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HomeMy WebLinkAboutOrd 970-2022 Levying Surface Water Drainage Utility System ChargeCITY OF ANNA, TEXAS ORDINANCE NO.� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, LEVYING SURFACE WATER DRAINAGE UTILITY SYSTEM CHARGE AND AMENDING THE ANNA CITY CODE OF ORDINANCES TO ADD A NEW SECTION A6.015 TO ARTICLE A6.000 (UTILITY FEES), SAID NEW SECTION ESTABLISHING THE CITY OF ANNA'S DRAINAGE UTILITY SYSTEM CHARGES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER AND AN EFFECTIVE DATE. WHEREAS, the City of Anna City Council (the "City Council") flnds that to protect the public health and safety from loss of life and property caused by surface water overflows, surface water stagnation, and pollution arising from nonpoint source runoff within the city; and WHEREAS, the City Council finds that funding for improvement of the existing drainage system and construction of future drainage projects is best funded by users of the drainage system on a prorated basis; and WHEREAS, the City Council has established a Drainage Utility System under Local Government Code, Section 552.045 and has made the following findings (a) it will establish a schedule of drainage charges against all real property in the service area subject to charges as permitted by Subchapter C, Chapter 552, Texas Local Government Code, subject to any exemptions as required or permitted by Subchapter C as set forth herein; (b) it will provide drainage for all real property in the service area on payment of drainage charges, except real property exempted in accordance with Subchapter C; (c) it will offer drainage service on nondiscriminatory, reasonable, and equitable terms; and (d) notice as required by Subchapter Chas been provided and a public hearing has been held; and WHEREAS, the City Council finds that the schedule of charges adopted hereunder is nondiscriminatory, reasonable, and equitable; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS: SECTION 1. The recitals set forth above are incorporated herein as if set forth in full and The Anna City Code of Ordinances, Appendix A (Fee Schedule) is amended to add Sec. A6.015 of Article A6.000, to read as follows: CITY OF ANNA, TEXAS ORIDINANCE NO. Page 1 of Z "Sec. A6.015 Surface water drainage utility system schedule of charges The surface water drainage utility system charge is a monthly charge to a user calculated as $3.20 per equivalent residential unit and $10.94/acre for non -single-family residential properties. The terms used in this section shall have the meanings set forth in Sec. 12.09.001 of this Code." SECTION 2. Savings, Severability and Repealing Clauses. Ali ordinances of the City in conflict with the provisions of this ordinance are repealed to the extent of that conflict. If any provision of this ordinance shall be held to be invalid or unconstitutional, the remainder A such ordinance shall continue in full force and effect the same as if such invalid or unconstitutional provision had never been a part hereof. The City declares that it would have passed this ordinance, and each section, subsection, sentence, clause, or phrase thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, and phrases be declared unconstitutional or invalid. SECTION 3. Publication of the Caption Hereof and Effective Date. This ordinance shall be in full force and effective from and after its passage and upon the posting and/or publication, if required by law, of its caption and the City Secretary is hereby directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas, this ;" hday of ���i�-z—' 2022. ATTESTED• A PPR (�VFI� (IJ9 moo` ay • •��' '�. Carrie L. Land, City Secretary h ike, Mayor CITY OF ANNA, TEXAS ORIDINANCE NO. Page 2 of 2 MUNICIPAL DRAINAGE UTILITY 2021 RATE ANALYSIS P►•epared Fo►• �iIxyl�11'L�7� Prepa►•ed By BIRKHOFF, HENDRICKS � CARTER, L.L.P. PROFESSIONAL ENGINEERS DALLAS, TEXAS TBPELSFIRM NO. 526 Octobe►• 2021 CITY OF ANNA, TEXAS MUNICIPAL DRAINAGE UTILITY (STORMWATER SYSTEM) 2021 RATE ANALYSIS TABLE OF CONTENTS Pam A. Introduction............................................................................................................................. 