Storm water fee to be added to water bills

 Red Oak citizens can expect to see an extra fee on their water bills in coming months. 

The Red Oak city council will soon vote on a proposed storm water utility. The fee will be used to pay for anything storm water related, including a current project to recertify the levee. 

“What we are talking about is the possible adoption of a storm-water utility, which establishes a storm water utility district. It is proposed that district would encompass the entire city,” City Administrator Brad Wright said. “The city is facing some large expenses when it comes to dealing with storm water, including the flood aspects and the levee. Obviously, taxes struggle to keep up and provide the revenue we need to pay for those facilities and those services, so that’s why we’re looking at this as an option.”

The amount to be charged has yet to be determined by the council; however, the council has looked at Clarinda’s storm water utility as a model. Clarinda currently charges $2 a month for residential properties, $6 for commercial and $10 for industrial. 

Wright said he and the council understand this project will cost taxpayers money; however, it is a requirement by the federal government. The administrator said adding this fee will be better than raising taxes and using a different source to fund the necessary project. 

“Admittedly, I understand and the council understands fully that anything we do here is costing the taxpayers dollars, whether it’s on their taxes, whether it’s a fee on their utility bill and we’re very cognizant of that fact,” Wright said. “However, we are being faced with some expenses that we are being required to do.”

The city is in the early stages of the levee recertification process. Wright estimates that the paperwork alone will cost around  $200,000. He said if problems are found and construction is necessary, the cost could go exponentially higher. 

“What is yet unknown is whether or not we will have to take on construction and improvements to the levee,” Wright said. “That may be raising the levee, that may be extending the levee on one end or the other, it may be removal of things that are interfering with the levee, there’s infinite amount of things that they may come up with that require the city to spend money to improve it. The city only has so many options on how to do that. You can sell bonds, you can do different things, all of which cost the taxpayers dollars one way or another, unfortunately.  So, we believe the storm water utility is a good, potential option for us.”

Wright said cities around the state have used a storm water utility as an option to pay for expenses. 

Although the fees Red Oak intends to use are not yet in place, Wright said the fees could increase or decrease at any time at the discretion of the council.

“[We’re still working on] developing where to set those fees initially with the known and projected expenses that we have at this time,” Wright said. “Whether or not that would have to go up at some point if we took on a project or if we get to a point where that can be reduced. Obviously, those can be changed as needed. But it’s trying to get the tool in place [and] trying to get something that’s not terribly painful for the customers that allows the city to do what we’re required to do.”

Although the fee amount has not been discussed, a few key points have been. The utility will be a flat fee, not percentage-based. Commercial properties will be charged more than residential due to size. Every water meter will be charged, but if a multi-plex residence operates on one meter, the meter will be charged with how many living units are using it. 

Wright also wanted to be sure that citizens understand this utility can be used for several projects within the city, all storm-water related. 

“We talk a lot because the biggest financial fear or financial obligation we’re struggling with is the levee, but this also will and can be used for anything relative to storm water,” Wright said.

He said not only will the revenue stream assist in the cost of the levee recertification, but also allow the city to make improvements to storm sewer drains and inlets and open drainage ways throughout the community. 

Wright is currently drafting an ordinance to bring before the council. He said the council will most likely vote on it within the next two meetings.