Portage officials Tuesday night said a new approach to collecting stormwater utility fees from residents, businesses and others in the city will be fairer than charging customers based on their water usage.
The Utility Services Board, which has been made of the the City Council since March, voted to accept a proposal, from Indianapolis-based Wessler Engineering, that would charge customers for stormwater management services using a set measure, called an Equivalent Measure Unit, or ERU.
The matter will go before the council as a proposed ordinance.
The idea is to charge users by the amount of impervious surfaces, or hardened surfaces like parking lots or gravel driveways, that shed rain, snow and other precipitation into the city’s curbs, culverts and other parts of the stormwater system and away from roads and properties.
Residential properties, which make up the vast majority of users in the city, would be charged about $12 a month for one ERU, or about 3,500-square-feet, while non-residential users — from the smallest non-profits to the largest employers in the city — would be charged for multiple ERUs, with a cap at 300 ERUs a month, depending on the amount of impervious surface area on their properties.
For example, each of the 9,724 residential properties in the city would see a $12 stormwater management fee on their monthly utility bills, while the largest customers, from Wal-Mart to U.S. Steel, may have to pay up to thousands of dollars a month.
“These are great examples of companies that have probably been paying less than they should,” said Clerk-Treasurer Chris Stidham.
Until now, the city has been relying on water meter readings to bill businesses, non-profits, including the school district, and residents, but, board members agreed, charging based on ERUs provides a more accurate cost for managing stormwater runoff.
More Top Picks Best Chromebooks For Students
The report was accompanied by a financial report from accounting firm Cender and Cender, which laid out what officials can expect in revenues from charging by ERUs.
“One purpose (of the study) is to create an equitable system, and out of that system, come the rates,” said City Engineer John Hannon.
Board member John Cannon, who voted against accepting the new approach to billing, questioned Carl Cender, of Cender and Cender, on whether switching to the new method might make large employers reconsider expanding or locating in Portage.
If the utility service board switches to the new ERU method, nonprofits, churches, schools and other institutions also will face new billing, but there was no word Tuesday on how their bills will be handled.
The board voted to accept the Wessler and Cender and Cender studies 5-1.
Michael Gonzalez is a freelance reporter for the Post-Tribune.