Although stormwater utilities are more widely accepted and understood as revenue-generators for stormwater programs than they were a decade ago, there are still plenty of people who argue against them—fighting proposed new utilities and sometimes challenging new stormwater fees in court as illegal taxes.
That’s why an error recently discovered by the city of Dunedin, Florida, could be a setback for those who encourage stormwater fees as a fair and equitable—and necessary—way to fund drainage improvements, water quality treatment, and other program expenses.
Back in 2003, the city raised commercial and residential stormwater fees from $3 per month to $4.50. However, as reported in an article in The Suncoast News, because of a clerical error—a mistake in the placement of a decimal point—the commercial rate was actually raised only $0.15 per month rather than $1.50. Rates were raised again in 2005, to $6 for both residential and commercial users, but that increase was actually implemented only on the residential side. Commercial users have been paying $3.15 per month since 2003, costing the city about $125,000 each year.
This raises two points for opponents of stormwater fees. First, the city’s residential customers will be understandably upset to learn they’ve been paying a higher rate for six years than their commercial counterparts. Secondly, the city apparently didn’t miss the money that wasn’t being collected; it discovered the two errors only when preparing for another fee increase, but it says ongoing program operations and capital improvements “have not been affected by the loss.” The logical question, then, for rate-payers: Is the new increase really necessary?
The city says the missing income wasn’t noticed earlier in part because of the declining economy—it seemed like just part of the normal ups and downs of yearly revenue—and it doesn’t plan at this point to make the commercial users pay the fees retroactively.