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Charleston City Council moves to bill stormwater fee through property tax system
Summary
Council approved an amendment to the city's stormwater ordinance to shift billing of the $11 monthly stormwater utility fee from Charleston Water System accounts to property tax bills; the change preserves the fee status and shifts collection timing for 2026 charges to the 2025 tax bill.
Charleston City Council on May 27 approved an amendment to the city's stormwater ordinance that will change how the city bills its stormwater utility fee. The council voted to shift billing for the $11-per-month equivalent residential unit (ERU) fee from Charleston Water System (CWS) monthly utility accounts to the property tax billing system, with the change affecting the 2026 billing year.
The measure, presented by Matt Fountain of the city's Public Works and Utilities staff, will require intergovernmental agreements (IGAs) with two counties to implement the new billing arrangement. Fountain said the fee will remain a utility fee rather than a property tax, and that the city will continue monthly billing through CWS for the remainder of 2025. "It is still acting as a fee. It would not be part of your property tax. It's just billed through that same system," Fountain told council during the presentation.
City officials said the change will alter who receives the bill: instead of the CWS account holder receiving monthly invoices, property owners will see the stormwater fee on their tax bill. Fountain explained that the 2026 stormwater fee will appear as a component on the property tax bill issued at the end of 2025.
Why it matters: Councilmembers noted the move is intended to improve collection and predictability of stormwater revenue. Councilman Waring urged staff to pursue collection of existing unpaid stormwater balances, saying the city has significant outstanding fee debt and that improved collection under the new billing system could free up funding for drainage projects. "We literally had businesses that would look at their water bill monthly and subtract the stormwater fee off because they knew CWS couldn't cut off their water," Waring said. He estimated the change could generate millions in additional revenue the city could use or bond against for stormwater improvements.
Council discussion and next steps: Council members discussed implementation details and the limits of the city's authority. Fountain and staff said IGAs with the counties are required and that those agreements will return to council for further action; the change was presented as an ordinance amendment coming forward for its next rating/reading. Council also heard from a member of the finance staff identified as the city's CFO; the CFO was present but did not provide a formal financial estimate during the meeting. Council recorded one dissenting vote during the item's final consideration; the transcript records a single "nay" from Councilmember Parker, and otherwise indicates the amendment carried.
What the ordinance does and does not do: The amendment does not change the $11-per-month ERU rate. It changes the billing vehicle and the recipient of the bill (property owner) and adjusts the billing cadence for the 2026 year so that charges for 2026 appear on the 2025 tax bill. Staff emphasized the legal form of the charge remains a fee, not a property tax, and the city will maintain that distinction in implementation.
Implementation risks and timelines: Staff said IGAs with two counties are required before the tax-bill collection mechanism can be used; those agreements and any required procedural changes will be handled in follow-up ordinances and administrative actions. Council members urged staff to identify the city's outstanding stormwater fee balances and options for collection, including referral to a debt collector, and to provide a financial plan showing how the revenue will be used for stormwater projects.
Council action: The council approved the ordinance amendment as presented; the transcript records one recorded 'nay' from Councilmember Parker and otherwise shows the motion carried. Staff and council members said the item will return as required to complete intergovernmental and administrative steps before the new billing appears on tax bills for the 2026 year.
For now, property owners should expect no change to the $11 monthly rate, but owners (not CWS account holders) will be billed via property tax statements for 2026 charges once the IGAs and administrative processes are complete.
