2016-4040 Ordinance Schedule A Modification to Stormwater Utility Ordinance
ORDINANCE NO. 2016-4040
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE MIAMI
BEACH CITY CODE,ENTITLED "UTILITIES"; AMENDING ARTICLE III
THEREOF, ENTITLED "STORMWATER UTILITY," AMENDING SECTION 110-
109 THEREOF ENTITLED "STORMWATER UTILITY FEES," BY AMENDING
APPENDIX A THERETO ENTITLED "FEE SCHEDULE," TO INCREASE THE
STORMWATER UTILITY SERVICE CHARGE IMPOSED BY THE CITY AS OF
OCTOBER 1, 2016; PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the City owns and operates a Stormwater Utility System ("System"),
which is currently funded by a stormwater utility service charge;and
WHEREAS, a Capital Improvement Program (the "Program") has been developed to
implement stormwater improvements for the System; and
WHEREAS, it is necessary to finance the Program through the issuance of
Stormwater Revenue Bonds; and
WHEREAS, the schedule of rate increases proposed herein will provide sufficient
revenues for the payment of principal and interest on the proposed Stormwater Revenue
Bonds; and
WHEREAS, the rate increases proposed herein include funding for additional costs
for operation and maintenance of the System.
WHEREAS, this ordinance changes the storm water utility service charge effective on or
after October 1, 2016, from $16.67 to $22.67; and
WHEREAS, the amendment set forth below is necessary to accomplish all of the above
objectives.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Chapter 110, "UTILITIES," Article III "STORMWATER UTILITY," at Section
110-109, entitled "Stormwater utility fees," at Appendix A to Section 110-106 is hereby amended
as follows:
* * *
Chapter 110 - UTILITIES
* * *
ARTICLE Ill. —STORMWATER UTILITY
* * *
Sec. 110-109. -Stormwater utility fees.
* *
(c) The fee assessed against each account shall be determined by multiplying the
stormwater utility service charge as specified in Appendix A by the number of ERUs for each
account. The amount of such fee shall be shown as a separate item on water bills (or as
shown on a stormwater utility bill if no water bill is issued) and shall be paid by the owner,
tenant or occupant in possession of the premises at the same time and in the same manner
as is provided in this chapter for the payment of water bills.
* * *
APPENDIX A
FEE SCHEDULE
* * *
Section Description Amount
this code
* * *
110-109(c) Stormwater utility service charge effective with
billings on or after the following dates shall be
as follows:
* * *
October 1, 2009 $ 9.06
October 1, 2014 $16.67
October 1, 2016 $22.67
* * *
SECTION 2. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this ordinance shall become and be made part of the Code of the
City of Miami Beach, Florida. The sections of this ordinance may be renumbered or re-lettered
to accomplish such intention, and, the word "ordinance" may be changed to "section", "article",
or other appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder
shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the first day of October 2016.
PASSED and ADOPTED this a 7 day of £'tpfer»be r 2016.
.//
Mayo "�4 r: /vine
ATTEST: f3cit
Cit Clerk afael Gra ado
APPROVED AS TO
ll������� FORM &LANGUAGE
Underscore denotes new lang f*- BE A91%
FORE CUTION
�4
Strikethfeugh-denotes remo
City Atto Y
• �'. ~ ' i \
%*
` NCORP ORA MDI
mssI /
1;•-. c`
h
0
Ordinances - R5 J
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 27, 2016
5:11 p.m. Second Reading Public Hearing
SUBJECT: SCHEDULE A MODIFICATION TO STORMWATER UTILITY ORDINANCE:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE MIAMI BEACH
CITY CODE, ENTITLED "UTILITIES"; AMENDING ARTICLE III THEREOF,
ENTITLED "STORMWATER UTILITY," AMENDING SECTION 110-109 THEREOF
ENTITLED "STORMWATER UTILITY FEES," BY AMENDING APPENDIX A
THERETO ENTITLED "FEE SCHEDULE," TO INCREASE THE STORMWATER
UTILITY SERVICE CHARGE IMPOSED BY THE CITY AS OF OCTOBER 1, 2016;
PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN
EFFECTIVE DATE.
