Lancaster Stormwater Financing Workshop: A peer-to-peer approach to advancing your stormwater program

Transcription

1 Lancaster Stormwater Financing Workshop: A peer-to-peer approach to advancing your stormwater program Manheim Township Public Library February 4 th, 2014

2 Workshop Agenda 8:40 to 8:55 AM Stormwater 201: Why stormwater must be financed locally (EFC) 8:55 to 9:25 AM Findings from the Lancaster County Municipal Stormwater Financing Feasibility Study (EFC) 9:25 to 9:40 AM BREAK 9:40 to 11:00 AM Panel Discussion: Sharing their experiences (Facilitated by the Clean Water Consortium) 11:00 to 11:45 AM Next steps: Where do we go from here? (EFC) 11:45 AM to noon Wrap Up and Adjourn (Clean Water Consortium)

3 Stormwater 201: Why stormwater must be financed locally

4 Why is it the responsibility of a local government? Local government responsibilities include: Land Use decisions Zoning Urban Planning Public Works Economic Development Parks & Recreation Education Successful stormwater management is a true reflection of these local priorities and policies

5 Elements of a Comprehensive Stormwater Program Administration Billing and Finance Public Education and Involvement Technical Support Engineering and Planning Operations and Maintenance Capital Improvements Regulation and Enforcement

6 Source Stormwater Financing Options Coverage of Cost Type Operations & Capital Maintenance Grants Yes No PENNVEST Loan Program Bond Financing Yes Yes No No General Fund Yes Yes Permit & Inspection Fees Public Private Partnerships Stormwater Utility Fees No No Features Not guaranteed, highly competitive, not sustainable in the long-term Not guaranteed, highly competitive, must repay often with interest Dependent on fiscal capacity, can utilize for large, long-term expenditures, must repay with interest Not equitable, competes with other community priorities, changes from year-toyear Not significant revenue, may deter development Yes Yes Efficiency, transfer of risk, capital access Yes Yes Generates ample revenue, sustainable, dependable, equitable, requires significant public dialogue

7 Discussion What have you done in your community to generate community support for developing a stormwater program? What was the outcome?

8 Findings from the Lancaster County Municipal Stormwater Financing Feasibility Study

9 Project goals: Project Background 1. Assess each municipality s current stormwater program and provide financing recommendations to help improve the current program to create a more comprehensive and sustainable program over time. 2. Identify collaborative opportunities across municipalities to reduce implementation costs. Project sponsor: Lancaster County Clean Water Consortium Project funder: National Fish & Wildlife Foundation

10 Technical Analysis Methodology 1. Assess each individual stormwater program 2. Identify gaps in each existing program and evaluate future needs 3. Determine where current program fits into the desired level of service and evaluate costs 4. Develop and finalize proposed stormwater program budget 5. Develop a financing strategy to support budget Identify opportunities to collaborate COMMUNITY OUTREACH

11 Lessons learned early on Greatest opportunity for collaboration is through education and outreach Need to know the audience to frame message Outreach is first step to putting long-term financing in place, projects on the ground

12 Access to available information & resources Limited understanding of program requirements Initial Findings Relaying the importance of stormwater management to community Municipal staff Tracking, training documentation, and record keeping Long term planning for implementing stormwater projects

13 Individual Findings & Recommendations Each municipality assessment yielded: Overall infrastructure, funding, and capacity findings MCM level of service determination Identified program funding needs: Level of service recommendations given to 4 municipalities Stormwater financing recommendations given to 2 municipalities Rate structure analysis conducted for all to estimate revenue yields Specific rate structure recommendations given to 2 municipalities General rate structure recommendations given to 4 municipalities

14 Level of service recommendations look like Level of Service Recommendations by Cost Category Personnel Capital Operations & Maintenance Stormwater coordinator (potentially shared) Public works staff Pipe infrastructure repair/replacement program BMP renovation/maintenance program Study to determine baseline stream health/ identify cost-effective projects Complete mapping Equipment O&M Outreach, contracts, etc. (minimal operating costs) Equipment (potentially shared)

15 Two municipal approaches used as models: Warwick Township s Approach (low end cost estimate) Continue utilizing general funds and grants Develop asset management (AM) reserve program to support long-term infrastructure costs Set up dedicated finance mechanism to pay for AM reserve program Manheim Township s Approach (high end cost estimate) Develop separate Stormwater Department Move all existing and future costs to stormwater budget Pay for all costs using dedicated stormwater fee

16 Rate Structure Analysis Residential Rate Structure Residential fee based on the average impervious surface of residential properties in municipality (known as an equivalent residential unit, or ERU) All properties pay a flat fee based on 1 ERU Non-residential Rate Structure 4-tiered rate structure where all users pay same rate in each tier Based on land area of actual properties and the average impervious surface by land use category

17 EFC s Extrapolation of Stormwater Costs based on Manheim and Warwick Townships Approaches, and Associated Rate Structure Recommendations Municipality Average program funding needs (1 year estimate) Low end estimates High end estimates Program funding needs (5 year estimate) Annual rate structure recommendations Low end estimates High end estimates East Cocalico Township $74,759 $550,298 $373,795 $2,751,490 at least $15/ERU where 1 ERU = 6,632 ft 2 Lititz Borough $67,837 $499,348 $339,187 $2,496,742 Manheim Township Mount Joy Borough Warwick Township West Lampeter Township -- $2,017, $10,085,237 $53,436 $393,337 $267,178 $1,966,685 $127, $639, $109,062 $802,803 $545,311 $4,014,014 at least $15/ERU where 1 ERU = 2,461 ft 2 $85/ERU (no supplement of other funds); $70-$80/ERU (supplement program with grants and GF) where 1 ERU = 4,527 ft 2 at least $15/ERU where 1 ERU = 3,405 ft 2 $15/ERU (impervious-based version); $20/ERU (simplified version) where 1 ERU = 6,155 ft 2 at least $15/ERU where 1 ERU = 6,267 ft 2

18 BREAK

19 Panel Discussion: Sharing local experiences

20 Questions for Panel 1. Once you understood what your stormwater goals were, what were the first steps you took to meeting those goals? 2. What is the most important lesson you learned from participating in the study? 3. Were you surprised by any of the results? 4. How has your program improved since participation in the study? 5. What are your plans to proceed?

21 Next steps: Where do we go from here?

22 Thinking in the immediate, intermediate, and long term Long term Intermediate Immediate

23 Wrap up & Adjourn