Information about Smithfield's proposed storm water utility fee
June 10, 2004
The Town of Smithfield is proposing a Storm Water Utility Fee in the 2004-2005 town budget. The fee would be assessed on all impervious surfaces on property within the town limits. Impervious surfaces include: rooftops, parking lots (paved or compacted), walkways and other areas where water drains into the storm water system. There will be a public hearing on the issue on Tuesday June 15 at 7:30 pm at the Smithfield Town Hall.
The purpose of the fee would be to help pay debt service on utility bonds, allow for new drainage projects and pay for maintenance of existing drainage projects. Currently the town is funding these projects through the general fund. If approved by the council, the town would take six months to physically measure impervious surfaces in Smithfield and the fee would start on January 1, 2005. The fee would be based on a proposed fee structure (see below), which would generate approximately $602,000 per year, with 2/3 of that money coming from non residential property. In lieu of the fee, the town estimates a need to raise the property tax rate $.02 to $.04 to balance next year’s budget.
The proposed rate schedule for a possible Storm Water Utility Fee that could be imposed on local citizens and businesses is as follows:
Non-Residential Customers
Less than 200 square feet of impervious surface: $ 0.00 per month
200-499 square feet of impervious surface: $ 10.00 per month
500-9,000 square feet of impervious surface: $ 25.00 per month
10,000-24,999 square feet of impervious surface: $ 40.00 per month
25,000-49,999 square feet of impervious surface: $ 60.00 per month
50,000-89,999 square feet of impervious surface: $100.00 per month
Greater than 90,000 square feet of impervious surface: $150.00 per month
Residential Customers
Less than 1,000 sq. ft. of impervious surface: $2.75 per month
1,000 to 1,800 sq. ft. of impervious surface: $3.75 per month
Greater than 1,800 sq. ft. of impervious surface: $4.75 per month
(Note: For most commercial operations, the fee represents about a $0.10 to $0.20 equivalent increase in the Smithfield property tax rate
Possible benefits from the fee include: 1) Drainage and storm sewer maintenance, repair and improvement; 2) Flood damage reduction and prevention; 3) Improved water quality in streams and rivers; 4) Watershed and development planning; 5) Protection of drinking water sources; and 6) Stream restoration, open space acquisition and other programs.
Several towns in North Carolina have already implemented a Storm Water Utility Fee, including Raleigh, Greensboro, Charlotte, Chapel Hill, Washington, Matthews, Carolina Beach, and Mint Hill. The town of Smithfield’s proposal is based on the Washington, NC model.
Other information about the fee:
1. The Fee would be collected through utility bills on a monthly basis and would be paid by the utility customers, not necessarily the property owners.
2. All utility customers would pay, including residences, commercial businesses, governments, schools, colleges, churches and other non profits.
3. The fee would be tax deductible for commercial operations as a business expense, but would not be deductible for individuals.
A Chamber survey, conducted last week by email, asked members the following question concerning the proposed utility fee: “Do you feel the proposed Storm Water Utility fee will negatively affect existing businesses or potential new business development in Smithfield?” The results are:
Yes: 83%
No: 6%
Undecided: 6%
Not Applicable: 5%
Many of the comments suggested that the fee was another tax on Smithfield businesses and citizens, that it would make Smithfield less friendly to new business. Some felt they had already spent enough money to meet the town’s storm water requirements. Many said they didn’t know about the proposed fee and had questions about it. The Chamber suggests that you attend the public hearing at the Smithfield Town Hall on June 15, voice your opinion and ask the council questions about the fee. You may want to contact members of the council yourself. The following is a list, with their addresses and phone numbers:
Bill Jordan, Mayor
1207 S. Vermont Street
Smithfield N.C 27577
Phone: (919) 934-2884
Charles Williams, District 1
1029 Broadway Street
Smithfield N.C. 27577
Phone: (919) 934-0534
Daniel Evans, District 2
520 Rosewood Drive
Smithfield N.C 27577
Phone: (919) 934-4581
Vic Ogburn, Jr., District 3
409 N. Second Street
Smithfield N.C. 27577
Phone: (919) 934-5323
Harold Tharrington, District 4
106 Castle Drive
Smithfield N.C. 27577
Phone: (919) 934-3749
Andy Moore
412 S. Third Street
Smithfield N.C 27577
Phone: (919) 938-0768
Norman Johnson
1010 Walnut Drive
Smithfield N.C. 27577
Phone: (919) 934-2490
Clayton Narron
825 S. Second Street
Smithfield, N.C. 27577
Phone: (919) 934-6909
For more information about storm water utility fees, you can visit these websites:
The Storm Water Utility: Will It Work in Your Community? www.forester.net/sw_0011_utility.html
City of Washington North Carolina – Stormwater Utility >www.ci.washington.nc.us/stormwater.aspx
Town of Chapel Hill – Frequently Asked Questions About the proposed Stormwater Utility http://townhall.townofchapelhill.org/stormwater/utility_faq.html
What is a Stormwater Utility? www.florida-stormwater.org/manual/chapter1/1-2.html
