stormwater financing mechanisms- charlotte katzenmoyer
DESCRIPTION
Presentation given by Charlotte Katzenmoyer on June 5, 2012 at the Third Annual Choose Clean Water Conference.TRANSCRIPT
Stormwater User Fee
Implementation
in the City of Lancaster
June 5, 2012
Courtesy:
Criteria For Evaluating Policy Issues
Equity/Fairness Clarity (Simplicity, ease of understanding)
Transparency (clear link of program needs and fees)
Efficiency/Ease of Implementation Efficacy (e.g., are more precise breakdowns of property categories likely to result in noticeable differences in charges?)
Legal considerations Consistency with other goals/objectives of the City
Charging based on Impervious Area is Equitable
75%
14%
11%
Number of Parcels
Residential Non-ResidentialMulti-family NO CODE
20%
76%
4%
Impervious Area
Residential Non-ResidentialMulti-family NO CODE
Preliminary Program Costs for Three Level-of-Service Scenarios (updated for May 31 meeting)
Estimated Annual Costs Low Medium High
Operating and MaintenanceGreen Infrastructure* n/a $162,000 $202,500 Dry and Wet Ponds (inspection) $2,300 $2,300 $2,300 Street Sweeping $168,800 $168,800 $234,100 Catch Basin $201,000 $201,000 $402,000 Storm Drainage n/a n/a n/aMS4 Implementation $449,762 $449,762 $449,762 Program Administration $149,000 $226,000 $303,000
Capital CostsGreen Infrastructure $730,600 $1,909,100 $3,652,400 Storm Drainage n/a $1,444,000 $1,926,000 Catch Basin $164,000 $164,000 $164,000
Total $1,865,462 $4,726,962 $7,336,062
Note: rate model factors in grants and loans that the City is projecting will reduce these costs early, and increase debt service later
6
Number of properties by tier: Option with 4 tiers, applied to all property types
238
4,259
6,358
2,591
1,273 643 573 210 128 97 79 76 78
750
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Cum
ulati
ve P
erce
nt
Num
ber o
f Par
cels
Impervious Area (square feet)
Frequency Distribution: All Properties
Number Parcels Cumulative Percent
Tier 1 Tier 2 Tier 3 Tier 4
7
Rates for 3 Tiering Options, with Medium Level of Service, Pay-as-you-Go
Not including grants/loans, Penn Vest debt service, or Bond Financing
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
<=500 sf >500 sf and <=1,000 sf
>1,000 sf and <=1,500 sf
>1,500 sf and <=2,000 sf
>2,000 sf and <=2,500 sf
>2,500 sf and <=3,000 sf
>3,000 ($/3000 sf, charge based on total impervious
area)
Impe
rvio
us A
rea
Fee
(Ann
ual,
per ti
er
Impervious Area (square feet)
Annual (7 tiers)
Annual (4 tiers)
Annual (no tiers)
8
Rates for 3 Level of Service Scenarios, Pay-as-you-Go ($/1000 sf, actual rates vary by size tier)
with grants/loans, Penn Vest debt service, Pay/Go
$20 $20 $20 $20 $20 $20 $20 $20 $20 $20
$30 $30 $30
$52
$74 $74 $74 $74 $74 $74
$53 $53 $53
$103$108 $108 $108 $108 $108 $108
$-
$20
$40
$60
$80
$100
$120
1 2 3 4 5 6 7 8 9 10
SWU
Fee
($/1
,000
sf)
Year
Low
Medium
High
Reliance on grants and
loans assumed to end after
Year 3
9
Typical Annual Stormwater Bill
$26.36
$45.00
$48.00
$53.40
$55.20
$62.48
$62.88
$65.40
$70.00
$70.00
$73.44
$84.00
$96.00
$99.96
$115.34
$161.76
$237.00
$0 $50 $100 $150 $200 $250
Prince William County, VA
Richmond, VA
Takoma Park, MD
Chesapeake, VA
Hampton, VA
Rockville, MD
Suffolk, VA
Newport News, VA
Montgomery County, MD
Gaithersburg, MD
Washington, DC
Portsmouth, VA
Mt. Lebanon, PA
Norfolk, VA
Virginia Beach, VA
Philadelphia, PA
Portland, OR
Typical Residential Annual Stormwater Charge
10
Single Family Residential Case Studies Comparing IA Fee ($/1000 sf), Dedicated Property Tax ($/mil), and Sewer Fee ($/1000 gal)
186
4,068
5,624
1,884
861 384 173 99 32 96
0
1,000
2,000
3,000
4,000
5,000
6,000 N
umbe
r of P
arce
ls
Impervious Area (square feet)
Frequency Distribution: Residential
11
$15.25
$7.13
$10.69
$33.93
$45.39
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
SWU Charge(no tiers,
$15.25/qtr/property)
SWU Charge (4 tiers Option,
$7.13/qtr/property for Tier 1)
SWU Charge (7 tiers option,
$10.69/qtr/property for Tier 2)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge
($3.13/Kgal)
Qua
rter
ly C
harg
e
Small Single Family
Case Study – Single Family #1 - Attached Rowhouse600 block Ocean Ave
Typical Small Residential Property
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumptio
n(1000 gal)
$55,200 668 58
Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
12
$15.25
$21.38 $17.81
$36.58
$66.51
$0
$10
$20
$30
$40
$50
$60
$70
