Final stormwater fee vote looming
After passing two rounds of voting, Lenoir City
Council is poised to make a final decision Monday on implementation
of a stormwater utility fee.
The fee, which is set at $3 per month for residential
property and a more expensive sliding scale for non-residential, has
been hit with criticism and labeled a “rain tax” by some in the
community.
Lenoir City is classified as a Phase II municipal
separate storm sewer system (MS4) by the Tennessee Department of
Environment and Conservation.
That designation requires Lenoir City “to obtain
coverage under a stormwater discharge permit and implement a set of
programs to manage the quality of stormwater runoff from the storm
sewer systems,” Kim Schofinski, deputy communications director for
TDEC, said in an email correspondence.
In order to be compliant with those requirements,
municipalities with the Phase II MS4 designation must meet six
“minimal control measures.”
Schofinski said those measures include:
Conduct public education and outreach to inform
residents about the impact polluted stormwater runoff can have on
water quality.
Provide opportunities for residents to participate in
program development and implementation, including effectively
publicizing public hearings and/or encourage resident representation
on a management panel.
Develop and implement a plan to detect and eliminate
illicit discharges to the storm sewer system.
Develop, implement and enforce an erosion and
sediment control program for construction activities that disturb
one or more acres.
Develop, implement and enforce a program to address
discharges of post-construction stormwater runoff from new
development and redevelopment areas.
Develop and implement a program with the goal of
preventing or reducing pollutant runoff from municipal operations,
which must include municipal staff training on pollution prevention
measures and techniques.
Amber Scott, city administrator, estimated the cost
of implementing those six measures from the 2016-17 budget at
$300,000-450,000.
“That’s including the money that we spend to TDR
industrial services every year to come and vacuum the system, also
the money we spend to camera the system and record it and also the
money that we spend sweeping our streets, cleaning them,” Scott
said. “The work of the street department basically.
Anything that we do to keep foreign materials from our storm system.”
If the proposed stormwater fee is passed, it would
bring in about $500,000 in revenues, which Scott previously said
would help with a backlog of projects related to stormwater costs.
“Some of the backlog is simply planning for
infrastructure upgrades,” she said. “We have infrastructure in the
center of town that is over 100 years old. The back log would be us
planning for that. With that extra money, which you — because it’s
going to be earmarked. When you make a stormwater fee budget it’s
earmarked for that purpose. It doesn’t go back into the general
fund. So we’re going to be able to do a capital improvements plan to
upgrade that infrastructure that’s in the ground to meet the needs
of the future.”
But the majority of the money linked to stormwater
management in Lenoir City is related to wages and salary. The
$350,000-$400,000 estimate from Scott includes money spent from “the
Codes Enforcement/Building Office and Street Department” budgets.
The only line item in the budget specifically for
stormwater is $35,000 for the codes enforcement office.
Making up the majority of the $350,000-$400,000
estimated cost is stormwater manager Greg Buckner’s full salary, 50
percent of the salary for both the city planner and codes
enforcement officer and 50 percent of the wages for the street
department.
Wages for the street department totaled more than
$540,000 in the 2016-17 budget, with about $270,000 falling under
stormwater costs.
“The law provides that fees can be utilized in that
way, as well, for positions that are related to this effort,” Scott
said.
Fee or a tax?
The state does require Lenoir City to cover the costs
associated with meeting the six measures related to stormwater, but
it does not dictate how.
“Of course certain people can twist it and say it
however they want to say it, but at this time we’re choosing to
implement a fee to fund it,” Scott said.
“That’s how we’re choosing to do it. We could do a tax increase, we could fund it with a fee or we could just continue to fund it the way we have been. These are the choices. Or don’t do it and get fined $25,000 a day.”
Scott provided a list of 16 Tennessee cities that
implement a stormwater utility fee of some kind that were looked
into by Lenoir City when considering a possible fee, the closest
being Maryville and Alcoa.
