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Coon Rapids council adopts stormwater rate increase after debate over agricultural/sod-farm exemption
Summary
Council adopted Ordinance 2319 and Resolution 24-111 to amend stormwater code and increase stormwater fees; council debated creating an agricultural or sod-farm designation with a lower residential-equivalent factor (REF) and directed staff to research the idea and return with options.
The Coon Rapids City Council adopted changes to the city's stormwater code and fee schedule after an extended debate about whether large sod farms and agricultural parcels should get a lower Residential Equivalency Factor (REF).
Council adopted Ordinance 2319 (amending municipal stormwater rates and code section 13-1300) and then adopted Resolution 24-111 to amend the 2025 stormwater fee schedule. Staff and consultants explained that the stormwater utility is an enterprise fund that must cover capital projects, debt service and increased regulatory requirements; staff recommended increasing the base nonresidential rate from $36.90 per acre to $55.44 per acre and a 40% residential rate increase, which staff said equates to about $5.28 per quarter or $21.12 per year for the average residential customer. These rate changes were scheduled to take effect on May 1, 2025.
Several council members urged that a separate agricultural or "sod farm" designation with a lower REF (one member suggested 0.05) be considered so that large sod operations are not grouped with other open space or park properties. Supporters of that idea argued sod farms absorb runoff and should be assessed differently; others said the city lacks the scientific data needed now and that rearchitecting REF designations could unintentionally raise bills for some properties.
Ultimately council members agreed to adopt the ordinance and fee schedule to meet budgeting timelines while directing staff to research an agricultural/sod-farm REF designation and bring back proposed language and data in early 2025. Council also noted that the ordinance contains an appeal process for property owners to request exceptions.
What’s next: staff will implement rate changes for the May 1, 2025 billing cycle and will return with research on an agricultural/sod-farm REF designation for council consideration.
