| ITEM #: 3. DATE: 09/15/2025 AI #:2666 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | STORMWATER FEE EVALUATION STRATEGIC PLAN UPDATE |
| STAFF PRESENTER(S): | Jared Askelson, Finance Director; Barbara Chappell, Water Services Director |
Summary
Council will receive an update regarding the potential implementation of a stormwater fee, to be incorporated into the forthcoming utility rate adjustment, currently scheduled to be effective near the start of calendar year 2026. (Jared Askelson, Finance Director; Barbara Chappell, Water Services Director)
FISCAL IMPACT
There is no direct fiscal impact to this item at this time. The General Fund includes $3.0 million budget for stormwater expenditures in fiscal year 2026. Future actions may include the implementation of a new stormwater fee that will result in additional revenue to offset these expenditures.
BACKGROUND AND PREVIOUS ACTIONS
The city's stormwater collection system is designed to protect against flooding and water damage. This system drains into waterways, including the Gila and the Agua Fria Rivers. It is crucial to prevent pollutants from being conveyed into these rivers. Goodyear's Stormwater Pollution Prevention Program exists to ensure that there is "Only Rain in the Storm Drain". The system must be maintained and expanded in line with growth in order to continue effective operations.
During the utility rate study conducted in 2020, a stormwater fee was first proposed to pay for the costs associated with the system. Due to pandemic-related economic uncertainty, the fee was not adopted and was to be reviewed as a part of the next utility rate update.
On November 18, 2024, the City Council adopted the FY2025-2028 Strategic Plan. The plan included an action item to evaluate a stormwater fee to support operations and projects throughout the city. Soon after the plan's adoption, the city began working on a utility rate update. This update included a potential stormwater fee.
On August 20, 2024, the Citizens' Water Advisory Committee reviewed the utility rate update and came to a consensus on recommending a phased implementation of a stormwater fee. The fee would target to reach full recovery of stormwater costs in the fourth year.
During the utility rate study conducted in 2020, a stormwater fee was first proposed to pay for the costs associated with the system. Due to pandemic-related economic uncertainty, the fee was not adopted and was to be reviewed as a part of the next utility rate update.
On November 18, 2024, the City Council adopted the FY2025-2028 Strategic Plan. The plan included an action item to evaluate a stormwater fee to support operations and projects throughout the city. Soon after the plan's adoption, the city began working on a utility rate update. This update included a potential stormwater fee.
On August 20, 2024, the Citizens' Water Advisory Committee reviewed the utility rate update and came to a consensus on recommending a phased implementation of a stormwater fee. The fee would target to reach full recovery of stormwater costs in the fourth year.
STAFF ANALYSIS
The city currently has three utilities that operate as enterprises: Water, Wastewater, and Solid Waste. These enterprises have rates set to ensure that fees are collected to pay for all associated expenditures. The stormwater program includes operation and maintenance of infrastructure as well as capital projects, much like the other utilities, but it is not an enterprise. The General Fund is the current funding source for the stormwater program, as there is no fee. The stormwater program competes with other needs within the General Fund. A stormwater fee will provide a more stable funding source for the program and free up the General Fund for other purposes.