City of Owatonna Stormwater Management

Stormwater Utility Fee

Proposed Update

First Ordinance Reading November 6

The November 6 City Council Agenda includes the first reading of an amendment to Stormwater Ordinance 52 to adjust stormwater utility rates. If the ordinance is approved, there will be a second reading on November 19 and the updated rates will go into effect on January 1, 2025.

Proposed 2025 Stormwater Utility Fee Changes

The City is considering gradually adjusting the Stormwater Utility Rate and fee schedule stating in 2025. Major factors driving the need for additional stormwater management funding include environmental regulations, changing weather patterns, rising infrastructure construction and maintenance costs, and planning for future development.

Federally Mandated MS4 Requirements

Significant MS4 requirements have resulted in increased planning, inspections, maintenance, program management, construction, design, and monitoring costs that must be paid from the City’s Stormwater Fund. Some of the most significant expenses of the MS4 requirements are associated with making progress towards total maximum daily loads (TMDLs) and pollutant reduction goals and required permanent system treatment system maintenance.

Past Flood Mitigation Projects

After the first major flood event in 2007, the City commissioned a comprehensive report and various studies that identified eight areas of concern for potential localized flooding. The City is pleased to share as of today, all 8 original local flood reduction projects identified in the 2008 report have been completed. In addition to the “Great 8”, several individual studies and projects have also been commissioned.

The City of Owatonna is in repayment for the last remaining major flood mitigation project, along 18th Street SE and 4th Avenue SE that greatly reduced localized flooding in this commercial and residential area. The Stormwater Utility Fund will continue to pay a portion of this completed project. This $3 million bond is expected to be paid in full by 2032.

Comprehensive SWMP Framework & Future Improvements

The City has consulted with WHKS, Inc. to prepare an update to the Comprehensive Surface Water Management Plan (SWMP), and 1D/2D Hydraulic/Hydrologic (H&H) Modeling. The plan includes 20 preliminary Stormwater Improvement Priority Projects ranked based on surcharge risk, road condition ratings, infrastructure age, and flood risk. The improvements span over a 20+ year period and have an estimated cost of $11.5 million to $16.5 million.

The City’s updated Comprehensive SWMP provides framework to:

Increase contribution to reconstruction projects for utility improvement.
Make progress towards the MS4/TMDL Pollutant Reduction Requirements.
Prioritize and invest in system capacity improvements.
Increase storm infrastructure resiliency and extreme weather (flood) preparedness.
Identify and plan future capital improvement projects.
Improve efficiency and effectiveness of the stormwater program
Maintain compliance with evolving state and federal regulations.

This plan update is expected to be adopted in 2025.

2024 Stormwater Utility Fee (SUF) Study

As part of the City’s Comprehensive SWMP, WHKS, Inc. completed a Stormwater Rate Study. The study considered payment for implementing prioritized stormwater capital improvement projects, required MS4/TMDL regulations, managing the communities MS4 Program, and the on-going need for regular maintenance, repair, and replacement of the storm system.

The results of the study found the current enterprise fund lacks sufficient funding. Our consulting team has prepared a gradual stepped rate schedule to create an equitable and sustainable stormwater utility fund.

A copy of the presentation and study update can be found in the November 6 agenda packet.

Proposed Fee Schedule 2025 through 2029

The average total monthly residential utility bill for water, wastewater, and stormwater utilities in 2024 was $74.72, of which the current (2024) stormwater utility fee represents only $4.66.

Proposed 2025 Monthly Fee = $5.14 per ERU

The last rate study and schedule update was in 2015. Owatonna’s stormwater rates have not been adjusted for inflation since 2023 and no changes made during years 2019 through 2022. See the proposed fee schedule and example below.

Questions?

Questions regarding Stormwater should be directed to the Public Works Department at 507.444.4350. Additional information is available at owatonna.gov.