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Monroe council approves first reading of 10% stormwater utility tax ordinance
Summary
Council approved first reading of an ordinance establishing a 10% utility tax on stormwater providers' gross revenues effective Jan. 1, 2026; staff said the tax is applied to utility gross receipts and customers will receive a notice if the tax is adopted.
The Monroe City Council voted Oct. 28 to approve first reading of Ordinance 0232025, which would establish a 10 percent utility tax on the gross revenues of stormwater utility providers, effective Jan. 1, 2026.
Finance staff explained that the tax is levied on the utility's gross revenues rather than directly on individual usage; staff noted a statutory requirement to provide notice to customers if the council adopts both readings and final adoption. Julie Elson said the utilities' revenues from the stormwater utility tax are already incorporated into the city's 2026 budget forecast.
Council Member Beaumont moved and Council Member Scarborough seconded first reading of the ordinance; the motion passed 6-0. If adopted at second reading, staff will notify customers as required by state law and implement the tax with a Jan. 1, 2026 effective date.
The ordinance as presented amends Chapter 5.2 MMC (Public Utilities) to establish the 10 percent tax on gross income of stormwater utility providers and provides for severability and referendum provisions.
