§ 74-161. Utility fee established.

(a)

Subject to the provisions of this article, there is hereby imposed on each and every developed lot or parcel of land within the city and the owners thereof a stormwater drainage utility fee. This fee is deemed reasonable and is necessary to pay for the operation, maintenance, administration and capital improvements of the existing city stormwater drainage facilities and the operation, maintenance, administration and capital improvements of such future stormwater drainage facilities as may be established within the city and to pay for the design, right-of-way acquisition and construction or reconstruction of stormwater drainage facilities to the extent that such costs have been determined to be the responsibility of developed properties. All of the proceeds of this fee are deemed to be in payment for use of the city stormwater drainage system. The fee shall be established by resolution of the city council.

(b)

The service charges are based on the square footage of impervious area, such that for each 3,050 square feet of area or increments thereof the property shall be charged an additional single-family unit charge.

(c)

In addition to the stormwater drainage utility fee established in subsection (a) of this section, there is hereby imposed on each and every developed lot or parcel of land within the city and the owners thereof a capital facilities charge as a portion of the stormwater drainage utility fee. The capital facilities charge shall be based upon the volume of water draining from such developed lot or parcel of land into the stormwater drainage management facilities of the city. The capital facilities charge is deemed reasonable and is necessary to pay for capital improvements of the existing city stormwater drainage facilities and capital improvements of such future stormwater drainage facilities as may be established within the city. The capital facilities charge shall be established by resolution of the city council.

(d)

The full amount of the capital facilities charge of the stormwater drainage utility fee shall be charged on all developed residential property. The amount of the capital facilities charge of the stormwater drainage utility fee for developed nonresidential property shall be determined in accordance with paragraphs (1), (2), (3), (4) or (5) below.

(1)

If the stormwater drainage management facilities serving the property reduce the volume of stormwater draining into stormwater drainage management facilities of the city by an amount less than 25 percent, the property shall be charged an amount equal to 100 percent of the capital facilities charge of the stormwater drainage utility fee.

(2)

If the stormwater drainage management facilities serving the property reduce the volume of stormwater draining into stormwater drainage management facilities of the city by an amount equal to or greater than 25 percent but less than 50 percent, the property shall be charged an amount equal to 75 percent of the capital facilities charge of the stormwater drainage utility fee.

(3)

If the stormwater drainage management facilities serving the property reduce the volume of stormwater draining into stormwater drainage management facilities of the city by an amount equal to or greater than 50 percent but less than 75 percent, the property shall be charged an amount equal to 50 percent of the capital facilities charge of the stormwater drainage utility fee.

(4)

If the stormwater drainage management facilities serving the property reduce the volume of stormwater draining into stormwater drainage management facilities of the city by an amount equal to or greater than 75 percent but less than 100 percent, the property shall be charged an amount equal to 25 percent of the capital facilities charge of the stormwater drainage utility fee.

(5)

If the stormwater drainage management facilities serving the property reduce the volume of stormwater draining into stormwater drainage management facilities of the city by an amount equal to 100 percent, the property shall not be charged any amount of the capital facilities charge of the stormwater drainage utility fee.

(e)

In order to reduce the total number of stormwater drainage retention basins utilized for stormwater management, to pay a portion of the cost thereof, and to provide for the orderly growth within commercial and industrial districts, the city establishes the following stormwater drainage utility fee credit against the capital facilities charge of the stormwater drainage utility fee.

(1)

Prior to designing and constructing a regional stormwater drainage retention basin within a commercial or industrial district or to serve a commercial or industrial district, the city may enter into an agreement with one or more owners of property within such commercial or industrial district which requires such owner or owners to pay all or part of the construction costs of said regional stormwater drainage retention basin. Each developed lot or parcel of land within such commercial or industrial district (a "surcharged lot") shall be eligible for a stormwater drainage utility fee credit in an amount not to exceed $2.00 per month or $24.00 per year per ERU against the capital facilities portion of the stormwater drainage utility fee. The amount and term of the credit for each commercial or industrial district served by such regional stormwater drainage retention basin shall be established by resolution of the city council.

(2)

The amount of the credit described in this subsection shall be determined under paragraphs a. or b. below.

a.

If the property owner pays to the city a lump sum payment of the lot's pro-rata share of the cost of the regional stormwater drainage retention basin, then the property shall be eligible for a credit equal to the full amount of the capital facilities charge of the stormwater drainage utility fee. The pro-rata share shall be based upon one-half of the proportion of ERUs of the lot to the permitted design capacity of the required regional stormwater drainage retention basin.

b.

If the property owner pays to the city a portion of the lump sum payment described in paragraph a. above, then the property shall be eligible for a credit equal to the difference between the full amount of the capital facilities charge of the stormwater drainage utility fee and the amount necessary to amortize the balance of the lump sum payment amount over a period of ten years or as otherwise provided in the agreement between the city and the property owner (at an assumed interest rate equal to the city's then-current average cost of funds), provided that such credit shall in no event exceed the capital facilities charge of the stormwater drainage utility fee.

