Sewer Surtax Headed for February Ballot

City Council voted unanimously Monday to approve a draft of the municipal sewer surtax ordinance it plans to put on the ballot in February.

If Piedmont voters approve the measure, a 50 percent surtax would be applied to the existing sewer tax for 10 years. The in order to help pay for the accelerated rehabilitation and additional monitoring of the sewer system stipulated by the settlement of an EPA lawsuit.

The surtax would amount to an increase of $236 to $425 per parcel to sewer tax bills in 2012-2013, the first year it would take effect. The surtax would be adjusted each year after that based on the change in the Consumer Price Index for the San Francisco-Oakland metro—usually 1.5 to 2 percent, according to Finance Director Mark Bichsel.

The draft ordinance clarifies that funds generated by the surtax could be used for work on either sanitary or storm sewers after some residents expressed concern that sewer tax revenues had been used for both improperly. Currently, city code does not distinguish between sanitary and storm sewers with regard to how sewer funds may be spent.

The regular sewer tax, which has no expiration date, would continue to be levied each year at City Council's discretion.

The surtax ordinance will get a second reading at the next council meeting on Oct. 3 so that it can be included in the notice of election that must be published by Oct. 17.