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Midland council approves drainage-fee increase, pledges audit and review after public objections

City of Midland City Council · January 27, 2026
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Summary

On a 6–1 vote the Midland City Council advanced a revised drainage-fee ordinance after staff presented multi‑decade backlog estimates and a funding plan; residents called the fee regressive and some threatened legal action, and council members asked for audits and targeted relief to return in 12 months.

The Midland City Council approved a second‑reading motion on proposed changes to the city’s municipal drainage utility code after a lengthy presentation on infrastructure needs and an hour of public comment and council debate.

Staff said the city faces decades‑old maintenance needs, listing roughly $135 million in identified drainage and street projects over a 10‑year horizon and estimating up to $200 million over 20 years. Since implementation in 2017 the stormwater utility has collected about $17.3 million; staff estimated the proposed rate change would generate about $7.3 million and said drainage revenues are held in a segregated utility fund.

The most contentious point in public comment came from Sam Smith (4903 Granite Lane), who said the smallest residential tier would jump from $1.20 to $2.94 monthly and argued the fee would disproportionately harm retirees and low‑income households. "This isn't a fair fee for a service you choose to benefit from directly," Smith said, calling the increase "taxation without representation" and warning the city that similar schemes have faced court challenges in Texas.

Staff answered questions about how the fee would interact with recent work tied to new Midland Independent School District projects. A staff presentation said the two school‑related infrastructure projects totaled about $28.5 million; the district was required under code to provide $4.0 million and negotiated additional payments that reduced the city’s remaining obligation to roughly $13.5 million. Staff said those $13.5 million would be paid from the drainage fee in three annual installments due January 2027, 2028 and 2029.

Council members pressed staff to ensure strict accounting and auditability. One council member said an audit of receipts and uses should be completed and returned to council in 12 months. Another asked staff to explore exemptions or relief for elderly and disabled residents. The mayor and staff emphasized that engineers will apportion drainage‑eligible portions of multi‑component projects and that existing accounting separates drainage funds from other enterprise funds.

After debate the council recorded a final vote carrying 6–1 to advance the ordinance. Council members said they expect staff to complete the requested audits and bring back options to reduce impacts where feasible; staff also agreed to continue community outreach and to supply the attorney general or other legal guidance referenced by public commenters.

The ordinance is effective as provided in the city code; council members said they will revisit fee implementation details and audit results at a future meeting.