1 B. Service Area............................................................................................................................ 1 C. Calculation Method................................................................................................................ 2 D. Rate Categories (Land Uses)..................................................................:............................... 2 • Figure 1 — Rate Categories Map.................................................................................... 4 E. Land Uses & Charge Distribution........................................................................................... 5 • Table 1 —Rate Categories Summary &Budget Allocation F. Stormwater System Capital Improvement Plan...................................................................... 6 • Table 2 — Summary of 10-year CIP Expenditures........................................................ 7 • Figure 2 — Stormwater System CIP Map...................................................................... 8 G. Capital improvements Plan Annualized Debt Service.............................................................. 9 • Table 3 — Annualized Capital Improvement Project Debt Service H. Operation & Maintenance Annualized Expenditures..........................................................0 10 • Table 4 — Operation & Maintenance Budget.............................................................6 11 I. Storm Water Utility Rate Options........................................................................................ 12 1) 10-year Level Approach • Table 5 —Stormwater Utility Rate (O&M Budget Only) ............................................. 12 • Table 6 — Stormwater Utility Rate (CIP Only)............................................................. 12 • Table 7 — Stormwater Utility Rate (Combined O&M and CIP).................................. 12 2) 10-year Annual Analysis (Supplemental Approach)..................................................... 13 • Table lA — Calc. of Runoff Contribution by Property Category (Amlual Estimate ... 14 • Table 5A — Stormwater Utility Rate (O&M Budget Only) ......................................... 14 • Table 6A — Stormwater Utility Rate (CIP Only) ........................................................ 15 • Table 7A— Stormwater Utility Rate (Combined O&M and CIP) ..............................4 15 J. Non -Residential Stormwater Detention System Fee Credit ................................................. 16 TF'Y��1 .S' 0 •' 9S' �1 0 ♦ GARY C. HENDRICKS so ♦,I ' ,9 6 32 E6 too f �t S� NAL �.." • �O j:\clerical\anna\2020 drainage utility analysis\02_index.doc Birkhoff, Hendricks & Carter, L.L.P. CITY OF ANNA MUNICIPAL DRAINAGE UTILITY 2021 RATE ANALYSIS A. INTRODUCTION A "Drainage Charge" is a fee that is unposed by a municipality and used to finance a municipal drainage utility system. The drainage charge is to be imposed to all benefitted properties in the service area of the stormwater drainage system, excluding properties such as parks, other public - use facilities or undeveloped land. The drainage charge shall be levied on nondiscriminatory, equitable and reasonable terms, regardless the value of a property. The drainage charge rates are based on the estimated stormwater runoff rate (flow contribution) from each benefitted property and on the budgetary requirements for provision, operation and maintenance of the system. This analysis calculates the drainage charge rates that are required to be obtained to meet the financial requirements of the system, including the cost of operation and maintenance (O&M) and the cost of the capital improvement plan (CIP) projects. That total cost is distributed among the benefitted properties, proportionally, based on the land uses and estimated runoff rates from the properties. The rates calculated are recommended monthly fees. The