Council debates steep stormwater fee hike after city assessment finds failing pipes

Public Works Director Sarah Borges presented a citywide stormwater assessment that documented 28 miles of stormwater pipe and identified 22 locations with significant defects, including corrugated-metal failures, joint offsets and utility-bore damage. The consultant inspection — including camera runs and selective cleaning — also found pipes the crew could not inspect because of debris or standing water.

Borges said the most urgent concentrated needs are five locations (sections of 104th Avenue, 112th Avenue, Irma Drive, Muriel Drive and Larsson Lane) that exhibit either structural collapse or conditions likely to fail. "We found 22 locations with high-priority concerns; the five projects highlighted are where we recommend starting," Borges said, noting the assessment did not address hydraulic capacity concerns (larger-capacity projects would require separate study and Mile High Flood District coordination).

To fund the repairs and a maintenance program, staff presented two fee scenarios: increasing the residential monthly stormwater fee from $2 to $6 (a modeled 10‑year CIP that addresses the five priority projects, maintenance and limited match for Mile High Flood District projects), or raising it to $8 to accelerate project schedules and complete more repairs sooner. The $8 option would likely require added staffing or consultant engineering support.

Council members raised concerns about the size and timing of the jump — $2 to $6 is a tripling of the charge that has not been adjusted since 2004 — and the equity impact for fixed-income residents. Several members recommended a staged approach or periodic scheduled reviews to avoid repeating the long lapse that left the system underfunded. Council member Noiki and others asked whether grants or district partnerships could offset costs; staff said some grant programs exist but are competitive and not guaranteed, and that Mile High Flood District often provides cost-sharing for capacity projects.

On staffing, staff noted the current stormwater program has one dedicated FTE for operations and permitting; accelerating work to match an $8-fee scenario would require either hiring an additional FTE or contracting with engineering firms, both of which affect the overall cost picture. Council discussed financing alternatives such as pay‑as‑you‑go accumulation versus borrowing; staff said financing is possible but increases lifetime costs via interest.

Council consensus coalesced around a compromise path: adopt a near-term increase that meaningfully expands capacity to do priority repairs while committing to an explicit review cadence (council members suggested check-ins every two years or in even-numbered years). Staff agreed to bring a draft resolution implementing the new fee schedule effective Jan. 1, 2027 (with the council’s requested staging and review language), and to return with refined communications and assistance recommendations to mitigate equity impacts.

Next steps: staff will finalize financial modeling, plan a public information campaign explaining projects and timelines, and return with a fee resolution and a proposed even‑year reassessment schedule. Borgessaid the city will continue to pursue cost-sharing with the Mile High Flood District where appropriate.