beyond erus: sustainable stormwater finance sc stormwater forum

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Beyond ERUs: Sustainable Stormwater Finance SC Stormwater Forum Jeff Hughes, Environmental Finance Center www.efc.unc.edu (919) 489-1342 [email protected]

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Beyond ERUs: Sustainable Stormwater Finance SC Stormwater Forum. Jeff Hughes, Environmental Finance Center www.efc.unc.edu (919) 489-1342 [email protected]. Strategic Revenue Planning. Stormwater services and revenue Requirements Revenue options - PowerPoint PPT Presentation

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Page 1: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Beyond ERUs: Sustainable Stormwater Finance

SC Stormwater Forum

Jeff Hughes, Environmental Finance Center

www.efc.unc.edu(919) 489-1342

[email protected]

Page 2: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Strategic Revenue Planning

1. Stormwater services and revenue Requirements

2. Revenue options3. Designing strategic cost recovery

systems (matching 2. with 1.)

Page 3: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

First Rule of Strategic Planning: Know Your ServiceBeneficiariesCost driversLegal frameworkProvision options (who, how, where)

Page 4: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Service Drivers

Quantity controlQuality control

Page 5: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Stormwater Services

Page 6: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Phase II Services/Minimum Measures

1. Public Education and Outreach Program 2. Public Involvement and Participation Program3. Detect and Eliminate Illicit Discharges4. Runoff from Construction Activities5. Post-construction Stormwater Runoff Program

from New Development and Redevelopment 6. Pollution Prevention/Good Housekeeping

Program

Page 7: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Revenue Options

Taxes Property Sales Gas

Plan review fees Permit fees Operation fees Household fees

Performance guarantees

Penalties Special assessments Impact fees Nutrient charges ? ?

Page 8: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

A20%

B39%

C30%

D11%

A.Stormwater management permits (N = 18)

B.Stormwater management site planreview (N = 36)A.Stormwater inspection during construction (N = 27)A.Stormwater inspection after construction (O&M) (N = 10)

Slide Source: FSA 2005 Stormwater Survey, www.florida-stormwater.org

Other Charges

Does your stormwater utility receive some or all of these revenues? 13

39

05

101520

253035

4045

YES NO

Page 9: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

What Can Your Revenue Choices Do for You?

Page 10: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Factors that (Can, Should and Do) Influence Revenue Choices Legal Community perspectives, goals and

objectives Fairness Revenue stability and reliability Political Administrative Inertia Peer pressure

Page 11: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Community Perspectives

Stormwater management is a public goodStormwater services are primarily private

servicesStormwater management is primarily about

environmental stewardshipStormwater management is about meeting

regulationsStormwater management is about giving the

people what the they want.

Page 12: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Community Objectives

Growth Pays for ItselfPolluter PaysProtect the DisadvantagedKeep it Simple

Page 13: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Revenue Choices and Incentives for Encouraging “Good” Behaviors

Fee vs. TaxesRegulatory fees vs. service feesTo tier or not to tierTo waive or not to waive

Page 14: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

The Great Fairness Debate: Tax vs. Fees

Page 15: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Durham, North Carolina

2006-07 budget = $8,068,718

$2.17/mo < 2,000 sq ft of impervious surface

$4.50/mo. ≥ 2,000 sq ft Other/com.: $4.50 per month

for each ERU (2,400 sf.)

Page 16: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Durham Property Taxes

Property tax rate = 60.3 cents per $100 property valuation

Assessed Value - Real Property $13,740,351,450

Tax Levy on Real Property $82,854,319

It would take 5.8 cents/$100 to generate $8,068,718

Page 17: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

$300,000 House

Current Fees $54/year

($4.50/mo. on water bill)

If budget funded by property tax $174/year

Page 18: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

$15,000 “House”

Current fees $26/year ($2.17/mo.)

If budget funded by property tax $8.70/year

Page 19: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Church (24,000 Sq. Ft Impervious Area)

Current fees $540/yr ($45/mo.)

If budget funded by property tax $0

Page 20: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Mega Mall (3,815,240,000 SF)

Current fees 1590 ERU's $7,155/mo.

($85,860/yr)If Budget funded by

property taxes ($113,675,753) $65,931/yr

Page 21: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Durham Bulls Ballpark (163,200 sf)

Current fees Fee = $306/mo.

($3,672/yr)

If funded by property tax $0

Page 22: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Not all Taxes are Created Equal

Special tax districtsClear tax designation

Page 23: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Impact on Budgets: Village of Clemmons

Population: 16,900; Budget $4.5 million Stormwater budget FY 2005-

2006: $475,000 Tax Rate 9.85 cents per $100

valuation ERUs Billed: 10,900 Stormwater Fee: $44.40/yr

per ERU ($3.70 mo.) Town Employees: 14 total

(Pub. Works - 8 employees with 1 stormwater administrator)

Page 24: Beyond ERUs:  Sustainable Stormwater Finance SC Stormwater Forum

Impact on Budgets: Town of Carrboro

Tax base = $1,373,733,504

Population 18,000 Budget (05-06)

$16,000,000 Tax rate = 62.44 cents

per $100 of property valuation

Stormwater budget??? (114,000??)

Employees??