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)CITYOFSOUTHBEND OFFICE OF THE CLERK started the MS4 programs back in 1999, they never really funded anything in South Bend. Most other communities funded their programs through some storm water fee. That storm water fee would go both to supporting operations for the staff that needs to continue maintaining that program and also for capital improvements with the storm water issues. South Bend never did that and are one(1) of few communities that did not. So it is becoming an increasingly big issue for us and is something we feel important that we fund because otherwise we don't have the money to do capital storm water projects. In the past,because there was a need,we tried to fit them in various Funds. More recently, if you recall the 2017 and 2018 budgets, we had it in the Local Roads and Streets Fund. We had a portion in there for drainage and that was taking away from our ability to do roads. We are also spending down our cash reserves that we have in those Funds, so, I think it is important we have a dedicated Storm Water Fund and that is why we are asking for this today. He went on, I would like to go through this presentation (which is available in the City Clerk's Office). This is essentially setting up a separate Fund and a funding mechanism for that Fund. We've said, as we went through the budget presentation, that our intent is to initially not use this for any operations. We will continue having the operations paid for like it is today but to use this for capital projects and professional services in relation to those capital projects. So what we are proposing and what you will see here (referencing a slide in the presentation) is slightly different from what I showed you at budget time. At budget time we had two dollars ($2) per residential customer, per month. That has not changed, but we had a tiered program for non-residential and that was four dollars ($4), eight dollars ($8) and twenty dollars ($20) depending on how much impervious surface you have. The problem is our current billing system is about twenty(20) years old and it is really difficult for us to get that into the system. We have to go through and change each bill separately. So, we decided to just change that to a five dollar ($5) flat fee for non- residential customer. So any non-residential is going to be five dollars ($5) a month. The thought is, and what is in the ordinance if you read the two (2) year issue here at the very beginning, it talks about this being in place from June 1, 2019 and for two (2) years. We will take that time to start studying what we need to do to go to an impervious-based rate system. We are currently starting our process of a new billing software on the Utilities side and that is about an eighteen (18)month process. We would be in a good position, two (2) years from now, to put in a different system that would be more in line with being charged, per ERU, based on the amount of impervious surface you have. This provides an incentive to have less impervious surface. He continued, So what does a system like that look like? If you look at all of our residential properties and we figure out the average residential property has 2,000 square feet of impervious surface and that is roof, asphalt and other stuff that doesn't allow water to sink into the ground and it runs off, and I have a commercial property that has 10,000 feet square of impervious, then I would pay five (5) ERUs because it is five (5) times the residential average. Moving to a system like that is a lot more complicated. It will be time consuming in terms of figuring that out because we will have to figure that out for each and every parcel in the City, and then bill each and every parcel separately. We didn't want to do that right off the bat just because of the complications, so, we put in a very simplified approach to start but that is what we are looking to do long-term. We look to sit back down with the Council in a couple of years and talk about a program that is based on impervious surface and is more reflective on what your impacts are on the storm water. Most utilities, you'll see they have storm water fees and they do it based on impervious surface. About four(4) in five (5) cities do it on an impervious surface basis. The other thing to show you is that we have 1,600 plus storm water utilities in the US and the national average is about five dollars EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION j EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 2