Notice of Public Hearings of Proposed Municipal Stormwater Drainage Utility Ordinance and Rate to be held Tuesday, February 3, 2026, and Tuesday, February 17, 2026, at 107 W. Juan Linn Street (Council Chambers). CITY OF VICTORIA ORDINANCE NO.: STATE OF TEXAS AN ORDINANCE AMENDING THE VICTORIA CODE OF ORDINANCES, CHAPTER 13, MUNICIPAL UTILITIES AND SERVICES, BY ADDING ARTICLE VII, MUNICIPAL STORMWATER DRAINAGE UTILITY SYSTEM, ADOPTING PROVISIONS TO ESTABLISH AND MANAGE A MUNICIPAL DRAINAGE UTILITY SYSTEM IN ACCORDANCE WITH SUBCHAPTER C OF CHAPTER 552, TEXAS LOCAL GOVERNMENT CODE; DECLARING STORMWATER DRAINAGE TO BE A PUBLIC UTILITY; PROVIDING FOR THE ESTABLISHMENT AND CALCULATION OF STORMWATER DRAINAGE UTILITY CHARGES AND CREDITS; PROVIDING PENALTIES AND REMEDIES FOR NONPAYMENT OF CHARGES; ADDING AN APPROPRIATE SECTION TO CHAPTER 24 TO SET FORTH THE DRAINAGE UTILITY FEE; AND DECLARING AN EFFECTIVE DATE WHEREAS, the City of Victoria, Texas (“City”) is a home rule municipality having the full power of local selfgovernment pursuant to its Charter, Article XI, Section 5 of the Texas Constitution, and Chapter 9 of the Texas Local Government Code; and WHEREAS, the management, including collection and direction of stormwater drainage runoff within the City, protects the public health, safety, and welfare of the City’s citizens; and WHEREAS, the Victoria City Council (“City Council”) desires to protect against surface water overflow, standing surface water, and pollution arising from nonpoint source storm water and drainage runoff within the City; and WHEREAS, the City Council has investigated and determined that it would be advantageous and beneficial to the citizens of the City by adopting a stormwater drainage utility system within the City’s municipal boundaries as authorized by Texas Local Government Code Chapter 552, Subchapter C, “Municipal Drainage Utility Systems,” as amended (the “Act”); and WHEREAS, the Act provides for the said public utility service to be provided within an established service area; and WHEREAS, the City desires by this ordinance to establish a stormwater drainage utility system; and WHEREAS, on December 16, 2025, in accordance with the Act and in connection with this ordinance, the City Council passed Resolution No. 2025-251 and therein determined that the City will consider a schedule of stormwater drainage charges against all real property in the proposed service area subject to charges under the Act that will be determined on nondiscriminatory, reasonable, and equitable terms; and WHEREAS, the City makes no representation that all stormwater drainage problems may or will be remedied, and the City Council has and retains full discretion in establishing the priorities in expending funds as they become available to meet the City’s stormwater drainage utility needs; and WHEREAS, the adoption of this ordinance does not and shall not be construed to relieve private landowners, developers or other individuals or entities from providing stormwater drainage improvements pursuant to the ordinances, rules, codes, and regulations of the City and federal or state laws and regulations; and WHEREAS, in accordance with the Act, notices of a public hearing regarding this ordinance were published and a public hearing on this ordinance held concerning the matters set forth herein; and WHEREAS, as set forth herein, the City Council in accordance with the procedures set forth in the Act declares that the stormwater drainage infrastructure and services of the City is a public utility within the meaning of the Act. NOW THEREFORE BE IT ORDAINED by the City Council of Victoria, Texas: SECTION 1. RECITALS. The above and foregoing recitals and premises to this ordinance are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. Chapter 13, Municipal Utilities and Services, of the Victoria Code of Ordinances is hereby amended by adding Article VII, to read as follows: ARTICLE VII. MUNICIPAL STORMWATER DRAINAGE UTILITY SYSTEM Sec. 13-237. Establishment of Drainage Utility; Service Area; Exemptions, and Dedication of Assets. (a) In accordance with the provisions of the Texas Local Government Code, Chapter 552, Subchapter C, a Drainage Utility for the City is created and is hereby declared to be a public utility. (b) The service area for the Drainage Utility shall include all real property within the corporate limits of the City of Victoria as now existing and the real property in any area that may be annexed hereafter from time to time. (c) The City Council finds that: (1) Impervious cover increases runoff and associated pollutants; and (2) It is equitable to assess the drainage charge to each User based on impervious cover. (d) Pursuant to the Texas Local Government Code, Section 552.053 and Section 580.003, the following shall be exempt from the provisions of this chapter: (1) Property with proper construction and maintenance of a wholly sufficient and privately-owned drainage system; (2) Property held and maintained in its natural state, until such time that the property is developed and all of the public infrastructure constructed has been accepted by the municipality in which the property is located for maintenance; (3) A subdivided lot until a structure has been built on the lot and a Certificate of Occupancy has been issued by the City; (4) State agencies; (5) Public or private institutions of higher education; (6) City-owned properties; and (7) Victoria Independent School District-owned properties ( e) The City incorporates into the Drainage