calculation of the rates does not consider capacities of existing facilities or the geographical location of each benefitted property in relationship to the proposed capital improvement projects. Prior investments to the stormwater system are not included in the rate calculation. Regulation set forth by Title 13, Subtitle A, Chapter 552 of the Local Government Code provides the framework and requirements for the Drainage Charge and Rates calculation. B. SERVICE AREA The 7,777-acre City of Anna City Limits was the Service Area for this analysis, j;\clerical�anna\2020 drainage utility analysis\03_report.docz - r - Birkhoff, Hendricks & Carter, L.L.P. C. CALCULATION METHOD The approach taken to classify land uses was related to the estimation of runoff rates for a per - acre assessment. The Rational Method, used for estimation of stormwater runoff rates, assigns coefficient values to various land use types which correspond to the portion of rainfall expected to runoff from a unit of land area, based on impervious cover. Variable coefficient `C' of the Rational Method Equation (Q = CiA) is the factor related to an area's impervious coverage (likewise, related to the area's ability to retain rainfall). Coefficient `C' is multiplied by the watershed area `A' and by the rainfall intensity `i' to calculate a runoff flow rate `Q'. For this calculation, C*A was used to define the runoff characteristics for the property types in the service area. C*A can be applied to storms of various intensities, and therefore, the rainfall intensity factor, `i', was not used. The eligible and benefitted properties in the service area were distinguished into overage categories. categories. Runoff coefficients, `C'-values, were assigned to each category, per the City of Anna Storm Drainage Design Manual. An analysis of the City's parcel areas was conducted to determine each category's flow contribution percentage to the total runoff. Those percentages of the total runoff were applied to the required average monthly budget to allocate the required fees and to determine the rates. D. RATE CATEGORIES (LAND USES) Drainage charge rates were calculated for land use Categories 1 through 3: 1. Residential 2. Non -Residential 3. Exempt Lands a. Collin County b. School District c. Public/ Semi -Public & Parks d. Undeveloped (Natural State) or Unoccupied e. Religious or Cemetery (optional exemption) It was assumed that the tracts of land within each category have similar runoff characteristics. Non-residential tracts of land typically have more impervious coverage than residential tracts due to larger concrete parking lots and buildings, while residential tracts tend to have larger portions of grassed area which detain and percolate stormwater. The Land Use Categories are defined by measurable qualities, where applicable, for the assignment of fee classification for each benefitted property. j:\clerical\anna\2020 drainage utility analysis\03_rzport.docx - 2 - Birkhoff, Hendricks & Carter, L.L.P. 0 • Residential Properties— Properties used for residential dwelling. • Non -Residential Properties — Tracts of land which are not used for residential dwelling and are developed such that the natural state of the property is altered may be classified as a non-residential property, unless the property was determined to be exempt per local government code (Section 552.053) Public Properties (Exempt Land) —Per the Local Government Code, tracts of land owned by Collin County or by a school district are exempt from drainage charges, and residential dwellings associated with a municipal housing authority are also exempt. Undeveloped properties held and maintained in the natural state are exempt, and subdivided lots or tracts that have not been issued a certificate of occupancy are exempt. Additionally, properties which utilize a wholly sufficient and privately owned drainage system are exempt. The City may also grant exemption from the drainage charge if a property is owned by a religious organization or used as a cemetery. A map showing the geographical distribution of the Rate Categories (Land Uses) is provided as Figure 1. j:\clerical\anna\2020 drainage utility analysis\03_report.docx - 3 - �—� a O r if Z ul 1"' N W LOU N - D imp ppp„f: cc W 90 0::W .x:;:;::::;.;.; :Stow:'— i woo i. :; O Z .