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Home My WebLink About2017-03-08 Item #1, Old BusinessTeresa Bender From: Statz, Mark <Mark.Statz@stantec.com> Sent: Tuesday, March 07, 20171:06 PM To: Mike Ericson Cc: Paul Palzer, Greg Burmeister; Teresa Bender Subject: FW: Centerville Storm Water Fund FYI From: Ellen Paulseth[mailto:ellen.paulseth@maplewoodmn.eov] Sent: Tuesday, March 07, 2017 12:58 PM To: Statz, Mark <Mark.Statz@stantec.com> Subject: RE: Centerville Storm Water Fund Mark, I think this looks good. I think I was only asking for $5/year per residence at the time. An increase of that amount every year might finally get us there at some point. I know a lot of cities are having problems keeping up with the needs. The fee gets raised and the funds get raided for something else, like wages. Thanks, Ellie Ellen Paulseth 1651-249-2902 Map!e From: Statz, Mark (mailto:Mark.Statz@stantec.com) Sent: Tuesday, March 07,2017 12:41 PM To: Ellen Paulseth<ellen.paulseth@maplewoodmn.eov> Cc: Ellie Paulseth (EPaulseth@CENTERVILLEMN.com) <EPaulseth@CENTERVILLEMN.com>; Mike Ericson (MEricson@CENTERVILLEMN.com) <MEricson@CENTERVILLEMN.com>;'Paul Palzer' <ppalzer@centervillemn.com>; Greg Burmeister<g_purmeister@centervillemn.com>; Teresa Bender (tbender@centervillemn.com) <tbender@centervillemn.com> Subject: Centerville Storm Water Fund Ellie, Thanks for chatting just now. Here's the memo and support info. As I mentioned the memo doesn't suggest that the CC should double the storm water rate overnight, but our analysis of the fund shows that, if you want to fully fund depreciation, that's about what would need to happen. I don't think this is particularly surprising to anyone. When the storm fund was set up, I think we started off with a pretty low fee, just to establish the fund and get people used to paying it. Now, 5 — 10 years down the road, we've taken a closer look at our actual costs and need to start planning on how to have a balanced budget, again, if you want to fully fund depreciation. Please let me know if you have any comments or questions before we present this to the CC. Thanks. Mark Statz, PE Associate Stantec 2335 Highway 36 West, St. Paul MN 55113-3819 Phone: (651) 604-4709 Cell: (651) 775-5126 Mark.Statz@stantec.com Twitter: @mstatzstantec O The content of this email is the confidential property of Stantec and should not be copied, modified, retransmitted, or used for any purpose except with Stantec's written authorization. If you are not the intended recipient, please delete all copies and notify us immediately. This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.sManteccloud.com (3 Stantec To: Centerville City Council From: Mark Statz 1880 Main St 2335 Highway 36 West Centerville, MN 55038 St. Paul, Minnesota 55113 File: City of Centerville - General Date: February 28, 2017 Engineering Reference: 2017 Storm Water Fund Analysis Memo At the direction of the City Council, we have performed a brief analysis of the city's Storm Water Fund. In reviewing the annual budget, we focused on the amount being set aside for depreciation, pond dredging and other capital outlay. We did not review other budgetary line items such as wages, benefits and other department expenses. Current Budget The 2017 budget includes $25,000 for pond dredging and $33,000 in depreciation. No money is budgeted for capital projects. Below is a summary of the previous budgets Year Revenues Expenses Difference 2014 $97,538 $103,828 ($6,290) 2015 $105,167 2016* $104,000 2017* $106,000** *Budgeted figures **Based on current rates $83,248 $21,919 $108,200 ($4,200) $106,000 ($0) Our analysis of the depreciation schedule considered ponds as a depreciable asset, thus combining the two line items (pond dredging and depreciation). The total, annualized depreciation (or replacement cost), of all storm water infrastructure, we estimate to be $148,000. This compares to the $58,000 currently in the budget for similar items. If the city were to fully