March 28, 2024

Stormwater utility resumes

City wants to improve stormwater infrastructure, Hallam still worries about economic conditions

Elected officials have resumed past action to create a stormwater utility in Newton after the COVID-19 pandemic brought the city business matter to halt.

Currently, Newton does not have a stormwater utility. By creating one, the city can establish new revenues to fund expenses and capital projects related to stormwater issues. To do so, city council members must amend city code and add stormwater utility as a standalone chapter.

Stormwater utility meetings have been numerous since the idea was first proposed to the city council years ago. Staff’s interactions with the public about this idea have been positive, with most understanding the need to protect public infrastructure and private property.

Capital projects are needed to fix existing and construct new stormwater infrastructure, city documents said. This utility will allow the city to distribute collected funds for projects such as underground drainage facilities, storm sewers, watercourses, ponds and other facilities related to stormwater management.

With this new utility comes a fee for citizens' residential and non residential properties. Originally, staff proposed the stormwater utility rate — which is not related to the water and/or sewer service charges — would go into effect Oct. 1. Now, the rate will begin on Jan. 1, 2021.

Newton City Council voted 5-1 to approve the first consideration to create a stormwater utility ordinance, which has remained a council goal for a number of years. Councilman Mark Hallam, the lone dissenting vote, still worried about the economic conditions of implementing a new utility rate.

“I understand the goals of the stormwater utility, and I think that we have broad agreement that a stormwater utility would be beneficial to the community,” Hallam said. “And there’s a certain logic to in going ahead and setting up an administrative structure for such a fee at this point in time.

“But my concern is, given the concern of the economic conditions due to the reaction to COVID-19, I question whether or not Jan. 1, 2021, is a good time to increase fees on citizens and increase the costs of doing business in Newton.”

Councilman Craig Trotter said he would like to get the stormwater utility created now. The city council can always decide whether to start the fees later on, he argued. Hallam played with the idea the city set the fee at $0 for now. The city attorney said that is possible, but recommended an amount like $1 or 1 cent.

Councilman Steve Mullan added, “One of our main obligations as a city council is to take care of our infrastructure. This is just one move to take care of that task that we are assigned to do. There’s never a good time to do anything. So whether we delay or not, who know what happens on Jan. 1. I think we just need to get this started.”

Hallam agreed but argued the structure needs to be set up, and he felt “quite strongly” the fee should be set at zero. Newton Public Works Director Jody Rhone cautioned this approach, noting there are associated costs to implementing the stormwater utility.

“I would hate to go backwards and taking more revenue from either Road Use Tax or some other funding source just to implement this ordinance,” Rhone said.

Hallam later said the council should revisit the item entirely in six month, eventually motioning to table the agenda item, but it failed to pass.

How the utility fee works

Newton News previously reported any property, lot, land parcel, building or premises considered a “tributary” directly or indirectly to the stormwater system of the city is subject to a fee. This fee is based on the quantity of impervious area near the system. Or, simply, areas that do not allow water to pass through.

If the stormwater utility action passes, all impervious area properties will be assigned what is called an equivalent residential unit (ERU) or a multiple thereof. City staff have different charge calculations assigned to almost every type of property affected by the stormwater utility. Each property uses an ERU base rate.

The ERU base rate was originally intended to be $5. The new ERU base rate decreased to $3 for 2021, and it will increase to $4, $5, $7 and $9 each subsequent year until 2025.

Single-family homes in Newton, for instance, will pay 100 percent of one ERU rate per month, or $3 per month. Multi-family properties would be set at one ERU times the number of residential units for the first 20 units, plus 50 percent ERU rate for each unit after the first 20 units until a maximum of 60 is met.

Agricultural, commercial, industrial and exempt properties will have their own ERU rate calculations, too.

Undeveloped property, public streets, alleyways, highways and railroad tracks are exempt from the utility service fees. Railroad stations, maintenance buildings or other developed land used for railroad purposes shall not be exempt.

If stormwater utility payment is not met by the deadline, the ordinance says water service may be discontinued “in the same manner provided by the rules and regulations of the water department” in the case of delinquent water bills.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com