Round #1 Input Summary – Coming Soon! Preliminary Major Themes Input only Many attendees arrived with concerns. These themes reflect represents repeated questions, comments, and ideas: meeting • Revenue neutrality/property tax reduction participants! • Assurances of program accountability and fund protection • Credits and financial incentives – yes! • Expectation for long-term planning & vision • Fee adjustments for on-site storm water management • Geographic investment in ALL O’ahu communities • Address impacts to the elderly and low-income households, given Oahu’s h igh cost of living Oahu Storm Water Utility Project 26
Round 2 Community Outreach Objectives • Solicit feedback on draft core recommendations for a Oahu storm water utility • Continue to increase the number and diversity of community members involved in the study Oahu Storm Water Utility Project 27
Round 2 Community Outreach Activities • Another round of focused stakeholder meetings • More popup events • More social media and networking • Another round of community meetings Oahu Storm Water Utility Project 28
Round 2 Community Outreach Activities • Another round of focused stakeholder meetings • More popup events • More social media and networking • Another round of community meetings We’re preparing to hold all in -person meetings remotely (webinars) Oahu Storm Water Utility Project 29
Rate Options Considered 30
Recap: Storm Water Utility Building Blocks ✔︐ Parcel Impervious Area (remote sensing + building footprints + parcel maps) ✔︐ Parcel Impervious Area Distribution (how many parcels w/ how much impervious area) ✔︐ Rate Structure Options: Updates from January Presentation o Changing “tier multiplier” to the midpoint of the tier • New Program Cost Approach Phase-in of additional costs o Use of bonds/debt financing • Revised Fee Scenario • Customer Impacts 31
What defines a rate structure? • “Tiers”: Simplifies impervious area data & administrative impact of a storm water utility program • Properties with similar amounts of impervious area (IA) pay the same fee • Properties in upper tier (more than X,000 SF of impervious area) pay based on the specific impervious area on the parcel • All properties treated the same , e.g. no difference between residential, commercial, nonprofit, government • Rate structure balances equity with administrative cost : o More tiers = more equity o More tiers = more administrative costs, especially if underlying estimate of IA by parcel is not accurate enough to put every property in the right “tier” 32
Recap: Two Rate Structure Options Considered: 8 Tiers vs. 4 Tiers Option 1: 8 tiers, increments of 1,000 SF of IA 45,000 100% * Tier 1 minimum = 300 SF 90% 40,000 ** Tiers 1-7 = flat fee per parcel *** Tier 8 (>7,000 SF) = fee based on actual IA Cum. Pct. of Number of Properties 80% 35,000 70% 30,000 1 2 3 4 5 Number of Parcels 7 6 8 60% 25,000 Option 2: 4 tiers, equal number of parcels/Tier 50% * Tier 1 minimum = 300 SF 20,000 ** Tiers 1-3 = flat fee per parcel 40% *** Tier 4 (>5,200 SF) = fee based on actual IA 15,000 30% 10,000 20% 1 2 3 4 5,000 10% 0 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Impervious Area (sq. ft.) Number of Parcels Cum. Pct. 33
Recap: Two Rate Structure Options Considered Number of Tiers Reflects Balance of Equity vs. Complexity Option 1: 8 Tiers of 1,000 SF IA; Upper Tier is above 7,000 SF IA • Pros: Equity - More Tiers makes fees more representative of actual IA • Cons: Complexity - More Tiers means more opportunity for errors/appeals with properties put into wrong Tier Option 2 : 4 Tiers with 25% of parcels/tier; Upper Tier is above 5,200 SF IA • Pros: Complexity - Tiers cover wider range, leaving less opportunity for errors/appeals • Cons: Equity - Fewer Tiers makes fee less representative of actual IA 34
