Savannah City Council to Vote on Delayed Stormwater Fee

Jan. 20, 2026 – The Savannah City Council is set to vote Thursday on whether to implement a long-planned stormwater utility fee, a proposal city officials say is critical to funding drainage improvements and flood-mitigation projects but one that has drawn heightened scrutiny following recent court rulings on local government fees.

The vote concerns an amendment to the city’s 2026 revenue ordinance that would formally establish a Stormwater Utility Rate Ordinance and authorize the city to begin charging a stormwater user fee starting July 1. The ordinance would create a new “Stormwater Fees” section in the city code, detailing how the fee is calculated, billed, appealed, and enforced.

Savannah laid the groundwork for the fee in December 2024, when council adopted an ordinance creating a Stormwater Utility Enterprise Fund. That move shifted stormwater operations from the city’s general fund into a utility-style enterprise fund, similar to the city’s water and sewer system.

City officials have spent more than a year working with consultants to develop a service delivery plan and financial strategy to support the new utility. City leaders argue the change will provide a stable, dedicated revenue stream for maintaining drainage infrastructure, addressing chronic flooding, and complying with state and federal environmental requirements.

If approved, the ordinance would authorize the city to charge the fee to owners of developed property based on impervious surface area, such as roofs, driveways, and paved surfaces. The ordinance also outlines exemptions, credits, inspection authority, billing procedures, and an appeals process.

Council already adopted a $646 million 2026 budget in December after removing approximately $10 million in projected stormwater fee revenue. City officials said at the time that adopting the budget without the fee provided flexibility while legal and policy questions were still being debated.

Mayor Van Johnson and City Manager Jay Melder have emphasized that removing the revenue from the budget did not end the stormwater utility effort, but rather delayed implementation until council could revisit the ordinance itself.

The upcoming vote comes amid increased concern about the legal risks associated with utility fees following a $30 million court ruling against Chatham County’s now-abandoned fire protection fee. In that case, a judge ruled the county’s fee was an illegal tax, ordering refunds to tens of thousands of residents. Chatham County is now appealing that ruling in Georgia Supreme Court.

Garden City recently agreed to end its own fire protection fee and establish a $1.4 million refund fund to settle a class-action lawsuit, adding to the regional caution around fee-based funding models.

During recent council workshops, City Attorney Bates Lovett warned council members that while Georgia courts have upheld some stormwater fees — including a recent Georgia Supreme Court decision involving Athens-Clarke County — concurring opinions signaled that future courts may scrutinize such programs more closely if they are not carefully designed.

“I’m here to warn you that there’s storms in the area and it’s not all wonderful news,” Lovett told council, urging caution as Savannah moves forward.

City officials have countered that stormwater fees differ from fire fees because they are tied directly to a measurable service and are structured as user fees rather than general taxes. They also argue the fee is more equitable than property taxes because it applies to tax-exempt properties, including churches and nonprofits, that still contribute to runoff and drainage demands.

Council postponed an earlier vote on the ordinance in December to allow additional time for public feedback after acknowledging that years of outreach had generated limited public participation.

Johnson has said feedback could still lead to changes in the ordinance but has also made clear that council will vote on the issue at the Jan. 22 meeting.

Approval of the ordinance would not immediately result in bills being sent. Under the proposed timeline, billing would begin in July, giving the city several more months to monitor ongoing litigation and make adjustments if needed.

Find Thursday’s full agenda at Agenda Plus – January 22, 2026 City Council Regular Meeting

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