[HISTORY: Adopted by the City Council of the City of Lexington 12-19-2024 by Ord. No. 2024-14. Amendments noted where applicable.]
A. 
The City is authorized by § 15.2-2114, Code of Virginia (1950), as amended, to establish a utility to support stormwater management activities consistent with the Virginia Erosion and Stormwater Management Act, Article 2.3 (§ 62.1-44.15:24 et seq.) of Chapter 3.1 of Title 62.1 of the Code of Virginia (1950), as amended, or any other state or federal regulation governing stormwater management.
B. 
This chapter shall be effective July 1, 2025, with the initial stormwater utility fee bill due and payable on or before June 30, 2026.
A. 
The City Council finds that an adequate, sustainable source of revenue for stormwater management activities is necessary to protect the general health, safety, and welfare of the City's residents. Further, the Council finds that parcels, as defined in § 420-20.1 of this Code, with higher amounts of impervious surfaces contribute greater amounts of stormwater and pollutants to the City's stormwater management system and that the owners of such parcels should carry a proportionate burden of the cost of such system. The Council further finds that calculating a fee based upon the amount of impervious surface on a parcel establishes a rational relationship between the amount of the fee and the stormwater utility services provided. Therefore, the Council determines that a stormwater utility fee based on a parcel's impervious surface cover is in the public's best interest.
B. 
The utility shall be operated under the City Manager's direction, who shall organize, direct, and manage it, including developing policies, procedures, and manuals to implement this chapter.
A. 
There is hereby established a stormwater utility fee imposed on all improved parcels in the City that exist on January 1 of each year regardless of whether the parcel is subject to taxation under § 366-3 of this Code. All revenue from the fee shall be deposited into a stormwater utility enterprise fund to fund the activities described in § 350-5.
B. 
The monthly utility fee rate for each billing unit as defined in § 350-10 shall be set by the City Council by separate ordinance or with the adoption of the City budget. Each improved parcel in the City shall be charged a fee calculated in accordance with § 350-6.
C. 
Except as otherwise provided in this chapter, the impervious surface of a parcel shall be determined by the City using one or more of the following, at the discretion of the City Manager; aerial photography; as-built drawings; final approved site plans; building permits; field surveys; or other appropriate engineering and mapping analysis tools.
Notwithstanding § 350-3 above, the following parcels shall be exempt from the stormwater utility fee:
A. 
Unimproved parcels as defined in § 350-10;
B. 
Parcels owned by a federal, state, or local government or public entity that holds a permit to discharge stormwater from a municipal separate storm sewer system, except that this exemption shall apply only to parcels or portions of parcels covered by any such permit and shall not apply to parcels owned and maintained by the City of Lexington that are not otherwise exempt under Subsection C below; and
C. 
Public roads and street rights-of-way that are owned and maintained by the Commonwealth of Virginia, the City of Lexington, or a state or local agency, including property rights-of-way acquired through the acquisitions process.
There shall be established a stormwater utility enterprise fund ("Stormwater Fund") from the deposit of all fees, charges, and other revenue collected by the utility under this chapter, as well as any other funds as may be appropriated by the council, or such stormwater grants as may be obtained by the City Manager. The Stormwater Fund shall be used exclusively to pay or recover costs for the following:
A. 
The acquisition, as permitted by Virginia Code § 15.2-1800, of real and personal property, and interest therein, necessary to construct, operate, and maintain stormwater control facilities;
B. 
The cost of administration of such programs;
C. 
Planning, design, engineering, construction, and debt retirement for new facilities and enlargement or improvement of existing facilities, including the enlargement or improvement of dams, levees, floodwalls, and pump stations, whether publicly or privately owned, that serve to control stormwater;
D. 
Facility operation and maintenance, including the maintenance of dams, levees, floodwalls, and pump stations, whether publicly or privately owned, that serve to control stormwater;
E. 
Monitoring of stormwater control devices and ambient water quality monitoring;
F. 
Contracts related to stormwater management, including contracts for the financing, construction, operation, or maintenance of stormwater management facilities, regardless of whether such facilities are located on public or private property and, in the case of private property locations, whether the contract is entered into pursuant to a stormwater management private property program or otherwise; and
G. 
Other activities consistent with the state or federal regulations or permits governing stormwater management, including, but not limited to, public education, watershed planning, inspection and enforcement activities, and pollution prevention planning and implementation.
