HomeMy WebLinkAbout12 - Storm Water management Utility
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
12
BRUCE LONEY, ASSISTANT CITY ENGINEER
CONSIDER THE ESTABLISHMENT OF A STORM WATER
MANAGEMENT UTILITY AND APPROVE ORDINANCE NO.
93-03
JANUARY 19, 1993
This agenda item is for the establishment of
a Storm Water Management Utility and
associated User Fee in the citf of Prior
Lake. The proposed utility was d1scussed by
the Council at the Budget Workshop in 1992.
The Council, at the 1993 Budget Hearing,
approved the concept of a Storm Water
Management Utility subject to the adoption of
a formal rate structure to be considered by
the Council ~rior to the City's February 1,
1993 water b11ling.
Staff will make a presentation of the formal
rate structure and Ordinance No. 93-03 to
Council for the establishment of a Storm Water
Management Utility.
The City of Prior Lake in the past has
installed its storm Water Management
facilities via developer or City projects.
Maintenance and sm~ll improvements to the
system were funded by the General Fund. In
recent years the storm water management area
has seen several new requirements on the
management of storm water. These requirements
in the water management area are summarized as
follows:
1. Metropolitan Surface Water Act (Chapter
509)
2. Wetland Conservation Act of 1991
3. Metropolitan Council's strategf for 40%
Reduction of Non-point Pollut1on in the
Minnesota River Basin
4. Minnesota Department of Natural
Resources "Shoreland Management
Ordinance"
5. Minnesota Pollution Control Agency's
National Pollutant Discharge Elimination
System Permits
6. United States Army Corps of Engineer's
Permit Regulations
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
From this list, cities in the Metropolitan
Area will have to do more in the storm water
management area to meet the new regulations.
The requirements include the preparation of a
Local Water Management Plan to be in
compliance with the Watershed Management
Organizations Plans and implementation of the
MPCA's Best Management Practices for water
quality.
Previously, the main emphasis on storm water
management was on the quantity of water to
prevent floodin9 of property. In the 1990's,
the main emphas1s is on the water quality of
storm water, erosion control and wetland
protection. Of recent, a greater awareness by
the public has been shown on environmental
issues, ~articularly water quality. The storm
Water ut1lity Fee being proposed will provide
the necessary revenue to prepare the Local
Water Management Plan, capital improvement
projects, regular maintenance of storm water
facilities, land acquisition for water
projects, and community education. Many of
the capital im~rovement and maintenance
projects will be 1n areas to promote water
quality by reducing erosion and ponding
water.
DISCUSSION:
Attached to this agenda item is a report as
prepared by the En9ineering Department on the
need for the ut1lity, rate determination
analysis accordin9 to various land uses,
correlating expend1tures and rate structure.
Also attached is Ordinance No. 93-03 to amend
the City Code and provide the legal basis for
establishing a storm Water Management
utility.
In the report, a User Fee Charge was prepared
under the premise that developed parcels in
the City should provide the funding for the
utility. Developed areas with rooftops,
driveways, parking lots will contribute more
water due to the impervious surfaces not
allowing the water to infiltrate in the
ground. The zoning types were reviewed and
the various land uses were classified into
five classifications. For each
classification, a run off curve number (CN)
can be found based on Soil Conservation
Service Hydrology Manuals and land use. The
runoff curve number relates to the amount of
storm water that will runoff and this number
will vary depending on the percentage of
pervious and impervious surfaces. For
instance, the higher the percentage of
impervious surfaces in an area, the higher the
curve number will be and also the amount of
runoff. Higher runoff areas contribute more
water to the storm water management system,
thus these areas should pay a higher user
fee.
The five Land Use Classifications and Runoff
CUrve Numbers are as follows:
PROPERTY LAND USE
ZONING DESCRIPTION CN
R-1, R-2 Single Family, Residential 72
R-3, R-4 Multiple Dwelling Units 85
B-1, B-2, Commercial & Business 92
1-1, 1-2 Industrial 88
All Institutional (schools, 80
zones churches)
Agricultural and conservation zoned
areas which have a residential or
commercial building on the property
would be considered a single family
residential classification and be
charged the SFR rate.
