Page 205 - Saginaw FY19 Annual Budget

CITY OF SAGINAW

DRAINAGE UTILITY FUND
OVERVIEW OF REVENUES AND EXPENDITURES

2018-2019

The City established a drainage utility district on January 4, 2005. Fees are assessed on properties
based on the amount of storm water runoff they produce. Single family residences are assessed a
uniform base fee of $5.00 per month. Residential rates were increased from $3.00 to $4.00 per
month during the FY 12/13 budget process and from $4.00 to $5.00 during the FY 16/17 budget
process. Other properties, including multi-family, commercial, and industrial, produce more storm
water runoff at a higher rate and are charged a fee based on the number of equivalent base
(residential) units adjusted for the use and size of the property. The rate increase will enable the
City to address drainage issues by funding future capital projects with cash reserves.

A drainage utility is used by cities throughout the State to fund drainage projects. It is similar to
water and wastewater utilities in that users of the drainage system pay a monthly fee to pay for the
system’s operation. Every piece of property in the city contributes storm water runoff that must be
collected, routed and monitored to protect the public’s health and safety from loss of life or property
damage caused by flooding, stagnation and non-point source pollution.

The City needed a drainage utility to offset the growing cost of operating the storm drainage system.
These costs include maintenance of the existing system, federal mandates to control storm water
runoff, floodplain management and planning and construction of new drainage facilities.

The City hired maintenance personnel and purchased equipment (dump truck, brush chipper and
Gradall) to focus on maintaining the existing drainage infrastructure. An environmental specialist
was also hired to oversee the city's MS4 permit compliance and other federally mandated programs
as well as sampling, industrial pretreatment program, site inspections and the cross-connection
control program. One-half of the salary for this position is paid from the drainage utility and the
other half from the water and wastewater department. Remaining funds will be used for easement
acquisition and design of major drainage systems. Future funds may be used to partially pay for
debt issued to finance major construction projects.

In FY18-19 an environmental assistant is added to maintain required levels of testing and reporting.
The position is 50% funded from the Drainage Utility Fund and 50% funded from the
Water/Wastewater Fund.

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