Utility System all existing property, facilities, materials, and supplies constituting the City’s drainage system in existence on the effective date of this Ordinance upon adoption. All future acquisitions by the City of real or personal property used in the City’s drainage system shall be maintained as a part of the Drainage Utility. Sec. 13-238. No Effect on Landowner Obligations Under City Ordinances; No Waiver of lmmunity. (a) The establishment of the Drainage Utility by the City does not relieve private landowners, developers, other individuals and entities from responsibility for providing drainage improvements in connection with land development pursuant to the other ordinances of the City, the City’s Unified Development Ordinance, or laws of the State of Texas that relate to stormwater runoff, drainage management, or drainage improvements. (b) The establishment of the Drainage Utility does not imply or warrant that a benefitted property will be free from flooding, stormwater pollution, or stream erosion. The City makes no representation that all drainage problems will be remedied. This article does not create additional duties on the part of the City or create new liability or remedies for any flooding, stream erosion, deterioration of water quality, or other damages. Nothing in this article shall be deemed to waive the City’s immunity under law or reduce the need or necessity for flood insurance. Sec. 13-239. Other Laws (a) To the extent this Chapter conflicts with any other Chapter in this code, the provisions shall be harmonized when possible, however, this Chapter shall control and supersede any other provision regarding the Drainage Utility System. Section 13-240. Administration of Drainage Utility- Definitions Terms defined herein are specific to this chapter and shall not be construed as conflicting with similar terms in other parts of this code. Terms not otherwise defined herein shall be given the definitions contained in the Texas Local Government Code Chapter 552, Subchapter C. (a) “The Act” shall mean the Texas Local Government Code, Chapter 552, Subchapter C. (b) “Benefitted Property” shall mean an improved lot or tract to which drainage service is made available under this Chapter. (c) “Non-residential Property” shall mean all improved properties within the City other than residential property, including, but not limited to, commercial, industrial, institutional, government, mobile-home park, and religious organization land uses. (d) “Cost of Service” shall mean the costs for drainage system service to a Benefitted Property, which shall be the total of: (1) Prorated cost of the acquisition, whether by eminent domain or otherwise, of land,rights-of-way, options to purchase land, easements, and interests in land relating to structures, equipment, and facilities used in draining the Benefitted Property; (2) Prorated cost of the acquisition, construction, repair, and maintenance of structures, equipment, and facilities used in draining the Benefitted Property; (3) Prorated cost of architectural, engineering, legal and related services, plans and specifications, studies, surveys, estimates of cost and of revenue, and all other expenses necessary or incident to planning, providing, or determining the feasibility and practicability of structures, equipment, and facilities used in draining the Benefitted Property; (4) Prorated cost of all machinery, equipment, furniture, and facilities necessary or incident to the provision and operation of draining the Benefitted Property; (5) Prorated cost of funding and financing charges and interest arising from construction projects and the start-up cost of a drainage facility used in draining the Benefitted Property; (6) Prorated cost of debt service and reserve requirements of structures, equipment,and facilities provided by revenue bonds or other drainage revenue-pledge securities or obligations issued by the City; and (7) Administrative costs of operating and maintaining a Drainage Utility System. (e) “Drainage” shall mean bridges, catch basins, channels, conduits, creeks, culverts, detention ponds, ditches, draws, flumes, pipes, pumps, sloughs, treatment works, and appurtenances to those items, whether natural or artificial, or using force or gravity, that are used to draw off surface water from land, carry the water away, collect, store, or treat the water, or divert the water into natural or artificial watercourses. (f) “Drainage Utility Charges” shall mean the levy imposed to recover the cost of the service of the municipality in furnishing drainage for any Benefitted Property, including any interest and penalties; and amounts made in contribution to funding of future drainage system construction by the City. (g) “Drainage System” shall mean the drainage system owned or controlled in whole or in part by the City and dedicated to the service of Benefitted Property, including any future additions, extensions, and improvements thereto and replacement thereof. (h) “ERU (Equivalent Residential Unit)” shall mean the unit of measure used to calculate the Drainage Utility Charge for Residential, Multifamily and Non-residential Property. (i) “Facilities” shall mean the real, personal, or mixed property that is used in providing drainage and included in the system. (j) “Impervious Area” or “Impervious Surface” shall mean a surface which has become compacted or covered with a layer of material so that it is highly resistant to infiltration by water. Impervious Areas include, but are not