STORMWATER MANAGEMENT FUND Department of Environmental Services

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Department of Environmental Services Mission: To implement a comprehensive stormwater management program that balances the following goals: 1) to reduce the potential for stormwater threats to public health, safety, and property; 2) to reduce the impacts of new and existing urban development on Arlington streams, the Potomac River, and the Chesapeake Bay; and, 3) to comply with State and federal stormwater, water quality, and floodplain management regulations Stormwater Management Integrate traditional stormwater infrastructure needs with watershed management and environmental protection objectives and regulatory compliance requirements, including those of the County s new Municipal Separate Storm Sewer System (MS4) permit, issued in June 2013. Implement critical infrastructure and environmental quality projects, consistent with the goals and strategies in the Stormwater Master Plan that was adopted as an element of the County s Comprehensive Plan in September 2014. Support both routine and emergency stormwater infrastructure maintenance activities. ACCOMPLISHMENTS Since the adoption of a dedicated funding source for stormwater management in April 2008, steady progress continues on the design and construction of several significant stormwater projects. Examples of work completed or currently underway include the following: Environmental Quality 8 th Street South (construction completed FY 2015) Windy Run stream restoration project (construction expected to begin FY 2016) Donaldson Run Tributary B stream restoration project (construction expected to begin FY 2017) Four Mile Run Tidal Restoration Project (construction expected to begin FY 2016) Williamsburg Boulevard median I watershed retrofit (construction expected to begin FY 2016) Williamsburg Boulevard median II watershed retrofit (construction expected to begin FY 2017) Ballston Pond retrofit project (construction expected to begin FY 2016) Additional watershed retrofit projects in design include: John Marshall Drive, North Kensington Street, 11 th Street North, Walter Reed Drive near Columbia Pike, North Sycamore Street, Patrick Henry Drive at 20 th Street, and the northside leaf storage site Stormwater Infrastructure Sycamore at 24th Street North (final design underway, construction anticipated Winter 2015-2016) West Little Pimmit Run (Phase I & II final design underway, construction anticipated Winter 2015-2016) North Harrison Street at Williamsburg Boulevard storm sewer project (rerouted drainage from Williamsburg Middle School completed Fall 2014) Lower Long Branch at Columbia Pike culvert extension (construction underway as part of VDOT project) Spout Run 18 th Street North between North Utah and North Upton and 16 th Street North and North Taylor Street to 19 th Road North (preliminary design underway) book 267 web 772

FUND SUMMARY 9 th Street North between North Liberty Street and North Livingston Street (final design completed, construction anticipated Spring 2015) Stormwater Infrastructure Maintenance Seven projects to replace 522 linear feet of corrugated metal pipe with reinforced concrete pipe or high density polyethylene pipe completed FY 2015. Six projects to replace 243 linear feet of corrugated metal pipe with reinforced concrete pipe underway in FY 2016. Two projects to install 213 feet of storm sewer in the public right of way or public easements to address local drainage issues completed FY 2015. Four projects to install approximately 1500 linear feet of storm sewers to be constructed in FY 2016. Three projects to install 625 linear feet of underdrains to address drainage issues associated with groundwater and sump pump water in the public right of way constructed in FY 2015. Two projects to install approximately 670 linear feet to address drainage issues associated with groundwater and sump pump water in the public right of way constructed in FY 2016, with four more projects anticipated. The following technical studies are also underway as called for in the adopted Stormwater Master Plan update: Ongoing modeling analyses are continuing for the following basins: Torreyson Run, Lower Long Branch, Arlington Branch, Gulf Branch, Little Pimmit Run, and Donaldson Run. SIGNIFICANT BUDGET CHANGES The FY 2016 proposed expenditure budget for the Stormwater Management Fund is $9,271,950, an eight percent increase from the FY 2015 adopted budget. The FY 2016 proposed budget reflects: Personnel decreases due to staff turnover and the lower cost of salaries and benefits than anticipated for new positions added in FY 2015, as well as adjustments to retirement contributions based on current actuarial projections; partially offset by employee step increases and an increase in the County s cost for employee health insurance. Non-personnel increases due to an increase in inter-departmental charges for overhead ($20,714) and an adjustment to the annual expense for maintenance and replacement of County vehicles ($89,070). Capital cost increases due to an increase in revenue as a result of the increase in the CY 2015 real estate assessment tax base. These additional funds will be allocated to projects consistent with the CIP and Stormwater Master Plan. Revenue increases due to the increase in the CY 2015 real estate assessment tax base ($450,750) and fees from site plan review ($250,000). Due to the impact of the new MS4 permit, new state stormwater regulations and capital related requirements, an increase in the stormwater tax rate will likely be required in the next two to four years. book 268 web 773

