The City Council on Tuesday night voted on first reading to support a reduced $6.15 water quality fee for non-residential that was below the $6.50 recommended by the administration of Mayor Ron Littlefield.
The vote was 6-3. In favor were council members Jack Benson, Sally Robinson, Andrae McGary, Carol Berz, Peter Murphy and Russell Gilbert. Opposed were council members Deborah Scott, Manny Rico and Pam Ladd.
At the same time, the council raised the 50 percent credits to 65 percent credits.
The Blue Ribbon Water Quality Committee that spent three months studying the tripled stormwater fee had recommended $5 for non-residential.
Chairman Bill Raines said business pays 75 percent of the fee, and he said, "We're in tough times."
He said he was grateful that the administration had backed off $10 million in fees, then had acknowledged another $375,000 was in the budget for employees who would not have to be paid for the entire year.
Councilwoman Robinson said if the city falls afoul of state and federal environmental regulators and gets hit with a moratorium on new business "that is going to be the great tragedy of this decade."
Councilwoman Ladd said she supports the mayor's $6.50 plan. She said she was concerned about the fee being set lower than is required to get the city in compliance with its "Cadillac" water quality permit.
Councilwoman Berz at an afternoon session also spoke in favor of the $6.50 amount as did Councilman McGary. His was coupled with raising the credits to 100 percent. That was later amended to 65 percent after Mike Price of the Blue Ribbon Committee said an agreement had been reached with the administration.
Council Chairman Benson at the afternoon session said he would like to see the city find five percent in overall cuts to allow a rate of about $6.20 rather than $6.50.
The non-residential rate will be $9.60, which is a yearly charge of $115.20.
The mayor's plan includes raising the non-residential fee each year until it catches up with the residential rate. However, one council cannot take action that binds the next council.
Mayor Littlefield said those who have already paid their fee at the higher rate can either take a credit next year or get a refund as soon as the new rate is in place.
The city has already collected about $14 million from the higher rates.
City Attorney Mike McMahan said when there is a change of a fee it requires advertising for a public hearing. He said that process takes about five weeks, including setting the hearing off 30 days.
David Crockett, who heads the city's Office of Sustainability, said Charlotte has a very high water quality fee, but offers 100 percent credits to those who can hold all rainwater on their property with no runoff. He said only 14 have qualified for the 100 percent credit in Charlotte.
He said a number of cities in the Southeast are higher than the new Chattanooga rate, including Charlotte at over $9 and Gainesville, Fla., at over $11.
Mr. Price recommended that the county school system be allowed to use the amount it owes on the fee to make stormwater improvements. He said the process could be a part of the environmental educational program.
Mayor Littlefield said he did not object to such a use of the fees owed by the school system.
Jim Folkner said because of the higher fee "childrens agencies won't be able to fee some children and churches won't be able to send out some missionaries."