A. 
For improved parcels, the stormwater utility fee shall be calculated in the following manner;
(1) 
Determine the amount of impervious surface on the parcel in square feet.
(2) 
Divide the amount of impervious surface on the parcel by the billing unit.
(3) 
Round the resulting calculation down to the nearest whole number to determine the number of billing units on the parcel.
(4) 
Multiply the number of billing units determined in Subsection A(3) above by the rate established under § 350-3B to obtain the stormwater utility fee for the parcel.
B. 
Where a parcel with impervious surface is held in common ownership, the fee shall be calculated in accordance with Subsection A above. The City Manager may directly bill the entity responsible for the parcel held in common ownership or distribute the resulting fee equally among those owning an interest in the parcel held in common ownership. In addition, the City Manager, in his or her sole discretion, may develop alternative methodologies for billing a parcel held in common ownership on a case-by-case basis.
Sections 15.2-2114.D. and 15.2-2114.E. of the Code of Virginia (1950), as amended, recognize that a continued investment in an on-site stormwater management facility or other best management practice can result in a reduced impact on the public stormwater management system or on the receiving surface waters downstream of the parcel. Accordingly, the City will provide credits against the stormwater utility fee established under this chapter as follows:
A. 
Credit eligibility. Only on-site stormwater management facilities and other best management practices meeting the following criteria are eligible for a credit against the stormwater utility fee:
(1) 
The parcel owner must submit a credit application form provided by the City in accordance with Subsection C below.
(2) 
The parcel owner must install the stormwater management facility or other best management practice.
(3) 
The parcel owner must maintain the structure and function of the stormwater management facility and operate the stormwater management facility or it must implement and maintain any other best management practice set forth in the waiver application.
(4) 
The parcel owner must have a properly executed maintenance agreement with the City which shall be kept on file in the office of the Director of Public Works and, if deemed necessary by the City Manager, recorded in the Clerk's Office of the Rockbridge County Circuit Court at the parcel owner's expense.
(5) 
The parcel owner must demonstrate to the City's satisfaction that the facility or any such other best management practice is functioning as originally designed. The structure must be operated and maintained to the satisfaction of the City Manager in accordance with the properly executed maintenance agreement.
(6) 
The stormwater management facility or any other best management practice must be listed in the then-current Virginia BMP Clearinghouse and must either: (i) achieve a permanent reduction in post-development stormwater flow and pollutant loadings; (ii) retain and treat on site stormwater runoff produced by the parcel in accordance with a stormwater management plan approved pursuant to Chapter 3.1 (§ 62.1-44.2 et seq.) of Title 62.1; or (iii) reduce stormwater flow or pollutant loadings, or decrease the cost of maintaining or operating the public stormwater management system.
(7) 
The City Manager shall have the discretion to modify the credit eligibility requirements set forth in this section for qualifying credit applications. The City Manager shall establish qualifications for eligibility modifications in the policies, procedures, or manuals adopted under this chapter.
B. 
Credit amounts.
(1) 
The maximum credit allowed is 50% of the total annual stormwater utility fee,
(2) 
For an on-site stormwater management facility, the credit amount is based on the amount of impervious surface located on the parcel draining to the credit-receiving stormwater facility and not the total amount of impervious surface cover on the parcel. The amount of the credit shall be based, in part, on the percentage reduction in stormwater flow or pollutant loadings, or both, from pre-installation to post-installation of the facility.
C. 
Application and maintenance verification.
(1) 
There is no fee for a credit application.
(2) 
To apply for the initial credit for an on-site stormwater management facility or any other best management practice, the parcel owner must submit, at his or her own expense, a credit application form to be provided by the City Manager. The credit application form shall require the following information:
(a) 
A description of the type of facility or any other best management practice, the stormwater control standard met by the facility, and the year the facility was built or the other best management practice implemented;
(b) 
A drainage area map, drawn to scale, for the facility or other best management practice showing the drainage boundaries and the impervious area treated by the facility or other best management practice in square feet;
(c) 
As-built or other acceptable engineering plans for the facility or other best management practices;
(d) 
A narrative of the known maintenance history of the facility or other best management practices, including routine maintenance and significant structural maintenance and repair;
(e) 
A copy of the City's standard maintenance agreement that has been executed by the City. If there is no existing maintenance agreement, then one must be completed and properly recorded;
(f) 
Information on any public funds used to construct, repair, upgrade, or retrofit the facility or other best management practice, including the amount and the date(s);
(g) 
Calculations to determine the monetary amount of the claimed credit; and
(h) 
A completed inspection checklist certifying that the facility or other best management practice functions as originally designed. "Functioning as originally designed" means that the facility or other best management practice is operating in accordance with the original design specifications, regardless of the standard in effect at the time of the installation. The checklist must be signed and sealed by a professional engineer. The inspection checklist shall be no more than one year old at the time of application.