FUND SUMMARY PROGRAM FINANCIAL SUMMARY FY 2014 FY 2015 FY 2016 % Change Adopted Proposed 15 to 16 Personnel $2,842,722 $4,032,284 $3,988,425-1% Non-Personnel 2,151,041 2,279,815 2,389,599 5% Capital 874,067 2,259,101 2,893,926 28% Total Expenditures 5,867,830 8,571,200 9,271,950 8% Total Revenues 8,491,931 8,571,200 9,271,950 8% Change in Fund Balance $2,624,101 - - - Permanent FTEs 26.00 37.00 37.00 Temporary FTEs - - - Total Authorized FTEs 26.00 37.00 37.00 CAPITAL PROJECTS SUMMARY Stormwater Management - FY 2016 Environmental Quality Projects * 1. Williamsburg Blvd median II retrofit $78,617 2. South Walter Reed Drive watershed retrofit $38,040 3. Windy Run stream restoration $101,441 4. Ballston Pond watershed retrofit $557,926 5. North Kensington Street retrofit $44,380 6. John Marshall Drive median retrofit $50,721 7. N Sycamore Street median retrofit $55,793 8. Four Mile Run Tidal Restoration Project $469,165 Environmental Quality Projects subtotal = $1,396,083 Infrastructure Projects 1. Lower Long Branch flood risk reduction project $1,290,000 2. Sycamore at 24 th Street North $56,083 3. West Little Pimmit Run Phases I & II $50,000 6. Maintenance Capital: Storm Sewer rehabilitation/replacement $101,760 Infrastructure Projects subtotal = $1,497,843 TOTAL = $2,893,926 Revenue Sanitary District Tax** $2,893,926 Total Estimated Revenue $2,893,926 Net with Revenues - * The Virginia Department of Environmental Quality issued the County's new MS4 permit in June 2013. This permit is significantly more stringent than the previous permit and includes quantitative pollution reduction requirements for the Chesapeake Bay Total Maximum Daily Load (TMDL) a pollution budget for the Bay. The 'Environmental Quality' projects in the Capital Improvement Program (CIP) are key components of the County s strategy to comply with the pollution reduction requirements for the Chesapeake Bay TMDL. book 269 web 774

