Stormwater fee would double for many under Barry proposal

Facing backlogged stormwater management needs that total $200 million, Mayor Megan Barry on Monday proposed a fee hike for the majority of Nashville water ratepayers that will more than double Metro’s annual revenue for stormwater projects.

Barry announced what she billed as a new “modernized and equitable” stormwater fee structure during a speech before the Rotary Club of Nashville. It would mark the first change to the city’s stormwater fee since it was adopted in 2009.

The plan would raise stormwater fees for 85 percent of Nashville’s homeowners and three out of every four businesses in town. How much would depend on a property’s amount of impervious surface area, which includes things like rooftops, parking lots, sidewalks and driveways that limit the entry of water.

Nashville’s stormwater fee, orchestrated by then-Mayor Karl Dean, averages about $3 per water ratepayer. The fee is a separate charge tacked on to the monthly bills of every water ratepayer in Nashville.

The proposal would increase Metro revenue earmarked for stormwater projects from $14.4 million to $34.6 million per year.

“Stormwater continues to be one of the biggest concerns of council members,” Barry told the Rotary crowd. “Many of them hear about problems from their constituents on a regular basis.

“That stormwater fee has not changed since 2009, and unfortunately the cost of containing and maintaining stormwater has changed. The fee revenue has lost 20 to 25 percent of its buying power due to inflation.”

The brunt of the mayor’s hike would be felt most by property owners — residential and nonresidential — who have large amounts of impervious surfaces. Rates for small-business owners and smaller homes would be frozen.

Barry’s plan comes after Metro Water Services Director Scott Potter in the fall began raising alarm over unaddressed stormwater projects that have piled up across the county. He called for a discussion on stormwater needs ahead of the budget season.

These projects include a wide range of work aimed at managing the city’s aging rain drainage system, parts of which date back 150 years: clearing storm drains, enclosing ditches, repairing pipes, removing trees and restoring drains. Some are necessary to comply with state and federal environmental rules.

According to the mayor’s office, the fee hike would allow the water department to increase bond capacity for stormwater projects, expand staff and street sweeping services, and raise revenue for “Class C” projects from $1 million to $3 million annually.

“While we have been able to accomplish much with the stormwater fees introduced in 2009, Metro Water Services is reaching our limit on building new infrastructure to meet the demands of the city,” Potter said in a statement. He added that the new fee proposal would allow Metro to “save money in the long term” by improving infrastructure.

The proposal needs council approval, and a vigorous debate on the issue is expected. Dean and the Metro Council rejected an alternative plan in 2009 that would have forced large property owners to pay more in fees than was ultimately passed.

Davidson County has the fourth-largest municipal stormwater system in the nation, but the fifth-lowest stormwater fee among 80 large municipalities recently surveyed on the matter. Memphis, Chattanooga and Charlotte, N.C., have greater fees than Nashville.

Councilman Jeremy Elrod, chairman of the council’s Public Works Committee, who has called Nashville’s stormwater fee structure “out of whack,” quickly endorsed the mayor’s plan Monday.

“Investments in stormwater infrastructure are necessary to protect our residents’ property and possibly save lives in flood conditions,” Elrod said. “The new stormwater fee structure, if passed, will be fairer and will allow us to fund critically needed projects throughout the city.”

Others aren't so sure about the hike. Councilman Steve Glover said that while he agrees there's a need, he's unsure whether this is the right plan, particularly the idea of adding new employees with some of the new revenue.

"We're going to more than double (the fee)," Glover said. "There's a whole lot of questions before I'm going to be in agreement with something like that."

Fees would go up under Barry's plan for all residential properties with more than 2,000 square feet of impervious area and all nonresidential properties with more than 6,000 square feet.

Residential ratepayers with less than 2,000 square feet of impervious surface would continue paying $1.50 per month under the mayor’s plan. Ratepayers with less than 400 square feet would continue having no stormwater fee.

Fees would double for homes with between 2,001 and 6,000 square feet of impervious area from $3 per month to $6. Businesses with between 6,001 square feet and 12,800 square feet would see their fees jump from $20 to $30 a month.

Monthly rates are currently capped for nonresidential property owners at $400 regardless of size. This cap would be raised under the new plan to $1,300 a month for nonresidential owners with more than 1 million square feet.

Some of the largest nonresidential property owners that would be most affected include Ryman, which owns the Gaylord Opryland Resort & Convention Center and Opry Mills; Vanderbilt University; and the Nashville International Airport.

At Monday’s Rotary meeting, Barry also announced that she would not be increasing Davidson County’s property tax rate. A property tax hike had not been expected during what’s expected to be a reappraisal year with historic property value increases.

Because of Nashville’s growth hot streak, property values in Nashville have increased by between 30 percent and 35 percent since 2013, with rapidly developing neighborhoods seeing increases that are greatest. Nashville’s most established neighborhoods will be less affected.

By state law, Metro’s property certified tax rate will be lowered during the reappraisal so that the city’s intake of revenue does not change.

“There will be no property tax increase,” Barry said. “Did you hear me?

“We’re not going to put that extra burden on Nashville’s residents and businesses right now. The city’s growing on its own anyway.”

Reach Joey Garrison at 615-259-8236 and on Twitter @joeygarrison.

Barry’s stormwater fee proposal

CURRENT

All with < 400 square feet of Impervious Area = $0.00 Monthly Fee Property Type: Impervious Area (Square Feet) Current/month Tier 1 – Residential : 400 – 2,000 1.50 Tier 2 – Residential: 2,001 – 6,000 3.00 Tier 3 – Residential: more than 6,000 4.50 Residential Condo (per unit) 1.50 Tier 1 – Non-Residential: 400-6,000 10.00 Tier 2 – Non-Residential: 6,001 – 12,800 20.00 Tier 3 – Non-Residential: 12,801 – 51,200 40.00 Tier 4 – Non-Residential: 51,201 – 300,000 100.00 Tier 5 – Non-Residential: 300,001 – 1,000,000 200.00 Tier 6 – Non-Residential: more than 1,000,000 400.00

PROPOSED