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Stormwater Commencement of Charge Ordinance UpdateCity of Dubuque City Council ACTION ITEMS # 1. Copyrighted July 20, 2026 ITEM TITLE: Stormwater Commencement of Charge Ordinance Update SUMMARY: City Manager recommending City Council approval to amend Section 13-4-7 of the City Code to include explicit language establishing the commencement of stormwater utility charges for Nonsingle-Family residential properties. It is further recommended to amend Section 13-4-8 of the City Code to codify the longstanding practice of initiating stormwater utility charges 90 days after site plan approval for nonresidential developments. ORDINANCE Amending City Of Dubuque Code Of Ordinances Title 13 Public Utilities, Chapter 4 Stormwater Management, Sections 13-4-7 Nonsingle-Family Residential Property And 13-4-8 Nonresidential Property SUGGUESTED Receive and File; Motion B; Motion A DISPOSITION: ATTACHMENTS: MVM Memo Stormwater Commencement of Charge Ordinance Update 2. 2026-07-14 SW Commencement Ordinance Memo —FINAL 3. Ordinance Page 975 of 1061 THE CITY OF Dubuque DuBE uFA�a9a av Masterpiece on the Mississippi rP PP zoo�•*o 13 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Stormwater Commencement of Charge Ordinance Update DATE: July 14, 2026 City Engineer Gus Psihoyos is recommending City Council approval to amend Section 13-4-7 of the City Code to include explicit language establishing the commencement of stormwater utility charges for Nonsingle-Family residential properties. Under the proposed revision, billing would begin upon activation of the water main utility account or 90 days after site plan approval, whichever occurs first. Until individual units establish separate utility billing accounts, the developer or property owner would be billed at the rate corresponding to the total number of approved Nonsingle-Family residential units identified in the site plan. It is further recommended to amend Section 13-4-8 of the City Code to codify the longstanding practice of initiating stormwater utility charges 90 days after site plan approval for nonresidential developments. Consistent with the proposed approach for Nonsingle-Family residential properties, charges would begin either 90 days after site plan approval or upon activation of the water main utility billing account, whichever occurs first. I concur with the recommendation and respectfully request Mayor and City Council approval. Y Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Alex Stein, Civil Engineer Chris Valle, Utility Billing Supervisor Wally Wernimont, Planning Services Director Page 976 of 1061 THE CITY OF Dubuque DUB El *Amerin City Masterpiece on the Mississippi � pP zoo�•o 13 zoi7*20*Zoi9 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer DATE: July 14, 2026 SUBJECT: Stormwater Commencement of Charge Ordinance Update BACKGROUND The City of Dubuque established its Stormwater Management Utility on February 27, 2003, pursuant to Iowa Code § 384.84(1), through the adoption of Ordinance No. 7-03. The utility authorizes the City to establish and collect rates, fees, and charges necessary to support the services and facilities provided by the stormwater management system. The ordinance further states that the utility is intended to deliver stormwater-related benefits and services within the incorporated city limits, including the provision of adequate collection, conveyance, detention, and treatment systems; the reduction of hazards to property and public safety associated with stormwater runoff and flooding; the enhancement of public health and welfare through the mitigation of adverse stormwater conditions; and the improvement of stormwater, surface water, and receiving water quality. City Code designates the City Council as the governing authority for the Stormwater Management Utility and assigns the City Engineer the role of Director, as specified in Section 13-4-4. City Code Title 13, Chapter 4 establishes the framework for the Stormwater Utility, including its responsibilities, organizational structure, and rate administration. Sections 6 through 8 of this chapter define the rate structure applicable to the various development categories within the City, specifically Single -Family, Nonsingle-Family, and Nonresidential properties. DISCUSSION Staff has identified that City Code Section 13-4-7 does not include language specifying when stormwater utility charges are to commence for Nonsingle-Family residential properties. As a result, the timing of billing initiation for these properties is unclear. Developers have raised questions regarding the appropriate start date for stormwater charges, and staff has been unable to provide a code -based answer because no such provision currently exists. Page 977 of 1061 Staff has also determined that the City's current billing practices for nonresidential properties do not align with the commencement provisions in existing City code 13-4-8. Historically, Planning Services has included a notice in Site Plan Approval letters for nonresidential developments indicating that stormwater utility charges would begin 90 days after site plan approval. This practice was implemented at the direction of the Engineering Department. However, this approach conflicts with the City Code, which specifies that stormwater charges for nonresidential properties commence upon issuance of the Certificate of Occupancy. This discrepancy has created confusion among internal departments as well as among developers. RECOMMENDATION Following coordination with staff from both Utility Billing and Engineering, the following approach