Issue Statement: A preliminary FY 23 stormwater assessment rate must be adopted by the Commission to be provided to the County Property Appraiser by August 4, 2022. The City's current stormwater assessment rate is $84 per equivalent residential unit (ERU), with an ERU being defined as one residential unit or 1,507 square feet of impermeable surface. This rate was last adjusted in 2015 for the 2016 fiscal year, at which time the rate of $72 per ERU was increased by $12. The $72 per ERU rate had been in effect since 2003.
As part of the FY 2022 budget, the City Commission approved a business plan initiative funding a stormwater rate study conducted in conjunction with the City's Stormwater Master Plan. During the June 1, 2022 City Commission meeting, a joint presentation on the Master Plan and the rate study were provided. The rate study called for a FY 2023 rate of $114 per ERU per year, an increase of $30.00 and only the second rate increase over a 20 year period.
Recommended Action: Staff recommends that the City Commission adopt a resolution approving the preliminary rate resolution adopting a stormwater assessment rate of $114.00 per year per Equivalent Residential Unit and establish Monday, 6:00 p.m., September 12, 2022 as the time and date of a public hearing to be held in Commission Chambers in regard to the adoption of the FY 23 final annual stormwater assessment rate.
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 23 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 in September 2019 which 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.