No formal action will be taken at this work session, but staff is seeking feedback on the proposed change to move the storm fee to the utility bill.

Staff is proposing that the storm fee be moved from an annual assessment on the property tax statement to a monthly charge on the utility bill.  The primary benefits of this change are an increase in transparency, more efficient operations, and a decrease in required storm reserves, which results in significant cost savings and lower rates.  Staff will discuss the responses to previous concerns about the change expressed by Council and community members.

Staff presented the proposed change to the Budget and Finance Committee on December 13, 2023.  The Committee recommended approval with two modifications.  The committee requested that the public hearing for the ordinance change be moved from April to January/February and the public outreach also be moved up.  Staff agreed that we can have the ordinance revisions necessary for this billing change ready in January, 2024 and do a second ordinance amendment later, if necessary.  Public outreach will also be moved up to correspond to this schedule change.

Chapter 22 of the Billings, Montana City Code (BMCC) describes the rate methodology and billing mechanism for storm fees.  If Council is in general agreement that staff should bring back the ordinance changes necessary to move the storm fee to the utility bill, staff will present the ordinance changes and schedule a public hearing at the January 22, 2024 business meeting.  The changes to Chapter 22 will primarily address the proposed change to move the storm fee to the utility bill.  However, staff will also propose a change from specifying the methodology as utilizing zoning and square footage to instead be set per resolution by Council.  

This is a work session, so no formal action may be taken at this time.

There are no fiscal effects for this presentation.