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Officials explain why district pays city stormwater fees and liquor‑by‑the‑drink settlement history
Summary
Committee members questioned why the school district pays stormwater fees to the city. Staff recounted a past lawsuit and settlement that exchanged past liquor‑by‑the‑drink revenue and property for a commitment to pay stormwater fees, and said the district receives some liquor revenue in return.
A board member asked why the Hamilton County School District pays the city’s stormwater fee; staff explained the practice dates to a prior legal settlement and related agreements.
Scott, a district staff member familiar with the matter, traced the history to a lawsuit over liquor‑by‑the‑drink revenue and said the district recovered approximately $13 million in past‑due liquor revenue and property as part of a settlement. As part of that agreement, the district committed to resume paying stormwater fees going forward.
Scott told the committee the district now receives liquor‑by‑the‑drink revenue in return (about $3 million annually, per staff comments) and pays roughly $800,000 in stormwater fees; he also said Congress (staff used the term in discussion) grants an education credit for some school‑based water‑cycle education programming that reduces the district’s stormwater liability.
Committee members suggested revisiting the arrangement with city government because the district is the only government agency paying stormwater fees; staff agreed the topic warranted discussion with county and city partners.
The exchange and the associated credits were described as part of longstanding intergovernmental arrangements and are recorded in settlement and budget records rather than being new policy proposals at this meeting.
