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Staff recommends 50% stormwater fee increase to accelerate repairs and projects

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Summary

City staff told the Castle Pines City Council on July 22 that doubling down on capital funding through a 50% increase in the stormwater utility fee would fund identified projects by about 2034; council asked staff to return with options for accelerating high-risk repairs and better communications to residents.

The Castle Pines City Council heard a staff recommendation on July 22 to raise the city's stormwater utility fee by 50% starting in 2026 to speed work on worn and failing drainage infrastructure.

Joe Marencic, the city's stormwater program and utilities manager, said the increase would generate roughly $390,000 a year in additional capital funding and bring the list of identified projects to completion by about 2034. "So staff recommendation is a 50% increase in the stormwater utility fee starting in 2026 to fund stormwater capital needs through 2034," Marencic said during the study session.

Marencic told council the enterprise was formed in 2022 after the city assumed stormwater responsibilities previously handled by the Castle Pines North Metro District and that a combination of aging infrastructure, newly examined open space and recent wildfire mitigation work had revealed projects not previously accounted for. At current rates — $105 per year — staff estimated the list of projects would not be funded until the 2040s.

Several council members pressed staff on fairness and optics for long-term residents who paid metro-district fees that, they said, did not result in planned work. One council member observed that residents "paid stormwater fees in taxes to CPNMD" for years and warned it could appear as though residents were being asked to "pay double" for unresolved maintenance. Staff said planning and design work could begin before full funding but acknowledged the city could not say precisely when individual erosion features would cause property damage.

Council did not vote on a rate change at the session but directed staff to return with alternative scenarios, including options to accelerate high-risk projects using general fund resources or phased increases; staff also flagged legal constraints for enterprise funds under TABOR and said they would consult the city attorney about possible temporary financing approaches and communication plans to explain impacts to residents.