FUND SUMMARY ** The current Sanitary District Tax of $0.013 per $100 of assessed real property value is not proposed to increase. For CY 2015, it is estimated to generate a total of $9,021,950 in revenue, of which $2,893,926 represents the portion of the annual revenue directed towards capital projects in the budget. PERFORMANCE MEASURES Critical Measures Number of acres treated by public retrofit projects Number of illicit discharge investigations completed Number of new water quality facilities constructed to meet ordinance requirements Number of public outreach events/ estimated individuals reached Number of water quality facilities inspected FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Estimate FY 2016 Estimate 0 0.75 0.8 3.2 4.9 12.0 77 85 76 94 100 105 31 44 202 435 400 400 51/4,600 45/3,867 30/3,425 17/4,061 40/4,000 40/4,000 90 114 230 345 600 800 Supporting Measures FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Estimate FY 2016 Estimate Catch basins cleaned 1,389 1,297 796 2,885 500 500 Catch basins inspected 3,869 1,897 833 2,885 1,000 1,000 Number of stormwater training events/employees participating 8/458 6/450 8/300 15/984 10/750 10/850 Storm sewer linear feet inspected 345,788 316,385 116,770 7,910 100,000 100,000 The number of reported illicit discharge incidents increased sharply in FY 2014. With greater community awareness and more stringent inspection requirements under Arlington's MS4 permit, it is expected that this workload will continue to rise. New Stormwater management regulations for development (required by State Law) that took effect in FY 2015, along with the increased inspection requirements in the County's new MS4 permit, have resulted in a substantial increase in the number of stormwater management facilities and associated inspection requirements. Fluctuations in the number of catch basins cleaned and the number of storm sewer linear feet inspected is due to the impact of weather events on the Water, Sewer and Streets crews as well as the amount of capital projects funded in a given year and the relative priority of inspection versus cleaning activities, as that impacts the workload and availability of the crews. Storm sewer linear feet inspected was very low in FY 2014 because the first few months of FY 2014 were dedicated to catch basin inspections and cleaning. Alternatively, more time will be dedicated toward storm sewer inspection in FY 2015 book 270 web 775

FUND SUMMARY FY 2014 FY 2015 FY 2015 FY 2016 ACTUAL ADOPTED RE-ESTIMATE PROPOSED ADJUSTED BALANCE, JULY 1 Reserve $1,500,000 $1,500,000 $1,500,000 $1,500,000 Capital Reserve 15,950,064-18,574,165 - TOTAL BALANCE 17,450,064 1,500,000 20,074,165 1,500,000 REVENUE Sanitary District Tax ($0.013 real estate tax) 8,331,275 8,571,200 8,571,200 9,021,950 Grants 149,606 - - - Fines & Fees 11,050-250,000 250,000 TOTAL REVENUE 8,491,931 8,571,200 8,821,200 9,271,950 TOTAL REVENUE & BALANCE 25,941,995 10,071,200 28,895,365 10,771,950 EXPENSES Operating and Maintenance 4,993,763 6,312,099 6,674,140 6,378,024 Capital Projects 874,067 2,259,101 20,721,225 2,893,926 TOTAL EXPENSES 5,867,830 8,571,200 27,395,365 9,271,950 BALANCE, JUNE 30 20,074,165 1,500,000 1,500,000 1,500,000 Reserve 1,500,000 1,500,000 1,500,000 1,500,000 Capital Reserve 18,574,165 - - - TOTAL BALANCE $20,074,165 $1,500,000 $1,500,000 $1,500,000 Notes: (1) The FY 2015 re-estimate is the current projection of expenses and revenues. (2) The change in Fund Balance from FY 2014 to FY 2015 re-estimate is due to anticipated expenditures and/or encumbrances of funds for ongoing capital projects. (3) FY 2015 re-estmated expenses budget includes amounts set aside for stormwater master planning evalution, inspection, monitoring, and capital projects that were carried over from FY 2014 ending balances. book 271 web 776

TEN-YEAR HISTORY EXPENDITURE, REVENUE, AND FULL-TIME EQUIVALENT TRENDS $10,000 EXP (000s) REV (000s) FTEs 50 $9,000 $8,000 40 $7,000 $6,000 30 $5,000 $4,000 20 $3,000 $2,000 10 $1,000 $0 0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Adopted Budget FY 2016 Proposed Budget EXP (000s) $81 $1,378 $2,661 $5,685 $6,427 $5,627 $5,868 $8,571 $9,272 REV (000s) $2,882 $5,764 $6,458 $7,173 $7,896 $9,136 $8,492 $8,571 $9,272 FTEs 4.00 11.00 15.00 25.00 25.00 26.00 26.00 37.00 37.00 The Stormwater Management Fund was established by the County Board in CY 2008 by adopting a Sanitary District Tax of $0.01 per $100 of assessed real property value. In CY 2010 the Sanitary District tax rate was increased to $0.013 per $100 of assessed real property value. web 777

