The City Council is considering what it would mean to add a stormwater utility in a move that the director of Public Works said has already been made in the majority of Minnesota cities.

Currently, residents pay their stormwater utility as part of their property taxes, said Director of Public Works Steve Jahnke said. With a stormwater utility fee, homeowners would be charged a monthly bill similar to a sewer or water bill.

Jahnke said a homeowner’s plot could be around $3 a month, where an industrial plot — Mrs. Gerry’s was the example — could be closer to $100 a month.

That fee is determined based on the amount of impervious surface — surfaces covered by materials water cannot move through, such as concrete — a property has. To determine that, a survey would be conducted, using area photos and maps, on enough of the community to be representative of impervious surface space on different types of properties, Jahnke said.

“It would essentially look at our whole community and really come up with an accurate ‘This is how much every property is, is generating,’” Jahnke said.

This is what an argument for instituting a separate stormwater utility fee focuses on: that property owners are charged based on what they are contributing to stormwater runoff based on how much impervious surface their property has, Jahnke said.

Additionally, a stormwater utility allows the city to charge tax-exempt properties, such as churches or Mayo Clinic Health System in Albert Lea, for the stormwater they are generating.

Every five years, the city receives new stormwater discharge regulations in the form of an MS4, Jahnke said, and every year, the regulations seem to get a little tighter. Rivers and lakes in the community are impaired, he said. More stormwater projects over the next five to 10 years is a reality for the city, Jahnke said.

Funds raised by the stormwater utility fee could be set aside for stormwater projects, and could also pay for street sweeping and general maintenance done yearly. Between $250,000 and $300,000 has come out of the general fund yearly for that sweeping and maintenance, he said.

Jahnke said his biggest concern is that the city doesn’t have a dedicated source for the projects it is expecting to come up. Creating a fund with allocated stormwater utility fee collections could become that source.

However, a fear in 2005 was that separating stormwater utilities from general fund taxes would give the city a way to easily raise rates and generate money. The change would also shift a larger piece of that utility onto commercial properties with large parking lots and large buildings, Jahnke said.

The city already implemented a stormwater utility fee in 2005, Jahnke said. It was in place for under a year when a 4-3 council vote in favor of the utility had a change of heart.

While Mayor Vern Rasmussen Jr. was not on the council when it decided to implement the stormwater utility fee, he said he came on just after it was implemented. He was on the council when the fee was removed. Over the 15 years since, his opinion on the stormwater utility fee has also changed.

Minnesota has added more regulations at the state level regarding stormwater management, Rasmussen said, and he doesn’t believe the council understood how much the state would become involved in the form of mandates. As a result, the city has to find funding to meet state mandates.

“We’re being pushed to make it more of a priority within our budget,” he said.

The City Council also set flood mitigation as a priority, Rasmussen said, and with as much flooding as the city has had, Rasmussen said the council has to get serious about those efforts.

“At this point, I’m starting to think maybe there’s an opportunity here to really dedicate funds and take care of those mandated situations that we have from the state,” Rasmussen said.

However, he said he would like to see property taxes go down if a new fee is instituted.

The City Council has not made a decision on whether or not it will pursue a stormwater utility. Rasmussen recommended the council discuss the idea further at its next work session.

In other action:

• Alcon Construction of Rochester was awarded its $339,120 bid for sewer and water extension improvements in the Stables Area. Alcon was the lone bidder. Jahnke said the contract will include a change order that allows homeowners to choose whether to use Alcon to connect to the city’s sewer and water or whether to hire their own plumber. The city will be charged incrementally based on how many homeowners utilize Alcon.

• Gary Hagen asked the council whether it had followed through the necessary steps to approve spending funds on a temporary repair to the pool bath house, and whether the amount spent on repairs exceeded the amount approved. Rasmussen said he would look at his notes.

Hagen also asked the council whether it found any surprises during fire station excavation. Jahnke said there were no surprises in the form of soil types, but that there were some structures the city was not aware of that had to be removed. Finally, Jahnke confirmed for Hagen that the footings being drilled for the new fire station building were included in the bid for construction.

• Chad Iverson invited City Council members to an open house at The Barn of Chapeau Shores, 504 Lake Chapeau Drive, from 1 to 4 p.m. Sunday. The barn, converted into a wedding venue, is hosting an open house.

• The City Council approved a tax abatement for a new construction address at 2097 Paradise Road.

• The City Council approved over $1.2 million in claims as well as a resolution approving a contract with 6th Ward Councilor Al “Minnow” Brooks for $180.74 paid to Brooks Safety Equipment. The contract was not required to be competitively bid.