Council advances citywide stormwater utility on first reading amid credit policy debate

Zephr Hills took a key step toward a citywide stormwater utility on June 8, approving ordinance 1522‑26 on its first reading and opening a debate over how to award credits to properties that reduce stormwater demand.

The ordinance would create a non‑ad valorem stormwater assessment to fund stormwater operation, maintenance and capital projects. A consultant briefed council on a proposed tiered credit policy linked to SwiftMUD permit standards: properties permitted under the 2025 standards (which include stricter nutrient controls) would be eligible for up to a 50% credit; properties permitted under 2018 standards could receive up to a 25% credit; parcels built prior to 2018 would generally not receive credits unless they retrofit to meet current design standards.

Christina, the consultant, said the proposal is in line with regional practice and is intended to reward properties that reduce the city's stormwater burden. "Stormwater credits are about providing credits where people are really reducing the city's current burden," she told council.

Council members raised concerns about perceived fairness: some argued that older subdivisions that already provide localized stormwater facilities but predate newer standards would receive no credit. One council member suggested limiting credits to only the highest (2025) standard to simplify administration; another argued for grandfathering a broader class to lessen near‑term impacts on communities.

Staff described the administrative process: credit applicants (individual homeowners or homeowner associations) must submit documentation and engineering certification, and public works will evaluate SwiftMUD permit records or as‑built documentation to determine eligibility. Staff said the city would rely on SwiftMUD permit histories and require an application process managed by Public Works.

Council approved the ordinance on first reading and directed staff to prepare credit rules for adoption by resolution before the ordinance’s second reading. Staff noted the credit policy itself is typically established by resolution and can be adjusted without reopening the ordinance text.

If finalized, the new assessment would fund capital projects to address chronic flooding and to meet the state‑imposed stormwater standards the city must implement. Several council members stressed that revenue from the new utility should be used to fix known problem areas that produced damage during recent storms.