2016
STORMWATER UTILITY
ANNUAL REPORT
May 9, 2017
Background
This annual report is being submitted in accordance with Section 13.26.120 of the Milton Municipal
Code which requires that “The Director of Public Works shall conduct an annual review of the utility’s
operations, the total costs of operation and maintenance of the stormwater retention, detention,
collection and conveyance systems, and the schedule of rates and charges. The director shall submit
an annual report to the mayor and city council…summarizing the review and containing any
recommendations for rate adjustments…”
Stormwater Planning
The stormwater Capital Improvement Program (CIP) is a component of the Stormwater Comprehensive
Plan, the last update of which was adopted in 2005. At Council’s direction, the CIP was updated with
the goal of re-evaluating the City’s stormwater concerns, providing current construction costs, and
developing a schedule for implementation of identified projects.
The stormwater CIP has been updated to reflect decisions made as part of the 2016 budget process
and to more accurately reflect which projects will be prioritized going forward. This document will be
reviewed annually as part of the City’s annual CIP update.
2016 Financial Results
Based on the 2016 Fourth Quarter Financial Status Report, the Stormwater Utility Operating fund
revenues totaled $917,095. The operating expenditure balance was $793,827. Operating revenues
exceeded operating expenditures by $123,268. The operations fund started the year with a beginning
balance of $833,402. Operating transfers-out were made totaling $149,930 to the Storm/Capital Fund,
and an $27,134 to the Asset Replacement Fund. There was also debt service in the amount of $32,463.
Total expenditures for the Storm Water Operations Fund were $970,891 and the 2016 ending fund
balance is $779,606 which includes $242,723 designated as Reserved Fund Balance per City Ordinance
(#1874-15) (25% of current year operating expenditures).
The Stormwater Capital Fund revenues for 2016 totaled $196,334. These revenues consist of a transfer
from the Stormwater Utility operating fund, state and federal funding and a small amount of
investment earnings. The beginning balance was $767,023 and the current fund balance is $296,062.
There are Grant reimbursements expected in 2017 for construction that occurred 2016.
For purposes of illustration, the chart below reflects combined data of the Stormwater Operating and
the Capital funds. For 2016, the total revenue was $1,113,430 and total expenses were $1,461,122.
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Graph 1 - Total SW Fund Revenue and Expenditures over time
Expenditures were up in 2016 as construction and storm improvements were ramped up reflecting our
commitment to use the utility to improve the city’s drainage and water quality. This is also reflected
below in the declining overall fund balance.
Graph 2 – Total Fund Balance and Capital Transfers over time
Although we spent a fair amount of City money on improvements, we had some help from the
Department of Ecology, as well. In 2016, the City received $41,049 from four Department of Ecology
grants, with much more to come during 2017 (much of the reimbursement for the Emerald Street
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bioretention and pervious parking lot projects came after the first of the year). One of the grants was a
routine capacity grant which aids with expenses incurred as part of our continuing compliance with the
National Pollutant Discharge Elimination System, the next was for design work being performed on the
future decant facility, and the other two for our LID Retrofit Projects which were constructed in 2016.
2016 Maintenance Efforts
In 2016, approximately 175 catch basins were cleaned utilizing the City’s new vactor truck. Money was
set aside in the budget to achieve some long-standing goals for the stormwater department including
comprehensive catch basin cleaning and ditch/culvert maintenance. Meeting Ecology’s requirements
while keeping our stormwater collection system maintained to the highest standards possible is the
shared goal.
2017 Financial Outlook
The stormwater utility operations and capital improvement funds have anticipated revenues of
$1,679,100 and anticipated expenses of $2,135,117. The projected ending fund balance for
stormwater after 2017 is projected to be $1,326,926.
2017 Capital Improvement Outlook
Six separate Stormwater Capital Improvement Projects have been identified and budgeted for in 2017.
See table 1 below.
Table 1 – 2017 CIP Projects and Schedule
Ecology Grant Design 2017
Taylor Street Drainage Improvements
X
11th Street Pipe Installation
X
Decant Facility
X
Construction 2017
X
X
Land Acquisition (if needed)
City Wide Ditch/Culvert Project
X
Misc. Storm Replacements
X
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2017 Maintenance Plan
It is the goal of all involved to have a proactive culture that preemptively solves problems as well as
being able to competently respond to unforeseen ones. To stay in compliance with our National
Pollutant Discharge Elimination System Phase II permit, we have many obligations and goals.
One of those goals is to have every catch basin inspected by August 31 st, 2017. In 2014, a large-scale
effort was mounted and 210 catch basins, or approximately 25% of them, were inspected and, if
deemed necessary, cleaned in the month of September. In 2016, another 22% were inspected and
serviced. The resources have been assembled to finish this requirement by the imposed deadline.
Another mandated goal from Ecology is that 40% of the Municipal Separate Stormwater System – MS4
(including pipes, catch basins and facilities) be screened by December 31st, 2017 and then 12% on
average each subsequent year. It is the goal of this department to integrate the screening, inspection,
cleaning programs to make the most efficient use of staff time and resources while performing quality
work.
National Pollutant Elimination System (NPDES) Phase II
In 2006, the Public Works Department established the position of Storm Water Compliance Inspector
to ensure that all development in the City of Milton complies with the most current version of the
Department of Ecology Stormwater Manual for Western Washington and the City’s NPDES permit. The
City of Milton’s National Pollutant Discharge Elimination System Phase II (NPDES) permit was officially
issued on January 17, 2007.
The City is currently in compliance with all requirements of its NPDES permit. A new and updated
NPDES permit is anticipated to be issued in 2018.
Stormwater Grants / Loans
Capital Improvement Programs (CIP) are intended to improve flooding and potential overflow
conditions. The most current comprehensive CIP for storm, adopted in February of 2011, identifies ten
needed capital improvement projects of which 1 have been completed (Kent St. Detention Pond) and
at least 2 more have the potential to be funded by grants. See Table 2 below.
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Table 2 – 2011 Adopted CIP
Estimated
Cost (2011 $)
Eligible for
Grant
Completed
X
Kent Street Detention Pond
$209,000
11th Ave Pipe Installation
$226,000
Taylor Street Drainage Improvements
$303,000
Oak St. & 17th Ave– Re-route stormwater
$576,000
Xavier and 14th Ave – Install pipes to
alleviate low spots
$268,000
Surprise Lake Outfall
$270,000
Milton Way & Yuma St. – Pipe flow to
Yuma St.
$699,000
Emerald St. – Replace 12-inch culverts
$164,000
5th Ave. – Replace culverts (pipes) w/box
culvert
$404,000
X
City Center storm project
$300,000
X
In design
In 2016 the City, working with grants from the Department of Ecology, constructed two pervious
concrete parking lots on city property and had bio-retention cells and bio swales constructed along
Emerald St between 10th and 14th Ave. Both projects have been completed and the grant process and
funding is wrapping up in the early part of 2017.
Our current grant agreements are for the City of Milton Decant Facility (currently in design phase) and
our bi-annual capacity grant. The amount of the capacity grant depends on the State budget and
amounts will be known around July 1st. The City has received capacity grants in various amounts from
the Department of Ecology for seven consecutive years to assist with implementation of the City’s
NPDES permit. These funds have been utilized for education and outreach programs, purchasing
equipment for stormwater monitoring, modeling, new stormwater regulations, and staff time.
Recommendations
Staff recently completed an audit of the stormwater utility by evaluating accounts and performing site
visits. Accounts were properly adjusted and created as required. It is recommended, based on
satisfactory revenues and auditing of current billing, that the current storm water utility rate matrix is
adequate.
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