1. Stormwater Utility City of Rowlett
November 15, 2016
INNOVATIVE APPROACHES…PRACTICAL RESULTS…OUTSTANDING SERVICE

2. STORMwater utility fee evaluation
Current Approach
Fee Structure
Flat rate
$5.50/residential water meter
13.50/non-residential water meter
LGC 552 requires non-discriminatory, reasonable and equitable
Revenue: $1,350,000

3. CURRENT STORMwater utility fee
TYPICAL RESIDENTIAL
TYPICAL COMMERCIAL (SMALL)
TYPICAL COMMERCIAL
(LARGE)
1 residential meter
1 commercial meter
1 commercial meter
$5.50/month
$13.50/month
$13.50/month

4. STORMwater utility FEE EVALUATION
Current Services
CIP Projects
Improvements to existing stormwater facilities
Operations and Maintenance

5. STORMwater utility fee evaluation
Modified Approach
Fee Structure
Measure of storm system use
Impervious area basis
Equivalent residential unit (ERU) (4,000 sq ft impervious area)
$5.50 per ERU for all properties
Revenue: $1,700,000
Pervious
Impervious
Pervious
Impervious

6. MoDIFIED STORMwater utility fee
TYPICAL RESIDENTIAL
TYPICAL COMMERCIAL (SMALL)
TYPICAL COMMERCIAL
(LARGE)
4,000 sf IA = 1 ERU
25,228 sf IA = 7 ERU
154,526 sf IA = 39 ERU
1 ERU = $5.50/mo.
7 ERU = $38.50/mo.
39 ERU = $214.50/mo.

7. STORMwater utility fee evaluation
Potential Service Enhancements
Stormwater Staff
Floodplain Manager
Erosion Control Technician (MS4 Program)
Infrastructure Asset Inventory and Condition Assessment
Storm system survey, GIS data collection/management
CCTV inspection of sewer lines
Strategic Planning
Master Drainage Studies
Floodplain Studies
CIP Projects
Public Outreach Program

8. Residential Stormwater Utility Monthly ChargeS IN North Texas

9. COMMERCIAL STORMWATER UTILITY MONTHLY CHARGES IN NORTH TEXAS

10. Revenue Comparison

11. ERU Based Rate Structure
Projected Stormwater Utility Fee Revenue by Impervious Area Basis
Property Type
Estimated
Impervious Area
(Sq. Ft.)
Estimated Impervious Area
(ERUs)
% of Customers
% of
Run-Off
Projected Annual Revenue
Residential
81,000,000
18,804
91.4%
73.1%
$1,241,064
Non-Residential
28,000,000
6,900
8.6%
26.9%
455,433
Totals
109,000,000
25,704
$1,696,497
1 ERU = 4,000 square feet impervious area

12. Annual Revenue Breakdown Impervious Area-based Fee Structure

13. STORMwater utility fee EXEMPTIONS
Required to Exempt
Allowed to Exempt
No Legal Basis to Exempt
(unless also fits category to left)
Undeveloped property
City property
Federal property
Property with no impact to City’s storm system
County property
Businesses
(i.e., recruitment incentives)
Institutions of higher education
School district property
Properties with no
water/sewer/trash service
Subdivided lot under construction
Tax-exempt religious institution property
Disabled
State property
Cemeteries no longer accepting “customers”
Veterans
Senior citizens
Low/fixed income
Other property types not specified in LGC 552 C
per Texas Local Government Code (LGC) 552 Subchapter C, LGC

14. So why go to an ERU Basis?
If the revenue structure is designed around the impervious area basis, it better meets the State requirement of being “reasonable, equitable, and non- discriminatory.”
This revenue structure ensures that…
The impacts to the stormwater system are dealt with within the guidelines of state law
It addresses equitable distribution of the impacts to the system (currently 8.6% of the customers generate 26.9% of the run-off)
It results in an augmentation of the existing potential revenue source consistent with practices in other cities and regions.

15. Next Steps Council direction for modified equitable fee structure
Minimum of 30 days of public notice for modified fee structure
Public outreach
Public hearing
Council vote (date to be determined)
Utility billing update
Establish effective date to bill updated rates

16. QUESTIONS/Direction Is there a Council consensus on Revenue?
Option A – Adopt the ERU standards maintaining the current residential fee structure of $5.50 per month that would generate about $300,000 more per year.
Option B – Adopt the ERU standards and lower the current residential fee structure of $5.50 per month to match the current total fee revenue of about $1.3 million annually.
About $4.50 per month

17. QUESTIONS/Direction
Is there consensus from Council on Option A or B regarding implementation?
Option A – Implement the new fee structure beginning on October 1, 2017 after appropriate community education.
Option B – implement the new fee structure earlier (i.e. April 1, 2017 or July 1, 2017) after appropriate community education.

18. QUESTIONS/Direction
Is there consensus from Council on Option A or B regarding agency exemptions (City, ISDs, and church properties)?
Option A – Exempt City, GISD/RISD, and church properties reducing annual revenues by about $125,000.
Option B – Do not exempt City, GISD/RISD, and church properties.

19. Annual Revenue Breakdown Impervious Area-based Fee Structure