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Johns Creek staff propose billing fixes, limited waivers and MCI-based increases for stormwater utility
Summary
City staff asked the council to approve redlined ordinance edits to clarify billing (postmarks accepted), allow staff to waive penalties in certain circumstances, define "orphan property" for assessment discretion, and consider both a one-time catch-up increase and an annual inflation index tied to the Municipal Cost Index.
Assistant City Manager Kate Love told the council the proposed redline changes would make three practical fixes: accept postmarks as proof of timely payment, allow staff to waive interest and penalties when payment failures are demonstrably not the customer's fault, and create an "orphan property" definition that allows the city to decline assessment when no owner of record can be identified.
"If it is postmarked by the due date, or electronically received, then it would be considered on time," Love said, summarizing the billing clarification. She added the waiver language would give staff flexibility when the payment problem clearly results from a mailing or system error rather than customer misconduct.
Love also briefed the council on the utility's rate history and an inflationary proposal. The equivalent residential unit (ERU) in Johns Creek is 4,000 square feet; the most common rate remains $5.75 per month (roughly $69 per year). Staff reported the Municipal Cost Index has risen about 15% since the utility's 2021 inception, and a catch-up increase tied to the August 2025 MCI would raise the average annual bill to about $79.93 (a $10.33 annual increase) and generate roughly $473,000 for the utility.
Several council members said they supported cleaning up the ordinance language and improving customer service but asked for additional information before endorsing a rate increase. One councilor urged staff to produce a multi-year roadmap showing what capital and maintenance projects have been completed and what remains, so the public can see where additional revenue would be invested. "I would like to understand where do we go from here ... a snapshot today and then the next 3 to 5 years," a council member said.
Staff said they can compile a projects list separating repairs and maintenance from larger capital projects and return in January with the 10-year financial model and comparisons of indices (MCI, CPI, construction cost index) to help the council choose an appropriate benchmark.
The council agreed to move the ordinance redline changes forward to enable billing improvements and customer-service flexibility, while the catch-up increase and the automatic inflationary index were deferred for further information and discussion in January. Council members noted the city previously funded stormwater work with general-fund supplements and a $250,000 Stormwater Grant Program that produced 13 eligible projects from 42 applications.
The staff follow-up requested by council includes a project-level accounting of what has been completed under the 10-year program, a comparison of inflation indices, and a clearer revenue plan showing how rate changes map to capital milestones. The council did not adopt a final rate change at the work session.
