CC 08-21-2018 Item No. 28 Storm Water Management Fee Increase Initiative PresentationStorm Water Management FeeIncrease InitiativeCITY COUNCILAugust 21, 2018
•Currently, only half of environmental programs are funded by storm drain fees (~$370k annually) with general fund subsidizing remainder•O&M receives no storm drain fees and is general fund subsidized approx. $475k annually•Infrastructure improvements receives no storm drain fees and is general fund subsidized approx. $1.5-$2M annually•Council Meeting of June 5th•Increasing current fee of $12/year to $24/year had community support•Additional revenue from this increase will achieve cost recoveryCity of Cupertino storm drain system
Revenues collectedCupertino Municipal Code Chapter 3.36.030Number of Parcels or AcresAnnual RevenueResidential $12 per parcel 15,885 parcels $190,620Apartment $144 per acreCommercial/Industrial $144 per acre 1,046.96 acres $150,760Vacant $36 per acre 871.17 acres $31,360TOTAL $372,740Fiscal YearMaintenancePollution PreventionCapital ImprovementsTOTALFlood PreventionGreen Infrastructure17/18 $448,250 $632,107 $1,700,000 $0$2,780,35718/19 $476,000 $727,000 $1,500,000 $0$2,703,00019/20 $499,000 $735,000 $1,500,000 $500,000$3,234,00020/21 $524,000 $790,000 $1,500,000 $500,000$3,314,00021/22 $551,000 $860,000 $1,500,000 $500,000$3,411,00022/23 $578,000 $925,000 $1,500,000 $500,000$3,503,00023/24 $607,000 $970,000 $1,500,000 $500,000$3,577,000Forecasted costs
Storm water fees have not increased•$12 per year was sufficient through the mid 90’s to cover expenses•Costs were less (environmental programs, O&M and infrastructure)•Inflation was moderate•Proposition 218 became effective in 1996
Storm water fees in nearby citiesAnnual Charge for One Residential UnitCity of Palo Alto$163.80City of Mountain View$0City of Santa Clara$23.52City of Sunnyvale$0City of Los Altos$0In Proposition 218 process to set new fee < $100City of San Jose$94.44City of Monte Sereno charges $16.58; City of Campbell $19.48; City of Saratoga $0 and Town of Los Gatos $20.37.
Estimated fee increase needed for cost recoveryPremises Cupertino Municipal Code Chapter 3.36.030Number of Parcels or AcresAnnual RevenueEstimated fee needed Annual revenueResidential $12 per parcel 15,885 parcels$190,620$110 per parcel$1,747,350Apartment $144 per acreCommercial /Industrial$144 per acre 1,046.96 acres$150,760$1320 per parcel$1,382,000Vacant $36 per acre 871.17 acres $31,360$330 per acre$284,430TOTAL $372,740$3,416,780
Ways to increase storm water fees•Proposition 218•SB-231
Milestone Months for July 2019 IncreaseDate ActivityNovember 2018 Recommend desired consultant to Council. Start study.December 2018‐January 2019Poll community, present progress and findings at community meetings.February 2019Submit study with findings to Council / mail notices for majority protest hearingApril 2019Hold hearing for majority protest & authorization to mail ballotsMay 2019 Close balloting period and count ballotsJune 2019Hold public hearing. Council adopts Resolutions approving new fees during public hearing. Amend Chapter 3.36 Municipal Code July 1, 2019New fees are added to the Santa Clara County FY19‐20 property tax bills
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