Funding Stormwater Funding Stormwater Programs Programs Nikos S - - PowerPoint PPT Presentation

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Funding Stormwater Funding Stormwater Programs Programs Nikos S - - PowerPoint PPT Presentation

Funding Stormwater Funding Stormwater Programs Programs Nikos S ingelis S tormwater Program U.S . EPA Topics for This Module Topics for This Module S tormwater Program Costs S tormwater Utilities Clean Water S tate


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SLIDE 1

Funding Stormwater Programs Funding Stormwater Programs

Nikos S ingelis S tormwater Program U.S . EPA

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SLIDE 2

Topics for This Module Topics for This Module

  • S

tormwater Program Costs

  • S

tormwater Utilities

  • Clean Water S

tate Revolving Fund

  • Additional Funding S

trategies

  • How can you determine what will work

for your community?

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SLIDE 3

Stormwater Program Costs Stormwater Program Costs

$0 $0 $100 $100 $200 $200 $250 $250 $50 $50 $/Dev. Acre/Year $/Dev. Acre/Year $150 $150 Incidental Incidental Minimal Minimal Moderate Moderate Advanced Advanced Exceptional Exceptional Regulatory mandates or Regulatory mandates or program anomalies can program anomalies can skew these numbers skew these numbers

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SLIDE 4

Factors Affecting Cost Factors Affecting Cost

  • How detailed of a program do you want?
  • How detailed of a program does your S

tate want you to have?

  • What are you already doing in terms of

stormwater?

  • Are you discharging to an impaired water?
  • What is your climate (both politically and

weather-wise)?

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SLIDE 5

What Type of Funding Sources Exist? What Type of Funding Sources Exist?

  • Utilities
  • CWS

RF

  • Fees
  • Taxes
  • Grants
  • Debt Financing
  • General Fund
  • Local Improvement

Districts

  • Developer

Participation

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SLIDE 6

Topics for This Module Topics for This Module

  • S

tormwater Program Costs

  • S

t ormwat er Ut ilit ies

  • Clean Water S

tate Revolving Fund

  • Additional Funding S

trategies

  • How can you determine what will work

for your community?

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SLIDE 7

Stormwater Utilities Stormwater Utilities

What is it ?

  • An enterprise fund that can provide a stable source of

funding for stormwater operations and capital proj ects

  • User fee

How is t he fee det ermined?

  • Based on the need for stormwater facility services
  • Amount of runoff generated by the property
  • S

ize of the property

  • Amount of impervious surface
  • Charges Taxable and Tax-exempt Property
  • Bills Are Proportional to Area, Not Billable Flow
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SLIDE 8

Growth of Stormwater Utilities Growth of Stormwater Utilities

1975 1985 1995 1975 1985 1995 2005 2005 1 1 300 300 600 600

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SLIDE 9

Stormwater Utility Advantages Stormwater Utility Advantages

  • Fair and Equitable
  • Dedicated Dollars –

S table and Predictable

  • Larger Customer Base

(Taxable and Tax-Exempt Property)

  • Incentivize Behavior Through Credits
  • Cheaper for Residential Property than a

Tax

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SLIDE 10

Stormwater Utility Disadvantages Stormwater Utility Disadvantages

  • Establish Legal Authority
  • High Implementation and Administration

Costs

  • New Billing S

ystem to Maintain

  • Bill is Not Tax-Deductible
  • Visible Fee = More Opposition
  • Vulnerable to Legal Challenge
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SLIDE 11

Stable

Utility vs. Tax or “Money” Funding

Stable

Utility vs. Tax or “Money” Funding

“ “Money Money” ” or

  • r

Tax Tax-

  • based

based User User-

  • fee based

fee based

Maximum possible program

Time $$ $$

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SLIDE 12

Equitable: How a Fee is Calculated Equitable: How a Fee is Calculated Equals 1.0 Equals 1.0 ERU ERU Say it is Say it is 2500 2500 sq sq ft ft

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SLIDE 13

How a Fee is Calculated How a Fee is Calculated = 1 ERU = 1 ERU = 40 ERUs less credit = 40 ERUs less credit

Rate structures can reflect a number of different things… not just impervious area

