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Raleigh proposes 25-cent monthly stormwater fee increase and new development review charges
Summary
Stormwater staff proposed a $0.25/month increase to the single-family-equivalent rate (to about $8.47) and new development-review fees (a $1,500 stormwater review fee and $50/acre charge) to improve cost recovery; the Stormwater Management Advisory Commission endorsed the plan 9–0.
Wayne Miles, Stormwater Program Manager, presented the proposed FY27 Stormwater Enterprise budget to Raleigh Council, framing it around the city—ffort to become a "Sponge City" that better absorbs stormwater and improves flood resilience.
Miles said the city currently charges $8.22 per single-family-equivalent unit per month and is proposing a $0.25 monthly increase (a roughly 3% change) that the department—stimates would bring the median residential monthly bill to about $8.47 and generate roughly $45 million in revenue for FY27 under the department—orecast.
"That is using our rate model; it's projected to generate about $45 million of revenue for FY27 once implemented," Miles said, adding the department believes the fee is in the middle of peer cities in the region.
Key fee changes: Miles described new development-review charges intended to recover staff costs for plan review and inspections. Proposals include a $1,500 stormwater review fee for projects requiring site permitting, a $50-per-acre review charge for large projects, modest increases to base permit fees with a per-disturbed-acre component, and a reduction in fees for a "simple flood study" review (from $1,484 down to $250) to better align fees with review effort. Examples shown in the presentation indicated higher total permit fees for larger commercial and subdivision projects under the new model.
Miles said the Stormwater Management Advisory Commission unanimously endorsed the package (9–0). He said the department is also expanding green stormwater infrastructure maintenance crews and highlighted programs such as a rain-garden apprenticeship and the Rainwater Rewards cost-share program (currently about 9.9% cost share).
Council questions focused on staffing and equity. One council member asked whether higher review fees would increase pressure to hire more plan reviewers or raise expectations for faster turnarounds. Miles said the office closely tracks on-time permit reviews (reporting over 95% on-time performance in recent years) and said the fee changes are primarily to achieve better cost recovery rather than to expand plan-review staff immediately. Another member asked how fee increases might affect affordable housing projects; Miles replied that as an enterprise fund the program must treat customers consistently and that any fee breaks for affordable housing would require separate subsidy sources.
On delivery speed and capacity, Miles said more funding would increase delivery but it is not only a money question: the department is testing alternative delivery models (construction manager at risk and design-build) and hiring consultants to accelerate project delivery while reducing strain on internal staff.
Next steps: staff said billing testing and targeted customer notification for large accounts will precede any implementation and that the proposal will be finalized as part of the FY27 budget adoption. Miles asked for council direction and offered to return with additional details if requested.