•:.:.:•::1. C .: gas :;. - -r -- sop - - Va �f- -�- L 1 r �l Ll SO it Oil Me Oho€== dagoo m e eggs Sao:@ :•:::. + so woo ppppp I MEMO aaa aaa a 3 2NVM MGM N MNyy�� MwP% IRSV V O c N' m 0 M v9 gig Z F a G Z IS= Z W m o g F = € — -_ O Z GO ..1 j , F 'J.•'.i&.•• • V:�: to:•:. - W O 7 J �- W J G S yZj O 6 :to;:� ': •toy I� W C 2 6 LL Cl (�i a W .OJ O W J =�li -■■ J j.6W IL ::; :'•:: y ::} :tip Y:•:"& �;� :� •:• fh ru 2HV Z 00 El sea .......... Birkhoff, Hendricks & Carter, L.L.P. E. LAND USES & CHARGE DISTRIBUTION The Texas Administrative code allows for the drainage charge rates to be established on the basis of impervious cover as it relates to land use. The mechanism for distribution of the required monthly budget (being the same as the required revenue) to the properties is by a ratio of the runoff rate calculated for the parcel in question to the total runoff rate calculated for the entire service area. A uniform drainage charge rate is recommended for all properties classified as Single Family Residential and High Density Residential, due to relative uniformity in size and in impervious coverage, and therefore the calculation for runoff uses the average property size for those categories. Non -Residential properties, however, vary more widely by land area, and the rates calculated for those properties are based on the land area of the individual properties themselves. Table 1 summarizes the current and 10-year projected developed parcel counts and areas for both Residential and Non -Residential lots within the service area. The table includes the 10- Year Level Average for the developed parcels and acres for each category. The table also calculates fee allocation percentages using runoff coefficients, `C'-values, with the parcel counts and areas. Tahln 1 _ Calrulatinn of Runnff C.nntrihution by Pronerty Cateaory Rate Category 2021 2031 10-YearLeve, verage Runoffl� Coefficient IC Weighted Value 'C A' Pm•pordonal ShareBasedon C A eveloped Parcels Developed Acreslal Developed Parcelslbl Developed Acres(b) Developed Parcels Developed Acre Residentiall 61250 31424 10,667 51844 81459 41634 0.50 2,317 88.0% Non -Residential: N/A 260 N/A 445 N/A 353 0.90 317 12.0'0 Public: N/A 662 N/A 661 N/A 662 0 0 0% Total: 6,250 3,684 10,667 6,289 8,459 4,987 21634 100% (a) Developed lots ONLY (b) Source: 2018City of Anna &Wastewater Impact Fee update landuse assumptions (c) DirectAnnual Average Growth per2014 Land use assumptions: Source 2014City of Anna & Wastewater lmpactfee,AppendixA (d) Runoff Coefficient'C'represents impervious coverage of development on a property. Source of 'C'-values : City of Plano Storm Drainage Design Manual In Table 1, The `Proportional Share Based on C*A' column provides the percentages of the budget that are to be obtained from parcels of each respective category. j:\clerical\anna\2020 drainage utility analysis\03_repon.docs — 5 — Birkhoff, Hendricks & Carter, L.L.P. F. STORMWA I ER SYSTEM CAPITAL IMPROVEMENT PLAN The City has developed a capital improvement plan for the stormwater utility system. The list of proposed projects has been refined through discussion over the past several years. Six (6) projects are expected to be completed over the next 10-years, or so. The projects were distinguished as the following types: • Bridge Projects —Nine (9) projects are proposed to construct a bridge over a creels. One bridge is located on the west side of the City on the future extension of Creekview Drive. This bridge would be constructed at the same time of the future extension of Creekview Drive. The second bridge is located northeast of the City on F.M. 2862 (also known as Houston Street). This second bridge would expand the existing bridge when proposed expansion of F.M. 2862 is being constructed. Other seven bridges