limited to, compacted soils, graveled surfaces subject to motorized vehicular traffic, walkways, buildings, parking lots, pavement, and ingress/egress driveways. “Impervious Area” or “Impervious Surface” does not include sidewalks located in the public right-of-way and as further defined in this Code. For purposes of this definition a “walkway” is a pedestrian way in the interior ofa lot or tract that is not located in the public right-of-way. (k) “Improved Lot or Tract” shall mean a lot or tract that has a structure, or as further defined in this Code, or other improvement on it that causes an Impervious Surface or Area. (I) “Parcel” shall mean one (1) or more lots or portions oflots that are contiguous and under single ownership. (m) “Public Utility” shall mean drainage service that is regularly provided by the City through City property dedicated to that service to the users ofBenefitted property within the service area and that is based on: (1) An established schedule of charges; (2) Use of the police power to implement the service; and (3) Nondiscriminatory, reasonable, and equitable terms consistent with the Act. (n) “Residential Property” shall mean any improved lot or tract with single-family home, duplex, triplex, quadplex, condominium, or mobile home. (o) “Service Area” shall mean the municipal boundaries of the City. (p) “User” or “Customer” shall mean the person or entity that owns or occupies a BenefittedProperty. (q) “Wholly Sufficient and Privately-Owned Drainage System” shall mean drainage from an improved lot or tract which does not discharge into any natural or manmade waterway or drainage infrastructure including public streets, storm drains, culverts, drainage easements, or storm water ponds that are part of the Drainage System. Sec. 13-241. Drainage Utility Fund. A separate fund is hereby created, known as the Drainage Utility Fund, for the purpose of segregating, identifying, and controlling all revenues and expenses attributable to the Drainage Utility. All Drainage Utility Charges shall be accounted for as collected and received into this fund and shall be used exclusively for the drainage utility. Such utility revenues may be used for the operation, planning, engineering, inspection, construction, repair, maintenance, improvement, reconstruction, administration, debt issuance cost and debt service, and other reasonable and customary expenses associated with the operation of a utility system. It shall not be necessary that the expenditures from the Drainage Utility Fund for any authorized purpose specifically relate to or benefit any particular Benefitted Property from which the revenues were collected. Sec. 13-242. Administration of Drainage Utility The City Manager or his designee shall be responsible for the administration of the Drainage Utility, including, but not limited to, enacting any procedures necessary for the administration of the drainage charges and the consideration of appeals, development, and implementation of maintenance and facility improvement programs, state and federal regulatory compliance, and establishing drainage criteria and standards for the drainage system. The city shall keep an accurate record of all properties benefitted by the services and facilities of the Drainage Utility. Sec. 13-242. Drainage Utility Charge (a) A Drainage Utility Charge is hereby imposed upon each improved lot and parcel within the Service Area. Drainage Utility Charges shall be billed on a monthly basis for the duration of the Drainage Utility. (b) For purposes of imposing the Drainage Utility Charge, all lots and parcels within the City are classified into the following customer categories: (1) Residential Property, (2) Multifamily Property, and (3) Non-Residential Property. (c) The ERU value for the City is determined through an inventory of all improved single-family residential parcels in the City and determination of Impervious Area for each parcel. Evaluation of these data determined that the median equivalent residential unit Impervious Area value for assigning charges to commercial properties is thirty-two hundred (3,200) square feet. Each single-family residential user of the drainage utility system shall be charged a flat monthly rate based upon one Equivalent Residential Unit. (d) Non-Residential and Multifamily Properties with more than four units rates shall be based on an Impervious Area determination for each parcel: Total ERU’s; (Impervious Area/3,200 sq. ft.), minimum 1 ERU (e) The monthly Drainage Utility Charge for properties shall be calculated by multiplying the total number of ERU’s for the parcel by the ERU monthly billing rate. (f) The ERU monthly billing rate is hereby established and will be set forth in Ordinance and shall be used to calculate the total monthly Drainage Utility Charge for all property located in the City, residential, multifamily and non-residential, in accordance with the applicable formula established in this subsection: (g) The Public Works Department shall be responsible for determining Impervious Area of property based on reliable data, including the appraisal roll, geographic information system technology, aerial photography, or other reliable means for determining Impervious Area. The Public Works Department may require additional information from the property owner, tenant, manager or developer to make the determination. The amount of a charge may be revised by the Public Works Department based on any additions to the Impervious Area through the City approved