2012-11-27_PWETC_AgendaPacket - Laserfiche WebLink

Home

Page 3 of 10 78 These implemented actions totaled an ongoing annual increased capital funding for Vehicles, 79 Equipment, and Facilities of $800,000, creating a sustainable funding mechanism for at least the 80 next 20 years. Approximately 40% of the increased funding came from permanent operating 81 spending cuts and 32% from increased property taxes (the rest was from re- purposing of existing 82 levy funding. 83 84 85 Utility Needs. 86 87 Background. The fee - supported Utilities in the City with significant un- funded capital needs are $8 the Water Utility, the Sanitary Sewer Utility, and the Stormwater Uitility. These utilities all 89 consist largely of underground piping systems that were installed over a period from the 1940's 90 to the 1970's as the City developed. In addition, the Water Uifilty includes the City's water 91 tower, and the Stormwater Utility includes a number of City- maintained stormwater management 92 ponds. This capital infrastructure is provided by the City to deliver safe drinking water to the 93 homes and businesses in the City, to take away sanitary sewer wastewater to the Metropolitan 94 Council's sewer system and treatment facility for safe treatment, and to safely collect stormwater 95 run -off, treat it, and deliver it to the environment via the streams, lakes, and other waterways of 96 the area. 97 98 Much of the piping in these systems is approaching 50 -60 years of age, and was made of 99 materials that have been found to not last much longer than that, if even that long. The cast iron 100 of the water mains is brittle and subject to leaking and breaks as the result of ground shifting, 101 tree roots, etc. The clay file of the sanitary sewer lines is similarly subject to leaks and breaking. 102 Since the City pays St. Paul for drinking water, each leak or break in a line costs the City's 103 residents and businesses in higher rates to account for that un -used water we purchase. Leaks of 104 raw sewage into the ground pose a danger to the environment. 105 106 In an effort to keep current and future costs down, the City is using new materials and 107 technologies to replace or repair existing water and sewer mains. Where City streets are being 108 completely replaced, the water and sewer lines are being replaced (as needed) with more durable 109 materials. Where streets are not programmed for replacement for many years, the City is using 110 re- lining technology that puts a new plastic pipe inside the existing pipe, and does not require 111 excavation of the street. 112 113 The capital infrastructure funding gap over the next 20 years in these Utility funds was about $47 114 million out of total projected costs of $65 million in 2011. In other words, 72% of the projected 115 costs were then un- fimded. 116 117 Recommendation. The subcommittee recommended, and the City Council implemented, a long - 118 term solution for funding the significant capital replacement needs of these Utilities that was 119 based on additional revenues. 120