | $ 384,300.00 |
| Supplemented | $ – | $ 118,700.00 | $ 182,500.00 |
| Total | $ 691,680.00 | $ 912,840.00 | $ 1,079,100.00 |
|
Residential |
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| Year | Present | FY19 | FY20 | FY21 |
| Rate | $20/year | $30/year | $30/year | $40/year |
| Revenue | $204,929* | $307,380** | $307,380 | $409,840 |
| Supplement | $102,460 | $102,460 | ||
|
Commercial |
||||
| Rate | $0.045/ft2 | $0.014/ft2 | $0.014/ft2 | $0.014/ft2 |
| Revenue | $353,413* | $384,300** | $384,300 | $384,300 |
| Supplement | $118,700 | $182,500 | ||
| Total | $558,342 | $691,680 | $912,840 | $1,079,100 |
| Present | FY19 | FY20 | FY21 | ||
| Commercial Rate | $ 0.045 | $0.014 | $0.014 | $0.014 | |
| Impervious Surface (Square Feet) | 14,222 | $ 640 | $ 199 | $ 199 | $ 199 |
| 15,000 | $ 675 | $ 210 | $ 210 | $ 210 | |
| 20,000 | $ 900 | $ 280 | $ 280 | $ 280 | |
| 25,000 | $ 1,125 | $ 350 | $ 350 | $ 350 | |
| 27,000 | $ 1,215 | $ 378 | $ 378 | $ 378 | |
| 30,000 | $ 1,350 | $ 420 | $ 420 | $ 420 | |
| 35,000 | $ 1,575 | $ 490 | $ 490 | $ 490 | |
| 40,000 | $ 1,800 | $ 560 | $ 560 | $ 560 | |
| 45,000 | $ 2,025 | $ 630 | $ 630 | $ 630 | |
| 50,000 | $ 2,250 | $ 700 | $ 700 | $ 700 |
Respectfully,
Dan Allie