Planned Unit
be charged
appropriate
development.
Using the different curve numbers for each
classification, the runoff in inches for a 4.2
inch rainfall event (10 year storm) can be
calculated. The single family residential
classification was used as the baseline to
calculate the utility factor for the other
classifications. The single family
residential (SFR) classification was given a
utility factor of 1.00 and the utility factors
from the other classifications were then
calculated by takin9 the runoff from each
classification and d1viding this by the runoff
from the SFR classification.
Development zoning will
at the rate most
for each individual
The utility factors for the
classifications are as follows:
various
LAND
USE
CLASSIFICATION CN
RUNOFF
10 YEAR
STORM
Single Family Res. 72
Mult/Dwell. units 85
Commercial & Bus. 92
Industrial 88
Institutional 80
1.60"
2.64"
3.31"
2.91"
2.20"
UTILITY
FACTOR
1.00
1.65
2.07
1.82
1.38
CLASS
The estimated cost associated with the Storm
Water Management Utility is $115,000.00 per
year based on the expenditures listed in the
report. A fee of $3.75 per SFR unit was
selected and assuming 1/3 acre average lot
size, the fee per acre is equal to $11.25 per
acre. To determine the other classification
rates, the SFR equivalent acreage charge of
$11.25 per acre is multipl1ed by the
classification utility factor. The bi-monthly
charges, acreages, and estimated total yearly
revenue generated by the utility is as
follows: " .~~
BI -MONTHLY \nY~ \.V-::~
CHARGE X \ I \
PER ~
ACRE ~ ACREAGE
TOTAL
YEARLY
REVENUE
/
Single Family Res. $11. 25 *1,216 $ 82,080.00
Multiple Dwell. unit $18.56 33 $ 3,674.88
Business/Commercial $23.29 85 $ 11,877.90
Industrial $20.48 24 $ 2,949.12
Institutional $15.53 160 $ 14,908.80
$115,490.70
* Estimated number of units for SFR is 3,648 units and assuming
1/3 average acre lots, the acreage for revenue estimation is
1,216 acres.
Property exemptions from the utility charge
would be the following:
1. Public right-of-way
2. Municipal owned land such as public
parks and buildings
3. Open space such as cemeteries and golf
courses.
4 . Lakes
ALTERNATIVES:
RECOMMENDATION:
5.
Vacant and unoccupied parcels such as
agricultural and conservation land that
does not have a residential or commercial
building on the pro~erty.
For all classificat10ns other than SFR, a
deduction for wetlands will be given if
the City has a drainage easement on the
wetland.
6.
In exemptions 1 & 2, the rationale for not
charging these areas is that most of the areas
described are owned by the City and the
charges would be paid by the City taxpayers.
Exemptions 3 thru 6 are land uses which have a
much lower runoff curve number than a 1/3 acre
residential lot. In these exclusions, the
impervious area percentage is very low, if
any, thus the parcels are considered
undeveloped.
Staff will present the report at the Council
meeting and discuss the report in detail. If
the Council approves the Storm Water
Management utility Fee structure, as is or
with modifications, an ordinance has been
prepared for the establishment of the Storm
Water utility. An ordinance is needed to
provide the legal basis for the utility and
would be published in the Prior Lake American
on January 25, 1993. The City's sewer and
water billing would include the storm Water
Management utility Fee on the February 1, 1993
bill1ng.
The alternatives are as follows:
1. Approve a motion a~proving the Storm
Water Managementutil1ty Fee structure as
outlined 1n the agenda packet or as
modified by Council and approve a motion
approving Ordinance No. 93-03 amending
the City of Prior Lake's City Code, Title
9, by adding a new chapter 7 establishing
a storm Water Management utility.
2. Reject the Storm Water Management utility
Fee structure.
3.
Table this
information.
for
additional
item
Staff would recommend the storm Water
Management utility Fee structure as proposed
based upon runoff generated by the land use.
As such, the proposed fee structure would
generate the revenue necessary to fund the
projected expenditures.