(f)

The city may retain a maximum of two percent of the funds collected from stormwater drainage utility fees on an annual basis to offset the city's reasonable administrative costs associated with the collection and administration of said fund. The amount of the city's reasonable administrative costs in connection with the collection and administration of these funds shall be documented as part of the city's annual budget process. Any funds retained by the city to offset the city's reasonable administrative costs in connection with the collection and administration of said funds shall be placed in a separate city account which account shall be used solely for administrative expenses incurred by the city in the collection and administration of funds collected from stormwater drainage utility fees.

(1)

Properties which voluntarily upgrade stormwater drainage management facilities to comply with current Land Development Code standards in effect on the date of construction of such facilities shall be eligible for a stormwater drainage utility fee credit in an amount not to exceed the full amount of the capital facilities charge of the stormwater drainage utility fee.

(2)

The amount of the monthly credit described in this subsection shall be determined under paragraphs a., b., c., d. or e. below.

a.

If the upgraded stormwater drainage management facilities reduce the volume of stormwater draining from the property in an amount less than 25 percent, the property shall not be eligible for any credit in any amount of the capital facilities charge of the stormwater drainage utility fee.

b.

If the upgraded stormwater drainage management facilities reduce the volume of stormwater draining from the property in an amount equal to or greater than 25 percent but less than 50 percent, the property shall be eligible for a credit in the amount of 25 percent of the capital facilities charge of the stormwater drainage utility fee.

c.

If the upgraded stormwater drainage management facilities reduce the volume of stormwater draining from the property in an amount equal to or greater than 50 percent but less than 75 percent, the property shall be eligible for a credit in the amount of 50 percent of the capital facilities charge of the stormwater drainage utility fee.

d.

If the upgraded stormwater drainage management facilities reduce the volume of stormwater draining from the property in an amount equal to or greater than 75 percent but less than 100 percent, the property shall be eligible for a credit in the amount of 75 percent of the capital facilities charge of the stormwater drainage utility fee.

e.

If the upgraded stormwater drainage management facilities reduce the volume of stormwater draining from the property in an amount equal to 100 percent, the property shall be eligible for a credit equal to the full amount of the capital facilities charge of the stormwater drainage utility fee.

(3)

Such credit shall apply for a period until the aggregate amount of the credit shall equal the cost incurred to upgrade such stormwater drainage management facilities (but not to exceed ten years).

(g)

Procedures for obtaining credits.

(1)

The property owner shall submit a formal written request to the director if he desires a credit for his property. The application shall set forth the facts and circumstances necessary to determine eligibility for a credit and the amount of any credit. The director shall advise the applicant in writing as to any additional information required. Based upon the information provided by the utility and the property owner, the director shall make a final determination of the availability of any credits. The director shall notify the property owner, in writing, of his decision. If dissatisfied, a property owner may request, in writing, a review by the city manager of the director's decision. Such request must cite specific error by the director and the calculation which the property owner believes to be incorrect. The city manager shall review the record presented and render a written decision as soon as practical. He may request additional information from either party. If still dissatisfied, a property owner may appeal the city manager's decision to the city council in the same manner as preceding. The decision of the city council shall be final.

(2)

After a particular property receives a stormwater drainage utility fee credit, annually thereafter the city shall inspect the stormwater drainage facilities serving the site in order to determine whether those facilities are maintained and functioning properly. If the city inspection determines that they are maintained and functioning properly, the stormwater drainage utility fee credit shall be continued. However, if the city inspection determines that they are improperly maintained and not functioning properly, the city shall notify the property owner or owners to correct the deficiency within 60 days. If the deficiency is corrected to the satisfaction of the city within the 60-day period, the stormwater drainage utility fee credit shall continue in effect until the next annual inspection. However, if the deficiency is not corrected to the satisfaction of the city within 60 days, the city may cancel the stormwater drainage utility fee credit until the necessary corrections are made.

(h)

In adopting any stormwater drainage utility fee, the city will separately identify the amount of such fee which shall be eligible for the credits established in subsections (e) and (f) of this section, which portion is designated the capital facilities charge. No credit shall exceed the applicable capital facilities charge of the stormwater drainage utility fee.

(i)

No property shall be eligible for more than one credit established in either subsection (e) or (f) of this section.

(j)

The credits established in subsections (e) and (f) of this section shall apply only to applications approved by the city beginning the first month after adoption of this ordinance and before October 31, 1999, unless extended by action of the city council. The city council may revise, modify, rescind or repeal the credits established in subsection (e) or (f) of this section, provided that such action shall not impair or affect the rights provided in a written agreement between the city and a property owner.

(Code 1981, § 20-110; Ord. No. 1996-44, §§ 1, 2, 1-7-97; Ord. No. 1997-1, §§ 1—6, 2-4-97; Ord. No. 2005-24, § 1, 6-28-05)