City Council members were told Tuesday that the Blue Ribbon Committee on Water Quality and city public works are moving closer together on a proposed budget and fee structure for the city's stormwater program.

The City Council is expected to take action next Tuesday on setting a reduced non-residential stormwater fee.

In the meantime, City Council Chairman Jack Benson recommended that committee leaders Bill Raines and Mike Price "be locked in a padded room" with Lee Norris of city public works to work out an agreed plan.

The panel was formed in December after an outcry over tripled stormwater fees. The panel recommended a reduction for residential, and a sizable drop in the charges for business. Mayor Ron Littlefield's administration then recommonded that residential stay the same, but that the business fee drop from $9.60 to $6.50. However, he recommended raising the business fee by 75 cents a year until it catches up with the residential charge that is based on an ERU, or Equivalent Residential Unit, which is equal to 3,200 square feet.

He said businesses who have already paid this year can ask for a refund of any overpayment or have the amount applied to next year's rate. That is contingent upon the City Council
approving the recommended lower business rate.

The rate proposed for commercial and non-profit users by the panel was $5.00 with the amount increasing 25 percent a year until reaching $6.00 in the year 2014.

Council members on Tuesday expressed no interest at keeping the rates at the high level imposed for this tax year.

Panel members are still seeking a higher percentage for credits for stormwater improvements above the city's maximum 50 percent.

Mr. Price said it does not make economic sense for an older business to spend $50,000 to $75,000 for stormwater improvements in exchange for a small amount of credits.

He noted that new developments are required to take steps to adequately handle runoff.

Councilwoman Pam Ladd said the council needs to act soon to abate lingering concern about how the fee will wind up. She said, "We've got to drive a decision. This is getting out of control."

She added, "We need to be more decisive, and we need to do this quickly."

Councilwoman Carol Berz said her concern was what will be the "outcome" of all the money spent. The current fees are set to bring in $22 million in a year.

She said, "We have been reactive. We need to be pro-active."

Councilwoman Sally Robinson said, "I want to know what our long-range plan is."

City officials said the plan is eventually to move to a "green" approach similar to that used in Philadelphia.

Mr. Norris said the city had been responsive to business owners who did not have time to plan for the tripling of fees. He said the reduced city budget includes putting off some capital expenditures and financing some components instead of paying up front.

He said in the future that stormwater will be treated as a self-supporting enterprise fund and will not require taking money from the city's general fund.

He said the city has already shown that taking a focused approach can help clean up local creeks. He said significant improvement has been seen in Citico Creek and Dobbs Branch after specialized efforts there.

Officials said over 45,000 city drainage structures were inspected last year.

Bill Payne, city engineer, said he believes the revised budget will get the city in compliance with the terms of its current expired permit.

City Attorney Mike McMahan said an effort to collect delinquent fees owed does not yield as much promise as first thought.

He said there were initially 75 entities owing over $1,000 in back fees, but some of those are no longer in business and it was found that some had paid. He said the list is now in the 20s.

Meanwhile, a bill has been drafted for the Tennessee General Assembly designed to lessen the impact of stormwater fee increases on religious groups.

Here is the bill:

BILL SUMMARY *HB 2579 BY *MCCORMICK, DEAN. (SB 2604 BY *WATSON, BUNCH, KETRON.) Water Pollution ‐ As introduced, requires certain cities to provide a method to lessen the impact of increased fees for storm water management on 501(c)(3) religious organizations. ‐ Amends TCA Title 68, Chapter 221, Part 11. Fiscal Summary Decrease Local Revenue ‐ Exceeds $100,000 Bill Summary Present law authorizes the governing body of any municipality to authorize the construction, extension, enlargement, or acquisition of necessary storm water facilities or flood control improvements within its corporate boundaries. Present law further authorizes municipalities that are authorized to provide storm water and flood control facilities to adopt a system of fees for services and permits that are related to storm water facilities or flood control improvements. This bill requires that, in adopting a system of fees for services and permits that are related to storm water facilities or flood control improvements, any municipality having a population in excess of 150,000 must provide a method to exempt in whole or in part tax exempt religious organizations from any increase in such fees when the fees were initially established by the municipality or establish a plan for such institutions to make installment payments for any increases assessed from the initial assessment.