S.F. _____ Section 1. Section 331.465, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. a. The board may establish, impose, adjust, and provide 3 for the collection of rates to produce gross revenues at least 4 sufficient to pay the expenses of operation and maintenance 5 of the county enterprise or combined county enterprise and, 6 if revenue bonds or pledge orders are issued and outstanding 7 under this part, shall establish, impose, adjust, and provide 8 for the collection of rates to produce gross revenues at least 9 sufficient to pay the expenses of operation and maintenance of 10 the county enterprise or combined county enterprise, and to 11 leave a balance of net revenues sufficient at all times to pay 12 the principal of and interest on the revenue bonds and pledge 13 orders as they become due and to maintain a reasonable reserve 14 for the payment of the principal and interest, and a sufficient 15 portion of net revenues shall be pledged for that purpose. 16 b. Rates shall be established by ordinance. Rates or 17 charges for the services of a county enterprise defined 18 in section 331.461, subsection 2 , paragraph “b” , if not 19 paid as provided by ordinance, constitute a lien upon the 20 premises served and may be certified to the county treasurer 21 and collected in the same manner as taxes. The treasurer 22 may charge five dollars for each lien certified as an 23 administrative expense, which amount shall be added to the 24 amount of the lien to be collected at the time of payment of the 25 assessment from the payor and credited to the county general 26 fund. 27 c. The aggregate of the rates and charges for storm water 28 drainage system services shall not exceed the lower of one 29 hundred two percent of the aggregate of the rates and charges 30 from the previous budget year or the percentage increase in 31 the consumer price index for the midwest region as determined 32 by the United States department of labor, bureau of labor 33 statistics, or a successor index. Increases to rates and 34 charges for storm water drainage system services planned prior 35 -1- LSB 1180XC (2) 91 sb/js 1/ 7

S.F. _____ to July 1, 2025, for repayment of debt incurred before July 1, 1 2025, shall be excluded from rate and charge increase limits 2 established in this paragraph. If rate and charge increases 3 for storm water drainage system services exceed the limits 4 required in this paragraph, the increased rate or charge shall 5 be effective at the start of the budget year. The board shall 6 direct the county commissioner of elections to submit to the 7 registered voters of the county at the next general election 8 the question of whether to accept the increased rate or charge 9 by the proposed amount. The result of the election shall 10 take effect immediately upon certification. If the question 11 fails, all rates and charges paid by customers for storm water 12 drainage system services exceeding the limits established 13 by this paragraph from the beginning of the current budget 14 year until the certification of the general election shall be 15 refunded by January 1 following the general election. 16 Sec. 2. Section 331.465, Code 2025, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 3. If the real property served by a 19 connection to storm water drainage system services retains at 20 least one and one-half inches of standing water at any point 21 during a billing cycle, the board shall not charge the real 22 property for storm water drainage system services for the 23 billing cycle. 24 NEW SUBSECTION . 4. If the real property served by a 25 connection to storm water drainage system services contains 26 within the property a retention pond for storm water purposes 27 that meets the requirements provided in the national pollutant 28 discharge elimination system general permit no. 2 as issued by 29 the department of natural resources, the board shall not charge 30 the real property for storm water drainage system services. 31 Sec. 3. Section 358C.15, subsection 1, Code 2025, is amended 32 to read as follows: 33 1. a. A board of trustees may by ordinance establish 34 equitable rates, charges, or rentals for the utilities and 35 -2- LSB 1180XC (2) 91 sb/js 2/ 7

S.F. _____ services furnished by the district to be paid to the district 1 by every person, firm, or corporation whose premises are 2 served by a connection to the utilities and services directly 3 or indirectly. The rates, charges, or rentals, as near as 4 may be in the judgment of the board of trustees, shall be 5 equitable and in proportion to the services rendered and the 6 cost of the services, and taking into consideration in the case 7 of the premises the quantity of sewage or water produced or 8 used and the concentration, strength, and pollution qualities 9 of the sewage. The board of trustees may change the rates, 10 charges, or rentals as it may deem advisable, and by ordinance 11 may provide for collection. The board may contract with any 12 municipality within the district, whereby the municipality may 13 collect or assist in collecting any of the rates, charges, 14 or rentals, whether in conjunction with water rentals or 15 otherwise, and the municipality may undertake the collection 16 and render the service. The rates, charges, or rentals, if not 17 paid when due, shall constitute a lien upon the real property 18 served by a connection. The lien shall have equal precedence 19 with ordinary taxes, may be certified to the county treasurer 20 and collected in the same manner as taxes, and is not divested 21 by a judicial sale. 22 b. The aggregate of the rates and charges for storm water 23 drainage system services shall not exceed the lower of one 24 hundred two percent of the aggregate of the rates and charges 25 from the previous budget year or the percentage increase in 26 the consumer price index for the midwest region as determined 27 by the United States department of labor, bureau of labor 28 statistics, or a successor index. Increases to rates and 29 charges for storm water drainage system services planned prior 30 to July 1, 2025, for repayment of debt incurred before July 1, 31 2025, shall be excluded from rate and charge increase limits 32 established in this paragraph. If rate and charge increases 33 for storm water drainage system services exceed the limits 34 required in this paragraph, the increased rate or charge shall 35 -3- LSB 1180XC (2) 91 sb/js 3/ 7

