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!)
Ol
Vl
M
Ill
lfl
M
.5
N
00
LF
l!)
ci
ri
c-I
N
i-1
N
a-i
O
N
ci
00
ci
00
N
.-1
r-1
r-IRot
O
O
N
c-I
c-I
'-I
c-I
vl
N
N
Ifl
It)
In
O
Ill
In
to
Ill
to
K*
a
i
Iqt
t0
ri
In
W
vl
O
M
O
Ol
I�
�'
K*
'Ol
d'
lf)
m
to
M
OO
In
m
M
a-1
I(1
In
In
M
Vl
t0
111
to
to
O
O
r„
1p
e-1
.-1
1p
lD
l0
rl
l0
lD
LD
a --I
lD
lD
G
4116
u
m
vl
vl
m
vl
o
In
M
m
F O
N
It
MM
czf
r"
n
tD
V
r
N
l0
O
U]
In
�G
I6
u
'17
O
C:
O
^
O
O
O
O
O%
O
O
O
O
r~i
rvi
m
ni
m
m
m
m
cri
C
U
w
Ql
W
r
vl
tD
In
U
N
qzt
i'
V
ci
m
N
m
N
CO
00
U1
N
N
N
U1
N
F-
I-
N
UJ
F-
6J ""
h0
X
-
X
tl0
C�0
t1D
K
O➢
�0
DO
X
w
ltD
0
o
cr
m
a
a
a
o
a
a
a
m`m`
°o
r
A
U
U
O
ei
N
M
CI'
l!1
1p
h
H
~
1�-I
rr-7
U
U
FL
F—
F
F—
F—
F—
F—
.-1
N
M
(7
U,,00
b 0
Op
OL
CO
tl0
W
C
C_
C
C
C
C
U
V
U
V
C
C
m
N
VI
�
.N
•�
•_�
4;1
•z;)
•�
•N
•N
C
OD
OD
hq
CO
C
C
•�
O
O
0
0
0
0
=
C
C
C
O
O
•O
.N
.N
.N
.�
U
U
U
U
U
U
U
U
O
O
O
O
O
2
U
U
U
(,
Y
Y
Y
Y
Y
Y
Y
Y
Ol
41
Cl)
N
N
G)
U
U
U
U
N
N
i
i
Ul
Y
Y
Y
Ll
i
v
m
m
❑
UC
UC
UC
UC
UC
UC
v
V
u
i
E•
i
)
di
ci
Ol
U
i
�'
�EI`OO000OUUvU`U>>
UU
>
M�dtGt
d
>
>tm
>
O
O
O
O
O
0
w
y
a)
(7
(7
0
O
O
a 2
LL
E
E
E
E
E
E
SL
}
T
%
T
u
(%
p,
•lo,A
.Y
.Y
Y
Y
Y
Y
Ip
cp0000,
m
m
N
v
N
E
O
O
O
O
O
O
N
N
N
N
al
y
G1
A
lJ.l
N
H
N
'�
L
L
t
L
L
.0
C
C
C'
C
}+
H
F—
F—
F—
F—
I--'
m
m
to
m
v�'i
I�'iI
N
in
1n
N d
1
C
d
1
C
C
C
C
C
C
�j
C
Mac
a
fC
fO
f0
(0
(O
Ip
�p
a'
IIIIIIG.
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