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Bayport approves engineering study to create stormwater utility; firm to be paid $26,250

Bayport City Council · September 9, 2024
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Summary

Council approved a $26,250 contract with SE (engineering) to analyze and design a stormwater utility to fund stormwater-related operations and capital; staff said the utility will allow non-taxed entities to contribute and would be billed on utility accounts.

The Bayport City Council voted on Sept. 9 to accept a $26,250 proposal from SE for engineering services to develop a stormwater utility study and supporting materials.

Staff explained the utility would be an enterprise fund separate from the general fund and could be used to charge properties that do not pay property taxes — such as churches, schools and the state prison — for stormwater infrastructure and operations. The study will determine a residential-equivalency unit (REU) metric, evaluate roughly 70–80 nonresidential city parcels for impervious area, review the city’s financial management plan to set fee levels, and build a database to support billing and future updates. Staff said the initial engineering cost will be advanced by the city and repaid from the new utility once revenues begin.

Council discussed equity concerns and billing logistics; staff said fees would generally be added to the water utility bill for customers already receiving water service and the study will identify how to bill properties not on the water system. After a motion, council approved the SE proposal by unanimous roll-call vote.

The study is the next step toward creating a legally defensible rate structure and ordinance required by state statute; staff will return with the study results and a draft ordinance if the analysis supports establishing the utility.