fund depreciation, based on our estimate, the necessary, resulting budget would be $196,000 (a $90,000 or 85% increase). Clearly, an increase of this magnitude is not economically viable in one year, or even over the course of a few short years. Our recommendation would be to endeavor to raise the storm water utility rates incrementally, while reviewing the city's policy on funding depreciation in their utility funds. Attachment: Storm Water Fund Budget Sheet Storm Water Utility Depreciation Schedule C. Mike Ericson, Paul Palzer, Elie Paulseth, Jonathan Simmons Design with conwnunity in mind tb c:\users\tbender\appdata\local\microsoft\windows\temporary Internet files\content.outlook\yl npno7e\2017 stone water fund analysis (2).d— Storm fund Infrastructure and Replacement Last Year Year Years Annual Cost Equipment Cost Completed Life Expected Remaining (Depreciation) Ponds 111 $2,645,010 75 $35,267 3,662,325 sf of ponds for 1' dredging & 1.3 x expansion @ $15/CY Storm Sewer 72,830 $5,462,250 100 $54,623 $75/LF Structures 680 $1,700,000 50 $34,000 $2500/EA FES 350 $350,000 50 $7,000 $1,000/EA Rain Gardens 28 $22,460 50 $449 31,100 sf of gardens for V dredging & 1.3 x expansion @ $15/cy Ditches 640 $264,000 50 $5,280 Approx. 2 miles $25/LF LaMotte Stormwater Reuse System 1 $350,000 2010 30 2040 24 $11,667 $10,793,720 $148,285 Rates Revenues Account Description Residential - Fixed Charge Commerdal - Fixed Charge 2012 Actual 2013 Actual 2014 Actual 2017 2016 YTD Proposed 2015 Actual 2016 Budget 6/31/2016 Budget 13.00 per quarter 0.00372 per square foot R 603-43000-32350 Storm Water Drainage Fund Fee 72,918.93 86,249.95 92,857.22 102,241.68 100,000.00 45,764.14 102,000.00 R 603-43000-34000 Chrgs for Serv. Drain 2,800.00 3,150.00 3,850.00 1,440.00 3,000.00 1,800.00 2,500.00 R 603-43000-36210 Interest Earnings 2,474.48 1,721.96 830.95 1,486.27 1,000.00 481.76 1,500.00 R 603-43000-36245 Contributions from other Funds 271,886.00 - - - - - R 603-43000-39720 Transfer from other Fund 10,463.62 - Total Revenues - Storm Water Fund 78,193.41 373,471.53 97,538.17 105,167.95 104,000.00 48,045.90 106,000.00 Expenditures E 603-43000-100 Wages and Salaries (GENERAL) 28,541.84 24,180.98 28,812.22 28,751.16 28,000.00 14,465.45 29,400.00 E 603-43000-121 PERA 1,881.32 1,786.55 1,991.78 2,205.83 2,100.00 1,302.68 2,200.00 E 603-43000-122 FICA 2,301.76 1,955.96 2,293.85 2,232.74 2,100.00 1,106.34 2,300.00 E 603-43000-130 Cafeteria Contribution 4,694.70 4,786.05 5,129.69 5,399.96 5,400.00 3,458.64 5,700.00 E 603-43000-151 Worker s Comp Insurance Prem 1,619.16 1,484.61 1,622.01 - - - - E 603-49420-129 Pension Expense - - - (25.00) - - 100.00 E 603-43000-210 Operating Supplies 605.18 454.28 624.20 1,108.31 500.00 553.96 800.00 E 603-43000-212 Motor Fuels 86.00 200.00 - - - - - *Pond Dredging E 603-43000-300 Professional Srvs 16,890.24 8,974.63 24,809.41 178.80 30,000.00 - 25,000.00 E 603-43000-303 Engineering Fees 227.50 9,491.75 1,254.00 5,340.08 1,000.00 1,721.20 3,000.00 E 603-43000-322 Postage 398.50 752.27 1,158.75 1,000.00 532.96 1,200.00 E 603-43000-331 Travel Expenses - - 105.50 161.40 100.00 9.72 200.00 E 415-43150-340 Advertising & Printing - - - - - E 603-43000-400 Computer, Copier Main. Contrac 666.98 700.00 700.00 E 415-43150-410 Rentals (GENERAL) - - - - - - E 603-43000-430 Miscellaneous 600.02 202.76 2,500.00 - 1,300.00 E 603-43000-433 Dues and Subscriptions 375.00 595.00 - 515.00 300.00 515.00 600.00 E 603-43000-441 Conf. & Schooling 60.00 - 515.00 - 500.00 265.00 500.00 E 603-43000-420 DEPRECIATION 27,884.24 33,321.96 33,321.68 35,343.96 34,000.00 - 33,000.00 E 603-43000-603 Short -Term Debt Principal 1,650.00 1,329.75 674.77 - - - E 415-46000-720 Operating Transfers 99,500.00 - - - E 603-43000-500 Capital Outlay (General) - - Total Expenditures - Storm Water Fund 184,666.94 89,280.27 103,828.36 83,248.52 108,200.00 23,930.95 106,000.00 Net Income - Storm Water Fund (106,473.53) 284,191.26 (6,290.19) 21,919.43 (4,200.00) 24,114.95 -