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Council debates 40¢ drainage fee hike as staff warns fund will go negative
Summary
Councilmembers and staff debated whether to raise Highland Village's drainage utility fee from $1.80 to $2.20 per 1,000 sq ft to avoid a projected FY2027 deficit; alternatives including smaller annual increases were discussed and the matter will return for ordinance action and further modeling.
Staff presented a proposed 40-cent increase to the city's drainage utility rate, saying the fund risks a negative balance next fiscal year. "Currently the drainage fee is $1.80 per 1,000," said the staff presenter (Staff member, S2). "A 40¢ increase would bring it to $2.20 per 1,000 and raise the average monthly residential bill from about $7.67 to $9.07."
Councilmembers pushed back on scale and timing. One councilmember (Committee member, S3) recommended smaller, predictable adjustments: "Maybe the compromise is a 15¢ hike each year for the next 4 years," the member said, arguing a phased approach could smooth impacts for residents. Another (Committee member, S4) argued that a single larger increase avoids repeated voter consternation: "Pull up the band aid now," they said, noting a larger one-time increase could limit repeated rate requests.
Staff said projections show the 40¢ increase would sustain the fund through 2031 under current assumptions but cautioned that projections vary by maintenance schedules, storm events and capital projects. Staff noted ordinance action is required to change the fee and that the utility-fund discussion will resume at the council's next budget session on Aug. 11. The council did not adopt a rate at the meeting; members requested more modeling of phased increases, resident impacts and nonresident revenue options before taking a vote.
