Village of Osceola Stormwater Utility
What is a Stormwater Utility?
The Village of Osceola Stormwater Utility is a dedicated utility established to fund the maintenance, repair, replacement, and improvement of the Village’s stormwater management system. Stormwater is rainwater and snowmelt that flows over streets, rooftops, parking lots, driveways, and other surfaces before entering storm drains, ditches, ponds, streams, and rivers.
The Village’s stormwater system includes:
- Storm sewer pipes and inlets
- Ditches and culverts
- Stormwater ponds and basins
- Drainage channels and outfalls
- Street sweeping and catch basin maintenance
- Flood prevention infrastructure
- Water quality protection measures
The utility was created under Chapter 201, Article VI of the Village Code to provide a stable and dedicated funding source for these services.
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Why is the Village Creating a Stormwater Utility?
Stormwater management is an essential public service, similar to water, sewer, and streets. As the Village continues to grow and infrastructure ages, the costs associated with maintaining and improving the stormwater system continue to increase.
Historically, many stormwater costs were paid through the Village’s general tax levy. Establishing a utility allows the Village to:
- Create a dedicated funding source for stormwater operations and improvements
- Provide a more equitable method of paying for the system
- Reduce reliance on property taxes
- Ensure long-term maintenance and replacement of infrastructure
A stormwater utility also ensures that properties contributing runoff into the system help pay for the infrastructure required to manage that runoff.
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What Does the Stormwater Utility Fee Pay For?
Revenue collected through the utility can only be used for stormwater-related purposes. Funds support:
- Maintenance and repair of storm sewer infrastructure
- Cleaning of storm drains and catch basins
- Ditch and culvert maintenance
- Stormwater pond upkeep
- Street sweeping operations
- Flood prevention projects
- Drainage improvements
- Water quality protection efforts
- Regulatory compliance and permitting requirements
- Long-term infrastructure replacement planning
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Why Not Fund Stormwater Through Property Taxes?
Property taxes are based on property value, not the amount of stormwater runoff generated by a property. A stormwater utility creates a more equitable system by charging based on a property’s impact on the stormwater system.
For example:
- Large parking lots and rooftops create significantly more runoff than undeveloped land.
- Properties with more impervious surfaces require larger stormwater infrastructure and increased maintenance.
The utility model ensures costs are distributed more fairly among properties based on runoff contribution rather than assessed value alone.
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How Are Stormwater Fees Calculated?
The Village completed a Stormwater Utility Rate Study on December 5, 2025, to establish a fair and consistent billing methodology.
The rate structure is based on:
- Equivalent Runoff Units (ERUs)
- Residential Equivalency Factors (REFs)
- Parcel acreage
- Land use characteristics
- Runoff potential
The study utilized a 2.82-inch rainfall event representing the 50-annual-percent-chance storm to evaluate runoff generated by different land uses.
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Residential Properties
Residential properties with three or fewer dwelling units are assigned one Equivalent Runoff Unit (ERU) and are charged a flat monthly fee.
The Village Board established the residential base rate at:
$2.75 per month
This means a typical single-family residential property will pay:
$33.00 per year
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Non-Residential Properties
Non-residential properties are billed using a formula that accounts for:
- Parcel size
- Land use type
- Estimated runoff generation
Different property types generate runoff at different rates. For example, commercial and industrial properties typically have larger areas of impervious surface such as rooftops and parking lots.
The Village adopted Residential Equivalency Factors (REFs) to reflect these differences.
Residential Equivalency Factors (REF)
| Land Use Classification | REF |
| Residential | 1.00 |
| Light Commercial | 1.69 |
| Commercial | 3.02 |
| Industrial | 2.52 |
| Institutional | 2.52 |
| Multi-family Residential | 2.18 |
| Transportation | 2.64 |
The fee for non-residential properties is calculated using the following formula:
Stormwater Utility Fee = Base Rate × REF × Parcel Acreage
The non-residential unit rate established by the Village Board is:
$6.40 per acre per REF
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Minimum and Maximum Charges
To ensure fairness and consistency:
- The minimum monthly charge for any billed parcel is $2.75
- The Village also established a maximum fee cap for unusually large outlier properties using the Interquartile Range (IQR) methodology identified in the rate study
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Exempt Properties
The following properties are exempt from stormwater utility charges:
- Vacant parcels
- Parcels without Utility Bills
- Agricultural land without buildings or developed areas
- Municipally owned properties
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How Will the Fee Be Collected?
Stormwater utility charges will appear as a separate line item on Village utility bills.
Properties that do not currently receive Village water service will not be billed stormwater utility charges at this time.
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Questions?
If you have questions regarding the Stormwater Utility or your bill, please contact:
Village of Osceola
(715)294-3498
310 Chieftain Street
Osceola, WI 54020