Downers Grove Council Adopts Stormwater Utility

will shift to a fee-based stormwater management system in January 2013, replacing its current property tax-based system with a monthly charge for all property owners.

The village council voted 5-2 on Tuesday to adopt the stormwater utility system, which has been in the works since 2003. The monthly fee is expected to generate $3.5 million for the village next year, and will reduce property taxes by about $2.5 million, according to village officials.

The fee will be determined by how much stormwater runoff each property generates, which officials say is more equitable and will create a stable source of funding for much-needed repairs and maintenance to the village’s stormwater infrastructure.

“This program that has been proposed is one that is tailored to Downers Grove,” said Mayor Martin Tully. “There will be bumps in the road as we move forward … but I’m confident future councils will look back and see this as a wise decision that was made for future generations.”

Commissioners William Waldack and Bob Barnett both voted against the ordinance, citing several concerns about moving away from the property tax system, such as the loss of tax deductions and the creation of more bureaucracy.

"The tax deductibility to me is just a huge deal," Barnett said. "We are essentially, in my mind, allowing $1.5 million in year one of Downers Grove resident income to be pushed away to the federal government to fund mandates back down to us. I think it's kind of a bad circle, and I'm not comfortable with it."

Waldack also raised concerns about fee increases. The current plan, officials said, is to increase the fee by 11 percent each year for the next 15 years to generate about $11.3 million in revenue in 2027.

"Like it or not, it is a fact of life that people pay more attention to their tax bill than their fees," Waldack said. "Rises in property taxes draw attention, as do reductions, but fees are generally raised with much less fanfare. It's easier to raise fees than taxes, but both hit the pocketbooks."

Under the new utility, monthly fees will be calculated based equivalent runoff units (ERU), or the area on each property that cannot absorb water, such as a roof or driveway. One ERU equals 3,300 square feet.

Single-family homes fall into three tiers of payment, depending on their size:

• 1-2,500 square feet: $6.30 per ERU
• 2,501-4,000 square feet: $8.40. per ERU
• 4,001-7,000 square feet: $12.60 per ERU

All stormwater fees will be collected on a common utility bill from the village. Residents on the south side of Downers Grove will receive their first bill Jan. 2, 2013, and residents on the north side will be billed Feb. 1.

Stan Balicki, assistant director of operations for Downers Grove, said the shift to a fee-based system would increase public awareness about stormwater management and encourage property owners to reduce the amount of run-off from their property.

Residents will be eligible for credits and incentives to offset the fee if they take steps to reduce stormwater runoff on their properties. Rain barrels, rain gardens and permeable pavers all qualify for incentives.

Downers Grove officials have been discussing the possibility of a stormwater utility since 2003, when the village established a committee to explore the issue. The committee ultimately determined that the village needed a master plan for the system, which was completed in 2006.

It wasn't until 2011 that the village finally embarked on a stormwater utility study, hiring Municipal and Financial Services Group to develop a plan for creating and funding a new system.

The plan was presented to the village council in late 2011, and a series of public meetings were held in January to discuss the issue with residents, business and local organizations.

Now that the ordinance has passed, officials plan to continue public outreach through the village website, social media, Channel 6, direct mailings and electronic alerts.

For more information on the newly established stormwater utility, visit www.downers.us.

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