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Document1 <br />MEMORANDUM <br />Date:August 7, 2025 <br />To:Mayor and City Council <br />Nicole Miller, City Administrator <br />Clarissa Hadler, Finance Director <br />Marty Powers, Public Works Director <br />From:Nate Stanley, City Engineer <br />Subject:Stormwater Utility Fee – Equitability Review <br />As a part of the City of Lake Elmo’s 2025 Strategic Plan, an assessment of city fees for sewer and water <br />was identified as a goal. One such fee is the Stormwater Utility Fee, which funds various maintenance <br />activities and improvements related to stormwater operations and infrastructure. Some examples of <br />items that could be funded by Stormwater Utility Fee are: <br />Construction and maintenance of stormwater ponds and infiltration systems <br />Construction and maintenance of storm sewer, culverts, or ditches <br />Installation of erosion control measures and groundcover <br />Implementation of the City’s MS4 Program <br />Equipment related to improving runoff quality, such as a street sweeper <br />Per City Ordinance, the Stormwater Utility Fee charged varies based on the type of property with the <br />calculations for differing properties specified in City Code Section 5.16.020. During a desktop review of <br />the City of Lake Elmo’s calculations versus other either neighboring or similar cities around the region, <br />similarities and differences can be seen. The most obvious similarity is the unit charge method that Lake <br />Elmo charges for a single-family residential property regardless of lot size. Most communities seem to <br />charge for residential based on the property type rather than an area calculation and cover type review, <br />which is more common for commercial, industrial, or other larger scale properties. <br />Data was also available regarding charges for various metro area properties. Currently, Lake Elmo’s <br />charge for a single-family property is $7.92/month which is in the middle of the range for the metro area <br />communities listed. From that standpoint it seems that Lake Elmo’s current fee for residential charges is <br />in line with regional averages. Fees for other property types are harder to decipher due to the <br />community’s unique composition of properties. <br />To truly determine equitability a more in-depth review will need to be completed, where impervious <br />surface coverages and stormwater flows from properties are analyzed on a more individual basis, and <br />reviewing how it equates to payment. However, I believe it would also not be prudent to look into a fee <br />adjustment without a proper review of the infrastructure and activities that said fee funds.