SWU Charge(no tiers,
$15.25/qtr/property)
SWU Charge (4 tiers Option,
$21.38/qtr/property for Tier 2)
SWU Charge (7 tiers option,
$17.81/qtr/property for Tier 3)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge ($3.13/Kgal)
Qua
rter
ly C
harg
e
Medium Single Family
Case Study – Single Family #2 – Detached Residential @ 500 Poplar St
Medium Sized Residential Property
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$59,500 1,155 85
Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
13
$15.25
$48.07 $48.07
$100.14
$20.35
$0
$20
$40
$60
$80
$100
$120
SWU Charge(no tiers,
$15.25/qtr/property)
SWU Charge (4 tiers Option,
$14.25/qtr/1000sf for Tier 4)
SWU Charge (7 tiers option,
$14.25/qtr/1000sf for Tier 7)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge
($3.13/Kgal)Q
uart
erly
Cha
rge
Large Single Family
Case Study – Single Family #3 – Single Family Residential @ 900 Block Lehigh Ave
Large sized Residential Property
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$162,900 3,373 26Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
14
Multi-Family Case Studies Comparing IA Fee ($/1000 sf), Dedicated Property Tax ($/mil), and Sewer Fee ($/1000 gal)
0
76
550 547
278
166
96 62
25
176
0
100
200
300
400
500
600
Num
ber o
f Par
cels
Impervious Area (square feet)
Frequency Distribution: MULTIFAM
15
$651.27 $608.56 $608.56
$202.87
$58.69
$0
$100
$200
$300
$400
$500
$600
$700
SWU Charge(no tiers, $15.25 per Qtr
per 1000 sf)
SWU Charge (4 tiers option,
$14.25/qtr/1,000sf for Tier 4)
SWU Charge (7 tiers option,
$14.25/qtr/1,000sf for Tier 7)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge ($3.13/Kgal)
Qua
rter
ly C
harg
e
Apts at Mulberry Ct
Case Study – Multi-family Residential / P-84 Apartments at Mulberry Court
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$330,000 28,578 819 Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
16
Commercial Case Studies Comparing IA Fee ($/1000 sf), Dedicated Property Tax ($/mil), and Sewer Fee ($/1000 gal)
49 112
178 156 121
82 71 61 54
742
0
100
200
300
400
500
600
700
800 N
umbe
r of P
arce
ls
Impervious Area (square feet)
Frequency Distribution: COMM
17
$295.68 $276.29 $276.29
$148.59
$21.13
$0
$50
$100
$150
$200
$250
$300
$350
SWU Charge(no tiers, $15.25 per Qtr
per 1000 sf)
SWU Charge (4 tiers option,
$14.25/qtr/1,000sf for Tier 4)
SWU Charge (7 tiers option,
$14.25/qtr/1,000sf for Tier 7)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge ($3.13/Kgal)
Qua
rter
ly C
harg
e
Two Dudes Painting
Case Study - Commercial Two Dudes Painting
Commercial
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$241,700 19,389 27Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
18
$897.60 $838.74 $838.74
$176.68
$0.00 $0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
SWU Charge(no tiers, $15.25 per Qtr
per 1000 sf)
SWU Charge (4 tiers option,
$14.25/qtr/1,000sf for Tier 4)
SWU Charge (7 tiers option,
$14.25/qtr/1,000sf for Tier 7)
Dedicated Tax ($2.459 per mil)
Additional Component to Sewer Charge ($3.13/Kgal)
Qua
rter
ly C
harg
e
Private Parking Lot
Case Study – Parking Lot (Public) P-51 Water St
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$287,400 58,859 0
Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
19
Industrial Case Studies Comparing IA Fee ($/1000 sf), Dedicated Property Tax ($/mil), and Sewer Fee ($/1000 gal)
0 1 0 0 3 2 1 3 1
100
0
20
40
60
80
100
120 N
umbe
r of P
arce
ls
Impervious Area (square feet)
Frequency Distribution: INDUS
20
$5,223 $4,880 $4,880
$1,289
$231
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
SWU Charge(no tiers, $15.25 per Qtr per
1000 sf)
SWU Charge (4 tiers option,
$14.25/qtr/1,000sf for Tier 4)
SWU Charge (7 tiers option,
$14.25/qtr/1,000sf for Tier 7)
Dedicated Tax ($2.459 per mil) Additional Component to Sewer Charge ($3.13/Kgal)
Qua
rter
ly C
harg
e
Ace Rents
Case Study – Industrial (Ace Rents)
Assessed Value
Estimated Impervious
Area (sf)
Estimated 2011 Water Consumption (1000 gal)
$20,96,900 342,482 295
Rates and charges assume medium LOS ($4,800,000 annual program)
Impervious area fee options
21
Debt Financing
GO Bonds– full faith and credit of the City– pledge stormwater utility revenues
Debt assumed to not count against debt cap
5.5% interest rate (subject to change based on market conditions)
20 year term (subject to change based on average useful life of projects)
next likely bond issue is 2015/16