stormwater financing mechanisms- daryl braithwaite
DESCRIPTION
Presentation given by Daryl Braithwaite on June 5, 2012 at the Third Annual Choose Clean Water Conference.TRANSCRIPT
Takoma Park, Maryland'sStormwater Utility Fee
One small jurisdiction's experience with funding stormwater management programs with a utility fee,
imposed on all property owners, based on amount of impervious surface.
Takoma Park, MarylandLocated just outside the District of Columbia, Takoma Park is approximately 2 square miles with a population of 17,000.
92% developed
60
6
5
13
8 8
residential
commercial
Public/Institutional
roadways
park land
undeveloped
A Brief History of the Stormwater SystemThe stormwater system in Takoma Park was owned by the regional water and sewer authority until the late 1980's. Once the State ruled they could no longer operate the system, the City took it over.
The City had the system mapped and inspected to determine the condition and general location of the structures. The age of the system ranged from structures built in the 1920's made of hand stacked stone and slate tops culverts, to brick and cinder-block structures with pipes ranging from clay, corrugated metal to reinforced concrete.
Once the City took over the system, the primary activity was maintenance and cleaning. About 40% to 60% of the budget for those activities came from the general tax fund and the remainder was appropriated from previous budget year’s surplus. The Council determined this was not a sustainable practice, so began exploring the options and established the Stormwater Utility Fee in 1996.
Why A Utility Fee?
● A dependable source of funding, less impacted by economic changes reflected in tax rates, ● A fair and equitable way of generating revenue, ● Enables all property owners to contribute - including tax exempt
Stormwater Utility Fee Rate Structure
Single family properties are all billed the same amount. The amount is based on the median impervious area of 1.228 sq ft, also called the ERU - equivalent residential unit.
Other developed properties are billed based on the actual square footage of impervious area on the property, divided by the ERU and multiplied by the base rate.
The original base rate was $24, the current rate is $48. We are recommending an increase to $55 in the next budget.
The original assessment of property types was determined using State Tax database records. The amount of impervious area was calculated using digital maps with planimetric information gathered from aerial photographs showing building and pavement edges.
Property Types In Takoma Park 86% - Single Family Residential 14% - Other Developed Multi-family - 5% Commercial - 4% Tax Exempt Properties - 5%
Percentage Of Impervious Area By Type
■ 37% - Single Family (1,228 sq ft) ■ 60% - Other Developed Property
The map to the right shows a portion of the City and the relative land cover including pervious and impervious surfaces, structures and roads.
The single family residential areas tend to have greater tree cover, while the schools, commercial and institutional areas have less.
In general the amount of impervious area in the residential portion of the City is less than the other developed areas.
Land Use Map
Stormwater Management ExpensesFY 1990
$200,000 annual budget
$10,000 engineering design
$60,000 capital costs
$130,000 for maintenance & services
FY 2012
■ $454,500 annual budget
■ $20,000 engineering design
■ $167,000 capital costs
■ $187,500 maintenance & services *
■ $80,000 personnel **
* Maintenance and services now includes video inspection of the system, pipe cleaning, repair of existing structures and dry weather outfall testing.
** Personnel includes 1/2 time of an engineer and 1/4 time of an Administrative position to process permits.
Who Pays What ?There are 3,885 property owners billed each year.
3,443 are single family properties and 443 are other developed properties.
In FY 12, the Utility Fee generated $361,000.
Single Family Properties represent 89% of the properties billed, and pay $165,000 - or 46% of the total. When the fee was implemented, 80% of the single family property owners paid less with the Utility Fee then they did under the ad valorem tax.
Other Developed Properties represent 11% of the properties billed, and pay $196,000 - or 54% of the total.
The City mails a Stormwater Utility Bill annually to each property owner.
Some Examples of PaymentsAll single family properties pay the same amount - $48
The largest payer, the Washington Adventist University, pays $12,500.
The second largest payer, the Washington Adventist Hospital, pays $10,500.
There are 15 commercial properties paying between $2,000 and 6,000.
Key Components:■ Promote accomplishments - need to regularly remind property owners what is being done with the payments.
■ Delinquency - must pursue non-payment
Future Challenges: No Fee Reduction Policy - currently no process for reducing the rate for a property that has installed stormwater controls onsite.
No Incentive Program - there is no program to encourage property owners to manage their stormwater onsite, various options include rebates for certain installations (rain gardens, down spout disconnects, tree planting, etc)
Update Impervious Analysis - with improved GIS and other technology, the review of property features should be updated.
For additional information or questions, please contact:
Daryl BraithwaitePublic Works DirectorCity of Takoma Park
www.takomaparkmd.gov