18 - DRAINAGE FUNDING OPTIONS - Laserfiche WebLink

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Item No. 18 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: DRAINAGE FUNDING OPTIONS DATE: February 3, 2015 BACKGROUND: We have discussed multiple times the significant infrastructure deficit we have in regards to drainage facilities. As I reported to you in December, state law allows the creation of what is called a stormwater utility. A municipality must conduct a study of drainage infrastructure and establish a needs list that is turned into a prioritized plan of work. Once the study and plan are completed, the city council conducts a public hearing and adopts an ordinance creating a utility. A line is added to monthly water bills; revenues must be kept in a separate fund, and may only be used for drainage purposes. Rates are determined by the amount of "use" by each rate - payer, and that usage is determined by the amount of impervious surface. STATUS OF ISSUE: Another local option I mentioned in December is what is called a Public Improvement District, or PID, which is provided for in Chapter 372 of the Local Government Code. PIDs fund infrastructure improvements within usually smaller areas, like single neighbor- hoods or even single blocks. A PID project may include: • water, wastewater, health and sanitation, or drainage improvements; • street and sidewalk improvements; • mass transit improvements; • off - street parking improvements; • library improvements; • park, recreation and cultural improvements; • landscaping and other aesthetic improvements; • art acquisition and installation; • creation of pedestrian malls or similar improvements; • supplemental safety services for the improvement of the district, including public safety and security services; • supplemental business- related services for the improvement of the district, including advertising and business recruitment and development.