1. Replacing the Stormwater Fee City Council Workshop May 8, 2012

2.  Original Ordinance was going to be Challenged because it did not meet criteria for a Fee  New Ordinance attempted to address legal and technical requirements in the Eyes of a Judge, Lawyers, and Engineers through a complex process with billing adjustments, credits, refunds, appeals, etc.  New Ordinance is Unfair in many ways to Property Owners  Never Been Billed  Some Bills Go Up, Some Go Down  Golf Courses  Others (Town Center, Bankrupt Projects, Areas Outside Service Area, Schools, Agricultural Exemptions) Stormwater Ordinance Issues

3. Stormwater Gross Billings Loan*OtherTotal FY 2010$6.5 M$8.0 M-$14.5 M FY 2011$5.8 M$1.2 M-$7.0 M FY 2012$4.9 M-$2.6 M$7.5 M *Total Loan Proceeds 2009-2011 = $11 Million Revenue History

4. Revenues for FY2012 - $7.5M

5.  Fund Stormwater through Combination of Revenue Sources consistent with Auditor Recommendations to Diversify Revenue Sources  Replace Stormwater Fee with Combination of Electric Franchise Fee / Public Service Tax and Ad Valorem Taxes  Allocation of Funding Sources To Be Determined through Upcoming Budget Process City Council Direction

6. Budget 2013 Revenues - $7.5M

7. Stormwater FeeUtility Franchise Fee + Utility Tax Revenue Generated $4.9 Million$4.7 Million Charge$8/ERU/Month6% Fee + 2% Tax % Non-Residential19%26% Cost to Typical Homeowner (Month) $8.00$7.68* (Fee $6.36, Tax $1.32) Cost to Typical Homeowner (Year) $96.00$92.16 *Based on Average Bill ($106.12 Total Bill, Usage Portion $66.00) Replacing Stormwater Fee

8.  Stormwater Fee Terminated October 1, 2012  Electric Franchise Fee Agreement  6% Franchise Fee  Effective October 1, 2012  Public Service Tax  2% Public Service Tax  Effective October 1, 2012  Allocation of Other Funding Sources  To Be Determined during Annual Budget Process Next Steps