Council introduces ordinance to suspend stormwater fund and rescinds fee waiver for suburban utility

Washington City Council on March 6 held a substantive budget and policy discussion and took two actions affecting municipal fees and revenue treatment.

First, council introduced Ordinance 2023‑02 (first reading) to eliminate or suspend the city’s dedicated stormwater management fund (Fund 14) and to fold the anticipated $478,000 in stormwater revenue into the general fund for the current year. Staff said the move responds to a Superior Court ruling in Westchester Borough v. Pennsylvania State System of Higher Education and a subsequent appeal to the Pennsylvania Supreme Court; because the higher‑court outcome is unresolved, staff argued it is prudent to avoid collecting the fee until legal clarity is established. The ordinance would reduce planned stormwater capital spending for the year (from roughly $124,000 to $20,000 for stormwater infrastructure) and suspend automatic transfers to the general‑fund reserve until council restores that policy.

"Because of the superior court ruling... the city would be best served by not choosing to collect that fee until after that case is set," staff said in presenting the ordinance.

Councilors debated the legal and fiscal implications: some described the superior‑court decision as narrowly focused but potentially consequential for municipalities relying on stormwater fees to fund infrastructure. Staff noted that while the city had budgeted capital projects tied to stormwater revenues, substantial grant success (including other recently awarded grants) and careful quarterly monitoring could allow the city to proceed cautiously.

Second, the council considered Resolution No. 1294, adopted in 2018, which had excused Suburban Water Authority from paying street‑excavation permit fees. After discussion about fairness and cost recovery for inspection and monitoring work performed by city staff, the council voted to rescind the resolution so that external governmental entities would be treated consistently with other utilities and pay user fees that cover city costs.

The ordinance was introduced as a first reading and will require advertisement and a public hearing before final adoption; the repeal of Resolution 1294 was acted on and the motion carried by roll call.