BUDGET IMPACT:
ACTION REQUIRED:
An amount of $111,000.00 of storm Water
Revenue was allocated within the 1993
Enterprise Fund which was necessary to provide
a balanced budget. Assuming adoption of a
storm Water Ordinance, the fees would be
initiated upon this fear's first billing cycle
(2/1/93). It is proJected that approximately
$115,000.00 of revenue will be generated with
this storm water utility charge.
A motion approving the storm Water Management
utilitf Fee structure is in order and a motion
approv1ng Ordinance No. 93-03 is in order to
implement the utility.
CITY OF PRIOR LAKE
ORDINANCE NO. 93-03
AN ORDINANCE AMENDING TITLE 9 OF THE PRIOR LAKE CITY CODE BY
ADDING A NEW CHAPTER 7 ESTABLISHING A STORM WATER MANAGEMENT
UTILITY.
The City council of the City of Prior Lake does hereby ordain:
section 1. Title 9 of the Prior Lake City Code is amended by
adding Chapter 7 to read as follows:
CHAPTER 7
STORM WATER MANAGEMENT
Storm Water Management utility Established.
Definitions.
9-7-1
9-7-2
The following words, terms, and ~hrases, when used in this
Chapter, shall have the meaning ascr1bed to them in this section,
except where the context clearly indicates a different meaning.
STORM WATER
MANAGEMENT
BUDGET:
STORM WATER
MANAGEMENT
FEE:
UTILITY
FACTOR:
Storm Water Management Budget is the annual budget
approved bf the City Council for storm water
management 1ncluding planning, monitoring, capital
expenditures, maintenance, land acquisition,
personnel and equipment.
Storm Water Management Fee means the bi-monthly
charge for each parcel of non-exempt property in
the City for the management of storm water.
Utility Factor means the ratio of runoff volume, in
inches, for a particular land use, to the runoff
volume, in inches for a 1/3 acre residential lot,
assuming a 4.2 inch (10 fear storm) rainfall and
Soil Conservation Serv1ce (SCS) "Type B" soil
conditions.
9-7-3
Storm Water Management Fee.
A. The utility Factors for various land uses are as
follows:
Classification
1
2
3
4
5
Land Use utility Factor
Single Family Residential (SFR) 1.00
(1/3 acre lots)
Multiple Dwelling Units l.65
(Residential)
Business/Commercial 2.07
Industrial 1.82
Institutional 1.38
(Schools, churches, government
& buildings)
Agricultural
residential
considered a
rate.
and conservation zoned
or commercial building
SFR classification and
areas which have a
on the property will be
be charged the SFR unit
Planned Unit Development zoning and government agencies parcels
other than the City of Prior Lake will be charged at the rate
deemed most appropriate for each individual parcel.
The storm Water Management Fee for use on storm water facilities
shall be determined by the following steps:
1. )
2. )
3. )
9-7-4.
The SFR rate will be $3.75 per unit bimonthly charge.
The per acre Fee for all individual parcels other than
SFR shall be defined as the product of the SFR Fee of
$11.25 per acre based on a $3.75 per unit and a 1/3 acre
lot, the appropriate utility Factor based on land use,
and the total acreage of the parcel.
A minimum of 1/3 acre shall be computed for commercial
site locations within agricultural and conservation land
areas.
Credits.
The city Council, in its discretion, may adopt policies for
adjustment of the storm Water Management Fee. Information to
justify a Fee adjustment must be suppl1ed by the property owner.
9-7-5.
Exemptions.
The following land uses are exempt from this storm Water
Manangement Fee:
a. )
b. )
c. )
d. )
e. )
f. )
9-7-6
Public Right-of-Way
Lakes
Wetland (With easements dedicated to the City)
Municipal owned pro~erty
Open space (cemeter1es, golf courses)
Vacant and unoccupied parcels such as agricultural and
conservation zoned land that does not have a residential
or commercial building on the parcel.
