HomeMy WebLinkAboutMemo - Mail Packet - 5/5/2020 - Memorandum From Theresa Connor Re: Stormwater Utility Fee In For Annexed PropertiesUtilities
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700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
970.224.6003 – TDD
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: April 22, 2020
TO: Mayor Troxell and Councilmembers
THROUGH: Darin Atteberry, City Manager
Carrie Dagget, City Attorney
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
Lance Smith, Utilities Strategic Finance Director
FROM: Theresa Connor, P.E., Utilities Deputy Director, Water Field Operations &
Engineering
RE: Stormwater Utility Fee in for Annexed Properties
Bottom Line:
As properties are annexed into the City of Fort Collins, they become part of the Stormwater
Utility’s service area and receive monthly bills from Fort Collins Utilities (Utilities) for the
stormwater utility fee. Some of these property owners push back against this fee because they
have not had to pay a stormwater fee before and believe that their large urban estate parcels do
not generate frequent runoff.
Based on how the stormwater utility fee is calculated for these urban estate lots, it is up to 75%
less than that what it would be for a fully-developed property because these lots have substantial
green areas (pervious area) without extensive hard services (impervious area). Utilities collects
this fee since the design storm for the stormwater system is the 100-year storm of 3.67 inches in
2 hours. The large lots will generate substantial runoff in larger storms as the infiltration
capacity of the soil is overwhelmed and the rainfall becomes runoff once that happens.
Utilities has the ability to work with landowners and City Council during the annexation process
to temporarily reduce the stormwater utility fee in order to mitigate the economic impacts to the
annexed properties in light of the relevant circumstances. This has been discussed in previous
annexation processes, but not implemented.
Background:
The City’s Stormwater Utility provides protection for people, property, and the environment by
managing stormwater in a sustainable manner through the operation of a Municipal Separate
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Storm Sewer System (MS4) under a statewide permit. This takes a Fort Collins-wide effort to
protect homes, business, and streets from flooding and manage the runoff to prevent water
quality degradation and stream erosion. The stormwater utility fee provides funding for
operations and maintenance of the existing MS4 system and capital improvements to provide a
common level of service throughout the community. The stormwater utility fee is based upon
the size of parcels and the amount of impervious area on the parcels. Large urban estate lots
with a small footprint of hardscape such as roofs and driveways and large open spaces can
receive a smaller fee of up to 75% since they do not generate runoff into the City stormwater
system frequently. But in the large storms, such as the 100-year storm of 3.67 inches that
Utilities designs the stormwater system to handle, the large properties can generate substantial
runoff to the Stormwater Utility’s system since the infiltration capacity of the soil becomes
overwhelmed and the rainfall becomes runoff at that point.
As properties are annexed from Larimer County into the City of Fort Collins and the Stormwater
Utility’s service area; the property owners will start to receive a stormwater utility fee for
stormwater service. Larimer County has some areas that pay a stormwater fee, but typically,
Utilities’ stormwater utility fee is a new fee to those residents that have been involuntarily
annexed. Some do not perceive value from the Stormwater Utility to their property. However,
the Stormwater Utility does provide substantial benefit to their property and to the community
through sustainably managing stormwater runoff to protect residents from flooding in their
homes and businesses, maintaining passable roadways for emergency vehicles and regular
traffic, and maintaining the health of the creeks and rivers in Fort Collins. Runoff from all
parcels impacts Utilities’ stormwater system.
City Code establishes a process for property owners to appeal the amount of their stormwater
utility fee. It first goes to the Utilities Executive Director and can be appealed to the Water
Board and then that can be appealed to City Council. We have had a property owner appeal their
stormwater utility fee through to Water Board, which upheld the fee.
In addition, City Code Section 26-514(b) permits City Council to apply a temporary reduction of
the stormwater utility fee at the time of annexation for a lot or parcel to mitigate the economic
impacts to the annexed property in light of relevant circumstances. This has been discussed in
previous annexations but not implemented. This is a tool that City Council has to address the
unique issues that arise with respect to property owners in forced annexation cases. The
provision for a temporary reduction must be discussed ahead of and included in the annexation
ordinance.
If there are any questions about how the stormwater utility Fee is applied or about the
Stormwater Utility in general, please let us know. Our intent is to provide high value for the
community.
CC: Judy Schmidt, Senior Assistant City Attorney
Eric Potyondy, Assistant City Attorney
Ken Sampley, Director, Stormwater Engineering and Development Review
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