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Grow Rochester Tackles City Storm Water Fee

The Grow Rochester Coalition is an advocacy group consisting of representatives from the Rochester Area Chamber of Commerce, the Southeast Minnesota Association of Realtors and the Rochester Area Builders. The coalition was formed to bring together the three largest member groups in Rochester.  Formed in 2007, its mission is to promote orderly growth and development of the Rochester area through advocacy, education and awareness. 

For the past several weeks the group has been researching the city’s proposed fee and rate increases for the Storm Water Pollution Prevention Plan (SWPPP).  To assist in this research the group retained the services of Jeff Broberg, Professional Geologist and Vice President of McGhie & Betts Environmental Services, Inc. 

Because the current city plan is several million dollars in the red, city staff proposed an annual increase of the fee for commercial property of as much as 8 percent per year for the next six years – or approximately $7.17 million per year. The plan included in excess of $43 million in capital improvement projects over this span. Grow Rochester recognized that not only was this an excessive fee for the business community to bear, but the proposal was ill-conceived in the first place.

As a result of Grow Rochester’s intervention, the City Council and staff revised the original proposal. The final recommendations from Grow Rochester included:

·         Set a fiscally responsbile budget and choose the most cost-effective alternatives
·         Generate a reserve fund adequate to allow for bonding
·         Cap the storm water fees to $3 million per year
·         Derive the necessary fees based on a per parcel administrative charge adjusted for the rate of inflation rather than a flat 8 percent per year

At the end of a long discussion, the City Council agreed in principal to the following:

·         The storm water utility capital improvement fund be capped at $24 million for the next six years - or $4 million per year ($3.17 million per year lower than the original proposal)
·         The City of Rochester will review alternative water management practices for any project with a cost in excess of $250,000.  This was previously not an option
·         An average non-residential customer will see their bill increase $43 over the next four years

Thru the efforts of Grow Rochester, the fee was reduced by 55 percent. The result not only saves the business community millions of dollars, but also encourages the city to recognize that there are other more cost-effective alternatives when it comes to storm water management.

 The City Council will ratify this ordinance at a future meeting and has also agreed to an annual review this fee beginning next year. Grow Rochester plans to host a meeting in the near future for elected officials, public works staff, builders and developers on the most effective alternatives that meet water quality goals and permit requirements.