The City of Tyler is considering a major restructuring of its monthly stormwater fees, proposing to transition from a utility-bill percentage model to a system based on the actual amount of hard surface on a property. The Tyler City Council received a presentation on the proposal during its Wednesday, Aug. 26, meeting. If approved, the ordinance change would take effect on Jan. 1, 2027.
Under the recommended approach, properties would be charged based on "Equivalent Residential Units" (ERUs) of impervious area. One ERU is defined as 3,454 square feet of impervious surface, which is the average hard surface area of a residential billed location in Tyler. Impervious surfaces include rooftops, driveways, concrete parking lots, and other structures that prevent rainwater from naturally soaking into the ground. Each ERU would carry a recommended rate of $4.90 per month.
Chris Cambra, Tyler’s Water Business Office Manager, stated that the change moves from a percentage of the bill based on water usage towards charging based on impervious surfaces. This shift is designed to tie utility bills directly to stormwater impact, making it "more equitable" and distributing it evenly throughout the city and different classes of customers, according to Cambra. The current water-consumption percentage model means large families or businesses with high water use pay higher drainage fees, even if they have small physical footprints, and it causes seasonal spikes during high-use summer months.
The restructuring is expected to increase Tyler’s total stormwater utility revenue by approximately $366,000 to $3.9 million in fiscal year 2027, representing a 10% increase over the $3.54 million generated in fiscal year 2025. This change is also projected to shift the total stormwater revenue contribution from its current split of roughly 70% residential and 30% non-residential to a 56/44 split in fiscal year 2027, eventually reaching a 52/48 split at full-year implementation.
While individual impacts will vary, some non-residential properties with extensive impervious footprints are projected to see notable increases. For example, Trane Residential Systems, a local manufacturing site, currently capped at $250 a month, would see its bill increase to $2,416 a month, a jump of $2,166. The Caldwell Zoo, which operates four accounts with a combined bill of $221.36 per month, would see its combined rate rise to $710.57 per month, resulting in an annual increase of $5,870. This increase is largely driven by the zoo’s main entry parcel on W.M.L. King Jr. Boulevard, reflecting its physical impervious footprint. Consultant and staff recommendations suggest the council consider non-profit relief through separate on-site retention credits or exemptions, rather than adjusting the core rate methodology.
Ordinance language for the proposed change is currently undergoing legal review. City staff expect to present a final ordinance to the City Council for a vote closer to the end of the year. No immediate action on the stormwater fee will occur when the city budget is voted on Sept. 9. Chris Cambra noted that other Texas municipalities, such as Arlington and Boerne, have successfully transitioned to similar ERU-based stormwater billing models.
