Title
Recommendation for Funding Stormwater Utility Rate Study
Body
Issue/Request:
Recommend a funding source for proceeding with the proposed stormwater utlity rate study.
Key Issues:
* The Public Works Committee supports the concept of a utility as the most suitable funding mechanism for a sustainable maintenance and regulatory compliance program for stormwater.
* A rate study is necessary to determine appropriate fees and the utility structure before voters are asked to consider the issue. The rate study is anticipated to cost $400,000-450,000.
* The only feasible source of funding for the study is the General Fund Unallocated Reserve Balance.
Proposed Committee Motion:
Background:
Public Works Committee has spent considerable time over the last 2-3 years discussing the need and options for a stormwater program. The Committee reached concensus on the concept of a utility to provide ongoing funding for identified maintenance and regulatory compliance needs. The concept was presented to civic/business groups for feedback. The concept was generally well received with the suggestion that the program also include some funding for capital needs.
In order to develop the utility structure and determine appropriate fees, a rate study is necessary in order to place the issue on a ballot in the future. The study would be performed by a consultant and is expected to cost up to $450,000. This fee would include the development of a fee structure and the utility framework necessary to allow voters to understand the impact, and would include services related to establishing the billing system if the issue is approved.
Multiple sources for funding the study have been investigated and there are no current options other than the General Fund Unallocated Reserve Balance. Submitting the request as an expansion item in the annual budget process would force it to compete with regular, ongoing expense and potentially impact the operating budget. The General Fund Unallocated Reserve Balance is adequate to fund the study and still maintain the minimum balance required by the General Fund Reserve Balance Guidelines (Ordinance 7428).
Impact/Analysis:
The study provides the information and details needed to present the proposed stormwater utility to voters.
Timeline:
Start: FY2021
Finish: FY2022
Other Information/Unique Characteristics: Understanding the complexity of the stormwater issue in Lee's Summit, MO CM Demoro moved to send the consideration and recommendation for funding Stormwater Utility Rate Study to the Finance and Budget Committee.
Presenter
Dena E. Mezger, P.E., Director of Public Works
Recommendation
Recommendation: Staff recommends using funds from the General Fund Unallocated Reserve Balance for the rate study.
Committee Recommendation
Committee Recommendation: The Public Works Committee voted unanimously 3-0 (Councilmember Edson "Absent), to send the consideration and recommendation to funding the Stormwater Utility Rate Study to the Finance and Budget Committee.