Payment of Fee
storm Water Management Fee shall be invoiced bi-monthly. The
amount due as shown on the invoice shall be ~ayable on or before
the 20th day of the month in which the invo1ce is issued. A
penalty of ten percent (10%) per bi-monthly Fee shall be added to
all accounts that are not paid in full by the due date. The
penalty shall be computed on the unpaid balance not paid by the
due date at the time each bi-monthly statement is prepared. Any
prepayment or overpafIDent of charges shall be retained by the
City and applied aga1nst subsequent Fee.
9-7-7.
Appeal of Fee.
If a property owner or person responsible for payin9 the storm
Water Management Fee believes that a particular Fee 1S incorrect,
such person may file a written appeal with the City Manager.
Appeals will be heard by the City Council. No adjustment will be
made to the utility Factor for property classifications.
9-7-8.
Certification of Delinquent Fees.
If a storm Water Manangement Fee remains unpaid for a period of
(90) days, after it becomes delinquent, the same shall constitute
a lien on the real estate sub~ect to an interest rate of eight
(8%) per annum and the Finance D1rector shall forthwith file a
lien against the real estate for the unpaid amount of the bill,
notifying by mail the owner of the real estate of said fact. In
the event that it becomes necessary for the Finance Director to
file such a lien on the real estate, then and in that event, an
additional Fee of ten dollars ($10.00) shall be charged and added
to the bill and the lien when filed.
9-7-9.
storm Water Management Fund.
All of the storm Water Management Fee
shall be collected and deposited in
shall show a separate accounting
expenditures.
Section 2. This ordinance shall be effective immediately
upon its passage and publication.
pursuant to this ordinance
a separate fund. Said fund
for all collections and
PASSED AND ADOPTED by the Prior Lake City Council this 19 th
Day of January, 1993.
ATTEST:
City Manager
Mayor
Published in the Prior
January, 1993
Lake
American
on the ~ day
of
Drafted by:
Bruce Loney
Assistant City Engineer
City of Prior Lake
4629 Dakota Street SE
Prior Lake, MN 55372
SUMMARY OF THE PROPOSED PRIOR LAKE STORM WATER UTILITY FEE
Funding for storm water (drainage) projects has become more
complex in recent years. Additionally, the costs related to
water quality management and wetland protection continue to rise.
A report has been prepared bf the City's Engineering staff, for
the Cit~ Council, and is 1ntended to provide the rationale for
determin1ng the rates on the various ~roperties in Prior Lake and
how to implement the program. The ma1n emphasis for the storm
water management utility is to operate and maintain the existing
storm water management system and prepare the local storm water
management plan which includes a water quality ~lan. After the
preparation of the plan, the focus will be improv1ng the water
quality of storm water to promote water quality of the lakes and
other si9nificant bodies of water. Other projects will be done
in prov1ding maintenance of storm sewer and pond systems and to
acquire land or easements for water management projects.
The need for a storm water management utility has increased in
recent years due to several new laws and requirements from other
agencies in the storm water area. These laws and requirements
are as follows:
1. Metropolitan Surface Water Act (Chapter 509)
2. Wetland Conservation Act of 1991
3. Metropolitan Council's Strategy for 40% Reduction of
Non-point Pollution in the Minnesota River Basin
4. Minnesota Department of Natural Resources "Shoreland
Management Ordinance"
5. Minnesota Pollution Control Agenc~'s National Pollutant
Discharge Elimination System Perm1ts
6. United States Army Corps of Engineer'S permit
regulations
cities will have to be involved in the management and treatment
of storm water to meet the new regulations. The storm water
management utility is a means to provide the funding to meet the
requ1rements.
In addition to those requirements mentioned above, a greater
awareness from the public has been shown in recent years in
dealing with environmental issues. For example, the water
quality on Prior Lake and Spring Lake is a major concern for most
residents as the lakes are the major attraction in the city.
Water quality improvements as required by other agenices, will be
made to wetlands throughout the city.
The storm water management utility fee charges for the various
properties in Prior Lake as summarized as follows:
Land Use Classification
Zoning
Fee Rate per Unit
or Acre (bimonthly)
$ 3.75/unit
$18. 56/acre
Single Family Res.
