Title
Consider an ordinance amending Chapter 44, Section 44-344, Code of Ordinances (2010 Edition), to increase the monthly drainage utility charge. (Second Reading)
Body
In November 2010, City Council created the Drainage Utility as a dedicated funding source for stormwater programs including planning, engineering, operations and maintenance that ensure regulatory compliance, environmental preservation and flood protection. The initial stage of developing a stand-alone utility funded existing staff and equipment levels. Additional costs such as a Capital Improvement Program (CIP), growth demands and cost-of-service transfers to the General Fund would be considered at a future date. The Drainage Utility rate of $2.75 per ERU (Equivalent Residential Unit) was set at a level to fund stormwater programs at existing levels.
This summer, Halff and Associates performed field assessments of the majority of the City's creeks and waterways to identify areas of severe erosion, compromised infrastructure, evidence of flooding, etc. Halff and City staff then analyzed the results including: flooding issues from the UBCWCID Watershed study, historical knowledge and other drainage studies. In addition to a lengthy maintenance list, the team identified and prioritized more than 20 Creek CIP projects with a preliminary cost of over $30 million. UBCWCID may assist with multi-jurisdictional projects such as Round Rock West; however, that leaves the majority of CIP projects and more than half of the cost without funding. [Beyond the Creek projects, staff estimates there is an additional $25 million of Street projects where street modernization and additional storm drain infrastructure is necessary.] No dedicated funding source currently exists to cover stormwater CIP projects.
Halff and City staff considered operational pressures and CIP needs to develop a rate recommendation that would fund the Drainage Utility for the next five years. Staff planned a 5-year budget that accounts for the equipment, staff and support needed to meet increasing drainage demands as well as the current additional mandated federal and state compliance challenges. The budget also plans for a cost-of-service transfer to reimburse the General Fund for support the Drainage Fund receives. However, the majority of the proposed rate increase would fund enhanced maintenance and repair and the initial phase of the CIP (approximately $17 Million). Staff is also proposing a fund management policy that restricts the appropriate funds for repair and CIP. Staff recommends a drainage utility rate of $4.75 per ERU effective March 1, 2014.
Recommended Action
Staff recommends approval.