Council authorizes staff to pursue stormwater utility fee after survey shows 42.9% support for $7.72 rate

The Monterey City Council on Jan. 28 authorized staff to begin the process to adopt a stormwater utility fee after a consultant presented community survey results that showed 42.9% support for a benchmark $7.72 per month single‑family rate.

Andrew Easterling, Deputy Public Works Director and City Engineer, told the council the fee study and community survey were developed to help address a structural budget gap and that the city faces a tight timeline if it wants to place a parcel ballot on the county tax roll (an Aug. 1 deadline for the county tax roll was cited). "If we miss it, this pushes us back at least a year," Easterling said.

Consultant Chris Kolter (SCI Consulting Group) said staff mailed 4,100 surveys to Monterey property owners, received a return rate of just over 20% (roughly 1,000 responses) and reported a margin of error of about 2.93%. The $7.72/month benchmark rate (about $92.64 per year) generated 42.9% support—short of the 50% threshold required for approval under a one‑vote‑per‑parcel process. "The survey results do not show enough support for a stormwater fee at $7.72 per month," Kolter said.

Kolter and staff emphasized the composition of the responses: the community rated operations and maintenance priorities—such as cleaning drains before storms and preventing trash from entering drains—higher than large capital projects. Kolter said the $7.72 fee would largely fund operations and maintenance (O&M) and regulatory compliance; staff said major capital projects are funded mainly by Measure P/S sales tax revenues.

Council members asked whether failing to adopt a dedicated fee would force cuts to services or require use of the general fund. Easterling said the city would continue required regulatory work but would finance it from the general fund if a dedicated stormwater utility fund is not established; that could create budget pressure. He also explained the Prop 218 process: a mailed parcel ballot with a protest hearing expected in May if staff proceeds.

After questions and public comment, a councilmember moved to direct staff to prepare ballot measure language and initiate the fee‑adoption process; the motion was seconded and passed unanimously.

Staff said next steps include developing ballot language, conducting required notice and protest hearings, and returning to the council with final rate study results and public‑hearing outcomes before any fee adoption vote.