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City of San Leandro Stormwater Fee Report
<br />Final Report 2. Stormwater Funding Needs
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<br />HF&H Consultants, LLC Page 6 March 12, 2024
<br />The CIP costs shown in Table 1 above are expressed in 2024 dollars. Costs are shown as one-time project
<br />expenses and include all phases such as environmental, permitting, design, and construction. The
<br />summary reflects a list of specific recommended projects in the Schaaf & Wheeler 2023 SDMP.
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<br />ANNUAL REVENUE REQUIREMENT
<br />Since stormwater fees are subject to voter approval, it is recommended that a fee be structured in the
<br />beginning to be steady over the long term as well as sustainable. Unlike other utilities (e.g., water and
<br />sewer) where the fees can be reviewed and re-set at five-year (or less) intervals, stormwater fees are
<br />usually set at a level that can be increased annually in accordance with a predetermined formula or index
<br />for many years to come. As a result, the revenue requirements must be expressed in annual te rms that
<br />will reflect future years’ needs (with the formulaic adjustments).
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<br />While the O&M costs are shown in Table 1 as annual costs, the CIP costs are shown as lump-sum, one-
<br />time costs. Therefore, the CIP costs must be annualized, either through annual debt service payments if a
<br />project or projects will be debt-funded (e.g., revenue bond, bank loans) or cash-funded with fee revenue.
<br />Therefore, the revenue needs shown below in Table 2 convert the CIP costs to annual amounts based on
<br />an assumed 15-year revenue bond or 30-year, pay-as-you-go (PAYGo) expenditure plan. Table 2 calcu-
<br />lates the Net Annual Costs to be covered by the Stormwater Fee under two scenarios: 1) funding all capital
<br />projects identified in the SDMP and 2) funding only Very High and High priority projects. Section 3 of this
<br />report calculates the proposed Stormwater Fee for both scenarios.
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<br />Table 2. Estimate of Annual Revenue Requirement
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<br />1 Estimated contribution from CalTrans ($2,749,000) and grant ($1,000,000) for the installation of
<br /> trash capture devices
<br />2 Reflects bond-financing Very High Priority Projects (15-year term, 4.5% interest rate)
<br />3 Reflects PAYGo funding amortized over 30 years
<br />Fund All
<br />Projects
<br />Fund High and
<br />Very High
<br />Projects Only
<br />Operations & Maintenance
<br />Trash Capture Devices Mainteance $200,000 $0 $200,000 $200,000 $200,000
<br />Compliance $540,000 $0 $540,000 $540,000 $540,000
<br />Street Cleaning $780,000 $0 $780,000 $780,000 $780,000
<br />Pipe Cleaning $100,000 $0 $100,000 $100,000 $100,000
<br />Green Infrastructure $100,000 $0 $100,000 $100,000 $100,000
<br />General Fund Repayment $107,000 $0 $107,000 $107,000 $107,000
<br />Other Operations & Maintenance $140,000 $0 $140,000 $140,000 $140,000
<br />O&M Subtotal $1,967,000 $0 $1,967,000 $1,967,000 $1,967,000
<br />Capital Improvement Projects
<br />Very High Priority Projects $8,240,000 ($3,749,000)1 $4,491,000 $424,447 2 $424,447
<br />High Priority Projects $24,010,000 $24,010,000 $800,333 3 $800,333
<br />Medium Priority Projects $24,590,000 $24,590,000 $819,667 3
<br />Low Priority Projects $22,750,000 $22,750,000 $758,333 3
<br />Capital Subtotal $79,590,000 ($3,749,000)$75,841,000 $2,802,780 $1,224,780
<br />Total Annual Revenue Requirement $4,769,780 $3,191,780
<br />Cost Description
<br />Estimated
<br />Current Cost
<br />Less: Costs
<br />Funded by Other
<br />Sources Net Cost
<br />Net Annual Cost
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