08-15-18 Personnel and Finance (#3)

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CITY OF SOUTH BEND I OFFICE OF THE CLERK have a number of compliance obligations from State Statute on municipal utilities that we have to follow and we have a full-time person to run that program. We are not suggesting it be included in that and we focus more on the capital needs that are not being met. We will continue to keep the operations and maintenance piece where it is in the wastewater utility. He continued,The other thing we have not included is anything related to the February 2018 flood. Part of the reason was that we didn't have the study so we weren't able to identify specific costs. In addition to that, where we have identified some specific costs on some of the public infrastructure, we don't know yet how much FEMA or insurance is going to cover. So we have been going through that process with them and that is continuing. We are probably pretty close to figuring that stuff out. Once we figure out what they are going to cover,we will know the funding gap there is on some of those issues. We will then be able to determine what those needs are as well. I just wanted to point that out that the$2.9 million identified does not include anything from the flood. In this though, we do have $500,000 budgeted for flood mitigation and that would be partly covering some of those issues we have from the flood but we don't know the total impact yet. He went on, So we put together a budget for the purpose of having something in 2019 of about $1.2 million where we focus on capital improvement projects. Professional services would be in support of those capital projects. These (referencing a slide in the presentation) are the ones we've outlined. Obviously this can and will change. This is our top ten(10)list right now but that is fluid until we are able to sit down and prioritize everything after we get some of these reports back from LFA and FEMA. So we've got$1.2 million budgeted and here is our list right now.We are looking at generating about$1.2 million a year,through the fee,to help cover some of those issues. He continued,There are eighty-six(86) stormwater communities in the State of Indiana right now that charge a stormwater rate. That is as of 2016. 1 didn't have more recent numbers on that. Of those eighty-six (86), the cities with a population greater than 25,000, there are twenty-nine (29) of them. You can see the fees here (referencing a slide in the presentation), the Statewide average for the eighty-six (86) communities is five dollars and thirty-six cents ($5.36) per month. That is the residential unit equivalent,so this is compared to our proposed two dollars($2).The cities with a population greater than 25,000, the twenty-nine (29) cities, the average is four dollars and seventy-three cents ($4.73)per month. So you can see, it is really close to that national average of about five dollars ($5) a month. It is pretty typical but it does vary significantly. Some cities are close to the two dollar($2)range then you've got some up to the ten dollar($10) or twenty dollar ($20)range for residential units. He went on, You can see here (referencing a slide it the presentation) what that would generate. So,we took the bottom third in terms of size,the non-residential properties,and that was anywhere from zero (0) to 5,000 square feet of impervious surface. The sampling we did used that average across all of our properties to get an estimate of the number of properties and multiplied it by the proposed rate. You can see the proposed rate of four dollars($4)per month for those small entities would generate around $61,000. The medium properties were 5,000 to 15,000 square feet of impervious area and charging eight dollars ($8) per month, that generates about $98,000 a year. Then the large properties that are greater than 15,000 square feet of impervious area, at twenty dollars ($20) per month generates about $263,000 per year. The residential piece, which is significant,is about 34,600 properties,at two dollars($2)per month,would generate$1.25 million. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD 574.235.5567,www.southbendin.gov 13