Subject:
Title
Legislative Intent and Permission to Advertise Increase to the Stormwater Utility Assessment Rate
End
Fiscal Impact:
FY 25/26: ~$120k mailing and staffing costs
FY 26/27: $2.4-3.4M additional recurring Stormwater Assessment revenue
Dept/Office:
County Manager’s Office
Requested Action:
Recommendation
It is requested that the Board 1) Approve legislative intent, permission to advertise and public hearing to increase to the Stormwater Utility Assessment in order to increase the level of service for flood protection and water quality programs; 2) Provide staff direction regarding funding split for flood protection and water quality project types; 3) Approve notifying the public of pending rate changes; and 4) Approve all budget changes necessary to facilitate rate change.
End
Summary Explanation and Background:
The Stormwater Utility was established in 1990 and 1991 by district as a dedicated and restricted source of revenue to provide flood protection and water quality improvements, with an annual assessment of $36/Equivalent Residential Unit (ERU). The ERU was increased to $64 in 2014 and was phased in by FY16/17. To date, the program has constructed more than 650 projects by leveraging numerous State and Federal grants. However, flooding continues to be a concern in multiple areas of the County and water quality projects are still needed for the Indian River Lagoon (IRL) and the St Johns River systems. Major capital investments and new technology are necessary to meet current federal and state adopted water quality mandates such as Total Maximum Daily Loads and the requirements of the North Indian River Lagoon Basin Management Action Plan (BMAP), Central Indian River Lagoon BMAP, Banana River Lagoon BMAP, and the county’s National Pollution Discharge Elimination System (NPDES) permit. Additionally, construction costs have increased significantly since 2014 but the stormwater assessment rate has remained a constant annual $64/ERU. This has resulted in a significant loss of buying power for the funding committed to address flooding and water quality priorities over the last decade.
The original Stormwater Utility Fee was to be split, roughly evenly, between flood mitigation and nutrient reduction (water quality) projects. However, the 2014 funding increase was dedicated toward additional nutrient reduction projects due to the severity of the IRL decline, resulting in an approximate funding split of 70% water quality and 30% flood protection. Recent flooding events have raised interest in returning to a more even split between the project types.
Should the Board approve the proposed increase, these funds will be applied toward flood mitigation and nutrient reduction efforts to restore the Indian River Lagoon and the St Johns River systems. A few identified flood mitigation projects under consideration, but in need of additional funding include: D1) Channel and culvert improvements in Scottsmoor, Mims, Dairy Road, Windover Farms, Port St John, Canaveral Groves, and West Cocoa; D2) Pine Island pump and outfall improvements, North Merritt Island berm improvements, West Crisafulli outfall improvements, and channel and culvert improvements in Merritt Island south of the barge canal, Rockledge Drive, and West Cocoa; D3) Culvert, channel improvements, and stormwater storage in Micco, Barefoot Bay area, and throughout the barrier island area; D4) Culvert and stormwater storage improvements in South Patrick Shores and emerging issues in the Suntree drainage system; D5) Channel and culvert improvements in the Police Foundation area and Deer Run. In addition, water level data and rainfall events necessitate an increased need for monitoring and planning for current and future conditions.
Actions for Board Consideration:
1. Direct that new revenue collected be evenly split, to the greatest extent feasible, between water quality and flood mitigation efforts, including modeling, maintenance and other expenditures allowed under the enabling ordinance.
2. Eliminate the design credit, while still providing the maintenance credit incentive for stormwater systems. The County provides a 20% “maintenance” credit to those who have a stormwater system and maintain it. The County also provides up to 80% additional “design” credits for stormwater systems that exceeded the stormwater treatment requirement of 1990. The design standards for new development have changed significantly over time, with very few, if any, systems exceeding current standards. In FY25/26, design credits will result in the non-collection of ~$1M.
3. Raise the stormwater assessment. $64 enacted in 2014 and implemented in 2016 has the same buying power as $85.80 today. While the proposed rate of $85.80 will not fully meet the level of service expectations necessary to perform all the actions desired by the public and Board, it does provide the ability to make meaningful progress toward pollution reduction and flood mitigation throughout the County.
Increasing the annual fee from $64 to $85.80 would increase annual revenues by ~$2.4M.
|
District |
Current |
Proposed |
Increase |
|
1 |
$2,102,761 |
$2,817,822 |
$715,061 |
|
2 |
$1,907,580 |
$2,556,715 |
$649,135 |
|
3 |
$504,451 |
$678,236 |
$173,785 |
|
4 |
$1,843,678 |
$2,470,921 |
$627,243 |
|
5 |
$504,883 |
$693,396 |
$188,513 |
|
Total |
$6,863,353 |
$9,217,090 |
$2,353,737 |
4. Annually add the Consumer Price Index (CPI-U) to future year rates to keep up with inflation and ensure relatively constant buying power.
5. Raise the minimum fee to $5.01. When the utility was created, the minimum fee collected by the Tax Collector was $2.35; therefore, properties receiving design credits that would have lowered their fee to less than $2.35 were billed this minimum. The current minimum fee collected by the Tax Collector is $5.01. Raising the stormwater minimum fee to $5.01, would increase annual collections by about $12,000 and provide consistency with the Tax Collector’s process.
6. Actions 1-5 above.
7. Other action as determined by the Board.
Clerk to the Board Instructions: