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The Truckee River in Reno recedes after the flood in 2017 (Photo: Flickr)

City Of Reno Proposes Stormwater Utility Tax

The average tax per homeowner would be an initial $13.49 per month starting July 1, 2023

By Megan Barth, March 3, 2023 11:02 am

The City of Reno is proposing a Stormwater Utility that would require residents, businesses, and schools to pay a “fee”, otherwise known as a tax, to maintain and improve stormwater infrastructure. According to the City of Reno website, the average fee per homeowner would be an initial $13.49 per month starting July 1, 2023. The tax is subject to automatic, annual increases based on the Consumer Price Index.

City of Reno Stormwater “fees” (Photo: Reno.gov)

The City of Reno outlines the Stormwater Utility funding and necessity on their webpage claiming that city infrastructure is “non-existent, aging, or damaged”– leaving this Reno homeowner to wonder why precious tax dollars are being spent on rusty whale statues, an estimated $70 million dollar rehabilitation project located in a flood zone, and city murals. The City also claims that these repairs and improvements have been “identified over the last thirty years but have not been implemented due to lack of funding”.

The proposed Stormwater Utility would collect fees to provide a dedicated funding source committed exclusively to maintaining and improving stormwater and flood reduction infrastructure. The main reasons so many cities across the country implement stormwater utilities are to:

  • prevent flooding
  • protect water quality
  • maintain, replace or repair aging infrastructure
  • avoid costly emergency responses

Many structures that protect our city from these stormwater threats are non-existent, aging, or damaged, and we need a long term solution. The solution is a more dependable source of funding to improve our system of storm drains, culverts, flood control and water-quality structures that would improve the overall health and safety of Reno residents. A proactive approach will save money in the long run, compared to reactive emergency responses.

We are proposing a stormwater utility fee that, if approved, would provide dedicated funding to support repairs and improvements to our stormwater system that have been identified over the last 30 years but have not been implemented due to lack of funding sources.

The Washoe County School District has voiced their concern in a letter (see below) which outlines the significant tax burden the financially-strapped school district would realize. WCSD operates 54 facilities and would be subject to an additional, annual tax of $575,000 or the “annual salary of approximately 10 school teachers.” The annual tax increases tied to CPI would cost the district $6.3 million over 10 years. (emphasis added).

Additionally, the district points out that this tax has been discussed for years and has increased by 60 percent over two years without proper explanation and will automatically and indefinitely increase without public input or council oversight:

The City has studied the structure of a stormwater utility for several years. As recently as Fall of 2021, the possible ERU rates being considered were as low as $8.50 / ERU / month. In late 2022, the City presented new possible ERU rates which had increased by some 40% with little more explanation than the City’s consultant had updated their financial model. During the City Council’s December 14, 2022 meeting, the highest end of the proposed fees was chosen to incorporate into this Ordinance at $13.46/ERU/month, a nearly 60% increase to what was presented publicly as recently as Fall 2021. This dramatically inflated rate now the least this fee will ever be, and is slated to increase automatically, annually, and without public input or council oversight, indefinitely.

Home owners in Damonte Ranch, a planned community of over 5,000 homes would be taxed twice for stormwater and flood mitigation. According to a letter sent to the City by the developers, they note that homeowners already pay a monthly fee to the Damonte Ranch Drainage District and should therefore be exempt as “Damonte Ranch is the only neighborhood in the City of Reno that not only paid for the construction of regional stormwater facilities, but privately funds their operation and maintenance in perpetuity.  The City of Reno provides no funding to the Damonte Ranch Drainage District for the regional stormwater benefits it provides.”

Damonte Ranch Developers push back against the City of Reno for “double taxation”. (Photo: https://dra.ebmcportals.com/stormnotice.aspx)

The city is expected to have upcoming meetings in regards to this indefinite tax sometime this month.  The Globe will continue to provide updates to this story and residents are encouraged to provide comment on the City of Reno’s website.

WCSD - Business Impacts Statement - Stormwater Fee - FINAL (1)
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3 thoughts on “City Of Reno Proposes Stormwater Utility Tax

  1. Another favorite phrase of democrats , ” dedicated funds”.
    As soon as they get their hands on this money the “dedicated funds” will go to liberal pet projects.

  2. Reno sewer bills state “”Funds for CAPITALIZATION: Provide for debt service, depreciation, major replacement, the storm drain system and all other costs required to maintain the ability to continue providing services.”

    “storm drain system”… I guess we’ll all be paying two sewer bills now.

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