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Tell City council authorizes professional review of proposed stormwater fee changes
Summary
After councilors flagged calculation errors and fairness concerns with proposed stormwater fee changes, Tell City authorized staff to contact Baker Tilly for a professional rate study to validate assumptions and help draft a defensible ordinance.
Tell City council on June 1 voted to authorize the mayor or the mayor’s designee to contact Baker Tilly to obtain a professional stormwater rate study after members raised questions about the fairness of proposed fee changes and errors in the city’s revenue spreadsheet.
Council member discussion began when members, reviewing proposed adjustments, questioned why churches and certain municipal properties appeared exempt from stormwater charges and whether the current calculation methods properly account for who contributes stormwater to the city’s system. City attorney Jeff said he had begun drafting ordinance language but lacked reliable data tying particular commercial properties to the storm system and cautioned a poorly targeted ordinance would be vulnerable to legal challenge. He recommended additional study before adopting major rate changes.
Members also identified a spreadsheet error that appeared to add an extra amount in several columns and likely overstated projected revenue by roughly $20,000. That numerical discrepancy, combined with unanswered questions about which properties contribute runoff, prompted councilors to favor bringing in a consultant with experience in municipal utility rate studies.
The council made a motion to authorize contact with Baker Tilly; the motion was moved by Philip, seconded by Larry, and carried by voice vote. Council members said the intent is to correct calculation mistakes, test assumptions about exempt properties, and propose an equitable structure that staff and the attorney can implement confidently and that would withstand review by the state board of accounts.
City staff and the attorney were instructed to proceed with obtaining a scope and price and return with a draft scope and schedule. The city emphasized the study would use the work already completed by staff as a starting point but would validate methodology and recommend changes.
Next steps: staff will obtain a price and scope from the consultant and present the draft engagement and any proposed ordinance language for council review at a future meeting.
