TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
FROM: Sheila Thomas-Ambat, Public Services Director
DATE: April 7, 2025
RE:
Title
Stormwater Impervious Area Analysis & Tiered Rate Study
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 3: High Quality Built Environment
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
With the adoption of the FY24 budget, Council appropriated stormwater enterprise funds to go towards an impervious area analysis and tiered utility rate study. The goal of the project was to evaluate the current utility rate structure and develop recommendations for a tiered rate structure that was fair and equitable, would generate sufficient revenue to support program goals, and mimic a rate structure that is comparable to other North Carolina Phase 1 MS4 communities.
New impervious area data will be used moving forward to accurately assess fees to non-residential properties to address lost revenue.
Staff is also seeking Council consensus to provide guidance on which tiered structure, if any, to move forward with developing for FY26. There is no proposed rate increase per ERU, however depending on the tiered structure selected, varying increases in revenue may be realized by the equitable billing of residential properties.
This is a preliminary update to Council from the consultant. The final report will be forthcoming, however, staff wanted to provide preliminary findings that may influence upcoming budgetary decisions.
Background:
The City of Fayetteville implemented its stormwater utility in 1995. Residential property owners are billed a ?at rate for one (1) residential unit, and non-residential billing is based on equivalent residential units (ERUs). Each ERU is de?ned as 2,266 square feet of impervious area and ERU billings are updated based on customer inquiries and regular updates by the County Tax Assessor. Th...
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