Multiple Dwelling Unit
R-1,R-2
R-3,R-4
1
Land Use Classification
Zoning
Fee Rate per Unit
or Acre (bimonthly)
$23.29/acre
$20.48/acre
$15. 53/acre
Business/Commercial
Industrial
Institutional (schools,
churches)
B-1,B-2,B-3
1-1,1-2
all zones
INTRODUCTION
A storm Water Management Utility provides a service charge based
on a property's contribution of water to the drainage system. A
storm water management utility is a method of financing water
quantity and quality improvements. The utility is based on the
premise "users pay". The "utility" or "user charge" is like
sanitary sewer and water utilities o~erated by communities. A
bi-monthly fee is typically charged aga1nst all developed parcels
within the city. The fee is based on how much water is
contributed. Where land is in an undeveloped, natural state,
much of the rain soaks into the ground or is retained in small
depressions. However, where development has been prevalent,
rooftops, drivewa~s, and parking lots prevent rainfall from being
absorbed. The ra1n runs off into streets, ditches, ponds, and
lakes.
The user charge is not associated in any wa~ with property value
or property taxes. All developed propert1es are subject to the
utility charges, including tax exempt parcels such as schools and
churches. City owned lands such as parks and City building lots
would not be charged since those charges would be passed on to
the taxpayers. The City would charge a fee to every parcel which
has been developed with a building or parking lot and including
those parcels that are not on City sewer and water bills
currently.
The utility benefits the community by providing a dedicated fund
for storm water management activities including the ~reparation
of a Local Water Management Plan for the entire City 1ncluding a
water quality element, ca~ital improvement projects, maintenance
projects, land acquisit1on/easements, and community education.
The utility provides a continuous dedicated source of revenue for
storm water management.
The benefits associated with storm water management include the
following elements:
* Flood control (Retention of water in wetlands)
* Improved water guality in wetlands and water bodies
* Wetland protect1on
* Erosion and sediment control
* Enhancement of recreational opportunities
* Drainage system maintenance
* Community education
2
FEE BASIS
General Statement
The general philosophy behind the storm water utility program is
simple - contributor's pay. In the City of Pr10r Lake, the
contributors are those parcels which are developed with a
building, driveway, and parking lot on the property. Exceptions
to this would be vacant, unimproved land with ground cover,
property used for agricultural purposes, public parks, public
right of way and open spaces such as golf courses and cemeteries.
To develop a fee basis, the City must make a determination of
which properties pay into the utility.
Land Use Types
Existing land use is used to determine each property's
contribution to the utility. The definition of each land use
classification is as follows:
Parcels within a 1-1 and I-2 zoning would be classified as
industrial. Commercial and business are those parcels within a
B-1, B-2, and B-3 zone. Single family residential (SFR) are
those parcels within a R-1 and R-2 zone including duplexes which
are two units only. Duplexes will be charged a separate SFR
charge for each unit. Also included in the SFR classification
are those single family dwellings in the Agricultural and
Conservation Zoned areas. Multiple Dwelling units are those
buildings with more than two units attached. Institutional is
not a zoning type, but is for tax exempt parcels such as schools,
and churches.
The highest density develo~ment allowed in any particular zone
will be used for determin1ng a developed property's contribution
and related fee. If a conflict exists between the zoning and land
use, the land use of the parcel will take precedent in
determining the charge. Using this criteria, the following land
use designations are suggested for use in the utility:
Zoninq
R-1, R-2
R-3, R-4
B-1, B-2,
B-3,
1-1, 1-2
A-1
C-1
INST*
*
Land Use Description
Urban Residential (1/4 - 1/3 acre lots)
Multi-unit Residential
Commercial, business
Industrial
Agriculture (zoned)
Conservation (Undeveloped)
Institutions (churches, schools)
Not a zoning designation
For these land uses, runoff curve numbers (CNs) can be applied to
determine the amount of runoff from an area resulting from the
3
specified storm event rainfall. The contribution towards the
storm water utility is equated to the percentage of the total
runoff for each property type.
Rate Determination
To remain fair to all properties, the utility is based on how
much a particular parcel contributes to the drainage system
needs. The amount of contribution should not be based solely on
the amount of rooftops and pavement on a parcel. The
contribution should consider how much rain runs off.
