Land topographical studies and engineering diagrams can easily display that your rainfall collection methods are or are not contributing to the neighborhood flooding. Visit the village engineering department to get the details of the information they have accumulated.
This kind or local ordinance is not a rare occurrence. Most towns, villages and cities have such measures in place to make sure that no one owner of land can flood out adjacent properties and adversely affect adjacent property values.
If your gutters are not the problem the engineering information should prove your point.
You might find my Legal Guide helpful "Ethics: Yes I Need a Lawyer!"
Check with a lawyer in your locale to discuss more of the details.
Good luck to you.
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