UNR, school district among groups opposing new fee

A new stormwater fee proposed by the City of Reno was met with opposition at last week’s Reno City Council meeting. According to Vicki Van Buren, the city’s finance director, the city’s stormwater infrastructure continues to age, made worse by the increased intensity and frequency of storms within the region. These factors have caused a significant challenge in operating and maintaining stormwater and flood control infrastructure. 

A dedicated stormwater enterprise fund would address the backlog of projects and “meet the ever-growing challenging stormwater and flood control needs within the community,” Van Buren wrote. 

According to city staff, the city has no dedicated funding source for stormwater infrastructure. In June 2019, staff recommended a $8-$10 fee per equivalent residential unit (ERU). However, in 2020, when the Capital Improvement Plan (CIP) was updated, it was determined that $470 million would be needed to accomplish stormwater utility repairs and replacements over 20 years. A new fee of $13.46 per ERU was suggested. 

Sparks charges its constituents $15.46, and Carson City charges between $7.50 and $15. 

“This is uniquely fiscally burdensome to the Washoe County School District that is providing free public education to all citizens.” 

In addition, the ordinance proposed a low-income assistance program, a tiered residential rate for small, medium and large properties, non-single family residential crediting for water quality/quantity mitigation, a 3-year rate ramp-up policy, credits for the airport and the school district and more. 

After receiving feedback, staff adjusted some of the proposed policies, which dropped the per ERU rate back to $9.80 to be billed quarterly, deferring fee collection until Jan. 1, 2025, and extending the CIP to 32 years. 

However, many pointed out that there needs to be a distinction between large and small residences in the new ordinance proposal. A 3,500-square-foot home would pay the same amount as a 900-square-foot home, which many said is unfair. 

Through in-person and written public comment, many residents voiced their opposition to a proposed stormwater fee, which would apply to homeowners and businesses to help support a stormwater program within the city. While some residents agree that a stormwater utility fee is necessary, they say its current iteration needs work. 

The University of Nevada, Reno opposed the ordinance and called it a tax. 

“We understand this is a concerning issue for the community and offer this compromise,” UNR Vice President Andrew Clinger wrote to the council. Clinger is the former Reno city manager. “We have learned that the City of Reno has worked with the Washoe County School District … to provide a 60% discount on the … fee proposed by the City of Reno. We propose a similar arrangement for the University…”

Adam Searcy, the chief operating officer for the Washoe County School District, called the fee proposal burdensome. He told the council during public comment that, unlike every other business or residence within the city, the school district has no way to pass on their costs to their “customers.” 

In the first year alone, the stormwater fee would cost $200,000 for the district, which would have to absorb it in its entirety, he said. The tax revenue the district gets from sales tax cannot legally be used for recurring costs—leaving no choice but to dip into other educational funds used for teacher pay and classroom funding. 

“We have no ability to increase our revenues,” Searcy said. “This is uniquely fiscally burdensome to the Washoe County School District that is providing free public education to all citizens.” 

Searcy also said that critical concerns provided to the city by the district were not included in the packet, including the fact that the Consumer Price Index (CPI) used in the proposed ordinance is inappropriate for stormwater relief, as it deals with food costs, retail, housing, etc. which are not relevant to utilities. 

Council discussion 

Council member Naomi Duerr said she received a lot of feedback from community members, many of whom believed they would be “double taxed” if the ordinance passes. 

Duerr said she has asked for a fee for many years and supports its creation. She said she also does not believe that any person or entity should be exempted from the fee but that there needs to be a better way to divide the costs equitably. 

Duerr said she assumed that the sewer fee would be reduced and the stormwater fee increased to offset some additional costs, adding, “I’m open to reducing the fee.” 

Council member Kathleen Taylor asked how the business impact statement determined no impact, despite businesses and entities such as the airport and the school district stating the impact is significant. 

“We do understand there is an impact,” John Simpson, the city’s utilities manager, said. “However, the important thing to note is, [while] there is an impact to those individuals, the stormwater utility necessity outweighs the fact that there is impact. If we don’t [approve the fees], we will continue to see deficiencies and deferred projects, and eventually we’ll see failed infrastructure.” 

Taylor said many commenters said, “Let’s just wait until prices come down,” but asked if anything has ever become cheaper. 