RECOMMENDATION
The Administration recommends approving the Ordinance on Second Reading Public Hearing.
ANALYSIS
On June 9, 2010, the City Commission authorized development of a Citywide Comprehensive
Stormwater Management Master Plan (SWMMP) which was adopted on November 14, 2012 to
evaluate and update its stormwater management practices, infrastructure, funding and regulatory
policies. The SWMMP was intended to be a guide for improving the City's stormwater
management system performance for the next 20 years, with considerations to potential sea
level rise over this time period.
At the Commission meeting of April 23, 2014, the Mayor and City Commission approved
Resolution 2014-28580 accepting the recommendations of the Mayor's Blue Ribbon Panel on
Flooding and Sea Level Rise to design and implement the upgrade of the City's storm drainage
system to meet the new design criteria set by the City Commission with a potential estimated
cost of$300 million and with a target completion timeframe between 3 to 5 years.
At the Special Finance and Citywide Projects Committee (FCWPC) meeting of May 20, 2014
the Administration presented the funding strategy for this program recommending issuing three
separate $100 million stormwater bonds. The first issue would be in FY 14-15 and other issues
would follow as funding was needed.
On July 23, 2014, the City Commission approved the Ordinance on First Reading and at the
Page 215 of 692
September 10, 2014, the City Commission approved increasing the stormwater utility service
charge to $16.67 per equivalent residential unit(ERU)at its Second Reading Public Hearing.
Rate requirements for Additional Stormwater Bonds
To determine the rates necessary to support the issuance of the second $100 million of
Stormwater Revenue Bonds, the Administration completed a series of pro-formas to calculate
the rate increases required to cover debt repayment of future Stormwater bonds.
The calculation considered debt service coverage based on two requirements of the existing
stormwater Revenue Bond Resolution.
The first requirement, termed the additional bonds test, requires that net revenues available for
debt service be no less than 110 percent of the maximum annual debt service of the
outstanding plus prospective debt to be issued, for at least 12 consecutive months of the 18
months prior to the issuance of additional bonds or, if prior to the issuance of the proposed
additional bonds, the rates are increased, then such rates may be used to project the Net
Revenues as though they were in place during the period.
The second requirement, which must be fulfilled annually, regardless of any prospective debt
issue, is termed the rate covenant. Net revenues available for debt service in each fiscal year
must not be less than 110 percent of the principal and interest requirements for such fiscal year
to meet the rate covenant. In addition to meeting the two debt service coverage requirements,
annual revenues must be sufficient to meet other operating and maintenance expenditure
requirements without resulting in a cash flow deficit.
The Stormwater Enterprise fund issued tax-exempt debt in the amount of $100 million in FY
2014/15 to cover the costs of stormwater improvement projects. The second issue of $100
million will be issued in FY 2016/17 and the third issue of $100 million could be issued in FY
2018/19, as the funding is needed to support the Stormwater improvement projects.
In order to be able to provide coverage to issue the second series of additional bonds, the
Administration proposes a monthly stomiwater rate of $22.67 per Equivalent Residential Unit
("ERU") which represents an increase for a residential customer of $6.00 per month or 36%
above the FY 2014/15 rate of$16.67 per month.
FY 2014/15 Rate: $16.67
FY 2014/15 Poposed Rate: $22.67
Difference from FY 2009/10: $6.00
%Change: 36%
CONCLUSION
The Administration recommends approving the Ordinance on Second Reading Public Hearing.
Legislative Tracking
Public Works
Page 216 of 692
Sponsor
Mayor Philip Levine
ATTACHMENTS:
Description
❑ Stormwater ordinance
Page 217 of 692