HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2004 - FIRST READING OF ORDINANCE NO. 174, 2004, AMENDING ITEM NUMBER: 38
AGENDA ITEM SUMMARY DATE: November16, 2004
FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith/
Terri Bryant/
Jim Hibbard
SUBJECT
First Reading of Ordinance No. 174, 2004, Amending Chapter 26, Article VII, Division 2 of the
Code of the City Relating to Stormwater Fees (Options A and B).
RECOMMENDATION
Pending further analysis, staff recommends adoption of Ordinance (Option A) on First Reading.
FINANCIAL IMPACT
Option A: There will be a zero increase in stormwater rates for 2005.
Option B: Storm Drainage Fund operating revenues are projected to increase 7%.
EXECUTIVE SUMMARY
Two options for 2005 stormwater rates are presented for Council consideration.
Option A of the Ordinance will:
• NOT increase stormwater rates for 2005; but will
• permit the Utilities General Manager to adjust the area utilized in
calculating the monthly stormwater fee for residential lots in excess of
one-half acre and for properties used for agricultural purposes.
Option B of the Ordinance will:
• increase monthly stormwater fees 7% across the board; and will
• permit the Utilities General Manager to adjust the area utilized in
calculating the monthly stormwater fee for residential lots in excess of
one-half acre and for properties used for agricultural purposes.
Staff recommends that Council approve Option A of the Ordinance pending further study and
analysis of the capital improvement program and financing plan.
November 16, 2004 -2- Item No. 38
BACKGROUND
On October 19, 2004, City Council withdrew consideration of the proposed stormwater
Ordinance which would have increased 2005 stormwater rates by 7% across the board. While
the proposed 7% rate increase was consistent with the 2001 Stormwater Financing Plan adopted
by City Council Resolution 2001-93, Council members expressed concern that the rates were
becoming overly burdensome to small businesses and others, especially in light of the current
economy. Council asked staff to develop alternatives to the current capital improvement
financing plan in order to evaluate the potential of reducing the impacts on stormwater rate
payers.
It will take staff several months to complete a full analysis of the impacts of a less aggressive
timetable for the stormwater capital improvement plan. Staff will complete this analysis prior to
the 2006-2007 Budget. In the interim, capital projects currently scheduled and budgeted for
2005 can be completed without the proposed 7% increase. If stormwater rates are not increased
in 2005, capital improvements planned after 2005 would be delayed until adequate rate funding
was available for their completion.
One of the benefits of the pay-as-you-go improvement plan adopted by Resolution 2001-93 is
that the City is not locked into debt for the capital improvement plan up front and therefore
adjustments to the schedule and plan can be more easily accommodated. Further, a one-year
"moratorium" in implementing the rate increases outlined in the 2001 Stormwater Financing
Plan will not delay the construction of capital improvements that are currently budgeted and
planned for construction in 2005.
Staff is committed to the analysis of alternative improvement and financing schedules regardless
of which option is selected. If Council desires to maintain current stormwater rates with no
increase until the analysis is completed next year, Option A should be approved. If Council
wishes to proceed with the 2001 rate plan which called for a 7% rate increase in 2005, Option B
should be approved. (Option B would increase a typical single family residential customer's
monthly bill from $14.26 to $15.26 or $1.00 per month. The typical bill is based on an 8,600
square foot lot with light run off. )
Both versions of the proposed Ordinance authorize the Utilities General Manager to adjust the
lot area utilized in calculating the monthly stormwater fee for large residential lots that are
greater than one-half acre and for properties used for agricultural purposes. These parcels have
lesser stormwater runoff than typical developments and the proposed provisions would permit
the General Manager the flexibility to recognize this difference.
OPTION A
ORDINANCE NO. 174, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE VII, DIVISION 2
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO STORMWATER FEES
WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the
Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish,
maintain and provide for the collection of such rates, fees or charges for utility services furnished
by the City as will produce revenues sufficient to pay the costs expenses and other obligations of
the such utility, as set forth therein; and
WHEREAS , Section 26-511 (a) of the Code of the City of Fort Collins, requires that the City
Manager analyze the operating and financial records of the stormwater utility during each calendar
year and recommend to the City Council the stormwater fees to be in effect for the following year;
and
WHEREAS , Section 26-514 of the City Code provides that the General Manager of the
stormwater utility shall determine the stormwater fee rate that shall apply to each specific lot or
parcel of land based on runoff coefficient, rate factor, base rate and square footage as set forth in this
Section.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Paragraph (5) of Section 26-514 of the Code of the City of Fort Collins
be amended to read as follows :
Sec. 26-514 . Determination of stormwater utility fee.
(5 ) The monthly stormwater utility fee for each lot or parcel of land,
exceptsingle-family
f12;ee those parcels or lots falling within the exceptions
set out in (6) and 7) below, shall be based on the following formula
with all area calculations in square feet:
Monthly fee = (lot or parcel area) x (rate factor) x (base rate) .
Section 2 . That Paragraph (6) of Section 26-514 of the Code of the City of Fort Collins
be amended to read as follows :
Sec. 26-514. Determination of stormwater utility fee.
