What Should Tab Be for Those That Damage Environment Most? Marion Storm Water Utility Rate

Marion adopted a new rate structure for storm water utility rates to comply with state and federal guidelines. The intent is to more equitably spread fees to producers of storm water run-off.

The city is still trying to decide what to do about certain accounts.

Below are the options from the City of Marion Engineering Department. Read more in the attached Engineering Department project newsletter, which is attached to the article.

Editor's note: The newsletter may not be viewable on a mobile device, so come back to see when you are at your computer.

City staff have proposed the following options to City Council for non-residential accounts with a monthly fee greater than $133.71.

• Option 1 proposes a modified fee schedule that would provide an Account Rate Cap equal to the Cedar Rapids Maximum Rate of $133.71 per month.
  • Account Rate Cap would remain in place for an undetermined time period.
• Option 2 proposes a modified fee schedule that would provide an account rate cap considered comparable to the Cedar Rapids Maximum Rate.
  • Account Rate Cap would be reviewed the on a regular basis to determine whether the maximum fee remains comparable to the Cedar Rapids SWU maximum fee.
• Option 3 would provide for an annual increase to the current $1.55 per ERU fee while providing a fixed $3.25 account fee.
  • The ERU fee increase would result in an adjustment back to a fee structure more representative of the actual storm water generation rates between the residential and non-residential users.
  • The approved ordinance rate structure generates approximately $912,000, $489,000 by account (12,550), and $423,000 by ERU (272,903).
  • A 3% increase in the ERU (equivalent rate unit) fee would generate approximately an additional $12,690 annually.
• Option 4 proposes a modified charge calculation that would include a first year Account Rate Cap of $133.71 per month.
  • Include a 20% increase to the Account Rate Cap annually to transition accounts back to their actual user fee.
  • In year one all parcels would benefit from the Account Rate Cap and result in a total annual benefit to the users and a revenue loss to the Utility, of approximately $35,000.
  • In years 2 through 12 user accounts would transition from the Account Rate Cap to an actual ERU fee and revenue losses would decrease approximately $4,500 annually. (see example)
  • By year 13 all benefitted accounts would be at their actual fee per the current rates of $1.55 per www.cityofmarion.org ERU and $3.25 per account. The revenue loss for the City over these 13 years would be approximately $178,000.
  • The associated calculations do not take into effect any fee increases during the 13 years.