Conroe weighs new stormwater fee as nearly $12M in drainage needs come into focus

Conroe officials are inching closer to creating a monthly stormwater utility fee that would add a new drainage charge on utility bills for residents and businesses to help fund drainage projects, aging infrastructure work and flood mitigation across the city.

What happened

City Council reviewed the proposal Feb. 26 during a presentation, but no vote was taken. Instead, staff and consultants told council they were seeking feedback before returning with a draft ordinance and fee schedule for possible adoption April 23.

Under the proposal presented to council, residential customers would pay a flat $4 per month, while nonresidential properties—including apartment complexes—would pay $4 per equivalent residential unit per month, with one ERU set at 3,200 square feet of impervious area, such as rooftops, parking lots and patios.

Consultants said the fee structure was built around runoff-producing surfaces so costs would be spread more equitably between residential and commercial properties.

To show how that would work, consultants gave council a nonresidential example: a property with 144,707 square feet of impervious area would count as 46 ERUs and pay $184 per month. For homeowners, the charge would remain a flat $4 monthly fee.

A closer look

The presentation tied the fee to nearly $11.9 million in identified capital needs, including drainage improvements, rehabilitation at Alligator Creek, Live Oak Creek dredging, a Canterbury and Oxford culvert upgrade, and Hunnington Drive drainage work. It also includes about $276,000 in supporting labor costs, according to the presentation.

Consultants told council the proposed rate would generate about $4.43 million in fiscal year 2027-28, which matches projected first-year expenses for capital work, maintenance, labor and reserve funding. The presentation also stated more than 31,000 residential properties and about 2,800 nonresidential properties were analyzed as part of the study.

Consultants also told council stormwater utility fees are already used widely across Texas, with more than 140 in place statewide.

What they’re saying

Council members said the proposal was a way to carve out drainage funds at a time when water system demands have taken over city attention.

During discussion, council member Harry Hardman said drainage has “taken a backseat” to water issues and said the city knows it has longstanding problem areas, particularly on the east side.

Mayor Duke Coon also said the fee could help address drainage issues across the community.

Officials also confirmed the money would go into a separate fund, not the general fund. The consultant told council the current proposal is meant to get the program “up and running” and is on the lower end of what cities can charge while still addressing the needs identified in the study.

What’s next

Staff told council the study is expected to come back April 23 for a possible vote after feedback is added and a draft ordinance and fee schedule are prepared.