March 19, 2014 Introduction This presentation is a follow up to a - - PowerPoint PPT Presentation

Presentation on Financing Alternatives for Unserved and Underserved Areas – Follow Up

Presented by Members of Subgroup of the Bi-County Infrastructure Financing Working Group

March 19, 2014

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Introduction

• This presentation is a follow up to a presentation made to the

Commissioners in November 2013.

• The Commissioners requested additional information on the

magnitude of the issue in Prince George’s County.

• This brief presentation includes the updated information as

well as a restatement of the magnitude of the issue in Montgomery County.

• Presentation will be followed by a motion of acceptance and

transmittal of the Subgroup’s findings.

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Definition of Unserved and Underserved Areas

• Generally, unserved and underserved areas are

those properties served by wells and/or septic systems (i.e. not connected to WSSC water and sewer systems)

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Magnitude of Issue: Prince George’s County

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Magnitude of Issue: Prince George’s County (cont.)

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Magnitude of Issue: Montgomery County

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Magnitude of Issue: Montgomery County (cont.)

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Findings Concerning Current System

• Original system was designed to pool large and small

extensions and allocate costs over a large number of connections which made extensions affordable

• Current front foot benefit system does not work for small-

scale extensions

• Current system has significant policy challenges including

affordability, financial sufficiency, equity, and participation

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Roadmap from Current System to “Improved System”

Total Extension Costs

• On-site costs
• Off-site costs
• Direct and indirect costs

Cost to be Paid by Homeowner

• What’s affordable?
• WSSC Health hazard subsidy

Funding Gap

(Total Extension Costs – Cost to be Paid by Homeowner

Sub-districts

• Counties design and designate
• WSSC implements and executes

Public Subsidies

• Rationale
• WSSC Ratepayers
• County Taxpayers

Policy considerations:

• Financial sufficiency
• Affordability
• Equity
• Participation

Do nothing option = current system which is flawed. Not a universal solution for all situations.

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“Improved” System – Subdistrict Concept

1 3 5 7 9 11 13 R <-100 ft-> 2 4 6 8 10 12 14 15 (failed septic system) E X I S T I N G S E W E R M A I N "IMPROVED" SYSTEM (all properties participate equally, at the same time) NEW SEWER EXTENSION

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Motion