HomeMy WebLinkAbout0006_1_Staff Report CSA 152 FY15-16 Levy Draft V1 JS 372016
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: MARCH 22, 2016
SUBJECT: RESOLUTION REGARDING COUNTY SERVICE AREA 152 AND
SETTING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR
2016-2017 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES)
PERMIT COMPLIANCE ACTIVITIES
Recommendations
1. Adopt Resolution No. 2016- setting the benefit assessment unit rate for
County Service Area 152.
RESOLUTION NO. 2016-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, MAINTAINING COUNTY SERVICE AREA
152 AND AUTHORIZING THE BENEFIT ASSESSMENT UNIT RATE
FOR FISCAL YEAR 2016-2017 FOR THE CITY OF LAKE ELSINORE
TO FUND THE CITY'S NATIONAL POLLUTION DISCHARGE
ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM
Background
The NPDES program originates from the Federal Clean Water Acts and the 1969 State
of California Porter-Cologne Water Quality Control Act. The State Water Resources
Control Board establishes the regulations that govern activities to improve water quality
statewide. The governance takes the form of Permits for stormwater discharge; the
Permits mandate activities, which if not performed place the Permittee at risk for
substantial penalties. The City together with other local agencies is covered by the
Permit referred to as the National Pollutant Discharge Elimination System (NPDES)
Municipal Separate Storm Sewer System (MS4) Permit.
To fund the costs of the mandated activities, the County of Riverside established County
Resolution – County Service Area 152 - Approval of Fiscal Year 2016-2017 Levy
March 22, 2016
Page 2
Service Area ("CSA") 152. In 1994, the County of Riverside annexed the City of Lake
Elsinore into CSA 152. Enabling the City to impose a charge on individual parcels within
City limits that contain a structure. Each parcel is assigned a certain number of "benefit
assessment units" or "BAU." For instance, a single family home is assigned one BAU,
commercial property is assigned 12 BAUs per acre.
At the time of annexation, the City established the rate at $13.88 per BAU. Subsequently,
the rate has fluctuated from a low of $6.24 per BAU to the current rate of $13.88 per
BAU. The current charge is $13.88 per BAU.
Discussion
With neither the State nor Federal governments providing funding for the activities
mandated by the NPDES Permit, the requirements appear to constitute an unfunded
mandate and as such would merit State funding, however, due to language in the Permit,
the City is required to seek and secure funding:
II.B.10. This Order does not constitute an unfunded mandate subject to subvention
under Article XIII.B, Section (6) of the California Constitution for several reasons
including the following:
c. The Permittees have the authority to levy service charges, fees, or
assessments to pay for compliance with this Order.
To ensure compliance with the NPDES MS4 Permit, the City must perform the required
activities.
The Fiscal Year 2016-2017 NPDES program budget is estimate at $489,649. These funds
are used to cover mandated activities that include: staff administrative costs, electronic
program database, GIS mapping and program tracking, maintenance of storm drains,
catch basins, purchase and maintenance of equipment, inter-agency program cost
shares, in lake water quality monitoring, and inspection of residential, commercial,
industrial and construction sites in the City.
Current CSA revenues are insufficient to cover the increasing cost of required activities.
Activities which grow in scope every year. For the current Fiscal Year, 16,856 properties
in the City of Lake Elsinore are listed for CSA 152 assessment and would generate
$376,246 at the existing rate. The projected operating deficit of $113,403 will be covered
using a balance of unused CSA 152 monies (approximately $300,000) from prior years.
If not for the unused fund balance, the General Fund would bear the entire program
budget deficit of $113,403.
With the depletion of the CSA 152 unused fund balance, Staff is recommending the City
Council approve a BAU rate of $13.88 in Fiscal Year 2016-2017. This will continue the
process of bringing the BAU into line with actual program compliance costs, while
reducing the program reliance on the General Fund.
Resolution – County Service Area 152 - Approval of Fiscal Year 2016-2017 Levy
March 22, 2016
Page 3
Fiscal Impact
No negative fiscal impact.
Prepared by: Jason Simpson
Director of Administrative Services
Approved by: Grant Yates
City Manager
Attachments: Resolution No. 2016-