Impact of Changing to a “Mid - Point” Multiplier 35
Tier “Multipliers”: Updated per January meeting comments • Multipliers are used to “equalize” storm water bills in each tier • Re-assessed using mid-point of the tier instead of rounding to nearest integer • Example: Property with 3,200 square feet (SF) impervious area ➢ 8 Tier option: ✓ In Tier 4 fee: in 3,000-4,000 SF range ✓ Multiplier goes from 4 down to 3.5 ➢ For 4 Tier option: ✓ In Tier 2 fee: in 2,801-3,900 SF range ✓ Multiplier goes from 3 up to 3.5 HOWEVER: THE MULTIPLIER GOING DOWN OR UP FOR A GIVEN TIER DOES NOT MEAN THE FEE ALSO CHANGES IN SAME DIRECTION OR MAGNITUDE; BECAUSE: 36 FEE = PRODUCT OF MULTIPLIER (HOW MANY 1,000s OF SF) AND THE RATE ($/1,000 SF)
Rate Structure Option #1 with 8 Tiers: Previous version with rounded multipliers Option 1: 1,000 sq. ft. increments, base unit = 1,000 sq. ft., rate $ / 1,000 sq. ft., rates by tiers apply multiplier, IA>7,000 pays based on actual IA. Number of Parcels Number of Billing Tier # Tier Impervious Area Range Multiplier per Tier Units * 2,199 2,199 1 300 to 1,000 sq. ft. X 1 2 1,001 to 2,000 sq. ft. X 2 10,810 21,620 3 2,001 to 3,000 sq. ft. X 3 31,124 93,372 4 3,001 to 4,000 sq. ft. X 4 38,239 152,956 5 4,001 to 5,000 sq. ft. X 5 31,209 156,045 6 5,001 to 6,000 sq. ft. X 6 18,211 109,266 7 6,001 to 7,000 sq. ft. X 7 8,774 61,418 8 >7,000 sq. ft. actual IA 18,487 972,857 Total 159,053 1,569,733 * For first seven tiers, number of parcels times multiplier. For the eighth tier, based on actual IA divided by 1,000 sq. ft. 37
Rate Structure Option #1 with 8 Tiers: Revised with mid-point multipliers Option 1: 1,000 sq. ft. increments, base unit = 1,000 sq. ft., rate $ / 1,000 sq. ft., rates by tiers apply multiplier, IA>7,000 pays based on actual IA. Number of Parcels Number of Billing Tier # Tier Impervious Area Range Multiplier per Tier Units * 1 300 to 1,000 sq. ft. 0.50 2,199 1,100 2 1,001 to 2,000 sq. ft. 1.50 10,810 16,215 3 2,001 to 3,000 sq. ft. 2.50 31,124 77,810 4 3,001 to 4,000 sq. ft. 3.50 38,239 133,837 Number of billing units goes 5 4,001 to 5,000 sq. ft. 4.50 31,209 140,441 down with mid-point multiplier, 6 5,001 to 6,000 sq. ft. 18,211 5.50 100,161 so rates ($/1,000 SF) go up. 7 6,001 to 7,000 sq. ft. 6.50 8,774 57,031 >7,000 sq. ft. actual IA 8 18,487 972,857 Total 159,053 1,499,450 * For first seven tiers, number of parcels times multiplier. For the eighth tier, based on actual IA divided by 1,000 sq. ft 38
Rate Structure Option #2 with 4 Tiers: Previous version with rounded multipliers Option 2: Quartiles increments, 1 - 25th, 26th - 50th, 50th - 75th, >75th. Tier 1 pays based on multiplier of 1. Multiplier for Tiers 2 and 3 based on mid-point of tier ranges, rounded. Tier 4 pays based on actual IA. Number of Parcels Number of Billing Tier # Tier Impervious Area Range Multiplier per Tier Units * 1 300 to 2,800 sq. ft. X 1 36,543 36,543 2 2,801 to 3,900 sq. ft. X 3 42,164 126,492 3 3,901 to 5,200 sq. ft. X 5 39,592 197,960 > 5,200 sq. ft. actual IA 4 40,754 1,104,411 Total 159,053 1,465,406 * For first three tiers, number of parcels times multiplier. For the fourth tier, based on actual IA divided by 1,000 sq. ft 39