Different amounts of rain will produce different amounts of
runoff. However, the difference in runoff for a residential
property and a business area is not constant for all rainfall
depths. In the City of Prior Lake, five land use
classifications were develo~ed from the zoning that currently
exists. For each classificat1on, a runoff curve number (CN) can
be estimated based on Soil Conservation service Hydrology Manuals
and the runoff amount from each area can be compared from various
storm rainfall events. Storm water utility rates are then
developed using the single family residential lot runoff as the
base.
The five Land Use Classifications and runoff curve numbers are as
follows:
Property
Zoninq
R-1, R-2
R-3, R-4
B-1, B-2,
B-3,
1-1, 1-2
Land Use Description
Single Family, Residential (SFR)
1/3 acre lot equivalent
Multiple Dwelling units
Commercial & Business
CN
72
85
92
Industrial
88
80
Institutional (schools, churches)
Agricultural and conservation zoned areas
residential or commercial buildin9 on the
be considered a single family res1dential
and be charged the SFR rate.
Planned unit Development zoning will be charged at the
rate most appropriate for each individual development.
which have a
propert~ would
classif1cation
Approximately 55% of the city is currently undeveloped. The
majority of the developed part of the City is Single Family
Residential. The nonresidential land use classifications include
Business/Commercial, Industrial, Multiple Dwelling Units, and
4
Institutional buildings
schools and churches.
contributions of each
rainfall event.
that include tax exempt parcels such as
The following table shows the runoff
land use classification for a 4.2 inch
LAND USE
CLASSIFICATION
CN
RUNOFF
(INCHES)
4.2 INCH
STORM
Single Family Res.
Multiple Dwellin9 Unit
Commercial & BUS1ness
Industrial
Institutional
72
85
92
88
80
1.60"
2.64"
3.31"
2.91"
2.20"
The 4.2 inch rainfall amount storm event is considered a 10 year
storm event in our area. storm sewers and drainways are designed
in the city for the 10 year storm event, thus the 10 fear storm
event was selected in determining the storm water util1ty rates
for the various land uses.
Expenditures
The following table illustrates the anticipated first year and
a projected five year expenditures program to be financed with
the storm water management utility. The first year will be
solely dedicated in the preparation of a Local Water Management
Plan as required by the 509 Water Management Law and to include a
Water Quality Plan to meet the Metropolitan Council's
requirements for the city's Comprehensive Plan. After the first
year, the utility will concentrate on improvement projects to the
drainage system, land acquisition/easements and maintenance of
the storm sewers, wetlands, ponds, and lakes.
The utility will not eliminate contributions from new
developments or future assessments. All new plats will continue
to pa~ the storm Water Assessment Rate and install new drainage
facil1ties as part of the development. Also improvement projects
such as street overlays with storm sewer improvements can still
be assessed at the current 60% rate.
1993 YEAR (1ST YEAR)
1. Plan
A.
B.
C.
D.
E.
F.
Preparation
Wetland Delineation & Classification
Local Water Management Plan as per
509 Watershed Law Requirements
Water Quality Plan as per
Comprehensive Plan Re~irements
Water Testing and Mon1toring
Consultant Assistance on Plan
Preparation & Review
City Staff Time for Plan Preparation
$ 115,000
5
1994 - 1998 (5 YEAR CAPITAL IMPROVEMENT PROGRAM)
ANNUAL
5 YEAR
1. Improvement Project Costs
2. Land Acquisition/Easement Costs
3. Maintenance Project Costs
4. Community Education
5. Annual Inspections of
Lakes, Wetlands, & Ponds
6. Water Resource Coordinator
$ 60,000
$ 8,000
$ 20,000
$ 1,000
$
$
1,000
25,000
$300,000
$ 40,000
$100,000
$ 5,000
$ 5,000
$125,000
$575,000
TOTAL
$115,000
* Costs have been estimated in 1993 dollars.
Land Use Charges
To determine land use charges for the different property
classifications, the estimated expenditures for the given period
of time are ap~ortioned yearly. The number of sin~le family
residential un1ts and the acreage for the commercial, 1ndustrial,
multiple unit and institutional parcels were determined in order
to calculate the rates.
