Following more than two years of study and public engagement, the Village Board of Trustees has created a Stormwater Utility (effective July 1, 2023) to provide an equitable, efficient, certain and neutral revenue stream for the construction, maintenance, operation and improvement of the Village's stormwater system.
Frequently Asked Questions
What is a stormwater utility?
A stormwater sewer system consists of the infrastructure that moves rain water (runoff) away from streets and property during a storm. The system consists of curbs, gutters, inlets, catch basins, swales, ravines, culverts, trunk lines, junction chambers, manholes, and detention or retention basins. Flooding results when the system is overwhelmed and cannot move water quickly enough.
Aside from the Stormwater Utility, the Village of Lake Bluff already operates one utility- its water system. The Water Utility system includes pipes, valves, an elevated storage tank, and fire hydrants. The maintenance and improvement of this utility system is paid for by customers based on their usage. The Stormwater Utility is funded based on the same “user pays” principles.
What is a stormwater utility fee?
A stormwater utility fee pays for projects that reduce flooding in Lake Bluff. The fee is charged to each property based on the estimated amount of stormwater runoff from the property. Communities throughout the North Shore and the United States use fees like this to fund stormwater management. These fees pay for new and replacement infrastructure as well as operations and maintenance.
How much is the fee?
The typical homeowner pays about $20 per month, which is equal to about $60 per water bill or $240 annually. This fee will generate about $1 million annually to reduce flooding. This amount can be used to borrow $10 million as a bond repayable over 15 years.
Why was the stormwater utility fee created?
Like other communities throughout Chicagoland, Lake Bluff experiences flooding during heavy storms. This flooding damages property and interferes with critical community functions like commerce, education, and emergency response. In part, this is because a “heavy” storm in Lake Bluff now drops more water faster than it did 50 years ago. This makes heavy storms even harder to manage than they were.
What other funding options were considered?
The Village’s Finance Committee reviewed many funding options, including changes to property or sales tax or the creation of a new real estate transfer tax. The Finance Committee considered a stormwater utility fee to be the most fair option because the properties that create the most stormwater runoff pay the largest fee. It is also more stable than sales or transfer taxes, which are subject to fluctuations in the economy. The Village has had success obtaining grants for stormwater improvements and will continue to apply for grant funding. However, grant funds cannot close the funding gap. A dedicated Stormwater Utility allows Lake Bluff to improve the system to perform better during severe storms.
Who pays the fee?
Every developed parcel in Lake Bluff pays a stormwater fee, including homeowners, apartments, businesses, institutions, and government agencies. This includes property owners that are exempt from property taxes such as schools or churches. The Village does not believe it can lawfully exempt these categories of users from the fee.
How are these funds used?
Because much of Lake Bluff’s stormwater flows through the Scranton Avenue Viaduct, improving the viaduct’s drainage would make many other projects possible. The Village and Lake County are partnering to design plans to redirect the viaduct into a new, 5-foot diameter “trunk” sewer line from the viaduct, north up Sheridan Road, and then east along North Avenue to Lake Michigan. This project is currently estimated to cost about $17 million to build.
Even with the fee in place, Lake Bluff needs help from the county, state, or federal government. The Village Board believes that this project is a strong candidate for outside funding and that having the fee gives Lake Bluff the best chance of success. If grant funding is obtained, the fee will pay for the local share of the “trunk” sewer.” It will also be used to build other projects that direct more water into this new sewer line.
It may take time to secure additional grants. In this case, the Village spends the fee revenue within its means to help maintain the Village’s existing system and build other system improvements.
How was the fee determined?
The fee is proportional to how much runoff a property sends into Lake Bluff’s stormwater system. This amount was estimated based on how much impervious surface exists on the property. “Impervious surface” is the area covered by buildings, asphalt, concrete, or other materials that shed stormwater rather than absorb it.
Homeowners pay based on the average amount of impervious surface present among similar nearby residences. All other properties, such as businesses, pay based on their actual property conditions as measured by plans or aerial photography. In both cases, the measurements are based on records the Village already has.
How is the fee paid?
Stormwater utility fees are paid through the Village’s existing utility billing process.
How was the proposal developed?
After the flood event of July 2017, the Village decided to comprehensively study Lake Bluff’s stormwater challenges and solutions. Lake Bluff’s Stormwater Master Plan was completed in 2019. The Master Plan identifies over $50 million in possible improvements. The improvements are distributed throughout the Village. Lake Bluff’s Finance Committee and Board of Trustees carefully studied and debated the right level of investment and how to pay for it for two years before presenting this option to the community.
I have more questions. What can I do to learn more?
Contact Village Administrator Drew Irvin at (847) 283-6883 or via e-mail.
