Trustees debate new flood‑mitigation, MS4 fee tied to water usage as funding source

Village staff presented a revised draft local law (PLLP of 2026) to create a flood‑mitigation and MS4 (stormwater) fee charged through the water bill. The fee would fund the village’s local match requirements for state grants and long‑term maintenance for flood‑mitigation infrastructure.

Staff explained the draft moves the charge into Chapter 282 (sewers) and ties the fee to water consumption so all metered properties — including tax‑exempt entities — contribute. “It’s based on water consumption,” staff said, describing the approach as more equitable than a per‑parcel charge.

Trustees raised several concerns. Some asked whether the existing sewer rent could be expanded to cover stormwater rather than creating a separate fee; staff and other trustees warned that commingling funds would make it harder to ensure money is used only for flood mitigation. “We want these funds to be used for flood mitigation, period,” one trustee said, arguing for a segregated fund and explicit prohibitions on transfers to operating accounts.

Other trustees asked for clearer, tightly written language that specifies exactly what may be paid from the new fund so future boards cannot repurpose the money without explicit legislative action. One trustee urged drafting the law so “a 2‑year‑old could read this and say, this is the only thing that could be paid out of it.”

Staff said the draft already contains restrictions (section 282‑41) but agreed to circulate the relevant section for trustees to review and requested trustee feedback before the Aug. 10 meeting. The board also discussed scheduling a public hearing — staff said August timing should allow a September public hearing — and trustees indicated they would include the item on the Aug. 10 agenda to set a public hearing date.

Trustees also discussed affordability and public perception. One trustee cautioned that adding a new fee to water bills at a time of larger increases in water rates could be politically sensitive and urged staff to clearly explain the benefits and necessity to residents.

What’s next: Staff will circulate the revised draft section for review, incorporate trustee feedback and the board expects to schedule a public hearing for the draft local law at a September meeting. No formal vote was taken at the work session.