This is What the New Stormwater Fee Will Fund Following Split Vote

Budget documents show staffing, equipment, and neighborhood drainage projects would be early priorities

Jan. 25, 2026 – The Savannah City Council voted 5-4 to approve a stormwater utility rate ordinance during their Jan. 22 meeting after extensive debate, establishing what officials say is a needed dedicated revenue source for stormwater infrastructure maintenance and improvements.

“It’s a fee, it’s an F-word, I get it,” said Alderman Nick Palumbo ahead of the vote. “But it’s an investment that I’m willing to make, that I’m going to make, and I know that our community needs to make.”

The 2026 budget year will serve as a transition year, with many drainage projects still funded through existing sources while stormwater utility revenue begins in July. City officials have said the utility is expected to play a larger and more explicit role in funding drainage projects in future budgets.

The 2026 budget for drainage ditch maintenance is nearly doubled, and the stormwater fee revenue supports more than $2 million allocated for 17 new positions, technology, and vehicle equipment including two vacuum trucks and operating crews to address high-demand community drainage.

The 2026 capital plan includes $1.4 million in stormwater fee revenue for $2.25 million in neighborhood drainage projects, with the remainder funded through existing sources such as SPLOST and the general fund.

“We have these localized flooding issues that sometimes take a hundred thousand, two hundred thousand, a million dollars in order to repair,” said City Manager Jay Melder. “And this is what this utility is really designed to address.”

The budget lists the following drainage projects for 2026:

Cedar Grove Plantation Drive Canal Improvements – $200,000
Evergreen Drainage Improvements – $200,000
Forsyth Park Field Drainage Survey & Design – $150,000
Liberty Parkway & Staley Avenue Culvert Replacement – $350,000
Louisville & Lathrop Avenue Drainage Improvements – $250,000
Possum Canal Improvements – $250,000
Storm Sewer Rehabilitation (Citywide) – $850,000

City officials estimate total stormwater capital needs of roughly $465 million. The stormwater utility fee is intended to provide a stable, recurring revenue source to help address those needs over time, while reducing reliance on the general fund for stormwater services. Unlike SPLOST funds, which can only be used for capital projects, the stormwater fee revenue can support ongoing operations and maintenance.

The proposal faced opposition from some faith leaders representing multiple ministerial alliances. Pastor Andre Osborne, who said he represented about 80 churches across three organizations, said that the fee would fall hardest on struggling families already choosing between basic necessities

“Savannah’s been given much and our tax digest is growing,” Osborne said. “Our city is prospering, but with that blessing comes responsibility to ensure that the prosperity reaches all of the residents and in our humble opinion, the stormwater fee we’re considering will fall hardest on those who can least afford it.”

However, some community members supported the measure. Glenda Jones, president of the Liberty City Neighborhood Association, acknowledged her dislike of any new fees but emphasized the necessity given flooding problems in her neighborhood, stating she would pay approximately $12.53 monthly to help address flooding issues.

“That’s a small price for me to pay to help my neighbor on Champion Street who has to park his car on Liberty Parkway when there’s a heavy rain because it floods at his house,” Jones said.

This screenshot from the Jan. 22 meeting shows the city council votes for and against the stormwater utility fee.

After almost two hours of discussion, Mayor Van Johnson joined council members Kurtis Purtee, Detric Leggett, Nick Palumbo and Linda Wilder-Bryan in approving the fee. Council members Alicia Miller Blakely, Bernette Lanier, Estella Shabazz and Carol Bell voted against the motion.

“A stormwater drainage fee is inequitable in essence because it’s a fee just like any other tax,” Lanier said.

The vote came after the council previously approved in an 8-1 vote the creation of a stormwater utility enterprise fund in December 2024 – with Lanier voting no – and established an advisory committee with members nominated by each council member. Staff then conducted multiple public meetings between November 2024 and the January vote to gather community input.

As a result of those meetings, the ordinance includes provisions for a community equity program to ensure all communities benefit from the fee and maintains the advisory committee structure for ongoing project recommendations. City Manager Melder also committed to working with a nonprofit organization to establish a utility hardship fund for residents who cannot afford the fee.

Johnson also said the council had reduced the property tax rate in anticipation of the fee, noting that fee-based funding ensures all properties contribute, including tax-exempt entities that don’t pay property taxes. The fee, Johnson added, would eventually generate about $8 million annually, with residents paying about $2 million while tax-exempt properties such as the Savannah College of Art and Design and warehouses would contribute the remaining $6 million.

“The reality is, nothing improves until we make a significant sustained investment in our stormwater,” he said. “So this is part of the work, being up here making hard decisions.”

For typical households, the fee ranges from $4-5 per month, with the exact amount based on impervious surface area on each property, according to city officials.

The fee’s approval 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.

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.

If you find value in this website, please consider contributing above or via Paypal to help cover the costs. You can also send contributions via Venmo @Savannah_Agenda. Your support, no matter how much you give, is appreciated and will help ensure the future viability of this community resource. You can also show your support by subscribing below and sharing Savannah Agenda with others via email or social media. Increasing readership is critical to the long-term success of this site.