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STORMWATER UTILITY RATES - AGN ~ ~ CC}j\- 3 cc )J\-\q 6-IS -ot) -----Original Message----- From: Bush, Keith Sent: Thursday, June 15, 2006 2:29 PM To: Josef, Veronica Cc: Arasteh, Mahshid; Carrier, AI Subject: FW: Council member Information Importance: High Veronica, Mahshid requested this e-mail as a response to an information request from Councilmember Jonson for tonite's meeting. Councilmember Jonson, The use of Pennies funding for stormwater projects will have limited effect on the rates needed to fund operations and projects. $1 million of pennies funding per year would reduce the rate increase requested from 6% to 5.5% per year. The reason the effect isn't any greater is that stormwater projects are primarily funded with bond proceeds. Debt service on the bonds is spread over 30 years. The savings on debt service would equate to approximately $70,000 per year vs rate study projected cash outflows of $11 million in FY07 to $14.5 million in FY11. The benefit on cash flows is 6/10ths of 1 % for FY07 to 5/10ths of 1 % for FY11. For FY07 thr FY11 the change in fee cost per ERU would equate to: FY07 FY08 FY09 FY10 FY11 6.0% 9.91 10.5111.1411.8012.51 5.5% 9.86 10.40 10.97 11.57 12.21 Difference .05 .11 .17 .23 .30 Keith Bush Public Works Controller Phone: 727-562-4716 Cell: 727-224-7872 Fax: 727-562-4755 E-mail: KeithBush@nyCleartUater.com -----Original Message----- From: Arasteh, Mahshid Sent: Thursday, June 15, 2006 12:41 PM To: Quillen, Michael; Bush, Keith Subject: FW: Council member Information -----Original Message----- From: Wilson, Denise Sent: Thursday, June 15, 2006 12:32 PM To: Arasteh, Mahshid Cc: Wilson, TIna; Josef, Veronica Subject: Councilmember Information The City Manager received information from Councilmember Jonson that he plans to discuss during the Penny discussion the storm water use taxes. The Councilmember advised that he does not understand the policy choice of keeping all stormwater use faxes in the user fee instead of funding partially with Penny for Pinellas funds. He has a hard time justifying Clearwater being 5 out of 96 for the top fee rates. Thanks. Den ise