At the April 25, 2005 City Commission meeting, the City Commission directed the City Manager and General Manager for Utilities to bring back a proposal for going forward with the program for extending water, wastewater and reclaimed water service to residents within the City limits using funds obtained from the surcharge on water and wastewater connection charges. The specific issue of concern with regard to the program is the need to secure a funding source to pay for on-site plumbing costs for low income beneficiaries in the program. As suggested by the Commission, staff is bringing back changes to the City Commission Resolution that will allow funds obtained from the surcharge to be used to pay for these on-site costs.
Explanation
On April 25, 2005 staff provided a report to the City Commission on the status of the program for extending water and wastewater service using funds obtained from the surcharge on water and wastewater connection charges. The program was originally established in Resolution 030223 (passed July 28, 2003) which specified that one half of the monies collected from the surcharge on new water and wastewater connections outside the incorporated limits of the City of Gainesville would be used to extend water, wastewater, and reclaimed water services within the City. Further, the resolution specified that 20 percent of the available funding would be used to address public health, safety, and environmental issues, 20 percent would be used to serve affordable housing, and 60 percent would be used for programmed water and wastewater extensions with the initial projects to be water service in CDBG target areas.
Resolution #030223 specified that use of this funding source would be limited to funding facilities that are owned and maintained by the City (i.e., excluded any funding required for plumbing connections or modifications on private property). The intent of this provision was that other grant funding sources would be sought to pay for on-site plumbing costs in order to leverage the benefit of the City's available funding for extending water and wastewater service. Federal and state funding sources have been sought, however to date no outside funding has been received.
As indicated in the April 25, 2005 staff presentation to City Commission, the lack of available funding to pay for required plumbing connections and modifications on the customers' private property was identified as a significant barrier to the program. In the April 25, 2005 meeting, staff presented four alternatives for going forward with the program: 1) Allocate CDBG and/or SHIP money to pay for on-site plumbing costs; 2) Do not fund on-site plumbing costs, require residents to pay their own plumbing costs; 3) Modify the Resolution so that on-site plumbing costs for owner occupied affordable housing can be funded with connection charge proceeds; or 4) Continue pursuing external funding and delay implementation of the program until external funding is obtained.
Based on the Commission discussion at the April 25 meeting, staff was to bring back an amended resolution that would implement the third alternative (modify the Resolution to fund on-site plumbing costs for low income, owner occupied housing with surcharge revenue). A copy of the original Resolution (030223) with changes reflected in legislative format is included in the agenda backup.
Recommendations
The City Commission approve the amended resolution.
Fiscal Note
The fund balance in the connection charge surcharge account at the end of FY 2005 was $375,715. Staff will continue to pursue alternative sources of funding for on-site plumbing and prepare to participate in CDBG and SHIP funding deliberations during the next budget cycle (FY2007).
Drafter
Prepared by: Rick Hutton, P.E., Senior Water/Wastewater Engineer
Submitted by: Michael L. Kurtz, General Manager