located across the City would also be constricted. • Culvert Projects —Four (4) Culverts are proposed for replacement, all of which are in northwestern Anna. One of the proposed culverts cross under C.R. 369, two under C.R. 370, and one crosses under Hackberry Drive. Each of these projects include trench cuts across the roadway for the installations. In addition to Roadway trench repair, the projects may include construction of concrete headwalls and metal beam guard rail fencing for safety. Minor upstream and downstream clearing, grading, and soil stabilization activities are included in the culvert replacement projects, as warranted. Table 2 summarizes the opinion of project cost for the sixteen (16) projects in the Capital Improvement Plan. The projects are shown by Figure 2, the Capital Improvement Plan map. The estimated budget and total required principal for the Capital Improvement Plan improvements is $42,925,000, j:\clerical\anna\2020 drainage utility analysis\03_report.docx - 6 - c o 0 0 0 0 0 0 0 0 0 0 U 0 o O o 0 0 0 0 0 0 0 0 0 0 '� o 0 00 0 0 0 0 00 0 0 0 00 0 0 N N N N N N N N N N w G tD Ol a -I a-1 IA C' N Ol M tD N O N O p O lD N M Ql Ol Ol d' Ol O Ql W Ql Ol V a N t 111 a ti ti ti O i N a-1 O ci O U 111 111 In f� Ill L V1 ill L(m 1 11m 1 lfl S C tp Ol .-I .-i lfl V N Ol m lD N O N O Ey O LD N M Ol Ol Ol V Ol O Ql W Ol Ol V N ✓1 V ci ,� In ci a u Lri ui Lr In r%I� vi In In In vi In C Cl to ti r w M '-1 ti m 00 O %Ct C\ O M rl N tD lD l!) 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C IIIIII(C C amL41 in N in C C Q. (S0 (c0 (c0 (O (O Q V sN 6. 6. Y Y N N H N N G C N IYII , Gl W N f0 (0 (gyp N N Ul wN �fj0 3 3 3 Y N N Y i E Y Y E E E O O O 0 E 0 `0 `0 E E E vl n vl N E E 0 O `o `O 0 0 0 in in vl in E E vl v"i to v"i v"i 0 0 kn Ln U "'� a -I 'O A ~ U U U U U V U V V V O l7 V V V � w F- � a � � § - § § �§ : _\§ § J ! !§« !)(\§(\\ d! ! !!! | ) ) } 7(aA !!! (§|(§|§! \\\\\} \�\ � \ ! §]|<§§ B!|!!!| !!!__ \m\ TH § | C4 § § § \�\ � \ ! §]|<§§ B!|!!!| !!!__ \m\ TH § | C4 § § § § | C4 § § § BirkJtoff, Hendricks & Carter, L.L.P. G. CAPITAL IMPROVEMENT PLAN ANNULIZED DEBT SERVICE To pay for the Capital Improvement Plan projects, this analysis assumes the city to issue bonds with a maximum value of $5 million dollars per issuance, with an issuance cost of 1.5%, an interest rate of 4%, and a term of 20 years per issuance. Table 3 below calculates the average Total Annual and Monthly Debt Service during the 10-year term of this evaluation. Table 3 Annulized Captial Improvement Project Debt Service Year Issue 111� Issue 2(1) Issue 3(1) Total Annual Debt Service Monthly Debt Service Amount $5,000,000 $5100%000 $5,0000000 2022 $373,427 $ - $ - $373,427038 $31,118695 2023 $373,427 $ - $ - $3731427.38 $31,118095 2024 $373,427 $ - $ - $373,427038 $31,118695 2025 $373,427 $ - $ - $373,427.38 $31,118.95 2026 $373,427 $373,427 $ - $746,854.77 $62,237.90 2027 $373,427 $373,427 $ - $746,854.77 $62,237090 2028 $373,427 $373,427 $ - $746,854.77 $62,237.90 2029 $373,427 $373,427 $ - $746,854.77 $62,237490 2030 $373,427 $373,427 $373,427 $1,120,282015 $93,356485 2031 1 $373,427 1 $373,427 1 $373,427 1 $1,120,282.15 $93,356485 Average: 1 1 1 1 $672,169.29 $56,014.11 (1) Note: Financing Terms Issuance Cost: 1.5% Term (Years) 20 Rate: 4% j:\clerical\anna\2020 drainage utility anatysis\03_report.docx - 9 - Birkhoff, Hendricks & Carter, L.L.P. l3. OPERATION & MAINTENANCE ANNUALIZED EXPENDITURES The Estimated 2021 City of Arma Budget for the operation and maintenance (O&M) of the Stormwater System is $103,105. Because there is not currently a sperate storm water utility account, this amount represents ten percent (10%) of the City's Street Budget. The revenue is used for general maintenance items such as mowing of channels, inspections and debris removal. It is also used for administrative, planning and regulatory -compliance costs for operation of the system. City staff anticipates future expenditures which will increase the required O&M budget, including personnel expansion, equipment purchases