building permit process or if otherwise detected or confirmed. (h) The City Council may review the schedule of charges at any time and may increase or decrease charges upon a determination that an increase or decrease is warranted. (i) No Drainage Utility Charge credit shall be given for the installation of drainage facilities required by the code or state law. Sec. 13-242. Billing, Payments, and Penalties Sec. 13-242. Billing, Payments, and Penalties (a) Bills or statements for the Drainage Utility Charge shall be rendered by the City for all properties subject to the charge. Bills shall be payable when rendered and shall be considered received by the customer, whether actually received or not, when deposited in the United States mail, postage prepaid, addressed to the utility customer or sent via the City’s electronic billing system. Bills shall be rendered monthly for the previous month’s service. (b) The Utilities Department may assume that each utility account in the service area serves one (1) or more Users of a Benefitted Property and may assess the Drainage Charges to the person responsible for payment of the utility account. The Utilities Department shall calculate the Drainage Charges for all Users and may assess the Drainage Charges to the person responsible for payment of the utility account. If there is more than one (1) User of a Benefitted Property (which is non-Residential), then the charges shall be assessed to either the owner of the Benefitted Property in full or the tenant on a prorated basis. (c) Bills are due and payable on the date specified thereon and if full payment is not made by the date specified, the bill shall become delinquent. (d) Drainage Utility Charges shall be billed with the City’s other public utility billings and shall be identified separately on the bill as a Drainage Utility Charge. Drainage Utility Charges are subject to the billing procedures, penalties, discounts, interest, and other terms of the City of Victoria’s rules and regulations related to billing. (e) Any charge due hereunder which is not paid when due will subject the User to discontinuance of all utility services provided by the City and may be recovered in an action at law or in equity by the City including fixture of a lien against the property, as allowed by law. (f) The City shall have access, at all reasonable times, to any Benefitted Property served by the Drainage Utility for necessary inspection, repair of infrastructure or enforcement of this article. Sec. 13-243. Appeals (a) Requests for adjustment of a Drainage Utility Charge shall be submitted to the Utility Billing Office. A User may apply for an adjustment if: (1) The User believes that the drainage charge schedule, as applied to the User’s Benefitted Property, does not fairly reflect the Cost of Service to the User’s Benefitted Property; (2) The User disputes the amount of Impervious Area used to calculate the drainage charge; or (3) The User’s Drainage Charge has been assessed in error. (b) The following procedures shall apply to all requests for adjustment of the Drainage Utility Charge: (1) The User shall have the burden of proof. (2) Any User who has paid Drainage Utility Charges and who believes the calculation or determination of the Drainage Utility Charge to be incorrect may, subject to the restrictions set forth in this Chapter, submit an adjustment request to the Utility Billing Office. (3) Requests for adjustment of Drainage Utility Charges paid by an Owner, User or Customer making the request shall be in writing and set forth in detail the grounds upon which relief is sought. (4) Adjustment requests will be reviewed by the Public Works Department within twenty (20) days from the date of receipt of an adjustment request. Adjustments, other than assessment made in error, resulting from such a request shall be prospective but may be made retroactive for no greater time period than three (3) monthly billings prior to the receipt of the request. Erroneous assessments may be made retroactive to the original date of the error. (5) The Public Works Department’s determination of the adjustment request shall be provided to the User, in writing, within thirty (30) days of the later of receipt of the request for adjustment or receipt of any additional information submitted in accordance with this section. If the Public Works Director approves the request, the adjustment to the Drainage Utility Charge will be made. SECTION 13-244. That all provisions of the ordinances of the City of Victoria in conflict with the provisions of this Ordinance be, and the same are hereby, repealed, and all other provisions of the ordinances of the City of Victoria not in conflict with the provisions of this Ordinance shall remain in ful] force and effect. SECTION 13-245. That should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Code of Ordinances as a whole. SECTION 13-246. That this Ordinance shall take effect ten days from and after its passage and the publication of the caption, as the law and charter in such cases provide; however no drainage utility charge shall be assessed prior to April 1 2026. CITY OF VICTORIA ORDINANCE NO: STATE OF TEXAS AN ORDINANCE OF THE CITY OF VICTORIA, TEXAS, AMENDING CHAPTER 24 “FEES,” OF ORDINANCES OF THE CITY OF VICTORIA, TEXAS, BY ADDING ARTICLE VII “MUNICIPAL DRAINAGE UTILITY SYSTEM FEE SCHEDULE”; ESTABLISHING A MUNICIPAL DRAINAGE UTILITY SYSTEM FEE; PROVIDING FOR EXEMPTIONS AND CREDITS; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE, PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Victoria, Texas