Rate Structure Option #2 with 4 Tiers: Revised with mid-point multipliers Option 2: Quartiles increments, 1 - 25th, 26th - 50th, 50th - 75th, >75th. Multipliers for Tiers 1, 2 and 3 based on mid-point of tier ranges. Tier 4 pays based on actual IA. Number of Parcels Number of Billing Tier Tier Impervious Area Range Multiplier* per Tier Units * 1 300 to 2800 sq. ft. 1.40 36,543 51,160 Number of billing units goes up 2 2801 to 3900 sq. ft. 3.35 42,164 141,249 with mid-point multiplier, so 3901 to 5200 sq. ft. 4.55 39,592 180,144 3 rates ($/1,000 SF) go down. 4 >5,200 sq. ft. actual IA 40,754 1,104,411 Total 159,053 1,476,965 * For first three tiers, number of parcels times multiplier. For the fourth tier, based on actual IA divided by 1,000 sq. ft 40
Upshot from Mid-Point Multiplier Analysis: There are winners and losers, but mid-point is more equitable • Overall change in billing rate ($/1,000 sf) is small (<5%) • Change in the fees per tier is more substantial in the 4 Tier Option • If mid-point multiplier is used, there are winners and losers depending on tier and on the rate structure option because the fees are the product of the multiplier and the rate ($/1,000 sf ) • 8 Tier option: o Number of billing units drops by 4.5% so the billing rate ($/1000) goes up by 4.7% o Tier 8 Fees go up by 4.7%. o Fees for Tiers 1-7 go down by between 42% (Tier 1) and 3% (Tier 7). • 4 Tier option: o Number of billing units increases by 0.8% so the billing rate ($/1000 sf) goes down 0.8% . o Tier 4 fees go down 0.8% o Tiers 1 and 2 go up 39% and 11%, respectively o Tier 3 goes down 10% 41
Recap: Storm Water Utility Building Blocks ✔︐ Parcel Impervious Area (remote sensing + building footprints + parcel maps) ✔︐ Parcel Impervious Area Distribution (how many parcels w/ how much impervious area) ✔︐ Rate Structure Options: Updates from January Presentation o Changing “tier multiplier” to the midpoint of the tier • New Program Cost Approach (“Plan C”) o Phase-in of additional costs o Use of bonds/debt financing • Revised Fee Scenario • Customer Impacts 42
Revised Program Budget: PLAN C 43
Definitions: • Program Costs : Cash outlays during a fiscal year for operating expenses, cash-funded CIP projects, and debt service • Capital Spending : Total outlays for CIP projects, including cash funded projects and debt funded projects. • Debt Funded CIP : Projects funded using proceeds from revenue bonds issued encumbering the Storm Water Special Fund and Storm Water Fees as the dedicated revenue source for repayment • Debt Service : Principal & interest due to repay bonds issued for CIP projects Oahu Storm Water Utility Project 44
Third budget option Operating Cash Funded CIP Debt Funded CIP Total developed: $111.7 $108.8 $120 $103.1 $101.2 “Plan C” $95.8 $85.6 • $100 Hybrid of LOS 1 (Basic $24.8 $24.1 $22.6 Compliance) and LOS 2 +/- Millions of Dollars (Better Program with $40.3 $80 $16.5 $16.1 $39.4 Modifications) $15.1 $34.3 • $60 Phases in hiring and program expenses over time $40 • Includes key investments in $70.4 $68.6 $65.3 $60.9 $56.4 stream cleaning, drain system $51.3 $20 inspection/ cleaning, street sweeping, system planning, $0 partnerships 2022 2023 2024 2025 2026 2027 • **Begins debt service for capital Fiscal Year project financing in Year 4 *Fees will be fixed for six years; fund balances are carried over Average Annual Budget from year to year. FY22 – FY 27: $96.7 million 45
Comparison of Program Budgets Evaluated Comparison to LOS 1 FY22-FY27 Annual Average Expenditures and LOS 2 +/- $140,000,000 (LOS 2+/- was used to develop the fees reviewed in January) $120,000,000 • Annual average capital $100,000,000 budget decreases with use $59,341,671 $37,741,979 of debt financing to $80,000,000 $47,890,000 address long-term asset renewal/replacement ($25 $60,000,000 million/year) $40,000,000 • Annual average operating $62,033,748 $61,042,062 budget increases $54,196,519 $20,000,000 supporting stream cleaning, green $0 infrastructure, drainline LOS 1 LOS 2 +/- Plan C maintenance Operating Capital 46
