Frequently Asked Questions

A storm water utility is a service similar to water and sanitary sewer utilities. A fee to fund the service is charged to property owners. Similar to a sanitary sewer utility, the fee is based on the amount that each property utilizes the service. In the case of storm water, it is based on the amount of storm water runoff generated by each property. For example, a parking lot creates more storm water runoff than a grassy area of the same size. Therefore, the parking lot owner would pay a higher storm water utility rate. In this way, property owners in the City pay for the management of storm water in proportion to the amount of storm water runoff they contribute to the system.

No matter where you live in Inver Grove Heights, when it rains, storm water runs off sidewalks, homes, driveways, and lawns and into a stormwater management system. The City’s storm water management system collects rain and snow runoff in streets or ditches and then directs the water into storm sewer pipes, ponds or drainage ways. These systems eventually discharge the water into ponds, wetlands and the Mississippi River. A system of streets, catch basins and storm ponds have been built in IGH and need to be maintained to control storm water runoff. Managing storm water runoff:

• Protects people
• Protects property
• Reduces insurance risks
• Improves property values
• Protects water quality

There is a cost to control, collect and treat storm water. A storm water utility spreads this cost to all those who contribute to storm water runoff. The money generated by storm water utility fees are used to conduct routine maintenance activities on the existing management system to keep it functional and to maintain water quality benefits. Storm water system maintenance activities include:

• Street sweeping
• Erosion and sedimentation control inspections
• Storm sewer system inspections and repairs
• Stormwater pond and basin cleaning and maintenance
• Drainage ditch mowing, grading and cleaning

In addition to financing maintenance and operation costs, a portion of the revenue generated by storm water fees is utilized by the City to meet the requirements of the Minnesota Pollution Control Agency (MCPA) and other outside agencies related to storm water management. Under these requirements, the City must implement a variety of programs to address and promote storm water pollution prevention. These include the following existing and anticipated programs:

• Water Resources Management Plan
• MS4 General Permit – Storm Water Pollution Prevention Plan (SWPPP)
• Lake Pepin Total Maximum Daily Load Implementation Plan

The Inver Grove Heights storm water utility assigns costs to land parcels based on the premise that owners of parcels that have a high percentage of impervious surface, such as commercial and industrial areas, which generate larger volumes of runoff, would be charged more than the owners of land parcels that have a small amount of impervious surface, such as single-family or rural residential areas, which generate less runoff.

The following activities were completed by City staff to establish a storm water rate structure for the City of IGH:

• Grouping parcels into 15 utility groups based on zoning and existing land use.
• Using code-allowed percentage of impervious areas for parcel zoning classifications, calculating storm water runoff volume using actual rainfall for April through November from 1995 to 2004.
• Using one acre of single-family residential property as the reference (given a value of 1.0); the residential equivalency factor (REF) for each utility group was determined by the following ratio:

The runoff volume for an acre of given utility group land  /  The runoff volume of an acre of single-family residential land

• The base fee for a parcel is determined by multiplying the REF by the base rate to get the per acre or per lot charge. The surcharge fee amount is calculated the same way, using the surcharge rate in place of the base rate.
•  The storm water fee structure has three different final rates:
  • Rural Rate: for parcels that are outside the current Municipal Urban Service Area (MUSA) boundary and are zoned as agricultural or estate district, and for undeveloped land in the Northwest Area (NWA).
  • Urban Rate: for parcels within the current Municipal Urban Service Area (MUSA) boundary. 
  • NWA Developed: for developed property in the Northwest Area.  

Rural property is charged the base rate. Urban property is charged the base rate plus the urban surcharge rate. Developed property in the Northwest Area is charged the base rate plus the NWA developed surcharge rate. The fee uses a minimum per-parcel annual fee. This was established to ensure that annual costs for citywide planning/management/permit tasks are covered.

The storm water fee billed to landowners is based on the land use of the property and its location within the City. The land use provides an estimate of the amount of stormwater runoff generated by a given property, which is proportional to the fee that is charged. Developed properties within the Northwest Area are charged different rates than developed properties located in the storm-sewered areas in the remainder of the City. Parcels that are charged on a per-acre basis have their billable acreage reduced by the area of any mapped wetlands on the property.

2024 Storm Water Monthly Rates & Fees

For 2024 storm water utility rates, click here.

2025 Storm Water Monthly Rates & Fees

For 2025 storm water utility rates, click here.

The storm water fee appears as a line item on existing utility customer billing statements. Customers not connected to City water or sanitary sewer are billed either annually or quarterly, based on property classification.

Due to the topographical challenges associated with development in the Northwest Area (NWA), this area has been developed in a manner to fully retain and infiltrate storm water into the ground, as opposed to routing the storm water to the Minnesota or Mississippi rivers, which is more typical of the other “urban” areas of development in Inver Grove Heights. This type of development requires the use of “low-impact” design methods to reduce the potential for flooding while still treating storm water for certain types of surface-level contaminants before infiltrating back into the ground. These design methods require a higher level of maintenance over their lifespan, and as such, require a higher amount of revenue to maintain. Undeveloped properties are treated as "rural" classification properties, but upon development, these properties are charged the NWA rate.

The Storm Water Utility Fee Rates and Structure may be modified based on the storm water needs of the City. Adjustments to the Storm Water Utility Fee Rates and Structure can only be made by the City Council. The fee is reviewed annually as part of the City’s budget process. 

Prior to the development of a storm water utility, the City paid for storm water improvements exclusively via property tax revenue. The establishment of the storm water utility, and the associated fee structure, address two key areas regarding fee equity: 

1. It includes tax-exempt properties in the generation of revenue for operation and maintenance of the system, which benefits all properties (not just taxable properties).
2. It provides diversification of the means of paying for mandated storm water requirements in the event the State Legislature invokes tax levy limits in the future. An established utility would not be affected by such a legislative action.

The land area used to calculate the fee is reduced by the area of any mapped wetlands on a property. This reduces both the base fee, which is charged to all parcels, and the surcharge fee, which is charged to parcels in storm-sewered areas.

The storm water Special Tax District levies will run their full terms. The City currently has three special tax district levies, all of which will expire in 2027. The City could decide to use this funding source for a major storm water management project in the future.

The rain gardens, infiltration swales (narrow, grassy channels), pervious pavements and other features are selected by the developers as part of their overall storm water management plan to meet the required performance standards for development in the Northwest Area. Developers have a list of possible features they can use to meet the standards. They decide which ones they will use and where they are installed. The City reviews and approves a developer’s plan based on the type of development, and verifies that the development meets the City’s requirements for storm water treatment and retention.

If ISD 199 property and City-owned property were not charged a fee, the costs would be shifted to remaining parcels and their fees would increase. The idea behind a storm water utility is that all users contribute to cover the costs of managing storm water in the City.

A separate storm water utility fund account has been established by the City’s Finance Department. Fee revenue is placed in this fund. Budget line-item costs are documented throughout the year.

The fee pays the costs for mandated planning and permit tasks that affect every parcel in the City. It also pays for operation and maintenance of the storm water management system that serves the public streets, which are necessary to access parcels throughout the City. Storm water system upkeep is not limited to pipes and ponds; it includes street sweeping activities, maintenance of ditches, culverts and ravines, and addressing a wide variety of drainage concerns from all types of property across the City. Costs specific to certain areas are reflected in the surcharge portion of the fee for those areas (i.e., Northwest Area), or may be collected via other means, such as special assessments for street and utility projects, or storm water Special Taxing Districts.

Please call the City of Inver Grove Heights with questions at 651-450-2500. 

Yes. Please click here for a printable version of storm water FAQs.