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Storm Water Rate Change

A rate study was completed in late 2021 where the primary objectives were to ensure we had sufficient funds to cover all expenses in the storm drain utility fund as well as keep at least 180 days cash on hand. The City also has a desire to minimize impacts on existing customers while also providing a high value of service and funding necessary to capital improvements.

It was found that we were underfuded to complete Capital Projects in regards to Storm Water. Since then, there has been an ongoing discussion in city council meetings about possible rate changes.

In the April 12, 2022 meeting, Council directed staff to prepare a rate change from $7 per ERU to $15.75 followed by a yearly increase of 3%.

Fiscal Year

Rate

Increase

2022 $7.00 $0.00
2023 $15.75 $8.75
2024 $16.22 $0.47
2025 $16.71 $0.49
2026 $17.21 $0.50
2027 $17.73 $0.52
2028 $18.26 $0.53
2029 $18.81 $0.55
2030 $19.37 $0.56
2031 $19.95 $0.58
2032 $20.55 $0.60
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Background

Storm drain utilities function as enterprise funds within a City’s budget structure. They are defined as being financially self-sufficient and can be designed to furnish servies related to storm drain quantity and quality management.

In order to serve the many demands placed on its storm drain system, the City is anticipating over $4.6 million in capital improvement expenditures over the nex 10 years in order to maintain current levels of service and protect its citizens from storm drain runoff. Inflationary costs are increasing operating expenses, and rates must be designed to keep up with these changes.

FAQ
What is an ERU?

An ERU (Equivalent Residential Unit) is  a dwelling, unit, or development that is equal to a single- family residence in terms of the nature of its use or impact on an improvement to be provided in the assessment area.

Residential Unit/Home = 1 ERU; Nonresidential Unit/Home = Assessed by Storm Water Impact

Why is the Rate Change so Important?

There are three major reasons why the rate increase is important:

  • To Hire Additional Staff
  • Fund Storm Water Projects
  • Improve City Facilities