Title
Discussion: Recommendations for Stormwater Infrastructure Levels of Service, Resources, and Dedicated Funding
Body
Issue/Request:
Recommendations for Stormwater Infrastructure Levels of Service, Resources, and Dedicated Funding
Key Issues:
- Stormwater Utility discussions have been ongoing for decades and recommended in City Strategic Plans, including Ignite!
- City Council approved a contract in October 2021 with Black & Veatch to conduct a Stormwater Utility Rate Study
- City staff completed 3 meetings with the Stormwater Advisory Committee (SWAC) composed of local residents, businesses and other stakeholders in 2022-2023
- City staff presented the Stormwater Utility Study recommendations to the City Council in a February 2023 Work Session
- City Council established Stormwater as a Priority Goal during the 2024 Strategic Retreat and subsequently directed staff to continue previous work in discussion with the Public Works Committee for review of stormwater issues, SWAC recommendations, and key remaining issues to be addressed before consideration of a ballot measure.
- Public Works Committee (PWC) considered the Stormwater Utility Levels of Service at the May and June PWC Meetings. PWC provided consensus and direction to Staff with regard to desired Levels of Service.
- City staff presented financial requirements in support of the desired Levels of Service, reviewed funding alternatives, SWAC recommendations, etc. to PWC. Discussion and potential selection of preferred funding source occurred in July. Continued exploration of remaining Stormwater Utility questions (e.g. rates, credits, billing, public education) were pending a selected funding source.
- PWC considered three funding scenarios at the July and August PWC meetings. PWC provided guidance to staff to finalize a recommendation to use a local sales tax to fund the desired levels of service with a desired vote in 2026.
Background:
The associated packets along with attached materials and presentations provide some historical context and reference. The subject presentation will review the funding requirements and sources for the potential establishment of a stormwater utility as supported in the Ignite! Strategic Plan and the City Council's Stormwater Priority Goal.
The Public Works Committee (PWC) reviewed historical issues and efforts to develop stormwater programs in Lee's Summit to address flooding issues and promote water quality of local streams and lakes. PWC recommended a levels of service to reduce response time to complete reactive repairs to system failures; develop proactive maintenance programs to improve the serviceability of existing infrastructure; ensure compliance with state and federal regulations; promote public education; and partner with local entities to better maintain private stormwater systems. Generally, the resources needed to provide the desired levels of service requires adding two maintenance crews, equipment, engineering staff, a public educator, a regulatory/environmental specialist, customer service support, and supervisors.
The estimated annual cost for the desired levels of service will be about $6.1 million per year (2025 dollars). PWC reviewed three options to generate the required annual revenue: a property tax, a user fee based on impervious area, and a sales tax. The general impact of each option would be about $105 to $130 per household per year in Lee's Summit. Approval for any of these options would be subject to a public vote. PWC directed staff to develop a final presentation to recommend placing a 1/4-cent sales tax on the ballot in 2026 to fund stormwater operations, maintenance, services and small capital improvements.
Presenter
George Binger III, P.E., CFM / Deputy Director of Public Works-City Engineer