18 - DRAINAGE FUNDING OPTIONSItem 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.
• erection of fountains, distinctive lighting, and signs;
• acquisition, by purchase or otherwise, of real property in connection with an authorized
improvement; and
• payment of expenses incurred in the establishment, administration, and operation of the
district.
I have attached the ordinance I wrote several years ago in another jurisdiction as an example of
how a PID ordinance could work here.
BUDGET: NA.
RECOMMENDATION: Discussion only.
PUBLIC IMPROVEMENTS
Purpose and intent of article.
1. The city council is authorized by the city Charter and the state Transportation Code to assess the
cost or a portion of the cost of certain improvements against abutting property and the owners of
that property.
2. The city council finds a need to identify, construct, and fund certain infrastructure improvements,
including street, alley, curb, gutter, sidewalk, water line, wastewater line improvements and
extensions, and any appurtenance or incidental to any such improvement.
3. The city council recognizes that the existence and condition of such improvements are of
importance to abutting property owners.
4. The city council recognizes that abutting property owners often become aware of the condition of
and need for such improvements before the city does.
5. The city council finds that it is in the public interest to establish a process by which abutting property
owners may request council consideration of legally allowed assessments for such improvements.
Petition form.
Upon the application of one or more property owners, the city secretary shall provide the applicant with
a petition form to be circulated by the applicant among the other owners of property abutting the
proposed improvements.
Sixty percent of abutting property owners required; preparation of design plans and specifications
If the petition is returned and signed by at least 60 percent of the abutting property owners or the
owners of at least 60 percent of the abutting frontage, the city manager shall, upon confirmation of the
petition and the availability of funding for the proposed project, prepare the design plans and
specifications for the proposed project.
Estimate of costs.
Once such design plans and specifications are prepared, the city manager shall submit an estimate of
the cost of the improvements to the city council.
Determination of necessity; ordering of proposed improvements.
The council may then determine the necessity for and order the proposed improvements, and provide
assessments against abutting property owners in compliance with all applicable laws.
Segmented improvements.
The improvement projects consisting of streets and alleys may be initiated only in block - length
segments. Improvements to sidewalks, gutters, curbs and appurtenances and incidentals to eligible
improvements, such as walls and fences, may be initiated in smaller segments. Water and wastewater
line improvements and extensions shall be of no specific length except that they must be of sufficient
size to make them economically viable.
Sharing of costs.
The city shall share in the costs of the improvements with the owners of abutting properties, who in
turn shall, except as provided above, be assessed on a per foot share of total project costs as follows:
1. Street and alley improvements:
a. Front street: 50 percent (25 percent each side).
b. Side street: 25 percent (12.5 percent each side).
c. Rear street: 12.5 percent (6.3 percent each side).
d. Alley: 50 percent (25 percent each side).
2. Sidewalks: 50 percent.
3. Curbs and gutters: 50 percent.
4. Water lines: 66.7 percent (33.3 percent each side).
5. Wastewater lines: 66.7 percent (33.3 percent each side).
6. Fences and walls: 50 percent.
Assessments.
1. No assessment shall be made against any property or its owners in excess of the value of the special
benefits accruing to such property and its owners in enhanced value as determined by the city
council.
2. Assessments shall be due and payable upon final inspection and acceptance of the improvements by
the city. Assessments may be paid in whole or in not more than 24 monthly payments.