9.2. SR 11-18-2013 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 9.2
Agenda Section Meeting Date Prepared by
Work Session November 18, 2013 Suzanne Fischer,Director, CODD
Item Description Reviewed by
Surface Water Management Budget Tim Simon,Director,Finance
Reviewed by
Cal Portner, City Administrator
Action Requested
Review Surface Water Management Budget.
Background/Discussion
The City of Elk River's Surface Water Management Plan was presented by WSB &Associates at the
November 4, 2013, City Council meeting. At that time, staff indicated that they would return with budget
estimates to meet the minimum MS4 permit requirements.
As discussed in various presentations over the past three years, staff recognizes this mandated program
has considerable funding requirements. Prior reports indicated the City of Elk River needing to invest in
excess of$500,000 annually to properly develop and implement the program.
Staff has prepared a five-year budget estimate with emphasis on 2014 for program development and
initial capital outlay projects. Personnel needs include one new FTE with additional support from exiting
staff. The FTE could be acquired mid-year or moved to 2015 if Council prefers to utilize the services of
the consultant for start-up program expenses in lieu of adding staff. Program workload would still be
supplemented with a percentage of time from three existing staff members.
In years 2015—2018, the operating expenses should decline to a maintenance level. Capital outlay will
fluctuate yearly as stormwater management controls are implemented along with street reconstruction
projects. Staff believes the attached budget is realistic and the most cost-effective approach to move
forward.
Financial Impact
Short-term funding (2014)
The city has limited options to fund the minimum permit requirements in 2014 based on the late issuance
of the permit (August 2013) and the recent study with implementation costs. Under the old permit,the
program was supported with tax levy and some impact fees from new developments. We have not had
much new development over the past several years,which has significantly decreased revenues to the
fund and because of fiscal challenges, the levy amount of$50,000 has not been increased to offset the
declining fees and additional program costs.
For 2014, staff recommends transferring any excess General Fund balance (beyond the maximum level),
to the Surface Water Management Fund instead of the Capital Outlay Reserve Fund. That amount will
P a w E R E U 6 Y
NaA f RE]
not be available until April and could be used to fund the 2014 difference. If that is not Council's
preference, a one-time transfer from another fund may be an option, even though the expenses are
recurring and operational, not capital.
Long-term Fund (beyond 2014)
A long-term funding mechanism will be required next year to accommodate ongoing program
requirements. This could be accomplished though a tax levy adjustment or through a storm water utility
fee similar to what most other municipalities utilize.
Attachments
■ Surface Water Management Budget
N:\Public Bodies\Agenda Packets\11-18-2013\Final\x9.2 sr SWNW Budget.docx
City of Elk River Surface Water any a en Budget
(as of 11.11.13)
2014 2015 2016 2017 2018
Beginning Cash Balance 150,000 - (527,675) (955,838) (1,607,077)
Transfer In 214,775
Sources of Funds
_ General Property Tax 50,000 _50,000 50,000 50,000 50,000
Total Sources of Funds 414,775 -50,000 (477,675) (905,838) (1,557,077)
i
Expenditures _
Personnel _ 96,675 � ''9,575 102,563 105,639 108,809
Stormwater/Wetland position (new) _ 70,000 72,100 74,263 76,491 78,786
Env. Tech (5%) 3,500 3,605 3,713 3,825 3,939
Engr. Tech (10%) 5,600 5,768 5,941 6,119 6,303
Engineer(15%) 17,575 18,102 18,645 19,205 19,781
Implementation Plan: Minimum Controls 113,100 95,600 93,100 88,100 88,100
Public Education and Outreach 10,000 10,000 10,000 10,000 10,000
E Ln Public Participation and Involvement 3,000 3,000 3,000 3,000 3,000
Illicit Discharge Detection & Elimination 20,000 20,000 20,000 20,000 20,000
E o Construction Site Runoff Control 3,000 3,000 3,000 3,000 3,000
U Post Construction Site Runoff Control 20,000 17,500 17,500 15,000 15,000
Pollution Prev/Good Housekeeping 12,000 12,000 12,000 12,000 12,000
Professional Services:
AddVanticipated Engr and Legal 30,000 15,000 12,500 10,000 10,000
Other Operating Expenses:
Training &Conferences 5,000 5,000 5,000 5,000 5,000
Dues and subscriptions (MCSC) 1,500 1,500 1,500 1,500 1,500
Publications&Advertising 5,000 5,000 5,000 5,000 5,000
Supplies 3,600 3,600 1 3,600 3,600 1 3,600
Capital Outlay 205,000 382,500 282,500 507,500 332,500
Water Quality Project w/Streets Reconstruction 175,000 200,000
Pond Inventory 65,000 10,000 10,000 10,000 10,000
Sediment Testing 5,000 7,500 7,500 7,500 7,500
Pond Cleaning 100,000 100,000 150,000 150,000 150,000
TMDL Point Source Improvements 15,000 15,000 15,000 15,000
Storm Sewer Repairs 35,000 75,000 100,000 125,000 150,000
Total Expenditures 414,775 577,675 478,163 701,239 529,409
Ending Cash Balance - (527,675) (955,838) (1,607,077) (2,086,486)