FY22-27 FY21 Average Program Enhancement: $550k $580k Fee Implementation Partnership grants to schools & $1.5m $1.8m Education & Training community organizations Additional customer facing Operating $6.48m $7.1m Inspections/IDDE inspector positions Budget: $2 m $2.3m Permitting Fill vacant positions at DPP Proactive drainline inspection & What benefits $11.1m $21.4m System Maintenance maintenance , increased street do we gain sweeping & catch basin cleaning Grants management & leveraging ; $3.4m $5.5m Admin & IT with an Customer Service; IT Green Infrastructure Green infrastructure partnerships & increase in $0 $1.25m Programs grant support funding? Water Quality & Add dry weather monitoring $3.0m $3.7m TMDLs program **2 additional crews, heavy $4.8m $11.8m Stream Maintenance equipment & operator Community partnerships, Mayor’s $5.6m $6.9m Trash Task Force, fill vacancies 47
DRAFT BUDGET FOR ORGANIZATION, GRANT & PARTNERSHIP SUPPORT FY 22-27 ANNUAL AVERAGE Initial Community Partnerships for Enhanced School Partnerships, Trash Reduction, $150,000 $150,000 D R A F T budget Headwaters Conservation, = $1,655,000/yr $100,000 Enhanced Community-Based Partnerships, $150,000 in Partnership Information technology (drone/GIS analysis), $0 Maintenance Investment incentives/credits, $150,000 Funds to Agricultural Site Certification Support, $150,000 Community & Allied Workforce development programs, $120,000 Organizations Your input is Green Infrastructure Mini- Grants, $250,000 needed! Water capture incentives, $250,000 Urban forestry/tree keeping, Expand NGICP Certification $120,000 Opportunity, $75,000 48
Recap: Storm Water Utility Building Blocks ✔︐ Parcel Impervious Area (remote sensing + building footprints + parcel maps) ✔︐ Parcel Impervious Area Distribution (how many parcels w/ how much impervious area) ✔︐ Rate Structure Options: Updates from January Presentation o Revised fee levels o Changing “tier multiplier” to the midpoint of the tier ✔︐ New Program Cost Approach (”Plan C”) o Phase-in of additional costs o Use of bonds/debt financing • Revised Fee Scenario • Customer Impacts 49
Revised Fee Scenario & Assumptions 50
Refined Fee Analysis Assumptions for “Plan C”: Cost Phase-In and Bond Financing 1. Same rate structures evaluated • Option 1: 8 tiers/>7,000 SF based on actual IA • Option 2: 4 tiers/>5,200 SF based on actual IA 2. Three Program Options evaluated (aka Level of Service or “LOS”) • “Basic Compliance” (LOS 1) • “Better Program” (LOS 2 +/ -) • Phased Program with Debt Service (“Plan C” – hybrid of LOS 1 and 2 +/-) **Note: LOS 3 (“Ideal Program”) was evaluated – costs were too high 3. Storm water rates charged to customers assumed constant for first 6 fiscal years (same cycle as City & County approved CIPs) 51
Fees for Program Option “Plan C” Operating Cash Funded CIP Debt Funded CIP Total • “Plan C” = Phased program $111.7 $108.8 $120 $103.1 $101.2 implementation/ ramp up plus $95.8 Debt Service in year 4 $85.6 $100 $24.8 $24.1 • Assumes $73M in bonds issued $22.6 Millions of Dollars in Year 4, covering 60% of CIP $40.3 $80 $16.5 $16.1 $39.4 $15.1 in Years 4, 5 and 6. $34.3 $60 $40 Monthly Rate per 1,000 SF $70.4 $68.6 $65.3 $60.9 $56.4 $51.3 • 8 Tier Structure: $4.75/1,000 SF $20 • 4 Tier Structure: $4.83/1,000 SF $0 2022 2023 2024 2025 2026 2027 Fiscal Year 52