Based on the Expenditure Program listed, the City will need
approximately $115,000.00 per year. The following table shows
the number of units or acreage estimated for each land use
classification:
LAND USE CLASSIFICATION
Single Family Residential
Multiple Dwellin9 Units
Commercial & BUS1ness
Industrial
Institutional
NUMBER OF UNITS OR ACREAGE
3,649 Units
24 Acres
81 Acres
24 Acres
162 Acres
For agricultural and undeveloped property, no charge will be set
unless the parcel has a single family residential or commercial
building installed on the property. The charge would then be the
unit charge for a single family residential classification.
To determine the rates for each classification, the runoff from
the SFR classification (1/3 acre residential lot) was used as the
baseline.
In determining the runoff curve numbers, a "Group B" Soils Group
was assumed and the hydrologic curve number sheet from the Soil
Conservation service Hfdrology Guide for Minnesota was utilized.
The single family res1dential classification was 9iven a utility
factor of 1.00 and the runoff from the other class1fications was
divided by the runoff from the single family residential in order
6
to determine the utility factor. This factor would be multiplied
by the single family residential cost per acre to determine the
cost per acre for the other classifications.
Each land use has a runoff curve number estimated from the Soil
Conservation Services manuals and the runoff from a ten year
storm event is shown in the following table:
RUNOFF
LAND USE (INCHES) UTILITY
CLASSIFICATION CN 10 YR. STORM FACTOR
Single Family Res. 72 1.60" 1.00
Multiple Dwellin9 Units 85 2.64" 1.65
Commercial & Bus1ness 92 3.31" 2.07
Industrial 88 2.91" 1.82
Institutional 80 2.20" 1.38
The estimated cost of the storm water management utility is
estimated to be $114,000.00 per year based on the expenditures
listed previously. To calculate the amount of revenue from the
users, the number of SFR units were estimated along with the
acreage of the other land use classifications. A fee of $3.75
bi-monthly charge per SFR unit is selected and for the average
1/3 acre lot, th1s cost per acre would be $11.25 every two
months. using the $11.25 per acre equivalent for SFR, the other
classification rates are calculated by multiplying the $11.25 per
acre rate by the utility factor previously established. Upon
establishing the rates for the other classifications and
estimating the number of units or acreage, the amount of yearly
revenue is as follows:
Class
Cost
utility
Factor
Bimonthly
Charge
Per
Acre
Acreage
*1,216
33
85
24
160
Total
Yearly
Revenue
Single Family Res.
Multiple Dwellin9 Unit
Business/Commerc1al
Industrial
Institutional
$82,080.00
$ 3,674.88
$11,877.90
$ 2,949.12
$14,908.80
$115,490.70
* Estimated number of units for SFR is 3648 units and assuming
1/3 average acre lots, the acreage for revenue estimation is
1,216 acres.
1. 00
1. 65
2.07
1.82
1.38
$11.25
$18.56
$23.29
$20.48
$15.53
Exemptions
Exemptions from the utility would be public right-of-way for
roads, City of Prior Lake land such as public parks and
buildings, open space such as cemeteries and golf courses, and
7
lakes. A deduction of land area would be given for wetlands in
which the City has a drainage easement. single Family
Residential classification would not qualify for any deductions
since the charge would be by the unit and not by acre.
Agricultural and conservation land that is vacant would not be
charged until it develo~s. However, if a single family
residential or commercial bU1lding exists on the property, it
would be charged the bi-monthly unit fee of $3.75 for SFR.
Recalculation of Fees
If a property owner or person responsible for paying the utility
fee questions the correctness of such charge, that person may
have the determination of the charge recomputed within six months
of mailing, by submitting to the Public Works Director a written
re9uest for the recomputation; with documentation as to why the
or1ginal computation is in error.
Administration
Administering the storm Water Management utility will require the
following phases. The first phase involves drafting a final
ordinance to provide the legal basis of implementation of the
utility. The second step includes establishing the individual
property charges based on acreages, land use, and the rate as
established by ordinance. step three involves modification of
the current billing procedure. step four creates an account to
which utility funds would be paid into, and from which revenues
can be made available for identified expenditures.
