Consultants outline stormwater utility options, estimate $2.6M annual program cost

Strand Associates consultant Mike Wollum reviewed a stormwater utility feasibility study for Georgetown during the March council meeting, saying the city has large maintenance and capital needs and few stable local revenue sources to address them.

Wollum told council members the study models a program budget of roughly $2.6 million a year, and a capital needs list that the team estimated at about $25.1 million. Using an impervious-area approach the consultant calculated an Equivalent Residential Unit (ERU) of about 3,000 square feet of impervious surface and an initial monthly rate of $5.93 per ERU (about $71.13 per year) to generate the modeled revenue. Wollum said the aerial/LiDAR parcel analysis counted roughly 25,519 ERUs across the city (about 11,158 residential parcels and 2,075 nonresidential parcels).

The study showed most U.S. stormwater utilities base fees on impervious area and emphasized three policy choices that affect rates: the area served, which infrastructure the utility will operate and maintain, and credit policies for property owners that reduce charges. Wollum presented scenarios showing how credits reduce base revenue and raise per-ERU rates; for example, a 10% aggregate credit level would raise the monthly rate from $5.93 to about $6.64 per ERU.

Wollum outlined nonfinancial aims as well: meeting MS4 (Municipal Separate Storm Sewer System) regulatory obligations, protecting Royal Spring groundwater resources and mitigating flooding and erosion in older parts of town. He described the city’s inventory of storm sewer segments, said aging culverts and blocked pipes contribute to capacity loss, and noted regulatory reporting duties tied to the Clean Water Act.

Council members asked about the study’s assumptions, timing and public outreach. Wollum said the draft feasibility work is ready for formal issuance and that a phase 2 would add parcel-level billing records, credit policies, a public outreach program and an implementation schedule; the phase 2 timeline he cited runs roughly 20 months to produce the first bills. Finance director Stacy Clark and City Engineer Eddie (identified in the meeting) discussed how stormwater work could integrate with departmental budgets; councilors suggested adding preventive maintenance staff and clearer public education to show the connection between funding and on-the-ground repairs.

Wollum said the study used a 20-year, $10 million capital example (6% interest) to illustrate debt service in the draft budget and that the city already spends roughly $1 million a year on stormwater today. He also urged council members to consider credit rules carefully because higher credit uptake reduces overall revenue and shifts costs to other customers. Several council members pressed for a robust public outreach phase if the city proceeds.

The presentation closed with a restatement of next steps: finalize and release the phase 1 report to council and the public, then pursue the more detailed phase 2 work if the council directs staff to continue. Wollum said he could provide the draft report for council review tomorrow on request.