4 | Consideration and Adoption of Ordinance No. 2023-03: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 12, Floodplains, Chapter 12-02, Stormwater Management Utility, by amending Section 12-02-002-0003, Schedule of Stormwater Management Utility Service Charges and Fees; providing for repeal of conflicting ordinances, severability, penalties, authority for clerical corrections, and establishing an effective date | ||||||||||
Mayor Daggett opened the public hearing. Stormwater Manager Ed Schenk, Consultant Sanja Gaur, and Management Services Director Rick Tadder provided a PowerPoint presentation that covered the following: STORMWATER RATE ADOPTION AND PUBLIC HEARING AGENDA JANUARY SUMMARY OF SCENARIOS UPDATES SINCE JANUARY EXTERNAL RESOURCE VS RATE FUNDING FINANCIAL PLANNING FINANCIAL PLANNING 101 STORMWATER RATE ASSESSMENT STORMWATER ERU CAPITAL PLAN SCENARIOS SCENARIO 1: MINIMAL CIP SCENARIO 2: CIP WITH FUTURE GRANTS SCENARIO 3: CIP WITH RATES REVISED SUMMARY OF SCENARIOS RATE IMPACT FUTURE IMPACT ON RATES RATE TIMELINE 2023 Vice Mayor Aslan asked why there is concern about a sunset clause. Mr. Tadder stated that there needs to be ongoing revenue to support debt repayment and a sunset would show that revenues drop off and are not keeping up with the debt repayment. This could impact the City’s bond ratings. Mr. Schenk added that it is difficult to define what services end at the sunset period. A rate adjustment is the best course of action because it considers the totality of the utility and can be adjusted up or down in a more nuanced way. Councilmember Matthews asked how the development of the stormwater utility was impacted by the Coconino County Flood Control District. Mr. Schenk stated that stormwater became a utility in 2003, at the time there was minimal coverage from the Flood Control District and some of that coverage went away when the utility took on the Capital Improvement Projects. In 2018 the Flood Control District started taxing city residents through property taxes. The Flood Control District has assisted with sandbags and flood modeling resulting from recent fires. Councilmember House asked if there were any triggers in place to consider the rate annually. Mr. Tadder explained that triggers would have the same type of impact as a sunset rate. It puts things in a tough position when adjusting the rate each year. Rates are considered every three years or so and the budget process also includes an annual review of the five-year plans and the health of all funds. Jeff Wheless addressed Council and expressed appreciation to staff for providing additional scenarios for consideration. He also expressed appreciation for the inclusion of projects to help address the issues along Highway 180. He suggested deferring maintenance in fleet and other areas to generate more capacity within the general fund to help offset the rate increase. Councilmember McCarthy stated that he is not supportive of taking money from the general fund to pay for flood control. The enterprise fund should pay back the general fund expenditures and there is some risk with relying on outside sources. He indicated his support for Scenario 3. Councilmember Matthews stated that she is supportive of Scenario 1. A rate increase was done in 2018 and it would make sense to do another adjustment in two or three years. This would leave the business community less nervous. Councilmember Harris asked for staff’s recommendation. Mr. Schenk stated that he prefers flexibility because there are so many uncertainties. The scenario that provides the most flexibility is the most pessimistic one. Adjusting the rate down is significantly easier than adjusting the rate up. Vice Mayor Aslan expressed his support for Scenario 3 but that he could settle with Scenario 2. There are concerns from the business community but it is also important to consider what needs to be done for the community. The interest of those who are affected by flooding issues need to be top of mind. Maximizing flexibility is a good approach especially when grant funding is not guaranteed. Joe Galli on behalf of the Greater Flagstaff Chamber of Commerce addressed Council and expressed appreciation for the continued work of staff in providing additional options. There are significant needs and the Chamber wants to help the city pursue additional solutions to meet those needs. Councilmember Sweet stated that she supports Scenario 2 and feels that it is a stable way to go to address all the concerns of the community. There being no further public comment, Mayor Daggett closed the public hearing. |
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Moved by Vice Mayor Austin Aslan, seconded by Mayor Becky Daggett to read Ordinance No. 2023-03 by title only for the first time with Scenario 3. | |||||||||||
Vote: 5 - 2 | |||||||||||
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, AMENDING THE FLAGSTAFF CITY CODE, TITLE 12, FLOODPLAINS, CHAPTER 12-02, STORMWATER MANAGEMENT UTILITY, BY AMENDING SECTION 12-02-002-003 SCHEDULE OF STORMWATER MANAGEMENT UTILITY SERVICE CHARGES AND FEES; PROVIDING FOR REPEAL OF CONFLICTING OF ORDINANCES, SEVERABILITY, PENALTIES, AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE | |||||||||||