Statement from Mullan spurs new direction for stormwater utility rate

Newton City Council is taking a new direction for the proposed stormwater utility rate increase after a council member lobbied for an option that he argued would better address issues residents faced during the floods back in May, but in doing so he re-started the whole process and the matter won’t finish until September.

Council members were about to take action on the second consideration of the city’s second attempt to increase the stormwater utility rate for all property owners. The proposal was to increase it by 6 percent starting in 2025, then 4 percent in 2026 and 2027 and 3 percent in 2028 and 2029.

Currently, the stormwater utility rate — which is included in resident water bills — is set at $4.50 per equivalent residential unit (ERU). In most cases, homes are set at one ERU. Under the proposal that was up for council approval this week, the ERU would increase to $5.47 at the end of the five years.

However, that option is now off the table after newly appointed council member Steve Mullan made a motion to revert back to another option of a flat $0.25 increase per year for five years. This option would see the ERU increase to $5.75 at the end of the five-year period, giving the city more funds to address issues.

Which was at the core of Mullan’s statement that he read aloud to fellow council members. He mentioned that he was not on the council when the matter was initially discussed in June. By that time Vicki Wade was still on the council. It was her “no” vote that caused the initial proposal from the city to fail in a 3-3 vote.

Back then the proposal was a 5 percent increase every year for five years, which also increased the ERU rate to $5.75 by the fifth year. Despite the council making multi-year agreements in the past, some disagreed over the five-year lock-in of the rate increase. Others decried the higher financial burdens to businesses.

Mullan said the city’s stormwater utility rate and its inflow and infiltration (I&I) program are critical to improving Newton infrastructure.

“I do support the current plan; however, I am aware of too many homes with infiltrating water and back-up sewage damage,” Mullan said. “The destruction which this causes creates stress, a mess and destroyed property. Those with insurance are fortunate. Those without are not.”

As a result of these severe weather events, Mullan claimed companies have raised rates and deductibles or dropped customers altogether. He said this leaves homeowners scrambling for a replacement or agree to pay a higher premium. Mullan argued the water problems are not going away.

Nor are the increasing costs to fix them. Mullan hopes the city can continue funding I&I and charge what is necessary to tackle Newton’s stormwater problem that has been “too long neglected.” Mullan then made the motion to change the rate increase to the $0.25 per year for five years.

Matt Brick, the city’s attorney, notified council that if it went this route it would start the process over. Which means that when city council members meet again the first Monday in August they would vote whether to pass the first of three considerations on this new proposal.

“I think we need to be honest with the customers, who are our citizens and ourselves,” Mullan said. “We have a major problem. We need to deal with it. We don’t need to underfund. If nothing else, we need to be on top of it and mitigate it as quickly as we can.”

Mullan’s motion passed in a 4-2 vote, with council members Randy Ervin and Mark Hallam voting no.