and Municipal Separate Storm Sewer System (MS4) permitting. In the fitture, the required O&M budget will have a 10-Year annualized average of approximately $289,070 per year. It is also anticipated that within the rate study period, the city will be required to service a general permit for storm water discharge into the waters of the U.S. As shown in Table 3 below, beginning in the year 2025 the operation and maintenance budget includes a $75,000 fund for the municipal separate storm sewer system (MS4) annual permit requirements and will grow with a 1.7% CPI rate. Currently the budget has limited resources for proper and consistent Stormwater maintenance. Therefore, a new `Enhanced Storm Water Maintenance' program has been created with an initial amount of $175,000. This program will allow for the city to regularly maintain stormwater utilities and equipment as the city grows. Table 4 calculates the average annual budget required to operate and maintain the stormwater system over the next ten years. The average annual O&M budget anticipated for the next 10- years is $524,514. This is the OBcM 10 year level amount utilized for this study. The O&M expenses are to be recovered monthly through the drainage charge, j:\derical\anna\2020 drainage utility analysis\03_report.docx - j o - BirkJ:off, Hendricks & Carter, L.L.P. TABLE 4- Operation &Maintenance Budeet Year Inflation (CPI) Rate (%) Annual (A) O&M Budget Projection biliancedStrom Water Maintennace Program MS4 Per►nit Expenses Capital t`1 (Equipment) Expenditure Total Annual Aimnomit ($) (d) 2021 13% 103 105 S170rOOO $0 $273,105 2022 (b) 1.7% $284,857 $172,890 $0 $66,000 $457,747 2023 1.7% $28%700 $175,829 $0 $465,529 2024 1.7% $294,625 $178,818 $0 $473,443 2025 1.7% $299,633 $181,858 $75,000 $556,492 2026 13% $304,727 $184,950 $76,275 $565,952 2027 1.7% $309,908 $188,094 $77,572 $575,573 2028 1.7% $315,176 $191,291 $78,890 $585,358 2029 13% $320,534 $194,543 $80,232 $595,309 2030 1.7% $325,983 $197,851 $81,595 $605,429 2031 1.7% $331,525 $201,214 $82,983 $615,722 Average: 1,7% $289,070 $185,213 $50,232 $524,514 (A) Total Annulized Sum of 2021=$1,031,046 * 10% (b) Add 2 Maintenance -Tech I [Est. $54,000/yr], 1 Crew Leader [Est. $72,000] (c) 3/4Ton Pickup [Est. $38,000], 1-20 Foot Trailer [Est. $18,000], Additonal Misc. Equipment [Est. $10,0001 (d) Total Annual Ammount divided by 12 results in Total Montly Budget j:\clerical\anna\2020 drainage utility anntysis\03_rzport.docx - 1 1 - Birkl:off, Hendricks & Carter, L.L.P. I. STORM WATER UTILITY RATE OPTIONS A. 10-Year Level Rate Analysis (Base Approach) In this analysis, the monthly fee for both Residential and Non -Residential lots is calculated on a ten-year (10-year) level rate by using the average budget over a 10-year period for both the Operation and Maintenance and Capital Improvements budget. Three (3) different options are considered Option 1: Operation and Maintenance monthly budget (Table 5) Option 2: Capital Improvement Project monthly budget (Table 6) Option 3: Combining both O&M and CIP monthly budgets. (Table 7) Tables 5-7 below present the calculate the monthly residential and non-residential fee based on these three different options. TABLE 5 -Stormwater Utility Rate Calculation (O&M Budget Only) Rate Category Porportional Share Based on C*A Total O&M Monthly Budget ($) (Table 5) Parcel Count (#) Total Area (ac.) Monthly Fee Per Parcel Montbly Fee Per Acre Residential 88.0% $38,437 8,459 ,53<} $4.54 Nj/ , Non Residential 12.0% $5,263 353 $14.93 Public 0.0% $0 0 0 N/A N/A Total: 100% $43,700 8,459 4,987 TABLE 6 -Stormwater Utility Rate Calculation (CIP Only) Rate Category Porportional Share Based on CIA Total Monthly Debt Service ($) (Table 4) Parcel Count (#) Total Area (ac.) Monthly Fee Per Parcel Monthly Fee Per Acre Residential 88.0% $49,268 8,459 r : i ^-ki $5.82 P! Non -Residential 12.0% $6,746 0 353 '!; ^, $19.14 Public 0.0% $0 0 0 Nl/;A N/A Total: 100% $56,014 8,459 4,987 TABLE 7-Stormwater Utility Rate Calculation (Combined CIP+O&M) Rate Category Porportional Share Based on C*A Total Monthly Requirement ($) (Table 4+5) Parcel Count (#) Total Area (ac.) IVlonthly Fee Per Parcel Monthly Fee Per Acre Residential 88.0% $87,705 81459 $10.37 Non -Residential 12.0% $12,009 353 (!;," $34.07 Public 0.0% $0 0 f!