1j Approve Increase of Storm Water User Charge
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone 952.227.1180
Fax 952.227.1190
Engineering
Phone 952.227.1160
Fax 952.227.1170
Finance
Phone 952.227.1140
Fax 952.227.1110
Park & Recreation
Phone 952.2271120
Fax 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone 952.227.1400
Fax 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax 952.227.1110
Public Works
1591 Park Road
Phone 952.227.1300
Fax 952.227.1310
Senior Center
Phone 952.227.1125
Fax 952.227.1110
Web Site
www.ci.chanhassen.mn.us
Ji-
MEMORANDUM
TO:
Mayor
City Council Members
FROM:
Greg Sticha, Finance Director
Oh<&\\ ~
DA TE:
January 13,2006
SUBJ:
Approve Increase of Storm Water User Charge
BACKGROUND
In December of 2005, Council discussed and adopted an ordinance amending fees
for the 2006 fiscal year. After review of the ordinance by staff, it was noticed that
the fee increase for the Storm Water Usage charge was not included as part of that
ordinance. As you know, we had several discussions with our financial advisors
about all of our utility fees late in 2005. Based on staff's and our financial
advisor's recommendations, Council directed staff to follow the recommended fee
schedule set forth in the Utility Rate Study. The 50% increase in the Storm Water
Usage charge means an increase from $5.00 per quarter to $7.50 per quarter for
residential property owners. In reviewing the quarterly fees for 67 commercial
and industrial properties, the average current fee is $156.09/quarter. With the
proposed increase to the base rate, the average fee would now become
$234. 14/quarter.
RECOMMENDA TION
Staff recommends that the City Council adopt the attached ordinance increasing
the Storm Water Usage Charge, as recommended in the Utility Rate Study. This
action requires a simple majority vote of those present at the meeting.
ATTACHMENT
1. Ordinance Amending Chapters 4 & 19, Surface Water Management Fees.
2. Excerpts from the Utility Rate Study.
The City of Chanhassen . A growing community with clean lakes, quality schools, a charming downtown, thriVing businesses, winding Irails, and beautitul parks. A great place 10 live, work. and play.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTERS 4 AND 19
CHANHASSEN CITY CODE,
SURFACE WATER MANAGEMENT FEES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. The City Code, City of Chanhassen, Minnesota, is hereby amended by adding
a section to be numbered 4-50, which shall read as follows:
Surface Water Management Fees.
Classi lcation
1
2
3
4
5
6
7
8
Land Use
Sin 1e-famil and Rural residential
Agricultural
Undeve10 ed
Medium density residential
High density residential, Industrial, Office, Institutions
(churches, schools, ovemment buildin s, hos itals)
Business/Commercial
Parks, cemeteries, olf courses, arboretum
Parking lots as a rinci al use
Utili Factor
Not A licable
Not A plicable
Not A licable
2.22
3.30
4.23
0.46
6.14
The surface water management fee for each tax parcel classified 1,2 and 3 shall be $7.50.
The surface water management fee for each tax parcel classified 4 through 8 shall be
calculated as follows: $14.64 multiplied by the utility factor multiplied by the acreage of
the parcel.
Section 2. Section 19-142 of the City Code, City ofChanhassen, Minnesota, is hereby
amended to read as follows:
The surface water management fees for tax parcels shall be calculated in accordance with
Section 4-50.
Section 3. This ordinance shall be effective immediately upon its passage and
publication.
PASSED AND ADOPTED this _ day of _, 200_, by the City Council of
the City of Chanhassen, Minnesota
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
)
/
Findin2:s
Attached as Exhibit A is a chart that shows the projected rate increases. Keep in mind
that most developers only experience h . ater ualit fee
becau fthe credit for on-site ondin erefore, the recommended 50% rate increas
or 2006 is experienced as a 25% rate increase once the credit is applied.
A survey of surface water utility fees in 2005 indicates that the quarterly fees range from
$3.00 in Eden Prairie to $21.80 in Golden Valley, and the median quarterly fee is $9.26.
Furthermore, the median fee has increased 21 % since 2003. The projected 2006 increase
for Chanhassen's stormwater utility would bring the fee up to $7.50 per quarter.
The attached Exhibit B is a comparison of storm water fees for single family residential
development. It is very difficult to get an accurate comparison of surface water area
charges between cities, because they calculate developable acres differently and often
apply ponding and piping credits on a site specific basis. Therefore, the fees in Exhibit B
assume 3 single family units are developed per acre and there is no on-site ponding. In
actuality, a Chanhassen developer would typically develop 2.4 units per acre and get a
ponding credit.
The fees projected in Exhibit A will allow the City to maintain and expand its surface
water utility as required by state regulation. The proposed fee structure also improves the
equity in the system by matching the level of the fee to the costs for which it is intended
to pay.
..J
3060 Centre Pointe Drive
Roseville, MN 551 \3-1105
(651) 697-8546 Fax: (651) 697-8555
jcook@ehlers-inc.com
http://www.ehlers-inc.com
/
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