Commission hears $2.28M stormwater funding gap; staff proposes EIT increase, millage or dedicated fund

Staff presented a detailed stormwater budget analysis and said the fund faces a projected funding gap of about $2,280,000 for 2027. The presenter reported that the stormwater billing base is 15,156 equivalent dwelling units (EDUs) and summarized operating (curb replacement, three annual street sweeps, maintenance) and capital needs (new pipe, lining, CCTV) that drive the gap.

On revenue options, staff estimated a 0.05 percentage-point increase to the earned-income tax (EIT) would produce roughly $760,000 in the first year with a fuller realization in the following year (projected cumulative receipts around $1.075M). "If you increased .05%...we would expect around $760,000 in 2027 and about $315,000 the following year," staff said. For property tax, staff calculated that funding the full gap exclusively by real-estate tax would require approximately 0.85 mills, using a July taxable assessment of about $2.746 billion; staff provided median-assessed-value examples to show household impacts.

Staff also described a dedicated stormwater millage as an option that would place receipts in a special revenue fund with annual reporting and limited flexibility for other uses. Commissioners raised equity concerns (some residents do not pay EIT), the need to notify payroll providers early for any EIT change, and the desire to protect stormwater dollars from reallocation. Several commissioners signaled support for a dedicated fund and for using a mix of EIT, millage and fund balances while staff refines budget timing and implementation logistics. No tax change was adopted; commissioners requested additional analysis and a decision in advance of the 2027 budget cycle.