Douglas County creates stormwater enterprise fund and hires consultant to design equitable fee

The Douglas County Board of County Commissioners voted to create a Stormwater Enterprise Fund and move forward with a countywide stormwater utility, authorizing staff to hire a consultant to design an equitable fee structure.

The board adopted Resolution 2025-R-102, which rescinds a prior funding action and establishes an enterprise fund intended to provide dedicated, sustainable revenue for stormwater operations, capital projects and conservation easements. County staff told commissioners the current $1,100,000 annual general-fund transfer is not sufficient to continue maintenance and meet regulatory obligations.

Why it matters: staff said a dedicated fund would replace an unreliable general-fund subsidy, leverage grant and low-interest loan programs and allow the county to pursue capital projects identified in the stormwater master plan. County projections presented to the board showed operating costs trending above the current transfer and a capital program that would require significant new revenue to complete prioritized projects.

Staff presentation and recommendations: Assistant County Manager Wendy Lang and Stormwater Program Manager Courtney Walker walked the board through the county’s watersheds, regulatory duties at Lake Tahoe and the stormwater master plan. Walker noted county obligations under the Lake Tahoe total maximum daily load (TMDL) program and said that that compliance “is not optional.” The county’s five-year projection shows the $1.1 million general-fund transfer falls short of projected operating and capital needs.

Jennifer Davidson, the county manager, told the board a utility fee is the most practical way to raise predictable revenue and to make the county eligible for additional financing tools such as the state revolving loan fund. Staff estimated a countywide utility could generate roughly $4 million per year under likely rate designs and noted an enterprise fund model would legally restrict spending to stormwater purposes.

Public reaction and equity concerns: more than two hours of public comment followed. Ranchers and residents described repeated flood damage and urged action; others questioned fairness, asked that agricultural lands receive credit or exemption, and demanded strong public oversight. Resident Brett Tibbets read excerpts from public records he said showed staff and outside parties talking about a Barton hospital project “long before the public knew about it,” while Sandy Howard said residents were met with “lies, gaslighting and outright disrespect” after a September storm.

Board action and follow-up: after deliberation the board voted to adopt Resolution 2025-R-102 and to authorize contracting with Financial Consulting Solutions (FCS) to conduct a formation study and an equitable rate analysis. The FCS contract (noted separately by the board) includes GIS parcel work, impervious-area methodologies, public workshops and up to four on-site public meetings and is intended to produce rate options for the board’s public hearings.

What happens next: FCS will work with county staff on a multi-step public process to design rate windows and return to the board with rate options and fiscal policies; staff estimated a draft rate proposal could be presented in March–April and finalized by July 1 to align with the fiscal year. The board emphasized that rates would be set later after public hearings and that the initial action did not set any fee amount.

Quotes from the meeting: Courtney Walker, stormwater manager: “It is not optional. The water quality program is called … the Lake Tahoe TMDL — every jurisdiction around Lake Tahoe must implement these practices.” Brett Tibbets, public commenter: “I submitted this request because it seemed to me there was a backroom deal to approve this hospital long before the public knew about it.” Commissioner Gardner, on his deliberation: “When I ran for office the first time, I signed a pledge that says no new taxes without going to a vote of the people,” explaining his concern even as he supported moving the process forward.

Funding and scope details: staff showed a 5‑year operating projection where current general-fund support remains flat at $1.1 million while operating and capital needs increase; the slide deck referenced a potential $14 million in capital projects (with $1.8 million annual debt service in a sample budget) and an overall capital list on the order of $140 million in the stormwater master plan. Staff also said the county currently has outstanding grant applications totaling roughly $13 million that require a matching contribution of more than $2 million.

Next procedural step: the board authorized the county manager to sign the FCS contract and directed staff to proceed with the public engagement and rate-study process; rate amounts and final program design will return to the board for public hearings and votes.

Ending: The commission’s actions establish the legal and financial path to stand up a stormwater utility; detailed rate proposals and any exemptions or credits will be developed publicly and must be approved in subsequent hearings.