“No,” Simpson said. “Inflation costs increase … with every year we wait.” 

Council member Devon Reese said due to the increasing frequency and intensity of storms, now is the time to make investments in the future of the city’s infrastructure. 

“However, I still think we have some work to do,” Reese added. “We have many partners in the room today who have raised legitimate concerns about our involvement.” 

Council member Meghan Ebert asked whether or not the city could involve the county or Sparks in these costs to regionalize the project since much of the land often crosses over between county and city, especially in Ward 4, which she represents. 

Simpson said that while discussions have long been had about regionalizing stormwater and sewer costs, it would take at least 15 years for a regional program to come to fruition. 

“I agree we need to do something now, but maybe we can also take steps towards regionalization,” Ebert said. 

Council member Jenny Brekhus said she was uncomfortable dictating the school district’s curriculum. In the proposal, credits would be given to schools if they included stormwater education as part of their curriculum. 

“I don’t want to be involved in curriculum development,” Brekhus said. “Let the legislature say you’ve got to do this and that. I think it’s really not a good place for local government to go.” 

Simpson said that the intention behind the proposal is that when young children are educated on flood risk and stormwater quality, they will later become advocates for those essential infrastructures. 

“We are not planning to provide any curriculum to the school district at all,” Simpson said. “We’re saying if [stormwater and flood risk] is provided as an education opportunity, you can receive this credit.” 

Moving forward

Four separate agenda items were taken regarding the stormwater discussion. The first of which was the establishment of a Stormwater Enterprise Fund, which the council approved unanimously. Establishing the fund is the first step in the process and will fund the specific stormwater and flood prevention CIP projects. 

As to the fee itself, the council voted to postpone the fee decision and directed staff to explore more avenues and issues. Specifically, staff was directed to look into a sunset ordinance, returning to a tiered fee schedule based on property size, credit programs, caps related to CPI, educational and public facility exemptions, and civil aircraft. 

Staff will present another discussion on the fees sometime in the new year. 

Special Assessment District approved for Verdi’s Quilici Project 

The council approved a petition to form a Special Assessment District (SAD) project regarding the Quilici Project, a planned housing project in Verdi. 

The project, located southwest of the Boomtown Garson Road overpass, includes over 1,200 residential units, nearly 600 acres of open space, 10 acres of commercial zoning, 26 acres of multi-family housing, an 18-acre regional park site, a 10-acre school site, and more. 

A tentative map for the project was approved in March 2021, and a SAD Deposit Agreement was approved in February 2023. 

Truckee Meadows Water Authority will own and operate the proposed water infrastructure. Assessments would be paid by the future homeowners within the project, which would result in an average annual assessment payment of $1,756 per homeowner over 30 years. 

The developer, Toll North Reno LLC, owns all of the property within the SAD and has deposited $150,000 with the city for the costs and expenses associated with the formation of the district. 

Council member Brekhus said she disagreed with an assessment being paid over time and said the price was included in the initial purchase. 

Brekhus said that creating a neighborhood in Verdi would stretch police resources that would be better spent within the city’s urban core. 

“This isn’t the housing we need. [We need to] get the urban housing in place, get infill done,” she said. “We are under no obligation to help them with their infrastructure.” 

Council member Duerr pointed out that as part of the conditions for the development, Toll will pay $1,000 “per door” toward the city’s affordable housing efforts, which would generate around $1.2 million into an affordable housing trust. 

The petition was approved, with Brekhus voting against it. 

In other items

– A $75,000 grant was received from SilverSummit Healthplan to support Reno Works, a 12-week program providing individuals experiencing homelessness with classes focused on life and job skills. 

Thanks to the grant, Reno Works will become “Reno Works +,” which will broaden its support services and educational offerings to participants after they graduate. 

Since its inception in 2015, 110 graduates have completed the Reno Works program. 

“I am thrilled to see Reno Works evolve into something bigger,” said Taylor, who serves as the Council liaison to Reno Works. “We are not only helping people out of homelessness, but now, we are able to provide additional resources to help people move out of poverty.” 

– The Reno Police Department received a $129,400 grant from the Nevada Department of Public Safety to support the regional gang unit. Funds will be used for officer overtime, training on gang-related topics and support of the Gang Net computer system. All funds must be used during 2024.