Page 214 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW
DRAINAGE UTILITY FUND

OVERVIEW OF REVENUES AND EXPENDITURES
2021-2022

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 Manager
and Environmental Technician were 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 of these positions are 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.

Construction on Phases 2 and 3 of the East Cement Creek Drainage project is delayed for utiltiy
relocation.

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