“City of Knoxville did a tax increase in lieu of
doing a fee,” Scott said, adding that Lenoir City chose to pursue a
fee because it was “more equitable.”
“If you look at the comparison between the tax
increase and the fee, a fee is a more equitable way of doing
things,” she said. “If it’s a tax you’re really only getting your
business owners and your residents. You can’t get your schools and
you can’t get your churches because they’re exempt from property
taxes. So even though they’re putting into the system, they’re not
having to contribute anything toward it.
“The other item would be that when you have a tax
increase, all of that is going to be lumped into the general fund,”
Scott added. “When you have a fee set aside, a special fee like
this, it’s earmarked just for that purpose. … It’s not redistributed
out.”
While the money brought in from the fee will be
earmarked, the fee does free up at least the previously estimated
$350,000-$400,000, in essence providing the city the same benefits
as a tax increase. Scott did not provide specific details about how
that money would be used but did point to some possible departments
that could see a boost.
“A budget is just a piece of paper,” she said. “When
you look at that $350,000, it’s going to be funding other projects
in the city. It’s going to be freed up to go to the police
department, to go to the fire department, to go to all the various
departments in the city that’s been feeding this other one. We
haven’t had a tax increase in years, so we’ve been having to spread
our money really thin to make it go farther.
“So it frees that money up to other departments,”
Scott added. “We’ve had shortages in the police department. We
haven’t bought vehicles since 2011. Our vehicles are starting to
break down, so we’re going to be using money for that. We had
about a seven-person shortage in the roster. There’s a fire
department roster shortage. So we’re trying to fill in some of
those gaps where we’ve been holding back the past few years.”
Businesses, non-profits
The cost of the proposed fee is significantly
higher for non-residential property than for residential, with
the lowest cost for a commercial property starting at $25 per
month, or about eight times that of a residential property.
Cost for non-residential property is based on
“impervious square footage,” or the square footage of the roof
and paved or gravel areas of a property. Grass is not included
in the measurement.
Scott does not believe the fee would deter any
future businesses from entering Lenoir City.
“A lot of business, a lot of your big box
businesses that move in that are your franchises and chains,
they expect it,” Scott said. “That’s one of their first
questions is do you have a stormwater utility fee? How much is
it if you do? They’re used to paying it in other places. We’re
probably one of the last cities that are under this mandate that
have implemented a fee of some sort. Ours is quite a bit lower
when you look at the comparison of some other cities.
“... Your downtown businesses, 95 percent of them
will be $25 a month,” she added. “I would even go so far as to
say 98 percent of them will be $25 a month. Think about how
small those stores all. It’s your roof plus your impervious
pavement.”
Some non-residential property representatives
have expressed concern. Lenoir City Schools Superintendent
Jeanne Barker attended city council’s special called meeting
June 5 to voice concerns, as did several church representatives.
Barker estimated the cost for Lenoir City Schools
at about $14,000 during the Lenoir City Board of Education’s
June meeting.
Jason Vance, Loudon County director of schools,
said he also plans to send a letter in opposition of the fee,
calling it a “burden” on the school system.
The Rev. Ernie Varner of Sixth Avenue Church of
God called the fee “unfair” during council’s June 5 meeting.
Varner referenced a $400-$500 monthly charge for
the church but was later informed that Sixth Avenue COG would
pay around $100 per month. Even so, he is standing by his
previous stance.
“I think churches should be exempt and other
non-profits,” Varner said. “I think it’s a slippery slope when
you start adding fees to them. They say it’s not a tax, but it
feels like a tax. … I just think the status of non-profits
should be respected.”
Varner believes the city has not communicated
effectively with the public the need for the fee.
“I don’t think they’ve communicated with everyone
enough,” he said. “I also really don’t think any of the meetings
should have been during the day. I think they should be at a
time when everybody could be there. I still don’t understand why
one of the meetings (June 5) was at 1 o’clock during the day.
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6/26/17