Staff recommends that City Council conduct a public hearing and approve the proposed resolution setting storm sewer fees for FY26.

Storm sewer system fees are established annually by resolution and are billed monthly as part of utility charges. The fees are determined based on impervious surface area and the Equivalent Residential Unit (ERU). The average residential property has a calculated ERU of 3,751.22 square feet. Each developed single-family residential property is assessed at 1.0 ERU.  Duplex properties are rated at 0.75 ERUs per unit and undeveloped properties are assigned 0.75 ERUs.  For all other properties, the ERU is determined by dividing the measured impervious surface area by 3,751.22. 

The storm sewer system represents a critical infrastructure asset valued at $1 billion. In the previous year, the City Council approved a seven-year plan aimed at enhancing service levels and addressing capital and deferred maintenance backlogs more efficiently. The proposed rate adjustment for Fiscal Year 2026 is the second in this gradual seven-year increase, supporting proactive maintenance of the storm sewer system. Staff recommends raising the monthly rate from $6.68 per ERU to $8.81 per ERU.

City Council must hold a public hearing and then may:

• Approve the recommended resolution; or,
• Approve an amended resolution; or,
• Not approve a resolution. If Council does not approve a resolution, an amended resolution to establish storm sewer fees will need to be considered at a future City Council meeting to establish rates for fiscal year 2026.

The proposed storm sewer fees will increase the average residential property's monthly fee by $2.13 from $6.68 to $8.81.  The fees will generate approximately $9,500,000 in FY26, an increase from the prior year of $2,300,000.