Agenda - Council - 10/27/2015 - Laserfiche WebLink

Home

According to City of Ramsey Code Section 58-194, the City may impose just and reasonable charges for the use and availability of storm sewer facilities. Rates and charges for the use and availability of the system shall be determined through the use of a Residential Equivalent Factor ("REF"). For the purposes of the Ramsey City Code, one REF is defined as the ratio of the average volume of surface water runoff coming from one acre of land and subjected to a particular use, to the average volume of runoff coming from one acre of land subjected to typical single-family residential use within the City during a standard five-year rainfall event. Rates and charges for the use and availability of the system shall be determined through the use of a Residential Equivalent Unit ("REU"). For the purposes of the Ramsey City Code, one REU is defined as the product of the acreage of a particular parcel multiplied by the REF. The REF shall be based on the relative runoff generated by any land use compared to the expected runoff from a typical half -acre single-family dwelling. This relationship shall be interpreted as a function of the percent of the total lot area that is impervious and shall be applied as determined in City of Ramsey Code. The City Storm Sewer Utility fee is intended to finance infrastructure maintenance, upgrading, reconstruction and new construction serving previously developed areas. It is not typically used to finance retrofitting the existing system to accommodate new developments. Most cities require the developer to finance the entire new storm sewer system associated with the development. Then, once the new system is accepted and turned over to the City, the municipal maintenance funds (typically storm sewer utility funds) are used to maintain the new system. 2. Increasing the General Levy If the City has not yet reached its levy limits, financing could come from increases in the general tax levy across Ramsey. This option is generally not favored because it may duplicate costs for property owners who have either directly or indirectly already financed their own developments. Unless tax expenditures for storm water needs can be uniformly spread to all properties, political opposition should be expected from entities that have already invested in storm water facilities. 3. Creating a Storm Sewer Assessment District or Storm Water Tax District If a watershed is well defined and the greater majority of the property owners have a share in the benefit of the proposed storm sewer improvement, the City could form a storm water assessment district. When improvements or repairs are needed within the district, an advertisement hearing process is required similar to that used for assessments in Minnesota Statute 429. Many cities are not choosing this financing option because it can be cumbersome. Cities also find it difficult, on occasion, to legally prove the level of benefit associated with the assessment. C. Recommended Local Financing 1. The cost of existing system retrofitting and maintenance projects should be borne by the Storm Sewer Utility fund as this is the primary focus of these funds. 2. The cost of new improvements in undeveloped land should be borne by the developer. Section VII October 21, 2015 Page 55