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Murrysville council approves Keystone Collections for stormwater billing but pauses collections after state court ruling
Summary
Council approved Keystone Collections as the municipality's stormwater-fee billing vendor but members and staff said recent Pennsylvania court rulings that characterize stormwater fees as a tax create legal uncertainty and prompted tabling the stormwater-credit manual.
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Murrysville council approved Keystone Collections as the stormwater-fee billing-service provider on May 6, even as municipal staff warned that a recent state court action has created legal uncertainty over the collection of stormwater fees.
Municipal staff described the court action as an affirmation of a 2023 Commonwealth Court decision, noting "the decision essentially indicated that they are a tax, not a fee." Staff said this change had produced confusion about how the municipality should proceed and that it is likely the borough will pause any stormwater-fee collection procedures until legal clarification is received. Despite that, staff still recommended approving a billing vendor so work is in place should collection proceed; council approved Keystone Collections by voice vote.
Council then considered the stormwater-credit manual (resolution 818-26) but decided to table that item for further review given the recent legal developments and the need for additional council review. One council member said the manual should be reread in light of the new legal position; another pointed out that Keystone provided rates for a three-year window, which favors locking in favorable terms now while legal questions are resolved.
What passed and what was tabled: the council approved the billing-provider contract (Keystone Collections) but tabled resolution 818-26 (stormwater-credit manual) for further consideration.
Next steps: legal staff and administration will review implications of the state supreme-court action and advise council on how to proceed with collection, ordinance language and any required changes to the manual; staff will not initiate billing operations until legal questions are resolved.

