Can our HOA get a credit or exemption on the city stormwater or drainage fee for the pond we maintain?

By OurHOA · General information · Revised November 11, 2026

How an HOA board applies for a stormwater or drainage fee credit for a pond it maintains, with Texas, Florida and Colorado rules and a filing timeline.

Part of the HOA board handbook: treasurer and money.

The short answer

Often, yes, but only if the city or county runs a credit program and the board files for it. Many local governments charge a stormwater or drainage fee on every developed parcel, usually based on impervious area: roofs, driveways, streets, parking. If the association owns and maintains a detention or retention pond that treats or holds back runoff before it reaches the public system, the utility may cut the fee on the common area parcel, and sometimes on every lot that drains to the pond. Credits are not automatic. Nobody at the utility will notice the pond and lower the bill. The rules come from local ordinances, state law and the community's own governing documents, and they differ a lot from one utility to the next. This guide is general education, not legal or engineering advice.

What state law says in Texas, Florida and Colorado

Texas has the strongest statewide rule. Cities that adopt a drainage utility under Local Government Code chapter 552, subchapter C, must charge on a basis directly related to drainage that is "nondiscriminatory, equitable, and reasonable" (section 552.047(a)). Section 552.053(c)(1) says property with "proper construction and maintenance of a wholly sufficient and privately owned drainage system" shall be exempt. Read the definition in 552.044(11) before you get excited: the system must not discharge into a creek, river, slough, culvert or other channel that is part of the city's drainage utility. Most subdivision ponds release into a city channel, so most will not qualify for the full exemption. They may still qualify for a partial credit if the city offers one. Florida lets counties and cities create stormwater utilities and set fees under Florida Statutes section 403.0893(1), and lets them collect those fees through the non-ad valorem method in chapter 197. That is why the fee often shows up on the association's property tax bill for the common area parcel. Credit percentages are set locally. Colorado has no statewide credit rule. Municipalities charge for storm drainage under C.R.S. 31-35-402(1)(f), since "sewerage facilities" in 31-35-401(6) include storm, flood and surface drainage. The same paragraph says no agency other than the governing body regulates those rates, so the city or county ordinance is the whole rulebook. California and other states also leave credit design to the local agency.

Real programs the board can compare against

Three published programs show the range: - Jacksonville, Florida gives a 30 percent permitted pond credit with proof of a St. Johns River Water Management District or state environmental permit, or an as-built certification. Its page encourages property owners and homeowners associations to apply for the common area and on behalf of all owners in the permitted drainage area. A drainage study can add more, but the total discount is capped at 50 percent except for a landlocked system bonus. Once approved, the credit stays on the accounts for future bills. - St. Petersburg, Florida allows up to 52 percent. The application and the credit calculations must be signed and sealed by a licensed professional engineer. Single-family homes in a development with a privately maintained, water management district permitted facility apply together through their association; the city will not take an application from one separately metered house. Credits start on the next regular bill after approval. - Adams County, Colorado bills on impervious square footage and offers up to 65 percent off for water quality, water quantity or maintenance of regional drainage structures on private property. Annual invoices go out January 15 and are due March 15. In Texas, Fredericksburg's drainage fee page lists an exemption for private systems with zero discharge to public infrastructure, a credit form for non-single-family properties with on-site systems, and a separate appeal form for wrong impervious area or land use.

Steps to file

1. Pull every stormwater or drainage charge the association pays. Check utility bills for the clubhouse and irrigation meters and the tax bill for each common area parcel. Note the parcel numbers and the impervious area the utility has on file. 2. Find the credit manual. Search the utility's site for "stormwater credit," "drainage fee credit" or "fee adjustment," and read the ordinance section it cites. Write down the percentages, caps, deadlines and renewal terms. 3. Gather the pond's paper. You need the recorded plat showing the pond tract and who maintains it, the water management district or city drainage permit, as-built drawings, and the engineer's drainage report from development. The city or county development office usually keeps these, and Jacksonville's page tells applicants to print the permit listing that shows the development's name. 4. Pull your maintenance records: mowing, debris removal, outlet clearing, sediment removal, inspection reports. Most programs ask for them, and several make ongoing maintenance a condition of keeping the credit. 5. Decide whether you need an engineer. Some programs accept a permit copy. Others, like St. Petersburg, require sealed calculations. Ask the engineer for a fixed-fee quote before the board approves the work. 6. File, keep proof of delivery, and calendar the response date and any renewal date. 7. When the credit posts, check the next bill for every parcel it should reach.

Run the numbers before paying an engineer

Do the math first. Here is a hypothetical. A 60-home community pays a fee on one common area parcel with streets, a clubhouse and a parking lot, billed at $240 a month. A 30 percent credit saves $72 a month, or $864 a year. If an engineer charges $2,500 for sealed calculations, payback is about three years, and longer if the credit must be renewed with new calculations. The picture changes when the program lets the association apply for every lot that drains to the pond. If each of those 60 homes pays $8 a month and gets the same 30 percent off, owners save $2.40 a month each, about $1,700 a year across the community. That money goes to owners, not the association, but it is a real benefit the board delivered. Some programs also prorate: if only part of the impervious area drains to the pond, the credit shrinks to match. Ask the utility how it handles partial drainage before you budget the savings.

Wording the board can use

A motion: "I move that the board authorize the treasurer to apply to [utility name] for a stormwater fee credit for the association's pond on parcel [number], on behalf of the association and, if the program allows, all lots in the permitted drainage area, and to spend up to $[amount] on engineering calculations if the program requires them." A cover letter paragraph: "The association owns and maintains the stormwater pond on parcel [number] under [permit number]. Enclosed are the permit, the recorded plat, as-built drawings and maintenance records for the past [number] years. We ask that the credit apply to the common area account and to each account listed in the attached schedule." A note for the owner newsletter: "The association has applied for a credit on the city stormwater fee because our pond holds back runoff. If approved, the credit will show on the common area bill and may also appear on your own utility or tax bill."

A sample timeline

- Month 1: treasurer collects bills and parcel numbers and reads the credit manual. - Month 2: request the permit, plat and as-builts from the city, county or water management district; compile maintenance logs. - Month 3: get an engineer's quote if needed; board votes on the motion at an open meeting. - Months 4 to 5: engineer finishes calculations; application goes out. - Months 5 to 7: utility review, site inspection in some programs, decision. - Each year after: confirm the credit still appears on every bill and keep up the maintenance the credit depends on. If the program has an annual filing date, like Sebastian, Florida's June 1 cutoff, work backward from it. Sebastian also requires renewal every three years with an operation and maintenance record, and says failure to maintain the facility forfeits the credit. Missing an annual cutoff usually means waiting a full billing year.

Mistakes boards make

- Assuming the credit is retroactive. The programs above apply credits to bills going forward, so every month of delay is money the association does not get back. File as soon as you find the program. - Filing for the common area alone when the program allows a collective application for every lot in the drainage area. - Letting the pond slide after approval. A clogged outlet or a silted-in basin can cost the credit at the next inspection or renewal. Our guide on how to set up an HOA retention pond maintenance schedule lays out the routine work. - Arguing a full Texas exemption under 552.053(c)(1) when the pond discharges into a city channel. Ask for the credit instead. - Confusing the stormwater fee with the property tax value of common area. A wrong appraisal is a separate fight, covered in our guide on how to protest the appraisal of HOA common area property. - Losing the file. Keep the application, approval letter and renewal dates in the association's permanent records so the next treasurer can renew it.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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