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SLIDE 14

Typical Properties $4.00/month charge Typical Properties $4.00/month charge

Fast Food Fast Food $62.72/mo $62.72/mo less credit less credit Large Res. Large Res. $5.50/mo $5.50/mo Small Res. Small Res. $2.50/mo $2.50/mo 200,000 sq ft shopping 200,000 sq ft shopping 700,000 sq ft impervious 700,000 sq ft impervious $1121.20/mo $1121.20/mo less credit less credit 2 tiers residential 2 tiers residential

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SLIDE 15

Typical Commercial Building Typical Commercial Building

Say rental is $18/sq ft/yr or $180,000/yr Say rental is $18/sq ft/yr or $180,000/yr User fee is $40/mo or $480/yr User fee is $40/mo or $480/yr this is less than this is less than 5 cents 5 cents per sq ft per year per sq ft per year not counting credit (0.26%) not counting credit (0.26%) 60% parking 60% parking 40% office 40% office 10 ERUs 10 ERUs $4/mo/ERU $4/mo/ERU 10,000 sq ft 10,000 sq ft commercial bldg commercial bldg

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SLIDE 16

Past Rate Methodologies Past Rate Methodologies

  • Impervious Area (54%

)

  • Impervious Area and Gross Area (21 %

)

  • Gross Area/ Intensity of Development (16 %

)

  • Others (9 %

)

  • impervious area and %
  • f imperviousness, water

meter size, flat rates, zoning class

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SLIDE 17

Newer methods include: Newer methods include:

  • Allocation of charges according to program costs

categories – rational nexus matching

  • Allocation of cost according to pollution

estimates – pollution modeling

  • Development of secondary or ancillary fees and

charges – shifting costs to special services and demand users

  • Imaginative credits to encourage/ reward good

behavior

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SLIDE 18

Steps in Creating a Stormwater Utility Steps in Creating a Stormwater Utility

  • A. Feasibility S

tudy

  • B. Development
  • C. Implementation
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SLIDE 19
  • A. Feasibility Study
  • A. Feasibility Study

A feasibility study takes a group of staff and citizens on a walk through all the key aspects of utility development without committing to utility development until all concerned agree it is the right way to go.

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SLIDE 20

The six questions: The six questions:

  • What are we spending and doing now in

stormwater?

  • What are the significant problems,

issues and needs we face?

  • How have others solved them?
  • How should we solve them?
  • What will it cost?
  • How should we pay for it?
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SLIDE 21
  • B. Development
  • B. Development
  • 1. Billing S

ystem

  • 2. Public Information Program
  • 3. Ordinance
  • 4. Credits/ Exemptions
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SLIDE 22
  • 1. Billing System
  • 1. Billing System
  • Collect Data from City Departments
  • Define User Categories
  • Align Water/ S

ewer Account Numbers with Tax Assessor Property ID Numbers

  • Input Property Area Data
  • Calculate Final Billable Area and Fees
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SLIDE 23
  • 2. Public Information Program
  • 2. Public Information Program
  • Identify Key Users and Groups
  • Establish Advisory Committee
  • Website
  • Pamphlets and Presentations
  • Meet with Citizen Groups, Key

Users/ Groups and the Media

  • Mail Pamphlets Prior to Billing with Each

Customer’ s Proposed Bill

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SLIDE 24
  • 3. Ordinance
  • 3. Ordinance
  • Technical:
  • Ongoing Fee Method

ERU ID EHA

  • S

ystem Development Charge Method

  • Annual Rate Review
  • Legal:
  • Legal Authority
  • Regulatory Purpose
  • Fees Proportional to

Cost of S ervice

  • Credits Available
  • Appeals Process
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SLIDE 25
  • 4. Credits/Exemptions
  • 4. Credits/Exemptions
  • Credit Manual:
  • Policy/ Credits

Available/ Procedures

  • Maximum Credit %
  • Retention/ Detention
  • Educational
  • Maintenance
  • Industrial NPDES
  • Exemptions:
  • Undeveloped Land
  • Roads
  • Properties that

Discharge Directly to Waterways

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SLIDE 26
  • C. Implementation
  • C. Implementation
  • 1. Initiate Billing
  • 2. Telephone Hot Line, e-mail S

ervice and Website (FAQs)

  • 3. Address Legal Challenges
  • 4. Maintain Master Account File
  • 5. Manage the S

tormwater S ystem

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SLIDE 27

Stormwater Utility Administration Stormwater Utility Administration

  • Often S

ame S taff as Water and S ewer:

