Issue Statement: A preliminary FY 20 stormwater assessment rate must be adopted by the Commission to be provided to the County Property Appraiser by August 2, 2019.
Recommended Action: The City Commission adopt a preliminary FY20 stormwater assessment rate of $84 per equivalent residential unit and the time, date and place for a public hearing in regard to the adoption of the final FY 20 stormwater assessment rate. The recommended rate remains the same as FY 19.
In 2011, staff proposed to the City Commission that the fee for stormwater services be moved from the monthly utility bill to an assessment on the annual property tax bill to facilitate both the billing and collection of these fees. The City Commission directed staff to proceed with the implementation of this proposal which culminated in the adoption of Ordinance O-2011-015 which was adopted on second reading on July 20, 2011. The Ordinance establishing this program requires a preliminary resolution and an annual resolution be adopted during the budget process each fiscal year. These were done for FY 12 with the preliminary resolution, R-2011-090, adopted on July 20, 2011 and the annual resolution, R-2011-115, adopted on September 12, 2011.
This method of billing is expressly permitted for stormwater charges in Florida Statutes Section 403.0893. The tax bill collection method provides essentially a 100% reliable collection rate to ensure a consistent funding source to support ongoing operations, maintenance, funding of debt service and the direct funding of some capital projects.
This agenda item is for the preliminary assessment resolution for FY 20 required by the Ordinance.
The current rate is $84 per equivalent residential unit. Although this rate is applied to all properties within the City, certain governmental properties are exempt from assessments and are charged in an alternate manner for the benefits they receive from the City’s drainage system. A few other properties within the City are also exempt due to having sufficient retainage or retention capacity when measured against the rainfall in a 25-year storm. All properties and the associated fees are indicated in the stormwater management assessment role on file in the City Clerk’s office.
The City received the attached letter from the Broward County School Board last September. The letter advised that the Board would no longer pay stormwater utility fees to the City of Oakland Park, an option afforded to it under present case law. The value of the drainage utility payments made to Oakland Park were approximately $200,000 a year, or about 5% of total stormwater fund operating revenues. The Board continues to receive the benefit of these utility services. Staff will provide regular correspondence to request that they pay their equitable share for these services.