09/09/2014 Why Stormwater? Forsaken service System is on-call 24/7 - PDF document

09/09/2014 Why Stormwater?  Forsaken service  System is on-call 24/7  Out of sight / out of mind  Not seen as a key service by many City of Park Ridge  Impacts Committee of the Whole  Personal safety  Property damage Stormwater Utilities  Service disruption September 8, 2014  Pollution of streams Why Stormwater Utilities? Stormwater Funding  Expansion of local government roles  Changing stormwater programs fee-based funding  Other prevailing priorities competing for general program-driven fund dollars - police, schools, etc funding level  Shift away from general taxes to fees and Annual Budget demand-based funding for infrastructure  Success of other enterprise funds – water, solid waste, waste water maximum possible tax-based funding planned program Time 1

09/09/2014 Why Stormwater Utilities? Growth of Stormwater Utilities Stormwater utility revenue is:  Equitable – charges based on demand placed on the program / system  Stable – reliable level of funding – not subject to multiple demands  Adequate – program driven funding levels – can plan service level increases  Flexible – single method – mix of methods 5 What Is A Stormwater Utility? Infrastructure Program Fees A stormwater utility can be any or all of the  Consumption - based fees: following:  Water  Sewer  A funding method  Electric  A program concept  An organizational entity  Capacity - based fees:  Cable  Local telephone  Stormwater 7 2

09/09/2014 Why Capacity Based? Rate Basis  Unpredictability of rainfall  Developing parcels  increased imperviousness  Need for sustainable cash flow  increased runoff  Impracticality of metering runoff  increased demand  Need a simple basis for billing  Rock Island decision  Reflects the relative contribution / demand for service / evaporation  Easy to explain / understand  Defensible in court Imperviousness Imperviousness Village of Westmont Single Family Residential Imperviousness 6,000 Mean = 3,000 Median = 2,950 5,000 Max = 15,265 Impervious Area (sq ft) 4,000 3,000 2,000 1,000 0 1 5200 Residential Parcels 3

09/09/2014 Imperviousness Equivalent Residential Unit (ERU) Range of imperviousness per parcel 1 ERU = 2,500 square feet of impervious area 600 Impervious Area, Sq Ft (1000s) 500 = 3,000 sq ft impervious  1 ERU 400 Single Family Other 300 = 25,000 sq ft impervious 200  10 ERUs 100 0 Illinois Stormwater Rates Revenue Potential “Rule of Thumb”  Lowest residential rate = $1.95 / month For every $1 dollar  Highest rate = $21.83 / month (first bills in July) per month per house  Most have flat rates for single family (and appropriate  Some have tiers for single family charges to non-  Most have credit programs residences), a  A few have incentive programs stormwater utility can typically generate about $20 to $40 per acre per year. 4

09/09/2014 Illinois Stormwater Rates Stormwater credit programs Single Family Residential Rates What are credits? Municipality Monthly Rate* Aurora $ 3.45  A stormwater credit is a reduction in stormwater Bloomington $ 4.35 fees charged to a qualifying property in return Highland Park $ 6.00 for implementing qualifying on-site drainage Moline $ 3.75 controls Champaign $ 5.24 Downers Grove $ 8.94  Acknowledgement that on-site stormwater Morton $ 5.03 management may: Normal $ 4.60  Reduce the City’s operational costs Richton Park $ 5.63  Reduce the City’s compliance costs Rock Island $ 3.95 Rolling Meadows $ 3.36  Reduce the City’s capital costs Urbana $ 4.94 Winnetka $ 21.83 *Based on average single family property (ERU) Stormwater credit programs Statutory authority  Two approaches in Illinois How do credits work?  Home Rule  Direct reduction of service charges  Church of Peace v City of Rock Island  Applied after service charges are calculated  Illinois Compiled Statutes  65 ILCS 5/11-139-1  Must be applied for  65 ILCS 5/11-141-7  Criteria set by the City  Conner v City of Elmhurst  Maintenance of stormwater controls required  On-going  Alternative approaches  Some expire periodically  Statewide enabling legislation  Failure to report may cause revocation  Special legislation (DuPage / Peoria Counties) 5

09/09/2014 Rock Island lawsuit Stormwater Utility Components  Definition of taxes and fees  Expenditure plan  A tax raises revenue for the general and non-  Revenue plan specific purposes of government  Billing plan  A fee raises revenue to be used for a specific  Outreach & education plan purpose, such as for stormwater management  Three court criteria: tax v. fee  Regulatory nature  Rational nexus  Voluntary nature Contact Information Questions ? Douglas Noel, P.E. AMEC Environment & Infrastructure douglas.noel@amec.com 317.713.1700 6