/,`, N/A Total: 100% $99,714 8,459 4,987 j:\clerical\anna\2020 drainagc utility analysis\03_report.docz - 12 - Birkhoff, Hendricks & Carter, L.L.P. The Calculated Fees shown in Tables 5-7 are the maximum allowable fees for the properties of each land use classification. The calculated fees assume that the fees shall be fixed for the next five years, however, the Local Government Code allows for the governing body of the stormwater utility to adjust the charges from time to time. It is recommended the maximum fee calculation be reviewed and adjusted, as required, prior to termination of the 5-year period. The update shall reestablish the O&M budgetary requirements with the possible inclusion of newly identified stormwater capital improvement projects and shall consider land use developments in the service area. Based on the calculated fees, we recommended implementation of the following Maximum Fee Rates that include both the Storm Water System Operation and Maintenance expenditures and the Storm Water System Capital Improvements debt service: Residential: Non -Residential $10.37 per month $34.07 per Acre B. 10-Year Annual Analysis (Supplemental Approach) During the review phase of this analysis, the City staff requested we perform a "supplemental" annualized evaluation of the storm water rate. In this analysis the monthly fee for both Residential and Non -Residential lots is calculated on a year -by -year annual basis. and utilizes the annual O&M and Capital Projects Debt Service budgets over a projected ten-year period. This approach requires a more focused estimate of annual growth in residential units and non- residential developments. Table IA below is an itemized presentation of Table 1 and presents the estimated annual growth in residential units and non-residential developments and calculates the proportional "CA" used for each year of the analysis. This approach results in an initial lower fee that generally increases over time. j:\clerical\anna\2020 drainage utility analysis\03_rzport.dcex - r 3 - Birkhoff, Hendricks & Carter, L.L.P. TABLE 1A - Calculation of Runoff Contribution by Property Category (Annual Estimate) Residential Units Non Residential acres Year Lots Acres (A) Run-off "C" Weighted CA Proportinal CA I Acres Run-off "C" Weighted CA Proportional CA Total CA 2021 6,250 3,424 0.5 1,712.0 87.98% 260 0.9 234.0 12.02% 1,946.0 2022 61500 3,561 0.5 11780.5 87.99% 270 0.9 243.0 12.01% 21023.5 2023 6,800 3,725 0.5 1,862.5 88.01% 282 0.9 253.8 11.99% 2,116.3 2024 7,200 3,944 0.5 1,972.0 88.06% 297 0.9 267.3 11.94% 21239.3 2025 71700 4)2181 0.5 2,109.0 88.08% 317 0.9 285.3 11.92% 2,394.3 2026 8,450 4,629 0.5 2,314.5 88.11% 347 0.9 312.3 11.89% 21626.8 2027 91217 5,049 0.5 2,524.5 87.93% 385 0.9 346.5 12.07% 21871.0 2028 91877 5,411 0.5 2,705.5 88.13% 405 0.9 364.5 11.87% 3,070.0 10,427 5,712 0.5 2,856.0 88.19% 425 0.9 382.5 11.81% 3,238.5 L2029 2030 10,667 51844 0.5 2,922.0 87.95% 445 0.9 400.5 12.05% 3,322.5 2031 10,6671 51844 0.5 1 2,922.0 87.95% 445 1 0.9 1 400051 12.05% 1 3,322.5 The same Three (3) different options are considered Option 1: Operation and Maintenance monthly budget (Table SA) Option 2: Capital Improvement Project monthly budget (Table 6A) Option 3: Combining both O&M and CIP monthly budgets (Table 7A) Tables SA-7A below present the calculate the monthly residential and non-residential fee based on these three different options. TABLE 5A- Stormwater Utility Rate Calculation (O&M Budget Only) Year Total Annual O&M Budget Amount M Monthly Rates Residential Rate (per Unit) Non - Residential Rate (per Acre) 2021 $273,105 $3,20 $10.52 2022 $457,747 $5.16 $16.97 2023 $465,529 $5.02 $16.49 2024 $473,443 $4.83 $15.86 2025 $556,492 $5.30 $17.44 2026 $565,952 $4.92 $16.16 2027 $575,573 $4.58 $15.04 2028 $585,358 $4.35 $14,30 