is the most appropriate path forward and does not materially alter existing practices: I recommend amending Section 13-4-7 of the City Code to include explicit language establishing the commencement of stormwater utility charges for Nonsingle-Family residential properties. Under the proposed revision, billing would begin upon activation of the water main utility account or 90 days after site plan approval, whichever occurs first. Until individual units establish separate utility billing accounts, the developer or property owner would be billed at the rate corresponding to the total number of approved Nonsingle-Family residential units identified in the site plan. I further recommend amending Section 13-4-8 of the City Code to codify the longstanding practice of initiating stormwater utility charges 90 days after site plan approval for nonresidential developments. Consistent with the proposed approach for Nonsingle-Family residential properties, charges would begin either 90 days after site plan approval or upon activation of the water main utility billing account, whichever occurs first. ACTION REQUESTED I respectfully request approval of the attached ordinance amending Sections 13-4-7 and 13-4-8 of the Code of Ordinances to clarify the commencement of stormwater utility charges for Nonsingle-Family and Nonresidential developments. Prepared by Alex Stein, Civil Engineer cc: Chris Valle, Utility Billing Supervisor Wally Wernimont, Planning Services Director Crenna Brumwell, City Attorney 2 Page 978 of 1061 Prepared by Alex Stein Civil Engineer, 50 W. 131h Street Dubuque IA 52001 (563) 589-4276 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'^ St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 29 - 26 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 4 STORMWATER MANAGEMENT, SECTIONS 13-4-7 NONSINGLE-FAMILY RESIDENTIAL PROPERTY AND 13-4-8 NONRESIDENTIAL PROPERTY NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-4-7 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: 13-4-7 NONSINGLE-FAMILY RESIDENTIAL PROPERTY: A. Determination of Charge: The stormwater management charge for a nonsingle-family residential property shall be the following percentage of the SFU rate multiplied by the number of dwelling units on the property: Nonsingle-family Residential Property Classification SFU Rate Multi -family (excluding condominiums and mobile homes) 42 percent Condominium 83 percent Mobile home 65 percent B. Commencement of Charge: Stormwater utility charges shall commence upon the earlier of activation of the water main utility billing account serving the development or ninety (90) days after approval of the site plan by the City. The owner shall be billed at the rate corresponding to the full site -plan build -out approved by the City until individual units or tenant spaces establish separate utility billing accounts. If development activity is halted or does not proceed following site plan approval, stormwater utility charges shall continue to be assessed at the full approved site -plan rate. If an approved site plan is subsequently modified, reduced in scope, or withdrawn, the billing rate may be temporarily paused only for the purpose of recalculating the charge, at the Director's reasonable discretion, and the stormwater utility charge shall be reset to reflect the conditions established in the updated approved site plan or the most recently verified physical conditions of the property. C. Charge Exception: The city manager shall establish a policy for evaluating cases of extreme financial hardship for non -single family residential customers and the city's ability to make adjustments in the monthly charge for non -single family residential customers as determined by the terms and conditions of the policy and the funds allocated, and available, through the budget process. D. Appeal Determination of Charge: Any owner or occupant of a nonsingle-family residential property aggrieved by the Director's calculation of the stormwater management charge or allocation among users as provided in this section may appeal such determination to the Director as provided in section 13-4-9 of this chapter. E. Adjustment to Charge: An adjustment to the stormwater charge may be granted by the Director who is hereby authorized to establish procedures and standards for the adjustment of fees. Section 2. Section 13-4-8 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: 13-4-8 NONRESIDENTIAL PROPERTY: A. Determination of Charge: The stormwater management charge shall be calculated by multiplying the SFU rate by the numerical factor obtained by dividing the total impervious area of the property by the number of square feet in one SFU. The minimum charge for any property shall be equal to one SFU rate. B. Commencement of Charge: Stormwater utility charges shall commence upon the earlier of activation of the water main utility billing account serving the development or ninety (90) days after approval of the site plan by the City. The owner shall be billed at the rate corresponding to the full site -plan build -out approved by the City until individual units or tenant spaces establish separate utility billing accounts. If development activity is halted or does not proceed following site plan approval, stormwater utility charges shall continue to be assessed at the full approved site -plan rate. If an approved site plan is subsequently modified, reduced in scope, or withdrawn, the billing rate may be temporarily paused only for the purpose of recalculating the charge, at the Director's reasonable discretion, and the stormwater utility charge shall be reset to