Stormwater Utility Fees

June 22, 2015
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Cities and counties using a fee-based system to pay for a stormwater program have a multitude of ways to set up the rate structure and determine fees. A stormwater utility might set a single flat fee for all residential properties and another for all commercial properties, or base the fees for commercial and industrial properties on land-use type, or set all fees according to the amount of impervious area on a given parcel of land.

In Jefferson County, AL, county commissioners are considering the unusual step of completely eliminating the stormwater fee for commercial and business properties—but not for residential properties—for one year. A county official explained that the commercial fee is no longer compliant with new state law but would likely be reinstated next year, possibly with a new fee structure.

Cities and counties using a fee-based system to pay for a stormwater program have a multitude of ways to set up the rate structure and determine fees. A stormwater utility might set a single flat fee for all residential properties and another for all commercial properties, or base the fees for commercial and industrial properties on land-use type, or set all fees according to the amount of impervious area on a given parcel of land. In Jefferson County, AL, county commissioners are considering the unusual step of completely eliminating the stormwater fee for commercial and business properties—but not for residential properties—for one year. A county official explained that the commercial fee is no longer compliant with new state law but would likely be reinstated next year, possibly with a new fee structure. [text_ad] Currently, commercial properties in unincorporated areas of the county pay $15 and residential properties $5. According to the county’s website, the fee has been added to the yearly property tax bill. The county estimates that eliminating fees for commercial properties would reduce revenue by $270,000. Forester Media’s white paper “Stormwater Funding: Successfully Establishing a Stormwater Management Utility” (available for download here ) discusses various rate structures and options for utility fees

Currently, commercial properties in unincorporated areas of the county pay $15 and residential properties $5. According to the county’s website, the fee has been added to the yearly property tax bill. The county estimates that eliminating fees for commercial properties would reduce revenue by $270,000.

Forester Media’s white paper “Stormwater Funding: Successfully Establishing a Stormwater Management Utility” (available for download here ) discusses various rate structures and options for utility fees

About the Author

Janice Kaspersen

Janice Kaspersen is the former editor of Erosion Control and Stormwater magazines.