TEN-YEAR HISTORY Fiscal Year Description FTEs FY 2009 Stormwater Fund was established for the FY 2009 budget by increasing the real estate tax by $0.01 in CY 2008, generating $5,764,396 in FY 2009. Since the ad valorem tax applied to the June 2008 real estate payment, an additional $2,881,938 in revenue was generated in FY 2008 for the Stormwater Management Fund. Any unspent balances in FY 2008 were carried over to FY 2009 in the form of fund balance. Seven new positions were added to the Stormwater Fund in FY 2009, in addition to the 4.0 FTE added in FY 2008 as part of a supplemental appropriation. Non-personnel expenditures increased to reflect increased operating expenses to support the seven new FTEs ($1,253,606), and proposed capital expenses ($3,674,000) increased in accordance with the County Board approved Stormwater Management Plan. 7.0 FY 2010 Personnel budget includes the addition of 3.0 FTEs a Planner, a Program Coordinator and a Construction Management Specialist. In addition, a Planner position (1.0 FTE) was transferred from the General Fund to the Stormwater Management Fund. Non-personnel operating decreases ($414,883) due to the elimination of one-time costs that were included in the FY 2009 budget. 4.0 FY 2011 The County Board adopted a $0.003 tax increase ($1,643,114) to the Stormwater Fund to cover the transfer of Stormwater costs in the General Fund to the Stormwater Fund. The increase in expenditures covers the General Fund related personnel and operating costs (10.0 FTEs, $1,346,963) with the balance of expenditures being allocated to Stormwater Capital expenses and reserves ($296,151). 10.0 FY 2012 Non-personnel expenses increase to cover maintenance of stormwater quality retrofits ($203,886). Funding for capital projects increases ($335,837) in FY 2012 as a result of a projected increase in revenue due to higher real estate assessments. Revenue increases due to higher real estate assessments ($541,764). FY 2013 Added an Environmental Planner to address the increased stormwater site plan reviews and workload related to the County s MS4 stormwater permit (1.0 FTE; $107,537). 1.0 Non-personnel expenses increase to cover maintenance for stream restoration projects ($20,000), creation of a stream and storm sewer monitoring network ($100,000), and an increase in the operating contingent ($107,615). web 778

TEN-YEAR HISTORY Fiscal Year Description FTEs Funding for capital projects increases ($45,556) as a result of a projected increase in revenue due to higher real estate assessments. Revenue increases due to higher real estate assessments ($456,488). FY 2014 Non-personnel expenses increase based on higher contract costs anticipated with the new MS4 permit ($89,726), an adjustment to the annual expense for the maintenance and replacement of County vehicles ($6,019), funding the County s share of the Northern Virginia Regional Commission s work on Four Mile Run ($60,156) which was previously funded by the General Fund, higher administrative overhead contributions to the General Fund based on prior years actual ($100,000), and other changes itemized below. This is partially offset by a reduction in operating contingency ($130,824). Funding for capital projects decrease ($461,035) in FY 2014 as a result of higher operating expenses and transfer of projects previously supported in the General Fund. Revenues increase ($2,000) due to a slight increase in the projected real estate assessments. Increase Inter-Department Charges for the reimbursement to the General Fund for a portion of the street sweeping program costs ($240,000). Transfer of the contribution to Arlingtonians for a Clean Environment (ACE) from the General Fund ($69,705). FY 2015 Added personnel for stormwater management regulations. The 11 positions are a critical foundational step for stormwater program delivery and compliance. Non-personnel increases primarily due to an increase in interdepartmental charges for overhead ($60,364), operating expenses related to the new FTEs ($67,643), and reimbursement of a portion of the street sweeping program costs ($50,896), which is partially offset by an adjustment to the annual expense for maintenance and replacement of County vehicles ($64,059) Funding for capital projects decrease ($1,022,970) in FY 2015 as a result of adding 11.0 FTEs and other personnel expense increases. Revenues increase due to a projected increase in real estate assessment values ($569,200). web 779