reflect the conditions established in the updated approved site plan or the most recently verified physical conditions of the property. C. Appeal Determination of Charge: Any owner or occupant of a nonresidential property aggrieved by the Director's calculation of the stormwater management charge or allocation among users as provided in this section may appeal such determination to the Director as provided in section 13-4-9 of this chapter. D. Adjustment to Charge: An adjustment to the stormwater charge may be granted by the Director who is hereby authorized to establish procedures and standards for the adjustment of fees. E. Pro Rata Charge: For separately metered occupancy units within a nonresidential property with joint users of common impervious areas, the Director shall calculate and allocate the pro rata stormwater management charge among the users. Section 3. This ordinance shall take effect upon publication. Passed, approved, and adopted this 20th day of July, 2026. Attest: Adrienne N. Breitfelder, City Clerk EFFECT OF AMENDMENT 13-4-7: NONSINGLE-FAMILY RESIDENTIAL PROPERTY: A. Determination of Charge: The stormwater management charge for a non- singlefamily residential property shall be the following percentage of the SFU rate multiplied by the number of dwelling units on the property: Non -single-family Residential Property Classification SFU Rate Multi -family (excluding condominiums and mobile homes) 42 percent Condominium 83 percent Mobile home 65 percent B. Commencement of Charge: Stormwater utility charges shall commence upon the earlier of activation of the water main utility billing account serving the development or ninety (90) days after approval of the site plan by the City. The owner shall be billed at the rate corresponding to the full site -plan build -out approved by the City until individual units or tenant spaces establish separate utility billing accounts. If development activity is halted or does not proceed following site plan approval, stormwater utility charges shall continue to be assessed at the full approved site -plan rate. If an approved site plan is subsequently modified, reduced in scope, or withdrawn, the billing rate may be temporarily paused only for the purpose of recalculating the charge, at the Director's reasonable discretion, and the stormwater utility charge shall be reset to reflect the conditions established in the updated approved site plan or the most recently verified physical conditions of the property. C. Charge Exception: The city manager shall establish a policy for evaluating cases of extreme financial hardship for non -single family residential customers and the city's ability to make adjustments in the monthly charge for non -single family residential customers as determined by the terms and conditions of the policy and the funds allocated, and available, through the budget process. D. ADDeal Determination of Charae: Anv owner or occuoant of a nonsinale-famil residential property aggrieved by the Director's calculation of the stormwater management charge or allocation among users as provided in this section may aaaeal such determination to the Director as Drovided in section 13-4-9 of this chapter. E. Adjustment to Charge: An adjustment to the stormwater charge may be granted by the Director who is hereby authorized to establish procedures and standards for the adjustment of fees. 13-4-8: NONRESIDENTIAL PROPERTY: Page 982 of 1061 A. Determination of Charae: The stormwater manaaement charae shall be -• LIMA M • M I • - • • •• -• I IME11• • the total impervious area of the property by the number of square feet in one SFU. The minimum charge for any Property shall be equal to one SFU rate. r r • • • • • • • . • r • • • r r • • r . • - • • r • - r • r • • - • • r • - r • • • • • r r • r • - • - • • - • - r B. Commencement of Charge: Commencement of Charge: Stormwater utility charges shall commence upon the earlier of activation of the water main utility billing account serving the development or ninety (90) days after approval of the site plan by the City. The owner shall be billed at the rate corresponding to the full site -plan build -out approved by the City until individual units or tenant spaces establish separate utility billing accounts. If development activity is halted or does not proceed following site plan approval, stormwater utility charges shall continue to be assessed at the full approved site -plan rate. If an approved site plan is subsequently modified, reduced in scope, or withdrawn, the billing rate may be temporarily paused only for the purpose of recalculating the charge, at the Director's reasonable discretion, and the stormwater utility charge shall be reset to reflect the conditions established in the updated approved site plan or the most recentiv verified Dhvsical conditions of the orooerty. Rrn Ro+o Qhorivo: C9r C. Appeal Sect Determination of Charge: Any owner or occupant of a nonresidential property aggrieved by the Ddirector's calculation of the stormwater management charge or allocation among users as provided in this section may appeal such determination to the Ddirector as provided in section 13-4-9 of this chapter. D. Adjustment tTo Charge: An adjustment to the stormwater charge may be granted by the director who is hereby authorized to establish procedures and standards for the adjustment of fees. Page 983 of 1061 E. Pro Rate Charge: For separately metered occupancy units within a nonresidential property with joint users of common impervious areas, the Director shall calculate and allocate the pro rata stormwater management charge among the users. Page 984 of 1061