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After hours of debate, Lake Elmo council opts to keep current stormwater fee method and tighten appeal rules
Summary
Staff recommended keeping Lake Elmo’s current unit‑based stormwater fee for now but offered options (tiering or impervious‑area billing). Council debated equity between small lots and large or commercial parcels, asked staff to clarify appeal and credit processes, and directed staff to return with tightened standards rather than immediate rate methodology changes.
City staff presented a detailed review of the stormwater utility ordinance and three possible methods for calculating fees: an expanded residential equivalency factor, direct impervious‑area measurement and an ERU (residential equivalent unit) approach. Staff concluded the current unit‑based structure is "straightforward, widely accepted and generally defensible," but acknowledged Lake Elmo’s wide range of lot sizes can produce equity concerns.
Tim Wilson (principal engineer) and staff showed sample impervious percentages across land‑use types and estimated a professional study to refine rates would cost roughly $25,000–$35,000 and take several months. Staff noted the city currently offers credits for on‑site stormwater BMPs but pointed out the existing ordinance lacks robust periodic inspection requirements and that credits are ongoing unless an administrative mechanism were added.
Council members debated whether the city should move to a tiered residential system or measure impervious area per parcel. Council member Dragosic highlighted downtown commercial parcels that are 100% impervious and pay less than a small residential lot under the current structure, calling that outcome "not equity in my mind." Other council members urged caution, noting a full impervious‑area billing approach is administratively intensive and could introduce different inequities. Several members proposed compromise: adopt a small set of residential tiers (for example three tiers by lot size) combined with a base fee and tightened credit/appeal application standards.
After discussion staff recommended standing pat with the current methodology for now, tighten the appeals/credit procedures and return with options and any required ordinance revisions and cost estimates if the council decides a study or change is warranted.
