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The city of Onalaska could become one of the many Wisconsin communities to establish a stormwater utility, and the public is invited to learn about how the utility would work at a July 1 public education session.
If approved by the Common Council, a utility would be established in 2010.
The state is requiring municipalities to reduce pollution flowing into storm sewers before it reaches rivers, lakes and streams. These costs include capital outlays for infrastructure that captures stormwater run-off, delaying its entry into streams.
During the delay, pollutants dissipate or turn into harmless, organic chemicals or can be properly disposed of in a safe manner.
The costs also include ongoing monitoring and management activities.
The city has estimated it will cost more than $4 million to implement these mandates between now and 2013, a state-imposed deadline. However, city officials believe the deadline is unrealistic and are instead projecting the mandates might be reached by 2018. By that time, the costs will subject to inflation, estimated at 5 percent to 10 percent per year.
Currently, taxpayers are paying for stormwater management practices through property taxes, but, due to state revenue caps limiting what the city can levy in taxes, that source is inadequate to finance existing needs along with the newer, mandated practices.
With the costs currently being paid from the general fund, the city has competing interests: pay for the mandated improvements or make other expenditures such as hiring police officers or buying a new fire truck.
The city can’t borrow the money to pay for the improvements without hurting the city’s good credit rating.
Yet, if taken out of the tax base, a stormwater utility might result in a reduction of the mill rate.
To examine funding alternatives, the city gathered a task force consisting of elected city officials and representatives of businesses, developers, the school district and hospitals. The task force has determined, reluctantly, a stormwater utility is the way to go. They are reluctant to have residents, businesses and nonprofits pay yet another bill, especially during a recession.
Under the task force proposal, property owners would be charged a rate of $80 per Estimated Run-off Units each year. ERUs are determined by the lot size and the amount of impervious surface area where rain and snow melt runs off into the stormwater system. A typical Onalaska residential lot has one ERU.
Despite its challenges, the task force deemed a stormwater utility is a more equitable way to spread the costs of stormwater run-off. Through property taxes, residential property owners are paying the lion’s share of stormwater costs. Instead of calculating taxes based on the assessed value of a home or building, a utility charge is based on how much impervious area exists on a property. Therefore, larger buildings with large roofs and parking lots have more impervious area and will share more of the burden.
Impervious area is any surface on a property that is not soil or water. It includes driveways, sidewalks, rooftops and parking lots.
Some property owners will see an increase in what they are charged: it will just come as a separate bill from the utility and not be included in the tax bill.
Nonprofit organizations — such as churches, and governmental agencies including schools — would suffer the greatest financial impact of a stormwater utility. They currently pay no property taxes yet they have very large impervious areas. The amount due from school district of Onalaska would go from zero dollars to $26,536 next year, according to the rate structure and fee recommended by the task force.
In a draft memo to task force members, Director of Finance Larry Dalton, who was a member of the task force, said, “… funding any stormwater utility fees would cause a decrease in spending elsewhere in the public education budget.” The district, he said, would have to take some of the revenue taxpayers approved in a referendum to ease the funding challenges of another governmental body because there is no way to fund the additional expenditure. This additional expense is on top of the reduction in state aid being proposed in the state budget.
Onalaska city government also is in a bind. The utility would charge the city using the same rate structure for impervious areas. The city would pass that cost on to citizens via the tax levy. In effect, citizens would pay twice, once for their own share to the utility and an additional amount to pay for city government’s share through property taxes. The city would pass on the costs in the same manner as it already passes on its water usage based on metered readings.
Giese said the amount would be miniscule. Nevertheless, the revenue the city collects would be counted in the state imposed revenue cap.
The village of Holmen implemented a stormwater utility in 2007 and has billed itself and paid the utility. The revenue to pay the village’s fees comes from property taxes. The village charges $44 per ERU.
The town of Onalaska implemented a stormwater utility in 2005, charging $24 per ERU.
AT A GLANCEWHAT: Two presentations about a proposed stormwater utility
WHEN: 4:30 p.m. and 6 p.m. Wednesday, July 1
WHERE: Onalaska Council Chambers
Hearing set on roundabout planOnalaska residents will have an opportunity to have a say on issues that affect local transportation for the next 30 years or more. The city of Onalaska and the Wisconsin Department of Transportation will hold a public information meeting at 4 p.m. June 30 at Onalaska City Hall.
The meeting includes an overview of the project and discussion of installing a roundabout or a signalized intersection at Riders Club Road and Sand Lake Road. In addition, an off-road bike path is proposed from Redwood Street to Hwy. S, adjacent to Sand Lake Road.
After the presentation, participants will be able to provide feedback to be taken into consideration prior to the design being completed.
For more information about the meeting, call Jarrod Holter at 781-9537.
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