  • City Manager
  • Engineering
  • Public Works
  • Finance
  • Billing
  • Plus:
  • Assessing
  • GIS
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SLIDE 28

Bill Format Bill Format

  • Add line on Water/ S

ewer Bill (Usual Method)

  • Add to Property Tax Bill (S

eparate “ Non Ad Valorem Charge” )

  • S

end S tand Alone Bill

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SLIDE 29

Stormwater Utility Benefits Stormwater Utility Benefits

  • Dedicated Funding S
  • urce
  • Possible Property Tax Reduction
  • Fee is Proportional to Cost of S

ervice

  • Lower Residential Cost
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SLIDE 30

Topics for This Module Topics for This Module

  • S

tormwater Program Costs

  • S

tormwater Utilities

  • Clean Wat er S

t at e Revolving Fund

  • Additional Funding S

trategies

  • How can you determine what will work

for your community?

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SLIDE 31

CWSRF Funding for Stormwater CWSRF Funding for Stormwater

  • Take Away Message
  • Funding is available for stormwater

infrastructure

  • $5 Billion each year and growing
  • Reliable funding
  • Low interest loans
  • Flexible tool
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SLIDE 32

What Can You Fund? What Can You Fund?

  • Traditional

S tormwater Conveyance Infrastructure

  • pipes
  • Inlets
  • road side ditches
  • Capital to maintain

infrastructure

  • street sweepers
  • storm drain pumper

trucks

  • Traditional

S tormwater Treatment

  • wet ponds
  • dry ponds
  • manufactured devices
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SLIDE 33

What can you fund? What can you fund?

Green Infrastructure

  • Construction
  • Vegetated Buffers
  • Compost Blankets
  • Mulching
  • Grass Lined Channels
  • S

traw Wattles

  • Compost Filter S
  • ck

Green Infrastructure

  • Post Construction
  • Green Roofs
  • Eliminate

Curbs/ Gutters

  • Vegetated S

wales

  • Bioretention Cells
  • Riparian Buffers
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SLIDE 34

Did you know? Did you know?

  • The CWS

RFs cannot fund land for wastewater treatment systems, unless it is integral to the treatment process

  • This has eliminated CWS

RF funding for right-of-ways

  • If communities use right-of-ways for green

infrastructure and the land is integral to the stormwater treatment process, then it is eligible for CWS RF funding

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SLIDE 35

CWSRF Eligibility CWSRF Eligibility

  • Publicly-owned 212 proj ects
  • 212 2(B) “ any other method or system for

preventing, abating, reducing, storing treating, separating, or disposing of municipal waste, including stormwater runoff… ”

  • Publicly or privately-owned 319 and 320

proj ects

  • Implement approved 319 Nonpoint S
  • urce

Management Plans or the 9 Element Watershed Plans required by the 319 program

  • Develop and implement 320 Comprehensive

Conservation Management Plans for National Estuaries

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SLIDE 36

CWSRF/Stormwater Eligibility CWSRF/Stormwater Eligibility

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SLIDE 37

CWSRF Stormwater Projects CWSRF Stormwater Projects

  • City of Rockville, MD
  • $1.4 million CWS

RF loan funded the planning, design, and restoration of the main stem of Watts Branch

  • Restoration included
  • enhancement of existing wetlands
  • restoring a stream buffer
  • stabilizing 4,000 feet of eroding stream bank
  • upgrading storm drain outfalls.
  • Proj ect helps reduce pollution in streams and the

Chesapeake Bay, and enhances aquatic habitat.

  • First proj ect in Maryland to benefit from a 0%

interest rate CWS RF loan – a part of the Governor’ s effort to encourage more non-point source proj ects.

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SLIDE 38

CWSRF Stormwater Projects CWSRF Stormwater Projects

  • City of Fort Collins, CO
  • The City of Fort Collins obtained a $9.9 million

loan from the CWS RF to upgrade its stormwater system and increase capacity to provide an adequate level of protection.

  • Maj or components of the upgrade included
  • reinforced concrete pipes
  • grated curb inlet systems
  • a water quality treatment pond system.
  • The city found that installing a new system using

innovative construction methods and materials while maintaining much of the existing stormwater system was the most cost effective

  • ption to meet their needs.
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SLIDE 39

CWSRF Stormwater Projects CWSRF Stormwater Projects

  • The Nature Conservancy, S

an Francisco, CA

  • The Nature Conservancy used $17 million in CWS

RF loans to partially finance the acquisition of three properties that provided significant watershed restoration and preservation.

