Council approves 61.2% rise in Matthews stormwater fees after multi‑hour debate

Matthews Town Council voted unanimously on Feb. 24 to increase the town’s municipal portion of its stormwater fee by 61.2%, a change staff says will raise annual stormwater revenue and help cover a projected operating shortfall.

Public Works presented the financial picture: annual stormwater revenues were estimated at about $926,000 while estimated expenditures were about $1,300,000, leaving a gap staff put at roughly $376,200. Public Works recommended several options ranging from a base rate increase to adding a ditch‑crew and a GIS/survey crew to better map and maintain the town’s storm drainage network.

Council debated whether to tap fund balance for a one‑time fix, whether to phase smaller annual increases, and whether the town should pursue long‑term alternatives such as converting stormwater billing to property tax or waiting for potential new sales‑tax revenues. Commissioner John Urban and others warned against annual increases for optics and preferred multi‑year adjustments. Commissioner Mark DeFano proposed placing part of the additional revenue in a dedicated reserve with a $1,000,000 cap to fund future capital needs; council ultimately substituted and approved a 61.2% increase on the municipal portion of the fee.

Under the adopted change staff modeled, the base monthly fees shift to: tier 1 $5.00 (from $3.98); tier 2 $7.10 (from $5.52); tier 3 $9.78 (from $7.55); tier 4 $15.97 (from $12.31); commercial rates also increase proportionally. For a typical Matthews home in tiers 2–3, council estimated the annual increase will be roughly $19–$27 per year depending on tier. Staff said the change will raise estimated annual stormwater revenue to about $1.3 million and begin to build a modest reserve for future repairs.

Council discussed whether the town could shift stormwater billing to property tax bills (a mechanism available to a subset of North Carolina municipalities under a state statute discussed in the meeting). Town staff reported county billing practices and collection mechanics mean shifting bills to the county tax bill would not reduce administrative charges from the county; staff said collection timing and customer protections differ between monthly utility billing and annual tax billing.

Why it matters: Council said the stormwater fund requires more reliable revenue to preserve aging drainage infrastructure and to avoid crisis‑driven repairs. Staff emphasized the town’s existing backlog and aging assets — culverts and pond systems that will need capital work in the coming years.

What’s next: Staff will implement the fee change for fiscal year 2026 (effective July 2025), continue to refine a long‑term capital plan and return with any proposed policy language about taking on neighborhood stormwater control measures.