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Bill to require voter approval for some stormwater fees draws split testimony at Select Water Committee
Summary
A draft bill that would require municipalities to hold elections before collecting some surface-water drainage fees prompted extensive testimony from city officials, municipal associations, the University of Wyoming and residents, exposing legal ambiguity over whether fees are taxes and whether Title 15 or Title 16 controls.
The Select Water Committee heard hours of testimony on Feb. 2 for a draft bill (26LSO289) that would require municipalities to hold an election under the Surface Water Drainage Utility Act (Title 16) before collecting fees, costs or taxes for diversion or management of surface-water runoff unless the electorate approves financing by another means.
Sponsor and LSO explanation: Josh Anderson (LSO) and Senator Crum told the committee the draft aims to resolve ambiguity between Title 15 (municipal authority to establish/manage drainage and set rates) and Title 16 (the Surface Water Drainage Utility Act, which includes an election requirement for creating a surface-water utility). The draft directs municipalities that adopted fee-collection ordinances before July 1, 2026, to hold an election no later than July 1, 2027; if electors do not approve the financing mechanism, the municipality would cease collecting the disputed fees within 60 days.
Municipal testimony: Ashley Harpstreet, executive director of the Wyoming Association of Municipalities, and several municipal officials argued cities need flexible, enterprise-based user fees to maintain and operate stormwater systems, which in many communities are substantial capital systems requiring ongoing maintenance and dedicated funds. Mayor Patrick Collins of Cheyenne and Todd Feazer, Laramie’s city manager, described maintenance backlogs, large capital needs and models they say are enterprise fees rather than taxes; Cheyenne estimated an average homeowner cost of about $6.67 per month under their program, while Laramie described revised caps and an average residential cost of roughly $10.09 per month after changes to their ordinance.
Opposition and legal concerns: Patrick Crank, representing the University of Wyoming, and other witnesses urged the committee to retain the Title 16 election requirement. Crank outlined legislative history going back to the 1995 Surface Water Drainage Utility Act, efforts to amend Title 16 that failed in prior interims, and the 2020 Title 15 amendment that added language permitting municipal management and rate-setting for stormwater. He argued the 2020 change to Title 15 did not, and cannot constitutionally, override Title 16’s explicit election requirement; in UW’s view the Laramie ordinance may amount to a tax on the university (not a user fee) and thus raises constitutional and statutory issues. He recommended the draft be adopted so affected communities must obtain voter approval or stop collections.
Public testimony: Business owners and residents from Laramie testified that the fee assessments felt unfair or were poorly publicized; examples included a salvage yard owner who said an initial Laramie assessment exceeded $800 a month and concerns that exempt entities (railroads, state-owned property) would not pay comparable amounts. Planning and legal experts (e.g., Sharon Buccino) urged the committee to take the bill to interim for study to avoid unintended consequences, warning the draft could blur the distinction between user fees, taxes and bond-funded debt and could inadvertently hamper municipal flexibility.
Committee response and next steps: Committee members probed statutory language and practical impacts (including on small towns), asked whether the bill as written accomplishes its goals, and requested LSO and proponents produce clarified language. One suggested rewording would explicitly say "diversion or management of surface-water runoff may only be financed after an election required by 16-10-105" to reduce ambiguity. The committee recessed for lunch and agreed to continue testimony and ask LSO to draft clarifying amendments for consideration after the break.
Why it matters: The draft would change the decision path for municipal stormwater finance across Wyoming, with potential fiscal effects for taxpayers, universities and exempt entities and with pending lawsuits in Laramie and Cheyenne already contesting whether current ordinances are fees or taxes.