(3) 
Once approved, the parcel owner will continue to receive the credit as long as the facility or other best management practice continues to function as originally designed and subject to reporting requirements established by the City Manager. The City Manager may revoke the credit if an inspection by the City Manager or the City Manager's designee determines that the facility or other best management practice is no longer being properly maintained or functioning as designed. Such revocation will be effective 30 days after the City Manager or the City Manager's designee has notified the parcel owner in writing of the deficiency(s) and if the problems are not resolved. The revocation may be delayed for an additional period at the City Manager's discretion, provided that the parcel owner is diligently pursuing work to eliminate deficiencies.
(4) 
Any maintenance or functional deficiencies must be remedied at the owner's expense before a facility or other best management practice may qualify or re-qualify (after revocation) for a credit.
(5) 
The City Manager shall have the discretion to modify the application and maintenance verification criteria and the credit application form for credit applications, including the definition of properties qualified to submit credit applications. Any such other modifications shall be included in the policies, procedures, or manuals adopted by the City Manager pursuant to this § 350-7.
D. 
Public improvements to private facilities. A privately owned and operated facility or any other best management practice that was constructed or upgraded using City-provided funds shall be treated in the following manner:
(1) 
Newly constructed facility or any other best management practice. The parcel owner shall not be eligible for credit until such time that the cumulative amount of credit that otherwise would have been allowed if the facility or any other best management practice was constructed using private funds equals or exceeds the City's investment.
(2) 
Existing, non-functioning facility or any other best management practice upgraded to function properly. The parcel owner shall not be eligible for credit until such time that the cumulative amount of credit that otherwise would have been allowed if the upgrade or retrofit was constructed using private funds equals or exceeds the City's investment.
(3) 
Existing, functioning facility or any other best management practice upgraded and eligible for higher credit. The parcel owner shall be eligible for the original credit. When the cumulative difference between the original and higher credit equals or exceeds the City's investment, the parcel owner shall also be eligible for higher credit.
For purposes of this § 350-7D only, a privately owned and operated facility or any other best management practice implemented by a parcel owner does not include parcels owned and managed by the City or a governmental entity, agency, institution, or instrumentality.
E. 
Credit for industrial stormwater permits. Subject to the maximum credit in Subsection B(1) above, a 10% credit is allowed for any parcel or portion of a parcel that is subject to, and in compliance with, an individual or general Virginia pollutant discharge elimination system industrial stormwater permit issued in accordance with 9VAC25-31-120, Virginia Administrative Code, as amended. To apply for the initial credit, the parcel owner must provide the City Manager with proof of permit coverage, the date of permit expiration, and a cover letter affirming that the parcel fully complies with the permit requirements. The credit will expire on permit expiration unless the parcel owner provides proof to the City Manager that the permit has been renewed.
F. 
Affirmative duty and timing. The parcel owner is solely responsible for applying for a credit in accordance with the City Manager's policies, procedures, and manuals. A credit approved by January 1 of a given year will be applied in full to the upcoming billing cycle.
A. 
The stormwater utility fee shall be billed and payable with the water and sewer bill on the same schedule as prescribed in § 403-15 of this Code, Reading of water meters; issuance of utility, and shall be subject to the same penalties as prescribed in § 403-16, unless a petition for adjustment has been submitted and is under active consideration by the City Manager in accordance with § 350-9 below. For parcels that do not receive a water or sewer bill, a separate stormwater utility fee bill will be issued. All payments shall first be credited to stormwater charges, then to sewer charges, and finally to water charges.
B. 
A delinquent stormwater utility fee, along with cumulative, penalties, shall constitute a lien on the parcel ranking in parity with liens for unpaid taxes and shall be collected in the same manner as provided for the collection of unpaid real estate taxes.
