At the Helotes City Council meeting on Thursday, June 25, 2009, Council members discussed imposing an additional tax on Helotes homeowners and businesses by establishing a Municipal Surface Water Drainage Utility System.

The purpose of this Drainage Utility System would be to raise revenue that will be dedicated to drainage projects that have been identified by Council.  All existing drainage facilities within the City limits (the City’s ETJ [Exterritorial Jurisdiction] would be excluded) will be dedicated to the Utility System.

The taxes collected would be used for the creation, operation, planning, engineering, inspection, construction, repair, maintenance, improvement, reconstruction, administration, and other reasonable and customary charges associated with the Utility System.  The City can also borrow money based on the revenue collected through this tax.  The City will maintain sovereign immunity and will not be liable for flooding or adverse water quality.

All Council members appeared to be in favor of approving this new tax, but they couldn’t agree on the amount that will be charged.  They finally agreed on a tentative tax of $5 per home per month.  This amount could be reduced before the ordinance is finalized, but it could not exceed the $5.  They also voted to limit the amount of Drainage Utility tax paid yearly by a business to $200.

Whatever amount is finally agreed upon will appear on the City’s fee schedule, and it could be changed by Council at any time.  Usually the fee schedule is reviewed at least once a year, but it is done at Council’s discretion.

The complete proposed ordinance will have to be published in the Helotes Echo three times, and there will be a public hearing held to discuss this new tax.

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