Program Option “Plan C” Revenue Requirements (left) and capital spending (right) Operating Debt Service Cash Funded CIP Total Cash and Debt Funded CIP $120 $45.0 $101.2 $95.8 $92.6 $40.0 $90.4 $100 $85.6 $80.4 $35.0 $16.5 $16.1 Millions of Dollars $40.3 $30.0 $80 $24.8 $24.1 $39.4 $5.7 $22.6 $15.1 $5.7 $25.0 $34.3 $60 $40.3 $20.0 $39.4 $34.3 $15.0 $40 $10.0 $70.4 $68.6 $65.3 $16.5 $16.1 $60.9 $15.1 $56.4 $51.3 $5.0 $20 $0.0 2022 2023 2024 2025 2026 2027 $0 Cash Funded CIP Debt Funded CIP 2022 2023 2024 2025 2026 2027 Fiscal Year 53
Revised Fees per 1,000 SF Impervious Area 54
Monthly Fees for Program Option “Plan C” (using midpoint multipliers) Year 1 Bill Impact: Estimated Monthly Bill for Year 1 Bill Impact: Estimated Monthly Bill for Plan C and 4 tiers Plan C and 8 tiers $60 $47.50 $50 $42.75 $45 $48.33 $50 $38.00 $40 $43.50 $38.67 $35 $40 $30.88 Monthly Bill $33.83 Monthly Bill $30 $26.13 $29.00 $30 $25 $21.38 $21.99 $21.99 $20 $16.63 $20 $16.19 $15 $11.88 $10 $7.13 $6.77 $6.77 $10 $2.38 $5 $0 $0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 (Tier 1) (Tier 1) (Tier 2) (Tier 3) (Tier 3) (Tier 4) (Tier 4) (Tier 4) (Tier 4) (Tier 4) (Tier 1) (Tier 2) (Tier 3) (Tier 4) (Tier 5) (Tier 6) (Tier 7) (Tier 8 ) (Tier 8) (Tier 8 ) Impervious Area (sq. ft.) Impervious Area (sq. ft.) Median single-family residence (3,800 SF) pays $16.63 / month with 8 Tiers (left) $21.99 / month with 4 Tiers (right) 55
Summary : Storm Water Rates per 1,000 SF Impervious Area Basic Better Phased + Rate Compliance Program Debt Service Structure (LOS 1) (LOS 2 +/-) “Plan C” 8 Tiers $ 6.58 $ 6.92 $4.75 4 Tiers $ 7.00 $ 7.42 $4.83 56
How does Plan C stack up with other storm water utilities? Monthly rates for typical residential property in 2018 Detroit, MI $125.00 Winston-Salem, NC $69.25 Mecklenburg County $49.85 Monthly Fee Range for Median (Charlotte, NC) Single Family Residential Seattle, WA $36.00 (@3800 SF) Tacoma, WA $23.25 Mission, KS $19.00 Boulder, CO $16.82 Philadelphia, PA $13.48 Virginia Beach, VA $12.99 Eugene, OR $12.27 Minneapolis, MN $11.42 Chattanooga, TN $9.60 57
Recap: Storm Water Utility Building Blocks ✔︐ Parcel Impervious Area (remote sensing + building footprints + parcel maps) ✔︐ Parcel Impervious Area Distribution (how many parcels w/ how much impervious area) ✔︐ Rate Structure Options: Updates from January Presentation o Revised fee levels o Changing “tier multiplier” to the midpoint of the tier ✔︐ New Program Cost Approach (”Plan C”) o Phase-in of additional costs o Use of bonds/debt financing ✔︐ Revised Fee Scenario • Customer Impacts 58
Customer Impact Examples 59
Residential - Small Sized 8 Tie iers 4 Tie iers Equivale lent Property Tax $20 $20 $18 $18 $17.08 $17.15 $16 $16 Stormwater Charge $14 $14 $12.34 $12 $12 $11.00 $10.38 $9.88 $9.80 $10 $10 $8 $8 $7.13 $6.77 onthly St $6 $6 $4 $4 Mon $2 $2 $0 $0 Basic Compli liance Better Program Plan C: Phase in in+Bonds Stormwater Class Residential Parcel Area (sq. ft.) 1,741 Total IA (sq. ft.) 1,368 Rate Option 1 Tier 2 Rate Option 2 Tier 1 60 Net Taxable Property Value $366,000
Residential - Medium Sized TMK 112002045 Stormwater Class Residential Parcel Area (sq. ft.) 5,047 Total IA (sq. ft.) 4,211 Rate Option 1 Tier 5 Rate Option 2 Tier 3 61 Net Taxable Property Value $1,224,100
Residential Apartment Building Highest Tier (Fee based on actual IA) TMK 111065039 Stormwater Class Residential Parcel Area (sq. ft.) 71,586 Total IA (sq. ft.) 33,896 Rate Option 1 Tier 8 Rate Option 2 Tier 4 62 Net Taxable Property Value $23,670,400