  • Proj ect conserved the watersheds by protecting the land

from

  • Overgrazing
  • urban encroachment
  • vineyard conversion.
  • As one of its achievements, the proj ect protected the Palo

Corona Ranch from imminent development that would have increased sedimentation and stormwater runoff, and threatened to impair coastal and aquatic resources.

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SLIDE 40

CWSRF Stormwater Projects CWSRF Stormwater Projects

  • The City of Port Townsend, Washington
  • $400,000 CWS

RF loan at 0% interest to purchase an area called the Winona Wetlands, a critical stormwater basin for the area that also provides a valuable wildlife habitat.

  • Paid back in 5 years with a portion of the city’ s $5

per household stormwater utility fee.

  • The City’ s purchase protects the wetlands from

further development which would have resulted in stormwater management problems as well as destruction of the wetlands.

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SLIDE 41

Topics for This Module Topics for This Module

  • S

tormwater Program Costs

  • S

tormwater Utilities

  • Clean Water S

tate Revolving Fund

  • Addit ional Funding S

t rat egies

  • How can you determine what will work

for your community?

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SLIDE 42

Additional Funding Strategies Fees Additional Funding Strategies Fees

  • Impact fees
  • Charges a fee to developers for impact on

stormwater system

  • Plan review and inspection fees
  • Fee-in-lieu of on-site construction
  • S

ystem development fees/ connection charges

  • One time charges assessed at the time of

development

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SLIDE 43

Additional Funding Strategies Additional Funding Strategies

  • Grants
  • Federal, state, or local
  • Revenue Bonds
  • Infrastructure improvement, asset

management

  • General Fund
  • Taxes
  • S

pecial purpose local option sales tax

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SLIDE 44

Additional Funding Strategies Additional Funding Strategies

  • Local Improvement Districts
  • Individual properties benefited by stormwater

proj ects are assessed to fund the proj ect

  • Developer Participation
  • Developers construct needed facilities as a

condition of development, and bear associated costs

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SLIDE 45

Topics for This Module Topics for This Module

  • S

tormwater Program Costs

  • S

tormwater Utilities

  • Clean Water S

tate Revolving Fund

  • Additional Funding S

trategies

  • How can you det ermine what will work

for your communit y?

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SLIDE 46

How Can You Determine What Will Work for Your Community? How Can You Determine What Will Work for Your Community?

  • 1. Evaluate your needs
  • How much of your program needs are

for planning?

  • How much of your program needs are

for capital improvement?

  • How much of your program needs are

for O&M?

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SLIDE 47
  • 2. Consider using a combination of programs
  • S

RF Loan to assist with planning

  • S

RF to cover retrofits/ upgrades

  • Utility to cover maintenance
  • Fees to cover specific operating costs
  • General Fund for operating and capital

improvements

How Can You Determine What Will Work for Your Community? How Can You Determine What Will Work for Your Community?

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SLIDE 48
  • 3. Other factors
  • Politics
  • Fairness/ Equity
  • Administrative S

implicity

  • Ease of Implementation
  • Legality
  • Future!!

How Can You Determine What Will Work for Your Community? How Can You Determine What Will Work for Your Community?

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SLIDE 49

Get the Public Involved! Get the Public Involved!

  • When deciding an approach to fund

stormwater, public education and involvement is key!

  • If the public is educated and know what

the money is being spent on, there is a better chance they will support the program.

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SLIDE 50

Resources Resources

  • Guidance for Municipal S

tormwater Funding, NAFS MA

http:/ / www.nafsma.org/ Guidance% 20Manual% 20Version% 202X.pdf

  • EPA’ s Financing a Municipal S

tormwater Program Webcast (S tormwater Utilities 201)

http:/ / www.epa.gov/ npdes/ training

  • Internet Guide to Financing S

tormwater Management

http:/ / stormwaterfinance.urbancenter.iupui.edu/

  • Catalog of Federal Funding S
  • urces for Watershed

Protection

http:/ / cfpub.epa.gov/ fedfund/

  • EPA Clean Water S

tate Revolving Fund Program (S RF)

http:/ / www.epa.gov/ owm/ cwfinance/ cwsrf/ index.htm