Council notes existing stormwater-fee ordinance, discusses $1.3M stormwater project and need for updated impact-fee study

During the June 24 work meeting, a councilmember flagged a previously adopted stormwater utility fee ordinance and asked whether the city could use the ordinance to fund ongoing stormwater maintenance and a major unfunded project.

Staff said the ordinance is on the books but the city has not been collecting a stormwater fee. Council members described one specific unfunded stormwater project to route drainage from 100 Street across the school property down to the river, which staff estimated at roughly $1,300,000. Council discussion emphasized that many individual developments currently handle stormwater on-site through retention and that a citywide approach would require a defensible impact-fee study.

City staff and council members said state law requires an impact-fee analysis to charge a system-wide maintenance or stormwater fee and advised completing a new study (the previous study is about 20 years old and would need updating). Staff suggested creating a new enterprise fund for stormwater and using fees to cover existing deficiencies and to assess appropriate impact fees on new developments.

Why it matters: Council members said recurring stormwater deficiencies and the sizable cost of the one identified project mean the city needs a long-term funding plan. A study would provide the basis for setting a maintenance rate and any impact fees for new development.

Council members asked staff to plan an updated impact-fee study and to return with recommendations on a fee structure, fund set-up and capital priorities before pursuing a fee on residents or developers.