Johnston To Consider Stormwater Utility Rate Increase

JOHNSTON, IA — A proposed rate change for the city's stormwater utility would increase the per-unit cost by almost one-third since the utility was created in 2012. The Johnston City Council will consider raising the rate from its current $5.55 to $6.05 as of July 1, 2018.

The rate adjustment would add $70,000 in revenue to the utility in 2018-19, according to information the city provided to council members. Costs are examined annually to ensure projects and expenses remain accurate and that high priority projects are being addressed, the council's information said.

The utility was created with an equivalent residential unit (ERU) rate of $4.55. Increases that have been approved in the past include a hike to $5.05 per ERU on July 1, 201, and to $5.55 per ERU on July 1, 2016. The funding model developed for that rate increase identified a likely increase of 50 cents per ERU every other year.

Residential customers are charged no more than four ERU's per month, for a maximum increase of $24 yearly for a residential property. Commercial customers have a cap of 40 ERU's per month, which limits the increase to $240 per year.

A committee comprised of the mayor and two council members recommends approval of the rate increase as well as creating a part-time or temporary intern position to complete an audit of the ERU calculations, to be followed up by a review of the utility ordinance and policy requirements.

City council information indicates approximately 90 percent of the revenue is used for construction of stormwater -related infrastructure projects. To date, 10 projects with an investment of $7 million have been completed; three projects scheduled for winter and spring have an investment of $2,325,000.

The city's capital improvement plan lists 13 more projects with a collective $9.6 million in needed improvements. The city also has approved $9,682 in homeowner grants since July 2016 that led to $26,395 worth of water quality improvements on residential properties.

The council will consider the stormwater utility rate increase when it meets at 7 tonight at City Hall, 6221 Merle Hay Road.