NEWS

Bowling Green Approves Stormwater Utility Fee & FILOC for Developers

City commissioners in Bowling Green green-light a stormwater utility fee beginning Jan 2027 and a fee-in-lieu-of-construction for new large developments.

By BowlingGreen Local Staff3 min read
Aerial View Of A Bowling Green Neighborhood Showing Impervious Surfaces
TL;DR
  • City staff note that inspections have covered less than 10 % of the system, while identified needs already exceed $10 million.
  • For residents of Bowling Green, this means that flood-risk mitigation, pipe cleaning and drainage improvements have a more reliable funding base — ...
  • What the new policy covers Stormwater utility fee: All property owners in Bowling Green will pay a monthly fee (still under development) as part of...

The Bowling Green City Commission has approved a sweeping update to local infrastructure funding: beginning January 2027, all property owners in the city will face a newly adopted stormwater utility fee, and developers disturbing more than 1 acre or adding over 10,000 sq ft of impervious surface will be subject to a “fee-in-lieu-of-construction” (FILOC) option

For years, Bowling Green’s stormwater system has faced wear-and-tear, outdated infrastructure and limited dedicated funding. City staff note that inspections have covered less than 10 % of the system, while identified needs already exceed $10 million.
By establishing a dedicated utility fee and formalizing a FILOC program for major new developments, the city aims to build a stable revenue stream for maintenance, repairs and future upgrades of storm drains, detention basins and other drainage infrastructure.
For residents of Bowling Green, this means that flood-risk mitigation, pipe cleaning and drainage improvements have a more reliable funding base — but it also means a new budget line to watch on future bills.

What the new policy covers

  • Stormwater utility fee: All property owners in Bowling Green will pay a monthly fee (still under development) as part of their utility or water bill, with proceeds dedicated to stormwater system upkeep.

  • Fee-in-lieu-of-construction (FILOC): Developers who disturb more than 1 acre or add more than 10,000 sq ft of impervious surface will have the option to pay a fee into the city’s stormwater fund instead of installing all required on-site stormwater treatment themselves. The fee gives the city more control over system-wide infrastructure rather than piecemeal developer installs.

  • Timeline: The city commission approved the ordinance during its meeting this week; the utility fee is set to take effect January 2027. The FILOC requirement applies to applicable new developments immediately or upon ordinance adoption.

City staff emphasised that past efforts to establish such a funding mechanism had stalled — the commission meeting emphasized this time the intention to follow through.

Expect notices and communication from the city explaining how the stormwater utility fee will be calculated, when it will appear on your bill, and what it’s funding.

Large-scale land disturbance and impervious surface additions must either include traditional on-site stormwater treatment or pay the FILOC fee, shifting responsibility to the city’s pooled infrastructure fund.

Many municipalities nationwide struggle to fund stormwater needs; establishing a dedicated utility fee is seen as a more sustainable model. A recent study found that stormwater utility fees offer “a more efficient and environmentally sustainable source of revenue” for drainage systems.

By taking this step, Bowling Green positions itself to proactively manage stormwater, reduce flooding risk and better protect neighborhoods and properties.

Bowling Green’s decision to adopt a stormwater utility fee and FILOC program marks a significant shift. By creating a steady, dedicated funding stream and holding large-scale developments accountable for their impact, the city is committing to tackle stormwater challenges now — for stronger, safer infrastructure tomorrow. Residents and developers alike should stay engaged as the details roll out.

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