Exh 7EAGENDA ITEM #7E
SEPTEMBER 23, 2002
ORDINANCE N0. 80-02-65
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA INCREASING THE MONTHLY STORM WATER
UTILITY FEE BY AMENDING CHAPTER TWENTY TWO,
UTILITIES ARTICLE IV STORM WATER MANAGEMENT,
DIVISION 2 RATES AND CHARGES, SECTION 22-335. FEES;
PROVIDING FOR INTENT; PROVIDING FOR THE ADOPTION
OF A NEW .RATE; PROVH)ING FOR SEVERABH,ITY;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the cost of mauitaining the storm water utility system has risen
dramatically since the utility was created; and
WHEREAS, the long term goal of the City is to some day recover the entire cost of the
storm water utility system through user fees; and
WHEREAS, the current rzte of $3.00 per ERU per month is insufficient to recover
those costs, and
WHEREAS, the City Cornmission of the City of Atlantic Beach, Florida desires to
adopt a higher monthly fee per ERU for storm water utility operations,
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA:
that;
SECTION 1. Intent
It is the intent of the City of Atlantic Beach Florida to raise the monthly fee for
storm water utility services from $3.00 to $4.00 per equivalent residential unit
(ER(~.
SECTION 2. Section 22-335 Fees; is amended as follows:
Sec. 22-335. Fees.
(a) ERU rate. The fee per ERU billing unit shall be :acc ,:~"°-~ four
dollars ($4.00) per month.
SECTION 3. SEVERABILITY
The provisions of this ordinance are declared to be severable and if any section,
sentence, clause or phrase of this ordinance shall, for any reason, be held to be
invalid or unconstitutional, such decision shall not affect the validity ofthe
AGENDA ITEM #7E
SEPTEMBER 23, 2002
ORDINANCE NO. 80-02-65
CITY OF ATLANTIC BEACH
PAGE TWO
remaining sections, sentences, clauses and phrases ofthis ordinance, but the same
shall remain in effect, it being the legislative intent that this ordinance shall stand
notwithstanding the invalidity of any part.
SECTION 4. REPEALER
All ordinances in conflict herewith are, to the extent of such conflict, hereby
repealed.
SECTION 5. EFFECTIVE DATE
This ordinance shall take effect immediately upon its passage by the City
Commission of the City of Atlantic Beach, Florida.
Passed by the City Commission on Srst reading this day of September
2002.
Passed by the City Commission on second reading this day of September
2002.
John S. Meserve
Mayor /Presiding Officer
Approved as to Form and Correctness
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Maureen King, CMC
City Clerk
AGENDA ITEM #7E
SEPTEMBER 23, 2002
City of Atlantic Beach
Revenue Sufficiency Analysis
Storm Water Utility Fund
Purpose: The object of this analysis is to highlight the issue of storm water utility
fees in relation to the programmed expenses related to providing that service.
Background: As of Fiscal Year 2001, all estimated costs for providing storm water
related services including maintenance; debt service and small local projects have been
captured in one place. The costs of maintenance of the storm water collection system
have previously been recorded in the General Fund, where the crews that do the
maintenance have been budgeted. Now that the costs have been accumulated in one
place, compazing that total with the revenues generated, it is clear that the fees do not
begin to recover the cost. As a result, funding for this program is heavily subsidized from
the General Fund and the Gas Tax fund.
Revenue and Cost Comparison: Below is a table showing the estimated revenues
with existing rates, increased rate as proposed and total costs expressed in terms of a rate
that would be necessary to pay for that service.
Revenues Dollars Dollars er ERU
From Existing Rates $269,631 $3.00
From $1/ERU increase $89,877 $1.00
Total Bud eted Revenues $359,508 $4.00
Ex eases
Personal Services $250,209 $2.79
O erating Ex eases $382,639 $4.29
Ca ital Outla $40,000 $.45
Debt Service $331,148 .$3.69
Total Ex enses• $1,003,996 $11.17
Amount of subsidized costs $644,488 $7.17
Summary: As you can see from the table above, the Storm Water Utility would
require an $11.17 per ERU rate to recover 100% ofthe estimated costs. This cost
analysis is based on the proposed budget for FY-2003 without any fimding for the Storm
Water Master Plan.
Recommendation: For this budget and fixture budgets, the City needs to do all
possible to m;n;m;ze costs and. determine if it is our intent to recover all costs with fees,
or continue with the subsidy. Currently there is more subsidy than revenues generated
from rates. The increased level of service of the storm water maintenance program
competes directly for General Fund and Gas Tax Fund revenues and should be evaluated
with street maintenance, and all other General Fund program expenditures in mind.