Lynn Haven commissioners seek revised tiering and billing models after consultant warns fees unsustainable

Lynn Haven — City consultants told the Commission that the stormwater utility’s current revenues will not cover planned capital projects and operations unless the city raises fees or identifies other revenue.

Stantec, the consultant firm that prepared the update, presented two revenue scenarios and several fee‑structure options. “The status quo is unsustainable,” a Stantec representative said, summarizing a five‑year revenue sufficiency model that showed declining reserves under current rates. Stantec said one option would be a 70% single‑year increase; an alternative that uses surtax revenue would reduce the single‑year jump to about 50% while still keeping reserves stable and funding the capital plan.

The finance review committee and commissioners focused on how that revenue is collected and on how tiers are configured. “I did a bunch of math,” Commissioner Peebles said, describing analysis that led him to favor spreading residential customers across more tiers so middle‑range homeowners do not shoulder disproportionate increases. Davia Ashbrook, the Finance Review Committee representative, told the Commission the committee preferred the 50% scenario (paired with roughly $300,000 a year from surtax) and recommended either a reworked three‑tier system or a four‑tier system rather than the five‑tier structure Stantec initially showed. “We just felt the 50% would be better using the 300,000 from the surtax money,” Ashbrook said, and the committee urged small annual adjustments thereafter to build reserves.

Why it matters: the city needs steady funds to complete stormwater capital projects, maintain equipment and pay personnel. Stantec said the study targets a minimum reserve equal to three months of operations and maintenance to…