Dozens of frustrated Snellville residents crowded into a room at City Hall Monday night, fearing a new city utility fee on the heels of a property tax hike.

About 170 residents filled the City Council chambers to listen to city leaders explain the need to set a fee rate for the new Stormwater Enterprise Fund.

Jessica McGowan/AJC (ENLARGE)

About 170 people fill the Snellville City Council chambers, many of them sounding off on the Stormwater Enterprise Fund. Most who spoke are opposed to the proposed new fee. The council tabled the issue.

Jessica McGowan/AJC (ENLARGE)

Snellville Mayor Jerry Oberholtzer (right) and city attorney Mike Williams listen during a presentation Monday on fees that could cost the average homeowner up to $75 annually.

Two engineers spoke for more than an hour, detailing the complex fee structure that will determine how much property owners would have to pay.

At one point, much of the crowd began to tune out the engineers, mumbling to each other. Mayor Jerry Oberholtzer banged on his gavel to restore order.

When residents got their turn to talk during a public hearing, most spoke out against the new fee.

"I do not believe any fee is justified or any tax is justified," said Suzanne Krieger, a resident for eight years. "I wish y'all would reconsider this."

The proposed fee rate would cost the average Snellville homeowner between $56 to $75 a year, Billy Buckhalt, Snellville's construction manager said.

Snellville residents, property and business owners will already face the first tax hike in years this fall. That's because the City Council recently voted to increase the millage rate by one-half point, translating to a $75 increase per $150,000 of accessed value.

Mike Sparks, a city resident for 23 years, said he is on a fixed income and is already burdened by the recent property tax increase and soaring gas prices. He urged city leaders not to create a new utility fee.

"The timing of this proposal could not be worse," he said. "You should find a way to reduce taxes during tough economic times instead of increasing the tax burden."

Dozens of the residents applauded.

Resident Cathryn Creasy, who has lived in the city for 35 years, spoke in favor of the new fee, urging city leaders to do what is needed to repair damaged infrastructure.

She said elected officials should have trimmed the budget to find money in the general funds.

After several residents spoke, Oberholtzer tried to close the public hearing even though a woman had stood up to address the council.

"We've been at this for more than two hours," the mayor said.

The majority of that time was spent on a consulting firm's presentation and council members discussions — not on public comments.

In response to the mayor, several residents scoffed and Snellville newcomer Steve Grindle shouted from the back of the room: "It's our tax money."

The mayor conceded, allowing the woman to ask questions.

The City Council was scheduled to take a final vote, setting the fee amount. But they voted to table the issue until their July 14 meeting.

City officials will measure impervious surfaces, such as sidewalks, roofs, driveways and patios to determine the fee, City Manager Russell Treadway said.

In the first year, the proposed fees would generate between $1 million to $1.2 million, Treadway said.

Mayor Pro Tem Warren Auld said he knows many are struggling during the economic downturn, so he may lobby for a lower fee rate for residents.