BERLIN – Town officials discussed the need for stormwater fee increases to fund further improvements this week.
During Monday’s meeting of the town council, officials discussed the stormwater improvements still needed in Berlin and the cost of funding those improvements. Mayor Gee Williams said stormwater fees would need to increase going forward.
“Between now and the end of the year we need to make some decisions,” he said. “We’ll know the economic environment we’re in much better by fall.”
Darl Kolar of EA Engineering, Science and Technology outlined the nearly $3 million in stormwater projects the town has completed since its stormwater utility was created in 2013. Though the town collects stormwater fees paid by residents and businesses, grants funded many of the improvements made so far. Kolar said additional improvements, totaling $3.7 million, were still needed in Berlin.
Williams said that in order to continue to get grants to help with upcoming stormwater projects, the town would have to raise its stormwater fees.
“We’ve got some big projects ahead of us and we’re going to have to put up our fair share,” he said.
Councilman Zack Tyndall pointed out the stormwater utility was not meeting revenue projections since the commercial fee approved was less than the one initially recommended.
“I think there was a lot more fear when this was implemented,” Williams said.
He stressed that the town in 2021 would need to raise rates to generate more income because agencies wouldn’t provide grants to municipalities that couldn’t put up some money themselves. He added that even once the town’s major stormwater projects were complete, an annual charge would still be needed to allow for maintenance costs.
In his presentation, Kolar said stormwater revenue was $169,550 while expenses totaled $129,550, leaving $40,000 in available capital funds. He said doubling the residential stormwater fee, which is currently $50, would bring the town an additional $75,200 in revenue. He said that as far as increasing the non-residential fee, there were various options. He said increasing the $25 per equivalent residential unit (ERU) fee that businesses paid would bring in an additional $41,000. Raising the fee to $40 per ERU for non-residences would generate an additional $61,500.
Tyndall said the fees approved in 2013 had been adjusted because the town recognized the burden on businesses.
“I think we have to weigh the same economic hardship on the residential customer,” he said.
Williams said the numbers could all be adjusted.
“We can’t get those projects without our share going up,” he said. “This is a beginning.”