2029 $595,309 $4.20 $13.79 2030 $605,429 $4,16 $13.66 2031 $615,722 $4.23 $13.89 Average: $524,514 $4.67 $15.36 j:\clerical\anna\2020 drainage utility analysis\03_rcport.docx - 14 - Birkhoff, Hendricks & Carter, L.L.P. TABLE 6A - Stormwater Utility Rate Calculation (CIP Only) Year Annual CIP Debt S ervice Mouthy Rates Residential Rate (per Unit) Non. Residential Rate (per Acre) 2021 $373,427 $4.38 $14.39 2022 $373,427 $4.21 $13.84 2023 $373,427 $4.03 $13.23 2024 $373,427 $3.81 $12.51 2025 $746,855 $7.12 $23.40 2026 $746,855 $6.49 $21.33 2027 MEN $746,855 $5.94 $19.51 2028 $746,855 $5.55 $18.24 2029 $1,1201282 $7.90 $25.94 2030 $1,120,282 $7.70 $2528 2031 $672,169 $4.62 Average: $672,169.29 $5.61 Eiii TABLE 7A-Stormwater Utility Rate Calculation (Combined CIP+O&M) Year Total Annual O&M Budget Amount M Annual CIP Debt Service Total Annual Budget (O&M+ CIP) Mouthy Rates Residential Rate (per Unit) Non - Residential Rate (per Acre) 2021 $273,105 $373,427 $646,532 $7.58 $24.91 2022 $457,747 $373,427 $831,175 $9.38 $30.81 2023 $465,529 $373,427 $838,956 $9.05 $29.73 2024 $473,443 $373,427 $846,870 $8.63 $28.37 2025 $556,492 $746,855 $1,3031346 $12A2 $40.84 2026 $565,952 $746,855 $1,312,807 $11A1 $37MOMEMMOM 2027 MMMMMMMINE $575,573 $746,855 $1,322,428 MEN.49 $10.51 $34.55 2028 $585,358 $746,855 $1,332,213 $9.91 $32.54 2029 $595,309 $11120,282 $1,715,591 $12.09 $39.73 2030 $605,429 $11120,282 $1,725,711 $11.86 $38.94 2031 $615,722 $672,169 $1,287,891F777 $8.85 $29.06 Average: $524,514.41 $672,169.29 $1,196,683.70 $10.15 $33.36 j:\clerical\anna\2020 drainage utility analysis\03_rzport.docx - j 5 - Birkhoff, Hendricks & Carter, L.L.P. J. Non -Residential Stormwater Detention System Fee Credit Several non-residential properties in the City of Anna currently utilize stormwater detention systems (ie. detention or retention ponds) to reduce runoff rates from the developed properties. An effective, on -site stormwater detention system benefits the City's existing stormwater drainage system by reducing the rate of runoff from the property to the stormwater system, thus reducing the required capacity of the downstream municipal utility system. The City may allow those non-residential properties which utilize an effective stormwater detention system to seek Stormwater Drainage Fee -Reduction Credit. We recommend requirement of application for the fee -reduction credits that is to be administered, approved and maintained by the City. We recommend the fee -reduction be proportional to the calculated reduction in runoff flow rate provided by the installed detention system, with a maximum allowable reduction established as an equivalent runoff estimated with a `C'-factor of 0.5. The calculated non-residential fee rate, $34.07 per acre, utilizes a runoff `C'- factor of 0.9, and therefore the maximum fee -reduction for a well -performing on -site stormwater detention system results in a reduced fee rate of $18.93 per acre. The detention system would require review by a licensed engineer in the State of Texas to provide the calculation results necessary for the calculation of the actual flow reduction. It is further recommended that the City inspect those stormwater detention systems credited for the reduction of runoff flow rate. The facilities must be maintained to ensure performance of the rated flow reduction. The City may require submission of a maintenance schedule with the application, for which City -approval and adherence by the property owner would be required. The City shall retain the powers to revolve the fee -credit upon non-conformance to the maintenance schedule or if the system is removed or found in disrepair. If the detention system fails, the fee -credits shall be revocable and subject to back -charges, based on the City's determination of the failure period and severity. j:\clerical\anna\2020 drainage utility analysis\03_rzport.docx - t 6 MUNICIPAL DRAINAGE UTILITY 2021 RATE ANALYSIS BIRKHOFF, HENDRICKS &CARTER, L.L.P. PROFESSIONAL ENGINEERS DALLAS, TEXAS TBPELS Firm No. 526 October 2021