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City staff proposes ERU‑based nonresidential stormwater fees with expanded credits for nonprofits
Summary
Annapolis staff proposed shifting nonresidential stormwater billing to an ERU (2,100 sq ft) basis, which would raise revenue and increase fees for the largest properties, paired with an expanded fee‑reduction program and an alternative compliance path for tax‑exempt institutions.
City stormwater staff presented a two‑part proposal March 12 to recalibrate nonresidential stormwater fees and to expand the fee‑reduction program for properties that implement or support stormwater management.
Mike Rosberg, stormwater program manager in Public Works, summarized the recommended fee structure change from the current tiered model to an Equivalent Residential Unit (ERU) basis, with the ERU defined for Annapolis as 2,100 square feet of impervious area. "An ERU is ... the median impervious area of a single‑family detached house," Rosberg said, and staff used 2,100 sq ft for the city. He told the committee the proposed nonresidential change would raise overall stormwater revenue by about 26% and shift more of the cost burden onto the largest impervious‑area properties; in examples shown a 21,000‑square‑foot impervious site would be treated as roughly 10 ERUs and face a substantially larger quarterly bill under the ERU method.
To avoid unduly penalizing churches, nonprofits and other tax‑exempt organizations, staff proposed concurrently expanding the fee‑reduction program. Under state‑approved practice rules, practice‑based credits would remain available up to 50%. Rosberg also proposed an "alternative compliance path" for nonresidential tax‑exempt entities and a limited hardship option: organizations could combine approved on‑site practices with outreach and "green care" activities (landscape management, tree preservation, education/cleanups) for additional reductions. "In theory you could get a 100% fee reduction; you'd have to be treating 100% of your impervious area," Rosberg said, noting the latter would be difficult to accomplish in practice.
Committee members pressed staff on administrative capacity, data validation and an anticipated increase in appeals if billing moves to a measured basis. Staff estimated a recurring administrative need of roughly 1.5 FTE to manage records, appeals and program administration and recommended piloting the ERU conversion on nonresidential accounts first while building a public lookup/viewer and outreach process. The administration plans to draft a nonresidential rate amendment for the finance committee, include a technical assistance or 100‑day waiver period at rollout, and engage consultants (Stantec) to vet rates before committee review.
The committee broadly supported further analysis and a staged approach: move toward an ERU model for nonresidential properties while expanding and simplifying the fee‑reduction program to incentivize on‑site stormwater practices and community outreach.