A. 
Any parcel owner may request an adjustment of the stormwater utility fee by submitting a request in writing to the City Manager no later than 30 days after the date the bill is mailed or issued to the parcel owner. Grounds for adjustment are limited to the following:
(1) 
An error was made regarding the square footage of impervious surface;
(2) 
The parcel is exempt under the provisions of § 350-4;
(3) 
There is a mathematical error in the fee calculation;
(4) 
The identification of the parcel owner invoiced is in error; or
(5) 
An approved credit was incorrectly applied.
B. 
The parcel owner shall complete a stormwater utility fee adjustment application form supplied by the City Manager.
C. 
If the request for adjustment is regarding an error in the measured impervious surface, a plan view of the parcel's impervious surface must be submitted with the application and shall be prepared at the owner's expense. The plan must meet the following criteria:
(1) 
The plan must show all impervious surfaces and label their dimensions within the parcel boundaries and
(2) 
The plan must be signed and sealed by a professional engineer or professional land surveyor licensed in the Commonwealth of Virginia, attesting to the accuracy of the impervious surface measurements.
D. 
The requirement for a plan view of the parcel's impervious surfaces required in Subsection C above may be waived if, in the sole discretion of the City Manager, the error is obvious and is the result of a technical error or oversight by the City. In such a case, the City shall be responsible for recalculating the impervious surface of the parcel.
E. 
The City Manager shall make a determination within 30 days of receipt of a complete submittal for the request for adjustment. In the event that the City Manager finds that the appeal is deficient or incomplete, the City Manager shall offer the owner 30 days to supply the missing information from the time of the determination. If the information is not provided to the City Manager within the additional 30 day period, the request will be deemed withdrawn.
F. 
The City Manager's decision on a fee adjustment petition is a final decision from which an aggrieved party may appeal to the Circuit Court of Rockbridge County within 30 days after the date of such decision, after which time no further appeal shall be allowed.
The following words and terms shall have the following meaning:
BEST MANAGEMENT PRACTICE
Means a technique, measure, or structural control that is used to manage the quantity and/or improve the quality of stormwater runoff from a developed site.
BILLING UNIT
Means 250 square feet of impervious surface.
DISCHARGE
Means to dispose of, deposit, spill, pour, inject, dump, pump, leak, or place by any means, or that which is disposed of, deposited, spilled, poured, injected, dumped, pumped, leaked, or placed by any means.
IMPERVIOUS SURFACE
Means any area improved, graded, and/or surfaced with impervious material or resulting in impervious conditions. An impervious material or condition is present when the natural infiltration of water into the soil is significantly impeded or prevented. An impervious surface includes that portion of the land surface covered by an elevated structure, such as a bridge or deck, regardless of whether the land surface itself remains pervious or impervious.
IMPROVED PARCEL
Means any parcel, regardless of zoning district, zoning classification, or land use, that has 250 or more square feet of impervious surface.
INSPECTION
Means an on-site review of a project's compliance with the permit, the City's stormwater management program, and any applicable design criteria, or an on-site review to obtain information or conduct surveys or investigations necessary in the enforcement of this chapter.
MAINTENANCE AGREEMENT or FACILITY MAINTENANCE AGREEMENT
Means a legally recorded document that acts as a property deed restriction and provides for long-term stormwater management practices maintenance.
OWNER or LANDOWNER
Means the owner or owners of the freehold of the premises or lesser estate therein, a mortgagee or vendee in possession, assignee of rents, receiver, executor, trustee, lessee or other person, firm or corporation in control of a property.
REGULATIONS
Means the Virginia Erosion and Stormwater Management Regulation, 9VAC25-875-10, et seq., as amended.
STORM SEWER SYSTEM or STORM DRAINAGE SYSTEM
Means all facilities, conveyances, structures, and other items located within the City of Lexington and owned and/or operated by the City of Lexington which are designed or used for collecting, storing, or conveying stormwater, including, but not limited to, roads, streets, catch basins, drop inlets, curbs, gutters, ditches, pipes, lakes, ponds, manmade channels, storm drains, outfalls, retention, detention, and infiltration basins, and other facilities.
UNIMPROVED PARCEL
Means any parcel, regardless of zoning district, zoning classification, or land use, that has less than 250 square feet of impervious surface.