In 1999, the City established a Stormwater Utility. It was developed to allocate an equitable share of stormwater management costs to customers in the City of Two Harbors. All properties contribute to the stormwater system regardless of flooding potential.

The average impervious area of residential property per dwelling unit located within the City is called an "Equivalent residental unit" or "ERU". All residential units, regardless of residential class were assigned one ERU.

The ERU for nonresidential customers is determined by dividing the total impervious area (square feet) of the parcel by 1,718 square feet.

Each ERU is billed monthly at a rate of $1.50 per ERU.