Council weighs forming stormwater utility; staff to meet engineer and pursue assessments

Walnut Grove — Councilmembers discussed a proposed stormwater utility and the technical and political steps required to implement one, including assessment methods, project lists and how to structure charges so they are defensible under state law.

City staff said initial steps include an assessment of existing drainage infrastructure and a decision about assessment methodology (equivalent residential units, impervious area, acreage-based rates or other approaches). A staff speaker said the council should expect to budget for consultant work to produce an assessment and a project list that explains how utility revenues would be spent.

“You're gonna have to do an assessment first of what you have in nature,” the speaker said, noting the need for defensible calculations and ties to a capital project list. Council members discussed options for using a utility fee to fund capital repairs to aging detention ponds and undersized systems rather than relying on general revenues or bonds.

The conversation covered distinctions between impact fees (charged to new development for proportional capital impact) and a stormwater utility (a user fee or charge applied regularly to pay for capital and operations). Staff and council members noted a stormwater utility is not a tax and cited examples from other cities that have successfully defended utilities in court, but also warned of political concerns when broad fees are imposed.

Council directed staff to meet with the city engineer (Aaron White) for technical briefings and to return with options and cost estimates. The item was not advanced to ordinance at this meeting; council agreed to table further action while staff completes the necessary studies and budgets.