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Drainage fund rates rising; commercial charges could vary widely under study
Summary
Staff told council the drainage fund is in its second year and that residential rates are projected to rise about 8% while commercial charges could increase anywhere from roughly 8% up to 60% depending on impervious-area calculations; staff also proposed a $156,000 transfer to the general fund from drainage under a new cost-allocation plan.
Finance staff and the assistant city manager reviewed the drainage fund's second year of operations and explained rate-setting assumptions for residential and commercial accounts. Terrence Beaman said the drainage fund projections include an 8% residential increase and a variable commercial increase tied to impervious area calculations.
"When we look at the Drainage Revenues, say a residential, they're going up 8% but commercial is a little different. It has a range of about 8% up to about 60%," Beaman said, describing the phased approach to commercial implementation. Staff also said the new cost allocation plan generates a justifiable $156,000 transfer from the drainage fund to the general fund and that drainage maintenance budgets will assume the department is fully staffed moving into FY2027.
Council members asked for clarification about how drainage debt and transfers interact with taxes and rates; staff noted that historical drainage debt was paid by taxpayers and that future studies will inform long-term rate policy.
