Friends Strongly Support Middleton Stormwater Utility Fee Increase

Stormwater utility fee increase will address issues like flooding

Confluence Pond west of Beltline – Flood in 2018 (adapted from: Middleton drone footage)

Article by: Herb Garn, Watershed Committee Co-Chair

In 2014, the Friends supported and campaigned for a referendum creating the City of Middleton’s Stormwater Utility, permitting the utility to charge an annual fee of $15 per equivalent runoff unit (ERU)* for maintenance of existing stormwater management facilities. This minimal fee was not based on the city’s actual program needs and woefully underfunded the utility’s program. 

The city was not able to keep up with maintenance of its existing stormwater management projects due to the competing demands upon city general revenue (property tax) funds. Under the tax system, residential homeowners pay about 67% of stormwater management costs, even though residential properties only contribute about 33% of the stormwater runoff in the city. The Stormwater Utility shifted the costs to those properties that contribute most of the stormwater runoff—those properties with the most impervious area. 

 The rate increase was to help provide funding for flood repairs to the Pheasant Branch Creek Corridor
Pheasant Branch Creek flowing through Conservancy to Lake Mendota (photo by Herb Garn)

After the August 2018 flood, residents of Middleton approved a referendum with support from the Friends of Pheasant Branch Conservancy allowing the annual Stormwater Utility fee to increase to $45 per ERU from each residence for a five-year period (2019-2024), then reverting to the $15 per ERU level unless a new referendum is passed. The purpose of the rate increase was to help provide funding for flood repairs to the Pheasant Branch Creek Corridor, Tiedeman and Stricker Ponds, and other stormwater management facilities that were damaged.

With the temporary $45 per ERU expiring in 2024 (which also did not adequately fund the utility’s program), the city’s Stormwater Utility Board directed a comprehensive rate study be prepared to determine the actual program costs necessary to fund the city’s stormwater utility program. The 2024 rate study recommended an annual ERU rate of $92 to cover current program costs and the cost of other eligible stormwater-related activities that are currently paid through property taxes. This fee is reasonable and still less than that of most nearby comparable municipalities.

 Residents of Middleton are asked to approve a referendum in November containing the following question:

“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?”

  • Yes
  • No

A “Yes” vote supports the increase. Although not stated in the question, residential customers would pay the fee of $23 per quarter ($92 annually) for each ERU recommended by the rate study. All other properties would pay a fee based on their actual impervious surface area, converted to ERUs.

 A “NO” vote means that you do not support the City of Middleton being able to charge Stormwater Utility fees in excess of $15 annually per ERU and that all costs not covered by this fee will be paid for with property tax revenue. The fee would revert to $15 annually per ERU and continue underfunding the Stormwater Utility.

The Friends of Pheasant Branch Conservancy is again strongly supporting the city in its stormwater activities and will be campaigning to pass this referendum. We are urging a “YES” vote for the referendum because:

  1. We want to protect water quality, Conservancy lands, and reduce flooding in the city.
  2. A Stormwater Utility is a fairer and equitable system for funding stormwater management needs compared to the property tax system.
  3. A Stormwater Utility fund provides a more stable and predictable revenue source to allow the City to improve and provide preventative maintenance to the stormwater system.
  4. The Stormwater Utility fund allows the city to stay in compliance with federal and state water pollution permits and regulations.
  5. The City Council has full control of future rates and no rate changes can occur without Council approval.

Help the Friends by participating and sharing this information with other residents. Watch for additional posts on our website and social media in coming months.

*Equivalent runoff unit (ERU) is the average amount of impervious surface area associated with residential parcels within the city (equal to 2,880 square feet). Each residential parcel is assigned one ERU per dwelling unit on a parcel (e.g, the owner of a single-family home would be responsible for one ERU). Other properties would pay a fee based on their actual (measured) impervious surface area, converted to ERUs. Thus, a property with 28,880 square feet of impervious surface would be assessed 10 ERUs for payment.

View our 2024 Fall enewsletter here

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