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City staff propose new nonresidential stormwater fee structure and credit program; committee briefed on revenue and implementation plan
Summary
Public Works and Stantec presented a recommended switch to an ERU‑based stormwater fee for nonresidential parcels, a FY26 15% fee increase and a credit program that would rebate up to 50% for qualifying on‑site stormwater practices.
City Public Works staff and consultant Stantec briefed the Environmental Matters Committee on May 8 about a proposed change to the city’s stormwater fee structure and a complementary credit program.
Mike Rosberg, stormwater program manager, explained staff are proposing to convert nonresidential billing from the city’s current tiered categories to an Equivalent Residential Unit (ERU) approach tied to measured impervious area. "What was presented to the finance committee last week was a 15% increase in the stormwater fees, and so that's what's being recommended," Rosberg said. Under the ERU model one ERU equals 2,100 square feet of impervious surface; the staff example showed a parcel with 21,000 square feet of impervious area would be billed as 10 ERUs.
Rosberg and Stantec projected that moving to ERU‑based billing for nonresidential properties would increase nonresidential revenue from about $900,000 (FY25) to roughly $1.4 million before credits — an incremental $400,000 — while residential revenue would remain unchanged under the recommended FY26 rates. The staff presentation noted that if property owners qualify for credits (see below), that additional revenue would be reduced.
Anne Roterer, stormwater engineer, and Dave Heider (Stantec) laid out a proposed credit program intended to incentivize on‑site stormwater management and good housekeeping. The plan limits total credits to a 50% maximum per parcel (a cap allowed by law) and recommends making nonresidential parcels the initial focus. Qualifying activities would include state‑approved on‑site best management practices (BMPs) in good maintenance condition, and an alternative compliance pathway targeted at religious and 501(c)(3) organizations that would emphasize outreach, tree planting and green‑care pledges as creditable activities.
Staff noted several operational and administrative considerations: implementing ERU billing will require updated GIS calculations and an appeals process (property owners may contest measured impervious area), the city needs to conduct outreach to large nonresidential property owners, and any credits must be verified via inspections on a tri‑annual cycle. Rosberg said the city currently has a small, existing credit program but very low participation; the staff proposal aims to simplify and relaunch it.
Budget and timeline: the staff proposal assumes adoption of a 15% fee increase for FY26 beginning July 1; staff propose a phased rollout for the nonresidential ERU change with a window to apply for credits so property owners are not immediately penalized. Finance staff are coordinating with Public Works on revenue projections. The proposed calendar would allow nonresidential owners to apply for credits during a six‑month transition prior to a January 1 effective date for the new billing structure.
Why it matters: the proposed change shifts more of the stormwater billing to measured impervious area for nonresidential properties and includes incentives for on‑site stormwater management. Committee members asked for further outreach and discussed whether additional residential tiers might create greater equity.
(Reporting: presentation by Mike Rosberg, stormwater program manager, Anne Roterer, stormwater engineer, and Dave Heider, Stantec.)
