By Eric Curl
May 5, 2024 – The city is resurrecting a plan to maintain drainage infrastructure by implementing a stormwater utility fee after the idea was seemingly abandoned about five years ago.
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The age of the city’s infrastructure exceeds 100 years in many cases and maintenance needs are extensive, according to a request for proposals issued last week, and the fee is being considered to meet those needs.
City officials consider the potential fee more equitable than a tax increase because a property’s value is not well correlated with stormwater runoff and infrastructure needs, according to a staff memo issued to City Manager Jay Melder in late December. In addition, many properties that generate stormwater runoff and receive associated city services are not subject to property tax, the memo notes.
The program is expected to take at least 24 months to successfully set up and implement, with the city potentially initiating the public education and outreach component of the plan this year.
The RFP comes after a contracted consultant conducted a stormwater utility feasibility study in 2018. The idea was abandoned after the 2018 implementation and subsequent rescinding six months later of a fire services fee that drew wide community opposition. Interest among city officials in the potential stormwater funding method has since been rekindled and staff updated the previous study last year to reflect changes to land use and the city’s stormwater management plan.
Currently, the city’s stormwater maintenance operations are funded primarily by property taxes, while a majority of the new capital projects are funded by the Special Purpose Local Option Sales Tax (SPLOST). Under a future stormwater fee program, the city’s maintenance program would be funded with the new revenue source, while a majority of capital drainage projects would continue relying on SPLOST funds, so those costs would not be a part of the initial billing rate.
The amount charged would be based on the amount of impervious area on the parcel and the amount of runoff the property generates, according to the RFP. City staff is recommending that the fee be added to utility bills as the method for obtaining payments.
If adopted, Savannah would be joining other Georgia cities in implementing such a fee, including Garden City, Hinesville and Richmond Hill.
Editor’s note: On May 14, a city spokesperson issued the following statement in regards to the potential fee:
“The City of Savannah is evaluating all available tools to ensure stormwater drainage issues are addressed in the most comprehensive and equitable manner for the citizens and businesses within the City. This includes applying for Federal Grants, utilization of SPLOST Funds, General Fund Appropriations as well as examining the potential implementation of a Stormwater Utility. In order to effectively address historic drainage issues including increased maintenance requirements for the City’s aging and expanding drainage system, and future issues related to climate change, the City believes that measures should be taken now to assess the viability of a dedicated stormwater management related funding source that is fair and equitable to the City’s utility customers. Before any measure like the Stormwater Utility concept would be considered by City Council or implemented, a significant public engagement effort would be undertaken to disseminate key information and to garner feedback from the community.”
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It’s about time the city did something to start charging SCAD for the municipal services they use. I fully support the Stormwater utility fee as an add on to utility billing as long as there are no exceptions based on not for profit status. SCAD and all users of the system should pay based on the impervious square footage of the property they own because that area generates an amount of stormwater runoff without regard to their not for profit status. If the funds are needed for system maintenance all users should pay.