Friends Support Stormwater Referendum

Stormwater is water that originates during precipitation events, but the term may also be used to apply to water that originates with snowmelt that enters the stormwater system. Most runoff comes from impervious surfaces (roofs, driveways, sidewalks, etc.).

A Stormwater Utility provides a service to the public and is supported by charging fees to its customers (just like utilities for gas, electricity, and water). Middleton’s Stormwater Utility was established in 2014 and its services include stormwater drainage, water quality management, flood damage prevention, and erosion and sediment control.

When Middleton voters approved the creation of the city’s Stormwater Utility in 2014, the utility charged customers an annual fee of up to $15 per equivalent runoff unit (ERU); a typical single-family home is equivalent to one ERU. In 2018, voters approved a referendum that raised the fee to $45/ERU/year from 2019 to 2024 to help pay for repairs to the Pheasant Branch Creek Corridor, Tiedeman Pond, Stricker Pond, and other areas damaged by the August 2018 flood. However, both funding levels (neither of which was based on a rate study) have proven to be inadequate for current maintenance and future management of stormwater projects in the city, according to a rate study prepared for the Stormwater Utility Board this year. Climate change is creating conditions that produce stronger, more frequent storms, and coupled with the continued growth of the City of Middleton, the city needs to invest much more than it currently does on building and maintaining stormwater management facilities and operating a comprehensive stormwater management program. Fully funding the stormwater management program will result in cleaner water and improved flood protection for Middleton residents.

Stormwater Utility fees are based on the amount of impervious area on a property (includes roofs, sidewalks, driveways, and the like). Residential units are charged one equivalent runoff unit per dwelling structure on the property, meaning a single-family homeowner is likely responsible for only one ERU (their house). Middleton’s average impervious area of a single-family home is calculated to be 2,880 square feet per ERU. Comparatively, multi-family units and non-residential properties like schools, businesses, and churches are charged for a multiple number of ERUs based on their measured total impervious area.

The Friends strongly supports the City of Middleton in its stormwater management activities. A “yes” vote on the referendum would:

• Increase the ecological value of Pheasant Branch Conservancy, improve water quality in the surrounding watershed, and help address flooding issues in the city
• More equitably distribute the cost of funding stormwater management projects in the city via the Stormwater Utility fee, as opposed to using property taxes, which fall largely on homeowners
• Create a more stable and predictable revenue source to allow the city to improve and provide preventative maintenance to the stormwater system
• Keep the city in compliance with federal and state water pollution permits and regulations

The referendum will be on the ballot for City of Middleton residents for the 2024 fall general election (Election Day is Tuesday, November 5).

“Under state law, the increase in the levy of the City of Middleton for the tax to be imposed for the next fiscal year, 2025, is limited to 1% (based on the city’s best estimate), which results in a levy of $21,181,184. Shall the City of Middleton be allowed to charge customers of the Stormwater Utility a quarterly charge per equivalent runoff unit that is adequate to fund the City’s stormwater management program and to maintain compliance with State and Federal regulations without reducing the City of Middleton’s levy limit in 2025 and thereafter?”

A YES vote supports the new fee (which would be $92/ERU/year (ie. $23/ERU/quarter starting January 1, 2025), which would adequately fund the city’s Stormwater Utility. Future rate changes would be subject to approval by the Common Council. A NO vote means that you do not support the increase and would mean the Stormwater Utility fee would revert to $15/ERU/year and that all costs not covered by this fee will continue to be paid for with property tax revenue.

The Stormwater Utility fee would increase to $92/ERU/year (a typical single-family home is equivalent to one ERU) and would appear as a $23/ERU quarterly charge on utility bills—that’s less than two large iced coffees a month at Starbucks. Business owners and other non-residential property owners would likely pay a larger fee based on the amount of impervious surface on their properties. If the referendum does not pass, the Stormwater Utility fee would go back down to $15/ERU/year starting in January, which is drastically insufficient to meet the city’s current and future stormwater management needs, according to the city’s recent rate study.

If the referendum passes, the annual fee would still be one of the lowest in Dane County.

Adequately funding the stormwater utility would allow the city to:

• Catch up on maintenance and improvements to many facilities around Middleton, including the South Fork South Pond, Confluence Pond, Misty Valley Stormwater Facilities, Middleton Hills Ponds, and Spring Hill Pond
• Inspect and investigate compliance of private facilities with the city’s stormwater management plan
• Improve street sweeping operations and increase frequency of fall leaf collection (both of which factor into stormwater runoff issues)
• Increase staffing to oversee and address stormwater management issues

Under a Stormwater Utility fee, all property owners that generate stormwater runoff in the city must contribute to funding the utility. It is a utility, and these property owners are charged for their usage of that utility. A comprehensive stormwater management program includes activities like street cleaning and yard waste pickup—which help keep pollution out of our waterways—but these activities are funded via property taxes, which fall mainly on homeowners. Government facilities, churches, and other properties that aren’t taxed don’t help pay for these services. If stormwater management efforts relied solely on property tax funding, residents would be responsible for about 67% of the cost; under the utility fee structure, that falls to about 30%, with the rest made up by non-residential and tax-exempt properties.  The Stormwater Utility fee also helps establish a consistent, reliable source of funding for current and future stormwater projects, including preventative maintenance.

Beginning January 1, 2025, the fee would be $23 per quarter for each ERU.

Moving forward, rates would be based on the utility’s actual costs as determined by future rate studies, similar to how rates are set for water and sewer utilities.  However, the City Council has full control over future rates, and no additional rate changes can occur without Council approval.