City staff propose updating Lakewood stormwater fee code, including 2025 rate alignment and six-year rate-study requirement

Angie Silva, assistant director of planning and public works, told the Lakewood City Council on Aug. 11 that the city’s stormwater fee code (chapter 3.38 LMC) had not been substantively updated since 2019 and that the draft ordinance in the meeting packet makes several targeted changes. Silva summarized four changes in the packet: update fees to reflect current 2025 surface-water utility rates; remove an outdated fee table that concluded in 2024 while retaining a 2.5% annual inflationary adjustment for 2026 and later years; add flood-control mitigation to the list of eligible uses consistent with state law; and require a comprehensive rate study at least every six years to evaluate adequacy and equity of charges. She also said housekeeping edits remove a nonprofit exemption that was phased out in 2023. Silva said the packet includes background on stormwater utility assessments, references to Department of Ecology requirements and the National Pollutant Discharge Elimination System permit, and rationale for aligning code with current practice. She told council that the next steps are a public hearing on Sept. 2 and possible action on Sept. 15. Councilmember questions addressed process and timing. A council member asked why the code currently contains rates rather than listing them in a separate annual fee schedule; Silva said jurisdictions commonly codify stormwater rates, and the proposed amendment retains code-based rates while adding the six-year rate-study process to provide documentation for increases. Silva confirmed the last comprehensive consultant rate study was completed in 2018 (FCS Consultants) and that the six-year review requirement is intended to align forecasting of capital, maintenance and program needs with rate setting. She also said the code’s existing equivalent-residential-unit definition would remain; under current code, fees are assessed per parcel equivalent, not per dwelling unit, so a parcel with multiple ADUs could still be charged as a single residential equivalent. There was brief discussion about the city’s practice of remitting fees via county property tax statements: Silva and staff explained the surface-water fee is shown on property tax statements, the county collects and remits the amounts to the city, and the county charges a small fee for that service. No ordinance vote occurred at the study session; staff requested council feedback and will bring the draft ordinance to public hearing on Sept. 2 and possible adoption action on Sept. 15.