S.F. _____ be effective at the start of the budget year. The board of 1 trustees shall direct the county commissioner of elections to 2 submit to the registered voters of the city at the next general 3 election the question of whether to accept the increased 4 rate or charge by the proposed amount. The result of the 5 election shall take effect immediately upon certification. If 6 the question fails, all rates and charges paid by customers 7 for storm water drainage system services over the limits 8 established by this paragraph from the beginning of the current 9 budget year until the certification of the general election 10 shall be refunded by January 1 following the general election. 11 Sec. 4. Section 358C.15, Code 2025, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 3. If the real property served by a 14 connection to storm water drainage system services retains at 15 least one and one-half inches of standing water at any point 16 during a billing cycle, the district shall not charge the real 17 property for storm water drainage system services for the 18 billing cycle. 19 NEW SUBSECTION . 4. If the real property served by a 20 connection to storm water drainage system services contains 21 within the property a retention pond for storm water purposes 22 that meets the requirements provided in the national pollutant 23 discharge elimination system general permit no. 2 as issued 24 by the department of natural resources, the district shall 25 not charge the real property for storm water drainage system 26 services. 27 Sec. 5. Section 384.84, subsection 1, Code 2025, is amended 28 to read as follows: 29 1. a. The governing body of a city utility, combined 30 utility system, city enterprise, or combined city enterprise 31 may establish, impose, adjust, and provide for the collection 32 of rates and charges to produce gross revenues at least 33 sufficient to pay the expenses of operation and maintenance of 34 the city utility, combined utility system, city enterprise, or 35 -4- LSB 1180XC (2) 91 sb/js 4/ 7

S.F. _____ combined city enterprise. When revenue bonds or pledge orders 1 are issued and outstanding pursuant to this subchapter , the 2 governing body shall establish, impose, adjust, and provide 3 for the collection of rates to produce gross revenues at least 4 sufficient to pay the expenses of operation and maintenance of 5 the city utility, combined utility system, city enterprise, 6 or combined city enterprise, and to leave a balance of net 7 revenues sufficient to pay the principal of and interest on 8 the revenue bonds and pledge orders as they become due and to 9 maintain a reasonable reserve for the payment of principal 10 and interest, and a sufficient portion of net revenues must 11 be pledged for that purpose. Rates must be established by 12 ordinance of the council or by resolution of the trustees, 13 published in the same manner as an ordinance. 14 b. The aggregate of the rates and charges for storm water 15 drainage system services shall not exceed the lower of one 16 hundred two percent of the aggregate of the rates and charges 17 from the previous budget year or the percentage increase in 18 the consumer price index for the midwest region as determined 19 by the United States department of labor, bureau of labor 20 statistics, or a successor index. Increases to rates and 21 charges for storm water drainage system services planned prior 22 to July 1, 2025, for repayment of debt incurred before July 1, 23 2025, shall be excluded from rate and charge increase limits 24 established in this paragraph. If rate and charge increases 25 for storm water drainage system services exceed the limits 26 required in this paragraph, the increased rate or charge shall 27 be effective at the start of the budget year. The governing 28 body shall direct the county commissioner of elections to 29 submit to the registered voters of the city at the next general 30 election the question of whether to accept the increased 31 rate or charge by the proposed amount. The result of the 32 election shall take effect immediately upon certification. If 33 the question fails, all rates and charges paid by customers 34 for storm water drainage system services over the limits 35 -5- LSB 1180XC (2) 91 sb/js 5/ 7

S.F. _____ established by this paragraph from the beginning of the current 1 budget year until the certification of the general election 2 shall be refunded by January 1 following the general election. 3 Sec. 6. Section 384.84, Code 2025, is amended by adding the 4 following new subsections: 5 NEW SUBSECTION . 12. If the real property served by a 6 connection to storm water drainage system services retains at 7 least one and one-half inches of standing water at any point 8 during a billing cycle, the governing body shall not charge the 9 real property for storm water drainage system services for the 10 billing cycle. 11 NEW SUBSECTION . 13. If the real property served by a 12 connection to storm water drainage system services contains 13 within the property a retention pond for storm water purposes 14 that meets the requirements provided in the national pollutant 15 discharge elimination system general permit no. 2 as issued by 16 the department of natural resources, the governing body shall 17 not charge the real property for storm water drainage system 18 services. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill creates a maximum yearly increase allowed for 23 storm water drainage system rates charged by counties, 24 cities, and intergovernmental storm water drainage system 25 service providers. The bill sets the maximum increase of 26 storm water drainage system services rates and charges at 2 27 percent more than the aggregate of rates and charges from 28 the previous budget year or the percentage increase of the 29 consumer price index for the midwest region, whichever is 30 lower. The bill excludes increases to rates and charges 31 planned prior to July 1, 2025, for repayment of debt incurred 32 before July 1, 2025, from the increase limits. The bill 33 provides that if rate and charge increases exceed the limits, 34 the increased rate or charge shall be effective at the start 35 -6- LSB 1180XC (2) 91 sb/js 6/ 7

S.F. _____ of the budget year. The relevant authority shall direct the 1 county commissioner of elections to submit to the registered 2 voters of the jurisdiction at the next general election the 3 question of whether to accept the increased rate or charge 4 by the proposed amount. The result of the election shall 5 take effect immediately upon certification. If the question 6 fails, all rates and charges paid by customers for storm water 7 drainage system services exceeding the limits required by the 8 bill from the beginning of the current budget year until the 9 certification of the general election shall be refunded by 10 January 1 following the general election. 11 The bill also prohibits counties, cities, and real estate 12 improvement districts from charging for storm water drainage 13 system services for billing months when the connected real 14 property at any point retains at least 1.5 inches of standing 15 water. 16 The bill prohibits counties, cities, and real estate 17 improvement districts from charging for storm water drainage 18 system services if the connected real property contains within 19 the property a retention pond for storm water purposes that 20 meets the requirements provided in the national pollutant 21 discharge elimination system general permit no. 2 as issued by 22 the department of natural resources. 23 -7- LSB 1180XC (2) 91 sb/js 7/ 7