Implementation of the utility should closely follow the ordinance
and adoption of City policy regarding the utility. The utility
would take affect February 1, 1993 if Counc11 approves the
utility and ordinance as proposed.
The major effort in administering the utilitf will be to expand
the billing process to include those propert1es which do not
currently receive citf water and sewer service. staff will
utilize buildin9 perm1t records and County records to prepare the
list of propert1es to receive a billing.
8
Land Use utility Factor
Single Family Residential (SFR) 1.00
(l/3 acre lots)
Multiple Dwelling units 1.65
(Residential)
Business/Commercial 2.07
Industrial 1.82
Institutional 1.38
(Schools, churches, government
& buildings)
Agricultural and conservation zoned areas which have a
residential or commercial building on the property will be
considered a SFR classification and be charged the SFR unit
Classification
1
2
3
4
5
rate.
Planned Unit Development zonin9 and government agencies
parcels other than the City of Pr10r Lake will be charged at
the rate deemed most appropriate for each individual parcel.
The storm Water Management Fee for use on storm water
facilities shall be determined by the following steps:
1.) The SFR rate will be $3.75 per unit bimonthly charge.
2. The per acre Fee for all individual parcels other than
SFR shall be defined as the product of the SFR Fee of
$11.25 per acre based on a $3.75 per unit and a 1/3 acre
lot, the appropriate utility Factor based on land use,
and the total acreage of the parcel.
9-7-4. Credits.
The City Council, in its discretion, may adopt policies for
adjustment of the storm Water Management Fee. Information to
justify a Fee adjustment must be supplied by the property owner.
9-7-5.
Exemptions.
The following land uses are exempt from this Storm Water
Manangement F.ee:
a. )
b. )
c. )
d. )
e. )
f.)
Public Right-of-Way
Lakes
Wetland (With easements dedicated to the City)
Municipal owned pro~erty
Open space (cemeter1es, golf courses)
Vacant and unoccupied parcels such as agricultural and
conservation zoned land that does not have a residential
or commercial building on the parcel.
9-7-6
Payment of Fee
storm Water Management Fee shall be invoiced bi-monthly. The
amount due as shown on the invoice shall be ~ayable on or before
the 20th day of the month in which the 1nvoice is issued. A
penalty of ten percent (10%) per bi-monthly Fee shall be added to
all accounts that are not paid in full by the due date. The
penalty shall be computed on the unpaid balance not paid by the
due date at the time each bi-monthly statement is prepared. Any
prepayment or overpayment of charges shall be retained by the
city and applied against subsequent Fee.
9-7-7.
Appeal of Fee.
If a property owner or person responsible for paying the
storm Water Management Fee believes that a particular Fee is
incorrect, such person may file a written appeal with the City
Manager. Appeals will be heard by the City Council. No
adjustment will be made to the utility Factor for property
classifications.
9-7-8.
certification of Delinquent Fees.
If a storm Water Manangement Fee remains unpaid for a period
of (90) days, after it becomes delin9Uent, the same shall
constitute a lien on the real estate sub~ect to an interest rate
of eight (8%) per annum and the Finance D1rector shall forthwith
file a lien against the real estate for the unpaid amount of the
bill, notifying by mail the owner of the real estate of said
fact. In the event that it becomes necessary for the Finance
Director to file such a lien on the real estate, then and in that
event, an additional Fee of ten dollars ($10.00) shall be charged
and added to the bill and the lien when filed.
9-7-9.
storm Water Management Fund.
All of the storm
ordinance shall be
Said fund shall show
and expenditures.
Section 2. This ordinance shall be effective immediately
upon its passage and publication.
Water Management Fee pursuant to this
collected and deposited in a separate fund.
a separate accounting for all collections
PASSED AND ADOPTED by the Prior Lake City council this th
Day of , 1993.
ATTEST:
Kay Kuhlmann
Lee Andren
(Published in the Prior Lake American on
1993)
Summary Ordinance