​Have you seen a stormwater fee on your city utility bill and wondered what it was and why you were paying it?

Stormwater fees are charges that municipalities impose on property owners to fund the management of stormwater runoff. These fees are essential for maintaining and improving the infrastructure that handles rainwater and melted snow, ensuring that such water is effectively collected, treated, and discharged. This infrastructure includes storm drains, pipes, and detention basins, all designed to prevent flooding, erosion, and water pollution.​

Purpose and Utilization of Stormwater Fees

The primary purpose of stormwater fees is to provide a stable and dedicated funding source for stormwater management programs. These programs encompass a range of activities, including:​

• Infrastructure Maintenance and Upgrades: Regular upkeep and enhancement of stormwater systems to ensure they function effectively and comply with environmental regulations.
  
• Pollution Control Measures: Implementing strategies to reduce pollutants carried by stormwater into natural water bodies, thereby protecting water quality.​
  
• Flood Prevention Projects: Developing and maintaining structures that mitigate flood risks in vulnerable areas.​
  
• Public Education and Outreach: Informing the community about best practices for reducing stormwater pollution and encouraging environmentally friendly behaviors.​
  

By allocating funds to these areas, municipalities aim to address both the immediate and long-term challenges associated with stormwater management. ​

Calculation of Stormwater Fees

Stormwater fees are typically calculated based on the amount of impervious surface area on a property. Impervious surfaces, such as rooftops, driveways, and parking lots, prevent water from infiltrating the ground, leading to increased runoff. The rationale is that properties with larger impervious areas contribute more to stormwater runoff and thus should bear a proportionate share of the management costs. ​

Municipalities employ various methods to assess these fees:​

• Flat Fee: A uniform charge applied to all properties, regardless of size or impervious area.
  
• Tiered Fee Structure: Properties are categorized into tiers based on their impervious surface area, with each tier assigned a specific fee.​
  
• Equivalent Residential Unit (ERU): A standard measurement representing the average impervious area of a single-family home. Fees for other property types are calculated in multiples of the ERU.​
  

For example, in San Antonio, Texas, the residential stormwater utility fee is structured as follows:

• Tier 1: Properties with impervious area ≤ 2,750 sq. ft. are charged $3.75 per month.
• Tier 2: Properties with impervious area between 2,751 and 4,220 sq. ft. are charged $4.94 per month.​
• Tier 3: Properties with impervious area > 4,220 sq. ft. are charged $10.45 per month.

Public Perception and Controversies

The implementation of stormwater fees has elicited varied responses from constituents. While many acknowledge the necessity of funding stormwater management, concerns often arise regarding the fairness and transparency of the fee structures. Some property owners view these fees as an additional tax burden, especially if they are unaware of how the funds are used. Effective public education and clear communication about the benefits and necessity of these fees are crucial in addressing such concerns. ​

In Maryland, for instance, the stormwater fee was locally called the “rain tax,” leading to significant public outcry and political debates. The controversy centered around perceptions of double taxation and the equitable distribution of the fees. Eventually, the state revised the mandate, allowing jurisdictions more flexibility in how they fund stormwater management. 

Average Cost of Stormwater Fees

The cost of stormwater fees varies widely across municipalities, influenced by factors such as local infrastructure needs, environmental regulations, and the chosen fee structure. Generally, these fees are modest compared to other utility charges. Studies have shown that stormwater utility fees typically comprise no more than 2% of the median household income, indicating their relatively small financial impact on most households. 

For example, in Lewisville, Texas, single-family residential properties pay a flat rate of $6 per month for stormwater services. Similarly, in The Colony, Texas, each residential single-family unit is charged $4.00 per month. ​

In Conclusion

Stormwater fees play a critical role in enabling municipalities to manage runoff effectively, thereby preventing flooding, reducing pollution, and ensuring compliance with environmental regulations. While the introduction of these fees can be contentious, transparent communication and equitable fee structures can help with public support. As urban areas continue to grow, the importance of sustainable and well-funded stormwater management systems will only become more evident.