Mayor and Council



   For the meeting on:

  February 27, 2017
   Department:   Finance
   Responsible staff:  Stacey Webster, Deputy Director of Finance
  phone: (240) 314 - 8407
  SWebster@rockvillemd.gov


Subject
Introduction of a Resolution to Establish the Equivalent Residential Unit Rate to be Used in Calculating the Stormwater Management Utility Fee Pursuant to Chapter 19 Entitled "Sediment Control and Stormwater Management" of the Rockville City Code; and to Establish a Fee for Application for a Credit Against the Stormwater Management Utility Fee for Private Stormwater Management Facilities.

Recommendation
Staff recommends that the Mayor and Council introduce the Resolution to Establish the Equivalent Residential Unit Rate to be Used in Calculating the Stormwater Management Utility Fee Pursuant to Chapter 19 Entitled "Sediment Control and Stormwater Management" of the Rockville City Code; and to Establish a Fee for Application for a Credit Against the Stormwater Management Utility Fee for Private Stormwater Management Facilities.

Change in Law or Policy
Setting the stormwater management utility fee for FY 2018 requires the passage of the attached resolution. This resolution is scheduled to be introduced on February 27, 2017, with adoption scheduled for May 1, 2017.

Discussion
The City's stormwater management utility fee, which was established by ordinance in FY 2008, funds Rockville's stormwater, storm drainage, and water quality programs. This ordinance enables the City to charge an annual fee per Equivalent Residential Unit ("ERU").

For FY 2018, the fixed fee is proposed to remain flat at $127.70 per ERU. Future fees (FY 2019 and beyond) are not being proposed at this time because of the unknowns associated with the updated National Pollutant Discharge Elimination System (NPDES) permit. MDE has drafted a general permit designed to comply with EPA regulations and to control stormwater pollutant discharges from small municipal systems. Once the permit is final, staff will fully evaluate the City's operating program and CIP to determine future program costs and the associated fees needed to support these programs for FY 2019 and beyond.

Based on the proposed permit, municipalities will be required to implement the following six minimum measures: public education and outreach; public participation and involvement; illicit discharge detection and elimination; construction site stormwater runoff control; post-construction stormwater management; and pollution prevention/good housekeeping. The permit will also outline new requirements for impervious area restoration for existing developed lands that have little or no stormwater management.

Implementation of these permit conditions will establish improved stormwater controls to reduce the discharge of pollutants, protect water quality, and satisfy the water quality requirements of federal regulations under the Clean Water Act.

In addition to the fixed fee per ERU, the attached Resolution continues with the $150.00 for credit applications to reduce the annual Stormwater Management Utility Fee for private stormwater management facility owners. The credit is available to owners who structurally maintain and operate an approved stormwater management facility, such as a pond, sand filter, bioretention, or other designated facility. The application fee is based on the estimated amount of staff time necessary to review the credit application and verify all supporting documentation.

Mayor and Council History
Past Mayor and Council actions related to the FY 2018 budget include:

Date
Action Item
September 12, 2016 Discussion of Operating Budget Process
September 19, 2016 Discussion of Capital Improvements Program (CIP) Budget Process
October 11, 2016 Distribution of Mayor and Council Budget Surveys
November 1, 2016 Budget Public Hearing
November 10, 2016 Mayor and Council Budget Surveys Due
December 12, 2016 FY 2018 Budget Survey Results and Discussion of Budget Priorities
January 9, 2017 FY 2018 Cost Allocation Plan (CAP) Presentation
February 13, 2017 Distribution of FY 2018 Proposed Budget

Public Notification and Engagement
The City held the first public hearing related to the FY 2018 budget on November 1, 2016. The remaining public hearings are scheduled for March and April 2017.

In addition to the budget public hearings, the public can submit written comments about the budget via an online form located on the City's website at www.rockvillemd.gov/budget. These comments will be distributed to the Mayor and Council at the close of the public comment period and will be included with the agenda materials for the final budget worksession.

The public comment period closes on April 7, 2017.

Fiscal Impact
The proposed FY 2018 operating budget for the Stormwater Management Fund equals $5,464,700 and the FY 2018 CIP budget equals $8,799,374. The proposed budgets are based on the stormwater management utility fee of $127.70 per ERU.

Next Steps
Future Mayor and Council actions related to the FY 2018 budget include:

Date *
Action Item
February 27, 2017 City Manager's Presentation of FY 2018 Proposed Budget;
Introduction of FY 2018 Budget Ordinance;
Introduction of FY 2018 Refuse Fee Resolution;
Introduction of FY 2018 Stormwater Management Fee Resolution
March 2, 2017 Mayor and Council Worksession
March 6, 2017 Public Hearing
April 3, 2017 Public Hearing;
Constant Yield Tax Rate Public Hearing;
Mayor and Council Worksession
April 7, 2017 Close of Budget Public Record
April 17, 2017 Mayor and Council Worksession
May 1, 2017 Adoption of FY 2018 Budget Ordinance;
Adoption of FY 2018 Refuse Fee Resolution;
Adoption of FY 2018 Stormwater Management Fee Resolution
* All dates are subject to adjustment by the Mayor and Council during the budget process.

Attachments
Attachment A - Resolution
AttachA_SWMUtilityFee_Feb2017.pdfAttachA_SWMUtilityFee_Feb2017.pdf

Department Head:



Gavin Cohen, Chief Financial Officer
Approved on: 02/15/2017

City Manager:

Robert DiSpirito, City Manager
Approved on: 02/22/2017