Commercial or Commercial/Hotel Medium Sized TMK 121002035 Stormwater Class Commercial Parcel Area (sq. ft.) 4,008 Total IA (sq. ft.) 4,008 Rate Option 1 Tier 5 Rate Option 2 Tier 3 63 Net Taxable Property Value $1,562,000
Commercial or Commercial/Hotel Highest Tier (Fee based on actual IA) TMK 111071001 Stormwater Class Commercial Parcel Area (sq. ft.) 325,734 Total IA (sq. ft.) 240,519 Rate Option 1 Tier 8 Rate Option 2 Tier 4 64 Net Taxable Property Value $33,752,100
Industrial Highest Tier (Fee based on actual IA) TMK 112007001 Stormwater Class Commercial Parcel Area (sq. ft.) 95,680 Total IA (sq. ft.) 92,087 Rate Option 1 Tier 8 Rate Option 2 Tier 4 65 Net Taxable Property Value $13,784,000
Faith Based and Institutional Medium Sized TMK 126015046 Stormwater Class Faith Based Parcel Area (sq. ft.) 4,200 Total IA (sq. ft.) 3,454 Rate Option 1 Tier 4 Rate Option 2 Tier 2 66 = Non-Taxable Net Taxable Property Value $0
Faith Based and Institutional Highest Tier (Fee based on actual IA) TMK 131017044 Faith Based Stormwater Class Parcel Area (sq. ft.) 37,488 Total IA (sq. ft.) 26,123 Rate Option 1 Tier 8 Rate Option 2 Tier 4 67 = Non-Taxable Net Taxable Property Value $0
Federal or Military Facility, Highest Tier (Fee based on actual IA) TMK 115041042 Stormwater Class Fed. Govt. Parcel Area (sq. ft.) 1,781,467 Total IA (sq. ft.) 1,232,077 Rate Option 1 Tier 8 Rate Option 2 Tier 4 68 = Non-Taxable Net Taxable Property Value $0
Municipal Government Highest Tier (Fee based on actual IA) TMK 111034042 Stormwater Class Muni. Govt. Parcel Area (sq. ft.) 332,088 Total IA (sq. ft.) 146,549 Rate Option 1 Tier 8 Rate Option 2 Tier 4 69 = Non-Taxable Net Taxable Property Value $0
Financial Incentives: Credit Policy and Program Options 70
Incentive Programs Encourage Two Important Actions : (1)Installation and proper maintenance of physical storm water management projects on individual properties (2)Implementing “non - structural measures” (i.e. actions or operations that prevent storm water runoff or pollution) that help DFM meet MS4 permit requirements Incentives can come in 2 forms: • Rebates or Grants = One-time payment support towards implementation costs: • E.g. providing up to $X,XXX for residences, and $Y,YYY for businesses to install Green Infrastructure • Credits = Ongoing reduction in annual impervious area- based storm water fee: • E.g. up to XX% for treating impervious area with green infrastructure projects 71
Credits or fee adjustments can facilitate stakeholder buy-in • Credits provide incentives to implement program components and reduce the fee • Credits can improve equity during implementation • A well-structured credit program will not reduce revenue 72
Large tax-exempt properties with lots of impervious area might get big bills, which can be reduced through credits and rebates • Rebates can be targeted at certain types of facilities during program startup: • Richmond VA, Detroit MI provide technical support to Faith community • Detroit, Philadelphia provide technical support to non-residential properties • Lancaster PA provided “early adopter” cost share incentives Church in City of Richmond, VA 73
Credit Eligibility 74
Who is eligible for credits? ALL properties • Eligibility is usually based on a property’s on-site treatment of stormwater • Historically, credits usually applied only to multi-family and non- residential properties – larger & more likely to implement treatment and control measures • Newer programs have made ongoing credits open to all types of properties 75