has previously investigated and determined that it would be advantageous and beneficial to the citizens of the City of Victoria, Texas to promote the public health, safety and welfare of the citizens to adopt a Municipal Drainage Utility System; and WHEREAS, the City Council has created a Municipal Drainage Utility System as authorized by Chapter 552, Subchapter C, Texas Local Government Code, as amended, (“the Act”) pursuant to Ordinance No. which is to be codified as Chapter 13, Article VII, of the Code of Ordinances; and WHEREAS, pursuant the Act, the City Council has investigated and determined that a schedule of drainage fees shall be applied against all real property in the proposed service area(s); and WHEREAS, the City Council further finds that it would be in the best interest of its citizens to amend the Code of Ordinances to adopt the drainage utility system charges to be collected in support of operation of the City’s drainage utility system: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VICTORIA, TEXAS, THAT: SECTION VIl Chapter 24 “Fees,” of the Code of Ordinances of the City of Victoria, Texas, is amended by adding Article VII “Municipal Drainage Utility Fee Schedule” to read as follows: Article VII. Municipal Drainage Utility System Fee Schedule Sec. 24-154. Establishment of Drainage Utility Fee. The drainage utility fee set forth in this Article VII is adopted pursuant to Ch. 13, Sec. VII, and shall be collected through the City’s bill for public utilities pursuant to the Act, Chapter 13, Article Vil, and other applicable law. Sec. 24-155. Impervious Area; Fee Assessed. (a) Drainage utility fees shall be charged based on a property’s contribution to the public drainage utility system. The contribution shall be based on the impervious area for the property. (b) The drainage utility fee, payable monthly, shall be established with respect to all property within the according to the following schedule: Property Type ERUs Monthly Drainage Utility Fee Single -Family Residential 1 per Unit $5.00 2-Unit Residential 1 per Unit $5.00 per Unit 3-Unit Residential 1 per Unit $5.00 per Unit 4-Unit Residential 1 per Unit $5.00 per Unit All Other Non-Exempt Property Impervious Area Dependent $5.00 per ERU* * ERU (Equivalent Residential Unit)= 3,200 square feet impervious area (c) A minimum charge of one (I) ERU shall be applied to each non-exempt non-single family residential developed property, regardless of classification. (d) Multifamily residential properties with four (4) or less units will be charged one (1) ERU per unit. (e) Any multifamily residential properties with five (5) or more units will be charged based on impervious area for the property. Such properties will be charged a fee equal to the residential flat monthly rate times the properties impervious area divided by the Equivalent Residential Unit or ERU, which has been determined to be 3,200 square feet. (e) Commercial and other non-exempt, non-residential properties will be charged based on a property’s contribution to the public drainage utility system. This contribution shall be based on the impervious area for the property and will be charged monthly as a separate item on their utility bill. To maintain equity in billing, commercial and non-residential properties will be charged a fee equal to the residential flat monthly rate times the properties impervious area divided by the Equivalent Residential Unit or ERU. The ERU will be set to the median residential impervious area, which has been determined to be 3,200 square feet. Sec. 24-156. Exemptions. The following property shall not be assessed a drainage utility fee: (1) Property held and maintained in its natural state, until such time that the property is developed and all of the public infrastructure constructed has been accepted by the City in which the property is located for maintenance; (2) A subdivided lot, until a structure has been built on the lot and a Certificate of Occupancy has been issued by the City; (3) Property with proper construction and maintenance of a wholly sufficient and privately owned drainage system; (4) State property; (5) Public or private institutions of higher education property; (6) City owned property; and (7) Property owned by the Victoria Independent School District. Sec. 24-157. Fee Credits. (a) A property owner may petition the City to reduce the drainage utility fee for an individual property to account for on-site storm water management controls that reduce the property’s impact to the drainage utility system. (b) The petition shall be evaluated and the fee adjustment decision determined by the Director of Public Works or the Director’s designated representative. The evaluation and determination performed by the Director of Public Works shall be based on nondiscriminatory, reasonable and equitable terms in accordance with the Act and this Article. SECTION 24-158. All provisions of the ordinances of the City of Victoria in conflict with the provisions of this Ordinance be, and the same are hereby, repealed, and all other provisions of the ordinances of the City of Victoria not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 24-159. Should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Code of Ordinances as a whole. SECTION 24-160. This ordinance shall become effective April 1, 2026, after its passage and the publication of the caption of said ordinance as the law and the City Charter in such cases provides.