TO: Mayor and Commissioners
FROM: Missie Barletto, Public Works Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: June 17, 2025
Title
PRESENTATION OF THE PROPOSED 2025 STORMWATER NON-AD-VALOREM (NAV) ASSESSMENT RATES
Body
Recommended Action:
Recommendation
Receive presentation concerning the Proposed 2025 Stormwater Non-Ad-Valorem (NAV) Assessment Rate Increase.
Body
Background:
The City of Delray Beach (City) performed a Stormwater Rate Study to assess the City's existing stormwater rate structure and provide recommendations for improvement in FY 2023. The stormwater rate study findings, recommendations and options for future rate structure and rates were presented to City Commission on April 18, 2023. On May 16, 2023, the City Commission enacted Ordinance No. 18-23 establishing a new rate structure and process for implementing the annual Stormwater Non-Ad-Valorem (NAV) Assessment.
The current SWU rate of $1.12/month or $13.44/year, approved by City Commission for the 2023 Stormwater Tax Roll, was not increased for the 2024 Stormwater Tax Roll. In 2023 and 2024 the total assessed amount for the entire City was $4,228,318.36 and $4,292,820.66 respectively. To meet the target revenue per the 2023 Stormwater Rate Study plan, the new rate of 1.93/month/SWU is needed to recover about $2,940,694.00 and place the City back on track for 2026.
Stormwater NAV assessment rates need to be increased to fund projects identified in the 2019 Stormwater Master Plan aimed at addressing impacts , flood control measures, drainage infrastructure enhancements, and maintenance compliance with evolving regulatory requirements, including the MS4 National Pollutant Discharge Elimination System (NPDES) under the Environmental Protection Agency (EPA).
The current Stormwater Billing Unit (SWU) rate is $1.12/month or $13.44/year.
|
Tier No. |
Impervious Area Threshold |
Assigned SWUs |
Monthly Charge |
Annual Charge |
|
1 |
Residential - 0 to 2,000 square feet |
2.7 |
$ 3.02 |
$ 36.29 |
|
2 |
Residential - Over 2,000 to 5,000 square feet |
6.4 |
$ 7.17 |
$ 86.02 |
|
3 |
Residential - Over 5,000 to 7,000 square feet |
11.9 |
$ 13.33 |
$ 159.94 |
|
4 |
Residential - Over 7,000 to 10,000 square feet |
16.1 |
$ 18.03 |
$ 216.38 |
|
N/A |
Residential - Over 10,000 square feet |
(Actual S.F.) ÷ 500 |
($ 1.12) x SWU |
($ 13.44) x SWU |
|
N/A |
Non-Residential |
(Actual S.F.) ÷ 500 |
($ 1.12) x SWU |
($ 13.44) x SWU |
The proposed SWU rate is $1.93/month or $23.17/year.
|
Tier No. |
Impervious Area Threshold |
Assigned SWUs |
Monthly Charge |
Annual Charge |
|
1 |
Residential - 0 to 2,000 square feet |
2.7 |
$ 5.21 |
$ 62.55 |
|
2 |
Residential - Over 2,000 to 5,000 square feet |
6.4 |
$ 12.35 |
$ 148.28 |
|
3 |
Residential - Over 5,000 to 7,000 square feet |
11.9 |
$ 22.97 |
$ 275.72 |
|
4 |
Residential - Over 7,000 to 10,000 square feet |
16.1 |
$ 31.07 |
$ 373.4 |
|
N/A |
Residential - Over 10,000 square feet |
(Actual S.F.) ÷ 500 |
($ 1.93) x SWU |
($23.17) x SWU |
|
N/A |
Non-Residential |
(Actual S.F.) ÷ 500 |
($1.93) x SWU |
($23.17) x SWU |
|
N/A |
Unimproved Land (1SWU) |
Less than 500 S.F. |
($1.93) x SWU |
$23.17 |
As is done each year, the 2025 Stormwater Tax Roll certification will be brought forth at a Public Hearing during a July 2025 City Commission meeting.
City Attorney Review:
N/A
Funding Source/Financial Impact:
This item will affect Stormwater Non-Ad-Valorem (NAV) Assessment Rates for the 2025 Tax Roll. These funds are used to operate, maintain, make additions, improvements, and extensions to the City’s Stormwater Management System, in addition to financing the administration of the program.
Timing of Request:
The timing of this request is of high importance to proceed with preparation of the 2025 Stormwater Tax Roll and to comply with Palm Beach County Tax Collector deadlines.