What types of measures are typically eligible for credits? (often referred to as BMPs = Best Management Practices) • Eligible BMPs include both • “Structural BMPs ” are often tied to stormwater manuals and standards specified in Municipal ordinance • “Nonstructural BMPs ” • Structural measures: • Stormwater quality controls, such as green infrastructure such as bioretention, cisterns, rainwater harvesting, rain gardens, green roofs, vegetated swales, oil-water separators, sand filters • Stormwater quantity controls, such as detention ponds, underground storage 76
Green Infrastructure Approaches Rain Garden Filtration Planters Green Roofs Rain Barrels Porous Pavement Infiltration Trenches Bioretention 77 Tree Box Filters
What types of measures typically are eligible for credits? Non-structural measures ( i.e. actions and operations that reduce storm water pollution or runoff ) o Compliance with NPDES Industrial Stormwater Permits issued by Hawaii Department of Health (Airport, US Navy, others) o Tree planting , integrated pest management program, Adopt-a-Block or Adopt-a-Stream programs o Education – credits often provided to organizations (including schools/higher ed, community organizations) that provide direct watershed and storm water / water quality education o Hosting & other in-kind credits or rebates : Actions that offset a cost to the City’s public education & outreach program 78
Credit Calculations 79
What’s the typical maximum credit? • Maximum annual per-property credit of 50% is most common upper limit in other US storm water utilities • Range of maximum credits generally is 25% to 75% • Allowing 100% credit is rare in storm water utilities: • A few jurisdictions allow up to 100% credit if a property treats all of its own impervious area AND runoff from adjoining properties • Some jurisdictions split fees into base charge and variable charge (eligible for credits) 80
Credit Principle: You only get credit for the impervious area that you treat on your site! • Credits typically are based on the % of property impervious area treated to locally-required storm water management standards. For example: o Home with rain garden designed to capture 1 inch of runoff from 50% of its roof area o Shopping mall with BMPs that capture 1 inch of runoff from their parking lots, but not the roof area • Multiple BMPs can be counted, each with a maximum amount, up to a maximum percentage reduction for the site. • Total credit percentage for BMPs is applied to the storm water fee for the site: • % reduction in fee, not a change in tier • Only impervious cover REMOVAL would change the actual tier 81
How are credits typically calculated? % credit calculated for each measure on a site, added together, and capped at maximum overall credit amount. 82
Two Hypothetical Examples, with Multiple BMPs on Each Site: Example 1: Industrial Facility • Assumed: Max Credit per Site = 60% of annual bill • Maximum credit assigned by type of BMP BMP % IA Credit Treated NPDES Permit NA 15% Maximum Oil Water Separator 20% 30% x 20% = 6% Type of BMP Credit Bioretention 35% 60% x 35% = 21% Green Infrastructure/Volume Controls 60% Subtotal & Total Credit 42% = 42% credit Peak Runoff Rate Control 30% Example 2: Golf Course Water Quality Treatment 30% Non-Structural Measures 15% BMP % IA Treated Credit (e.g. trash cleanup , integrated pest Integrated Pest NA 15% management) Management/ Trash Cleanup Industrial NPDES Stormwater Permit (in 15% compliance) Extended Detention 90% 30% x 90% = 27% Bioretention 50% 60% x 50% = 30% 83 Subtotal and Total Credit 72% = Credit capped at 60%
Example Credit Program: BMP Maximum Credits Lancaster PA 84
Credit Manuals & Application Forms 85
