FAQs

Like other utilities that provide electric, water, or sewer services, a stormwater utility charges a fee for the use of public infrastructure to convey stormwater from properties and discharge it, in Rehoboth’s case, into lakes and via outfalls into the ocean. A stormwater utility provides a dedicated funding stream for stormwater-related operations, maintenance, and improvement projects.

In anticipation of possible future state or federal regulation, the city is seeking to up its stormwater game. That is, the city wants to provide stormwater infrastructure and services that would meet standards that many larger communities are already required to follow. In addition, the city’s stormwater system is in some ways showing its age and is in need of improvements. Currently, the city spends about $600,000 each year to operate and maintain stormwater services. Several capital projects to improve the city’s stormwater infrastructure have been identified and lack dedicated funding through the city’s annual budget. A stormwater utility is considered the most equitable way to apportion fees for funding a stormwater program.

The Stormwater Utility Task Force has recommended that the billing rate be based on stormwater billing units (SWBU) where 1 SWBU equals 500 square feet of impervious surface. A typical single-family home with 3,000 square feet would be charged six SWBUs annually. How the stormwater fee will be billed and how frequently (quarterly or annually) will be determined by the stormwater utility implementation plan. The rate per SWBU would be set by the Board of Commissioners each year.

Again, that’s hard to know for sure. The stormwater utility feasibility study suggests that an annual rate of $423 for a typical 3,000-square-foot home would be the maximum cost the first year – and would provide the funds required to meet city stormwater needs. Larger properties, including commercial ones, would have higher rates because they have more SWBUs. The final determination of cost, again to be recommended through the implementation plan and adopted by the Board of Commissioners should it ultimately decide to create a stormwater utility, depends on what combination of expenses are to be covered – maintenance, operations, and/or capital expenses – and what other funding sources could be implemented to mitigate costs.

The city has estimated stormwater expenses (operations, maintenance, and capital expenses) totaling between approximately $1.1 million and $1.5 million over the first five years of the utility. The utility needs to generate funds to cover these expenses. Funds generated through the stormwater utility may not be used for other things.

Stormwater is the water from rain or melting snow that runs off of properties. It is not wastewater that runs through the sewer system and is treated before it re-enters the environment. Stormwater runoff picks up pollutants and generally is only minimally filtered or treated in Rehoboth before it drains directly into our lakes and the ocean. Stormwater runoff can cause quality and quantity issues in lakes and ocean.

Impervious surfaces are hard surfaces that don’t absorb water and impede the filtration of water into the soil. Examples of impervious surfaces include roads, sidewalks, roofs, asphalt and gravel driveways, concrete patios, swimming pools, pavers, decks, and more.

The feasibility study recommends that all City of Rehoboth Beach property owners, both commercial and residential as well as churches and schools, pay the stormwater utility fee. Churches and schools also contain impervious surfaces and place demands on the stormwater system; they would not be exempt from the stormwater utility fee as they are from certain other fees and taxes.

Probably. The city will bill the owner or management agency of the property, who will likely pass along the cost to individual tenants or owners. Like other properties, multifamily structures will likely be charged based on the amount of impervious surface and number of stormwater billing units.

The feasibility study recommendation is that the city pay a fee based on its buildings’ and facilities’ impervious surfaces. Roads and rights-of-way, which we all utilize, may be another matter. Roads, etc. account for about 39% of the total impervious surface in the City of Rehoboth Beach, and some are owned and maintained by the state while the city is responsible for the majority. Other Delaware municipalities that have implemented a stormwater utility (there are currently three) do not charge federal and state agencies. The question of whether to include roads may be discussed again as commissioners consider potential mitigation options.

Initially, the city will rely on geographic information systems (GIS) mapping undertaken as part of the University of Delaware’s Resilient Community Partnership program. The city also will take into consideration redevelopment plans and permit applications received.

Timing for the implementation of a stormwater utility is unclear at this time. The earliest implementation would likely be in 2025.

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As recommendations are made to the Board of Commissioners about implementation, additional opportunities for public feedback will be made available.

An appeals process will be developed through the implementation plan.

The implementation plan will identify best management practices and alternative pervious surfaces that residents and other property owners can adopt to reduce the amount of stormwater runoff from their property and receive a stormwater utility credit.

This committee of 13 diverse City of Rehoboth Beach property owners met over a period of approximately one year from the spring of 2022 to the spring of 2023 to formulate recommendations for the Board of Commissioners related to the establishment of a stormwater utility. Working with planning consultant, AECOM, the task force formally presented its recommendations to commissioners April 19, 2023 through a feasibility study. Several members of the task force are former or current elected municipal officials from Virginia, Maryland, and Delaware, and others have experience establishing stormwater utilities in other communities.