Palo Alto proceeds with storm water management fee increase

By Jacqueline Lee, Daily News Staff Writer Posted: 08/30/2016 08:47:19 PM PDT | Updated: a day ago By Jacqueline Lee Daily News Staff Writer PALO ALTO -- Money from a proposed increase in storm water management fees would be spent more to cover operating costs than make capital improvements, the Palo Alto City Council decided Monday, reversing a decision made earlier this year. The council previously approved a resolution calling for a monthly fee of $13.65, up from $13.03. The initial breakdown was going to be $6.62 as the base and $7.03 for capital improvements. Now, the allocation $7.48 as the base and $6.17 for improvements. City staff told council members that initial calculations were off because they were tied to fiscal year 2016 instead of 2017 and more money is needed for operating costs. A public protest hearing on the rate hike is set for Oct. 24. Property owners can file written objections to the fee increase until then. If a majority does so, the council has to terminate the fee increase process. If there is no majority opposition, then the city will conduct a mail ballot election on the fee increase, sometime between Jan. 11 and Feb. 28. If approved, the new fees would go into effect June 1 and generate about $6.9 million in annual revenue for the next 15 years. In early 2015, the city identified about $37 million worth of needed capital improvements. Property owners currently pay about $12.63 per month in storm drain bills. Advertisement Current fees will expire in June. If no action is taken to approve updated fees, the rates will revert to $4.25, an amount property owners approved in 2005, which city leaders say is not enough to maintain operations. Email Jacqueline Lee at jlee1@bayareanewsgroup.com or call her at 650-391-1334; follow her at twitter.com/jleenews.