Credit Program Manuals • Details are typically specified in a Credit Program Manual • Often one for homeowners and one for larger (multi- family) and non-residential properties • Would be established in the Storm Water Utility Ordinance, with DFM authorized to adopt and amend as needed • Allows DFM to modify to meet customer & program needs 86
Credit Applications, Effective Periods, Maintenance Agreements, Inspection Access • Credits are granted when a property owner applies for the credit and provides backup information • Typically valid for limited time period, usually 1-5 years • Usually requires applicants to sign a maintenance agreement and grant SWU staff access for inspections 87
Application Form Option for Honolulu : Follow the Drop Mobile App 88
Application Form Option for Honolulu : Follow the Drop Mobile App 89
Application Form Option for Honolulu : Follow the Drop Mobile App PARTNERS 90
Montgomery County MD Credit Application Process • Property owners can apply online o Can attach property tax bill and supporting documentation • Types of properties include: o Single Family Residential o Non Residential and Multi Family Residential • Data Collection/Coordination varies depending on property type https://www2.montgomerycountymd.gov/DEPWQPC/SearchProperty.aspx 91
Application Process 92
Application Process (SFR) • Applicant provides facility types, pictures, and information on facility 93
Application Process (SFR) Requires Data on Size of BMP Facilities to be Provided • Applicant data input page • Information used to calculate required treatment volume • Reviewer checks this information 94
SFR – Site Input Example Before BMP facilities are entered 95
Non-Residential or Multi-Family Residential – Site Input WQv Available More Detailed than SFR 96
Options for Addressing Other Key Community Input Themes 97
A Note on Recommendations • Stakeholder Advisory Group may address any and all aspects of a Storm Water Utility – technical and political • Community input summary and Stakeholder Advisory Group summaries will reflect input and discussions • DFM Staff and the consultant team will make recommendations for DFM and related budgets and programs • City Council is the policy making body, authorizes plans and programs, and funds and approves program budgets • Mayor’s office and DFM implement what City Council approves Oahu Storm Water Utility Project 98
Theme: Revenue Neutrality/Property Tax Reduction City Council provides some giveback recognizing that new storm water utility fee revenue frees up general funds currently spent on storm water management Options: - Property tax reduction equivalent to new storm water fees paid for one or more years - Property tax reduction equivalent to “tax expenditure” on storm water for one or more years - Partial reduction per above - Initial storm water utility credit granted for taxable properties (i.e. ‘negative balance’ to start) - Others? Oahu Storm Water Utility Project 99
Theme: Assurances of Program Accountability and Fund Protection All storm water fees paid are expended directly for storm water management; the fund is not “raided” for any other purposes; and citizens can see that the funds are spent properly Options: - Annual enterprise fund audit by City & County Auditor’s Office - Annual enterprise fund audit by independent (external) auditor - Establishing a Storm Water Utility Advisory Committee/Board/Council - Establishing a separate storm water authority equivalent to Board of Water Supply through Charter change - Others? Oahu Storm Water Utility Project 100
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