Ann Arbor Stormwater Rate Study

The City of Ann Arbor has one of the most progressive and advanced stormwater utilities in the country. The current user fee structure came from a rate study in 2007, but since that time significant changes to funding requirements and stakeholder level of service objectives meant the rates needed review.

Our job, when the City brought us in, was to update the 2007 rate study. The first step was an assessment of their current rate structure. After that, we developed potential modifications to improve alignment with legal precedent and industry practice while providing equitable distribution costs to customers. We identified costs and rate implications for multiple areas over 5, 10, and 20-year forecasts.

The key to success? Community involvement. With a series of interactive work sessions involving a dedicated stakeholder advisory group, we established objectives and guiding principles. They were instrumental in helping us review source data, assumptions, results, and various scenarios.

In the end, the comprehensive plan for Ann Arbor’s level of service and rate adjustments was endorsed by stakeholders and presented to City Council. After review and adjustments, we prepared a final report that reflected implementation of new rates for the beginning of Ann Arbor’s next fiscal year.