City of Key West Stormwater Fund Fiscal Year Half-Year Budget Review April 20, 2010

City of Key West Stormwater Fund Major Revenue Categories Include: 1) Stormwater Fees and Delinquencies 2) Capital Grants

City of Key West Stormwater Fund Stormwater Fees 1 st Half Stormwater collections are at 98.7% of budget. The stormwater fee disputes from the airport, school board, and FKCC were anticipated. Staff has noted that an increase in foreclosures due to the economy have had a significant impact on stormwater fee collections.

City of Key West Stormwater Fund Delinquent Accounts As of March 31, 2010 delinquent balances (over 120 days) totaled $1,023, % were from 3 customers as follows: Airport$795,954 78% School Board$ 84, % College$ 60, % Total$940, % These three entities’ stormwater fees are among the highest based on the charges established through City code. Therefore this delinquent amount will continue to grow dramatically until this issue can be resolved. Delinquencies over 120 days are up 52.7% from last year ($658, was total for FY 09).

City of Key West Stormwater Fund Delinquent Accounts (continued) Airport, College and School Board (key sites) represent ~13% of the revenue base. Additional customers are posturing to refuse payment. Failure to effectively address these issues will impact the utility’s ability to operate, match grants and construct needed infrastructure.

City of Key West Stormwater Fund Stormwater Capital Grants City will be receiving reimbursement of $485,000 FDEP grant in coming months. As of 4/1/2010, $1.4 million in reimbursements from the US Army Corps of Engineers in federal stimulus funds has been submitted. We will continue expedited construction to obtain full reimbursement.

City of Key West Stormwater Fund Stormwater Capital Grants (cont.) City received favorable bids on gravity wells and White St. Pump Station projects. City is maximizing ability to utilize Army Corps stimulus funding. FY 2011 will therefore see fewer projects. With less construction forecast, we will focus on updating our stormwater master plan next year.

City of Key West Stormwater Fund Corrective Action We will need a resolution of other Governments’ refusal to pay Stormwater Fees. Case law has changed since utility was established. Meet with School Board Staff, FKCC, and Monroe County staff to arrive at some resolution on stormwater fees.

City of Key West Stormwater Fund Corrective Action (continued) Increase Utility Billing Collection efforts to include collection letters, property liens, and Collection Agent at 120 days.