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City gears up to collect drainage fees 

click to enlarge Arcadia Street before a stormwater control project was built last year. - COURTESY CITY OF COLORADO SPRINGS
  • Courtesy City of Colorado Springs
  • Arcadia Street before a stormwater control project was built last year.
Starting July 2, billings for the city’s Stormwater Enterprise will be mailed to all Colorado Springs residents and property owners.

The charges were authorized by voters last November under a 20-year plan that would raise roughly $20 million a year. The fee revenue will free up general fund money Mayor John Suthers and City Council had previously committed to its 20-year, $460-million deal with Pueblo County for projects to reduce erosion and flooding along Fountain Creek and other waterways. That general fund money, in turn, will be used for other purposes, such as hiring more cops.

Since the November vote, the city has been working to set up billing procedures. Residential billings, including those for apartment dwellers, will be made by Colorado Springs Utilities, with one exception. Multi-family buildings that don’t have individual apartment water meters will be handled under nonresidential rates.

City CFO Charae McDaniel says water service connections will trigger the stormwater fee for residential properties. Residential fee payers who don’t pay the $5 charge on their utility bills will be subject to disconnect under standard Utilities policies, which require payment within 14 days of the billing date. Utilities spokesman Steve Berry wouldn’t say how long Utilities provides
service for overdue accounts, but it assesses a $20 fee for disconnection. Reconnection costs $30 during normal business hours and $40 after hours.

If a residential customer refuses to pay the $5 fee, it rolls onto the next bill. If left unpaid for a period of time, accumulated fees could exceed the usage billings for water, sewer, electric and gas.

“That couldn’t continue in perpetuity,” Berry says. “They [customers] will then eventually go into arrears, and they would be eligible for disconnection. There’s a point it becomes untenable for the customer, and they would be held responsible, just as in nonpayment of any service we offer.” But, Berry notes, Utilities gives customers “plenty of opportunity” to pay bills prior to disconnection.

Nonresidential property owners of developed tracts up to 5 acres will be billed $30 per acre per month; if the land isn’t developed at all, no fee will be assessed. Owners of properties larger than 5 acres will be assessed $30 per acre per month on only those portions that are developed. Portions of those properties that remain in a natural state won’t be assessed a fee. Undeveloped land won’t pay any fee.
There are currently 1,005 parcels that are over 5 acres that will be charged a fee, city spokesperson Jamie Fabos says. McDaniel says when properties are developed, based on monthly reports from the El Paso County Assessor’s Office, they’ll be added to the stormwater fee rolls.

But Assessor Steve Schleiker says he changes a tract’s status only once a year, on Jan. 1, for tax purposes, and doesn’t generate a monthly report regarding development status; rather, those reports merely describe changes to property ownership.

Asked about that, Fabos says, “Although we will be receiving monthly updates from the assessor’s office that show current ownership, acreage, and use, each property will be determined as developed or undeveloped by aerial investigation and through additional GIS technologies.” She adds that updates to parcel status will be made every six months — meaning new, nonresidential construction might not be assessed the fees until six months after they’re built.

Nonresidential customers — which includes businesses, industry, churches, nonprofits and governments, including the city — won’t face disconnection of utility bills, because the city, not Utilities, will collect the fees. Nor will they be assessed late fees.

“We will be going through collection processes if they become delinquent on the nonresidential side,” McDaniel says, meaning a collection agency could be used. If the fees become 150 days past due, she says, “We will process a lien on the property and record that with El Paso County to be added to property taxes.” That procedure carries a cost of 10 percent of the bill.

Last fall, City Council President Richard Skorman said nonresidential billing information should be made public. Now, McDaniel says the City Attorney’s Office has said stormwater fees fall under the Colorado Open Records Act’s exemption for utility bills, so they’ll be kept confidential.

That means citizens, or the media, can’t check how much various tracts are being assessed in stormwater fees.

“It’s an issue I’d like to bring up,” Skorman says, “because I did make that promise, and I didn’t check with lawyers at the time, and I said, of course we would reveal it.”

One possible alternative, he says, would be for Council to direct an appointed stormwater fee advisory committee to analyze and monitor fees assessed to assure they’re applied fairly. “That’s something that we definitely want to put in place,” he says.

Moving forward, the fees can be raised by Council action, but only to satisfy a court order, comply with federal or state laws or permits, or fund the agreement with Pueblo County.

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