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Schererville adopts stormwater department and utility fee; residential rate set at $4.06/month
Summary
The council created a Department of Stormwater Management and adopted a stormwater utility fee based on ERUs; council members approved both ordinances after a public hearing and a consultant presentation on infrastructure needs and rate design.
The Schererville Town Council on Dec. 3 adopted two ordinances to formalize stormwater management and to establish a stormwater utility user fee to fund capital repairs and maintenance of storm infrastructure.
Town Manager Jim Gorman introduced an ordinance to create a Department of Stormwater Management. The ordinance establishes a stormwater board and a special fund covering the town’s municipal corporate boundaries. The council approved the ordinance by voice vote, 5-0.
At a subsequent public hearing, Director of Operations Andy Hansen and Bob Reynolds of financial consultant London Woody presented a multi-year analysis of culvert conditions and a proposed rate structure based on Equivalent Residential Units (ERUs). Reynolds described the study methodology: the team inventoried impervious surface for each parcel and used that to assign ERUs, setting an average residential ERU at about 3,500 square feet.
Under the adopted rate structure, a single-family residential parcel (one ERU) will pay $4.06 per month ($48.72 per year). Reynolds presented two revenue scenarios the study examined: a minimal scenario that would generate about $165,000 annually and a larger scenario that would generate roughly $1 million. Council adopted the more robust rate schedule that is projected to generate just over $900,000 per year. The ordinance directs the stormwater fees be billed on Lake County property tax statements.
Reynolds and Hansen gave examples of recent storm projects and their costs to illustrate funding shortfalls. Examples cited in the presentation included a Deer Creek Drive replacement project that cost about $445,000 (with half of that covered by the Little Calumet River Basin), a Sunset Drive maintenance structure project that totaled about $331,000 (with $66,000 paid by Little Calumet), and a larger Inverness Drive culvert replacement that cost about $1,355,000 funded in part by a $250,000 Lake County contribution and American Rescue Plan Act (ARPA) funds for the remainder.
Council members asked whether the fee could be used for staffing. Attorney David Austin said the ordinance, drafted in the context of Title 8-1.5, permits the use of stormwater funds for operations and maintenance, including personnel costs that are properly allocated to stormwater work. Council discussion emphasized the intent to use revenue for capital improvements and maintenance while recognizing allowed O&M charges may offset portions of staff salaries for time spent on storm activities.
After discussion the council voted 5-0 to approve and then adopt the ordinance establishing a stormwater utility user fee. The ordinance sets commercial rates by property-class groups (vacant, small, medium, large) and applies a 0.25-ERU charge to undeveloped parcels. The town clerk and staff will coordinate with the county auditor to prepare the annual property-tax billing file and recommended annual reviews of parcel classifications to keep rates accurate.
Staff and consultants said next steps include administrative setup of the Stormwater Improvement Special Fund, annual submission of billing files to the county auditor, and returning to the council with proposed capital project schedules funded by the new revenue stream.
