Proposed stormwater fees would hurt businesses

By Tamra L. Mitchell

----

The Gazette's May 20 editorial regarding stormwater fees under consideration in Cedar Rapids and Marion explained the environmental aspects of the issue well. I will address some of the fiscal ramifications.

A year ago, my family's businesses, which provide affordable housing to more than 600 residents in Eagle Ridge Community, received a letter from the City of Marion informing us our stormwater fees were being increased from $42 per year to more than $18,000 per year under a new ERU (equivalent resident unit)-based plan.

We were dismayed by this amount, not only because of the huge increase, but also because we have taken several measures to manage stormwater runoff and have maintained them at no cost to the city. When my father, Jim Dyer, constructed Eagle Ridge Community, he installed a detention basin, waterways, berms and drains, giving up valuable commercial ground to do so. He voluntarily invested $100,000 in stormwater management because he recognized its importance. These measures not only met existing city standards, but exceeded them.

These measures have proved very effective. In recent years, stormwater covered the bridge and came within a few feet of our community. Had we not constructed additional capacity for our basin, which retained water for several days, our community and nearby businesses and roadways would have flooded.

Now, the city is proposing an ordinance creating a stormwater utility funded by ERU-based fees that would give the city almost a million dollars per year from taxpayers, nearly doubling current stormwater revenue.

Under this plan, every property owner will have to pay what amounts to another tax - this “fee” never goes away and can be raised at any time - all at the same time as the large increase in property taxes coming our way due to recent assessment increases.

This is a double whammy to all, but especially to commercial property owners taxed at 100 percent of their property value. Many commercial property owners can't handle more taxes like this and remain in business.

The desire for improved stormwater management must be balanced against today's economic climate to create a system that achieves environmental goals in a fiscally responsible manner.

We have been told the main reason for selecting an ERU-based system is it shows regulators the city is taking steps to meet future regulatory requirements. However, there is no federal or state law mandating that an ERU-based system be used. In fact, a DNR representative recently told city officials that the DNR does not care how the city funds its stormwater projects and meets regulatory requirements.

Moreover, regulatory requirements are a moving target. We have recently learned that the U.S. Environmental Protection Agency has had a change in philosophy since my father invested $100,000 in stormwater management. Under the proposed credit criteria, our measures are worth nothing under the ERU-based plan and most commercial properties in Marion constructed more than two years ago will not qualify for any credits whatsoever because regulatory requirements have changed.

It is imperative that the proposed ordinance be amended before it is passed so that the ordinance's credit problem can be rectified. Commercial property owners who spend thousands of dollars adopting measures to mitigate stormwater runoff - measures that have proved to be effective in preventing flooding - should receive reasonable credits for their efforts.

The third reading of the ordinance is set for June 21 at City Hall. If approved by City Council, the ordinance will become law.

Please contact council members before this meeting if you have concerns about an increase in your stormwater fees.

Tamra L. Mitchell, a Marion attorney, is legal counsel for her family's businesses, TKJ Limited, L.C. and Eagle Ridge, L.C. Comments: jpmitch@infionline.net.