Stormwater Utility

The City of Steamboat Springs is studying the creation of a fund dedicated to improving stormwater program services to better protect water quality in the Yampa River, reduce flood risks to people and property, and maintain reliable and resilient infrastructure.

Stormwater Program Needs and Challenges

The city’s stormwater drainage system collects stormwater runoff from developed properties, streets, highways, and parking areas to protect property and infrastructure from the impacts of flooding. Much of this infrastructure is aging and undersized for a growing community, as well as the growing risk of more extreme rainfall events due to climate change. We currently face between $30-65 million of deferred maintenance and capital projects in the stormwater drainage system, excluding annual maintenance and immediate needs.

Unlike the water and wastewater utilities, the city does not have dedicated user fees to fund a full stormwater program and perform operations, maintenance, and capital improvements. Instead, the city has funded the most immediate needs through the General Fund and Capital Projects Fund shared by all city departments, including streets, parks and recreation, fire, police, facilities, and more.

Additionally, Steamboat Springs is facing changing regulatory requirements to comply with our Municipal Separate Storm Sewer System Permit from the State. The permit requires a variety of actions and programs to control the quality of the stormwater discharged to our creeks and the Yampa River.

Stormwater Utility Fund

A stormwater utility collects user fees for stormwater management services and places it in a stormwater fund dedicated solely to the city’s drainage infrastructure system and stormwater quality program.

Municipal utilities provide a way for communities to directly charge users to ensure critical public systems operate reliability. Municipal utilities do not earn profits for shareholders; instead, the fees are entirely reinvested back into the community to benefit all residents and businesses.

Stormwater user fees are commonly based upon the impervious surface area (total square footage of material preventing water from absorbing into soils, such roof, driveway, parking areas, etc.) on a property because this approach is the most equitable. The fee is tied to the amount of stormwater runoff generated by a property.

Project Study

A study to analyze customer rates and potential revenues of a stormwater utility kicked off in January 2025. An Advisory Committee of members of the public and representatives of stakeholder groups was formed to review policy alternatives and make recommendations to City Council.

The project study reviewed the current costs of the city’s stormwater program and the estimated costs for different levels of service in the future. A Geographic Information System (GIS) analysis of the impervious surface area of parcels within the city was used to estimate residential and commercial user rates required to generate revenue to cover the costs of stormwater service. These findings will be presented to City Council as part of a community presentation on November 18, 2025.