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 Revolving Fund • Additional Funding S trategies • How can you determine what will work for your community?

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

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)?

What Type of What Type of Funding Sources Exist? Funding Sources Exist? • Utilities • Local Improvement Districts • CWS RF • Developer • Fees Participation • Taxes • Grants • Debt Financing • General Fund

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?

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

Growth of Stormwater Utilities Growth of Stormwater Utilities 600 600 300 300 1 1 1975 1985 1995 1975 1985 1995 2005 2005

Stormwater Utility Stormwater Utility Advantages 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

Stormwater Utility Stormwater Utility Disadvantages 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

Stable Stable Utility vs. Tax or “Money” Funding Utility vs. Tax or “Money” Funding $$ $$ User- -fee based fee based User “Money Money” ” or or “ Tax- -based based Tax Maximum possible program Time

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

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

Typical Properties Typical Properties $4.00/month charge $4.00/month charge 2 tiers residential 2 tiers residential Fast Food 200,000 sq ft shopping Large Res. Small Res. Fast Food 200,000 sq ft shopping Large Res. Small Res. $62.72/mo 700,000 sq ft impervious $5.50/mo $2.50/mo $62.72/mo 700,000 sq ft impervious $5.50/mo $2.50/mo less credit less credit $1121.20/mo $1121.20/mo less credit less credit

Typical Commercial Building Typical Commercial Building 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 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 5 cents 5 cents per sq ft per year per sq ft per year this is less than not counting credit (0.26%) not counting credit (0.26%)

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 % of imperviousness, water meter size, flat rates, zoning class

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

Steps in Creating a Stormwater Utility Steps in Creating a Stormwater Utility A. Feasibility S tudy B. Development C. Implementation

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.

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?

B. Development B. Development 1. Billing S ystem 2. Public Information Program 3. Ordinance 4. Credits/ Exemptions

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

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

3. Ordinance 3. Ordinance • Technical: • Legal: • Ongoing Fee Method • Legal Authority • Regulatory Purpose � ERU � ID • Fees Proportional to Cost of S ervice � EHA • S • Credits Available ystem Development Charge Method • Appeals Process • Annual Rate Review

4. Credits/Exemptions 4. Credits/Exemptions • Credit Manual: • Exemptions: • Policy/ Credits • Undeveloped Land Available/ Procedures • Roads • Maximum Credit % • Properties that • Retention/ Detention Discharge Directly to Waterways • Educational • Maintenance • Industrial NPDES

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

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

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

Stormwater Utility Benefits Stormwater Utility Benefits • Dedicated Funding S ource • Possible Property Tax Reduction • Fee is Proportional to Cost of S ervice • Lower Residential Cost

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?

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

What Can You Fund? What Can You Fund? • Traditional • Traditional S tormwater S tormwater Conveyance Treatment Infrastructure • wet ponds • pipes • dry ponds • Inlets • manufactured devices • road side ditches • Capital to maintain infrastructure • street sweepers • storm drain pumper trucks

What can you fund? What can you fund? Green Infrastructure Green Infrastructure • Construction • Post Construction • Vegetated Buffers • Green Roofs • Compost Blankets • Eliminate Curbs/ Gutters • Mulching • Vegetated S wales • Grass Lined Channels • Bioretention Cells • S traw Wattles • Riparian Buffers • Compost Filter S ock

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