(6) Single-family residential lots or parcels larger than twelve thousand
( 12,000) square feet, but not larger than one-half ( 1 /2) acre, shall be
assessed on the basis of the first twelve thousand ( 12,000) square feet
in accordance with the formula described in (5) above, and the
remainder shall be assessed in accordance with the following
formula:
Remainder of monthly fee = (remaining area) x (rate factor) x (base
rate) x (0 .25) .
Section 3 . That a new Paragraph (7) be added to Section 26-514 of the Code of the City
of Fort Collins to read as follows :
Sec. 26-514 . Determination of stormwater utility fee.
(7) Single-family residential or agricultural lots or parcels larger
than one-half ( 1 /2) acre shall be assessed using the methods
set forth in (5) and (6) above, except that the General
Manager may assess a reduced fee or no fee for all or any
portion of the lot or parcel in excess of one-half ( 1 /2) acre if
the General Manager determines that such fee reduction is
warranted by the land use characteristics and runoff
characteristics of the remainder of the lot or parcel .
Section 4 . That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1 , 2005 ,
Introduced, considered favorably on first reading, and ordered published this 16th day of
November, A.D . 2004, and to be presented for final passage on the 7th day of December, A.D . 2004 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading this 7th day of December, A. D . 2004 .
Mayor
ATTEST :
City Clerk
OPTION B
ORDINANCE NO, 1749 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE VII, DIVISION 2
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO STORMWATER FEES
WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the
Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish,
maintain and provide for the collection of such rates, fees or charges for utility services furnished
by the City as will produce revenues sufficient to pay the costs expenses and other obligations of
the such utility, as set forth therein; and
WHEREAS , Section 26-51 l (a) of the Code of the City of Fort Collins, requires that the City
Manager analyze the operating and financial records of the stormwater utility during each calendar
year and recommend to the City Council the stormwater fees to be in effect for the following year;
and
WHEREAS , Section 26-514 of the City Code provides that the General Manager of the
stormwater utility shall determine the stormwater fee rate that shall apply to each specific lot or
parcel of land based on runoff coefficient, rate factor, base rate and square footage as set forth in this
Section; and
WHEREAS , the City Council of the City of Fort Collins adopted Resolution 2001 -93 on
August 21 , 2001 , approving the Stormwater Financing Plan, which identified the need for future
stormwater fee increases to fully fund the design, construction, operation and maintenance of the
stormwater system facilities ; and
WHEREAS , consistent with the Stormwater Financing Plan, the City Manager has
recommended to the City Council those adjustments for the stormwater base rate for the stormwater
utility fee for the billing year beginning January 1 , 2005 , as set out herein below.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Paragraph (3 ) of Section 26-514 of the Code of the City of Fort Collins
is hereby amended to read as follows :
Sec. 26-514. Determination of stormwater utility fee.
(3) The base rate for the stormwater utility fee shall be $0 . 0041454
$0 . 0044356 per square foot per month for all areas of the city.
Section 2 . That Paragraph (5 ) of Section 26-514 of the Code of the City of Fort Collins
be amended to read as follows :
Sec. 26-514. Determination of stormwater utility fee.
(5) The monthly stormwater utility fee for each lot or parcel of land, except
single-family residential pareef s larger than twelve thousand ( f -2 ,000) square
€eetthose parcels or lots falling within the exceptions set out in (6) and 7)
below, shall be based on the following formula with all area calculations in
square feet:
Monthly fee = (lot or parcel area) x (rate factor) x (base rate) .
Section 3 . That Paragraph (6) of Section 26-514 of the Code of the City of Fort Collins
be amended to read as follows :
Sec. 26-514. Determination of stormwater utility fee.
(6) Single-family residential lots or parcels larger than twelve thousand ( 12,000)
square feet, but not larger than one-half ( 1 /2) acre, shall be assessed on the
basis of the first twelve thousand ( 12 ,000) square feet in accordance with the
formula described in (5) above, and the remainder shall be assessed in
accordance with the following formula:
Remainder of monthly fee = (remaining area) x (rate factor) x (base rate) x
(0 ,25) ,
Section 4. That a new Paragraph (7) be added to Section 26 - 514 of the Code of the City
of Fort Collins to read as follows :
Sec. 26-514. Determination of stormwater utility fee.
(7) Single-family residential or agricultural lots or parcels larger than
one-half ( 1 /2) acre shall be assessed using the methods set forth in (5)
and (6) above, except that the General Manager may assess a reduced
fee or no fee for all or any portion of the lot or parcel in excess of
one-half ( 1 /2) acre if the General Manager determines that such fee
reduction is warranted by the land use characteristics and runoff
characteristics of the remainder of the lot or parcel.
Section 5 . That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1 , 2005 .
Introduced, considered favorably on first reading, and ordered published this 16th day of
November, A.D . 2004, and to be presented for final passage on the 7th day of December, A.D . 2004 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading this 7th day of December, A.D . 2004 ,
Mayor
ATTEST :
City Clerk