Over the past few years, the City has completed a comprehensive review of the Storm and Surface Water Management (SSWM) utility. Results of these efforts have resulted in:

• Modifications to the programs of the utility

• Changes to implementing authority in City Code

• Detailed investigation of infrastructure conditions

• Financial restructuring including rate assessment methods

These efforts were completed in 2016 and allowed a more definitive assessment of utility financial requirements to provide the programs and services of the utility at the levels of service confirmed during the comprehensive review.

The proposed 2017-18 City Budget requested a SSWM rate increase of 15% in 2017 and 12% in 2018. The Adopted Budget approved the 2017 rate increase, but the City Council directed that a SSWM Utility Operating Expense Study be completed before consideration of the proposed 2018 rate increase. The Utilities Advisory Committee (UAC) was tasked by the City Council to provide a recommendation regarding this study as part of the UAC 2017 Workplan, and the committee did not identify a basis for a full-scale consultant study at this time.

Since providing that recommendation, staff and the UAC have been reviewing the financial requirements and projections for the utility and reconsidering the proposed 2018 rate increase.

At the Council meeting on September 5, 2017, the Council moved to direct staff to prepare an ordinance setting the rate for the Storm and Surface Water Management Utility at $184.00 per ISU in 2018, and provide for annual increases for inflation through 2022. City staff have done as directed and that ordinance is attached.