Stormwater User Fee Implementationin the City of LancasterJune 5, 2012Courtesy:
Criteria For Evaluating Policy Issues Equity/Fairness Clarity (Simplicity, ease of understanding) Transparency (clear l...
Charging based on Impervious Area is Equitable       Number of Parcels                 Impervious Area                    ...
Preliminary Program Costs for Three Level-of-Service Scenarios (updated for May 31 meeting)Note: rate model factors in gra...
Number of properties by tier:Option with 4 tiers, applied to all property types                                           ...
Rates for 3 Tiering Options, with Medium Level ofService, Pay-as-you-Go                                                  $...
Rates for 3 Level of Service Scenarios, Pay-as-you-Go($/1000 sf, actual rates vary by size tier)                          ...
Typical Annual Stormwater Bill                             Typical Residential Annual Stormwater Charge            Portlan...
Single Family Residential Case StudiesComparing IA Fee ($/1000 sf), Dedicated PropertyTax ($/mil), and Sewer Fee ($/1000 g...
Case Study – Single Family #1 - Attached Rowhouse                          600 block Ocean Ave                   Typical S...
Case Study – Single Family #2 – Detached Residential @ 500 Poplar St                    Medium Sized Residential Property ...
Case Study – Single Family #3 – Single Family Residential @ 900 Block Lehigh Ave                        Large sized Reside...
Multi-Family Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax ($/mil), andSewer Fee ($/1000 gal)          ...
Case Study – Multi-family Residential / P-84                      Apartments at Mulberry Court                            ...
Commercial Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax ($/mil),and Sewer Fee ($/1000 gal)            ...
Case Study - Commercial Two Dudes PaintingCommercial                                                           $350       ...
Case Study – Parking Lot (Public) P-51 Water St                                                           $1,000          ...
Industrial Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax($/mil), and Sewer Fee ($/1000 gal)            ...
Case Study – Industrial (Ace Rents)                                                                $6,000         Impervio...
Debt Financing GO Bonds – full faith and credit of the City – pledge stormwater utility revenues Debt assumed to not cou...
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Stormwater Financing Mechanisms- Charlotte Katzenmoyer

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Presentation given by Charlotte Katzenmoyer on June 5, 2012 at the Third Annual Choose Clean Water Conference.

Published in: Economy & Finance, Business
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Stormwater Financing Mechanisms- Charlotte Katzenmoyer

  1. 1. Stormwater User Fee Implementationin the City of LancasterJune 5, 2012Courtesy:
  2. 2. 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
  3. 3. Charging based on Impervious Area is Equitable Number of Parcels Impervious Area 4% 11% 20% 14% 75% 76% Residential Non-Residential Residential Non-Residential Multi-family NO CODE Multi-family NO CODE
  4. 4. Preliminary Program Costs for Three Level-of-Service Scenarios (updated for May 31 meeting)Note: rate model factors in grantsand loans that the City is projecting Estimated Annual Costswill reduce these costs early, and Low Medium Highincrease debt service later Operating and Maintenance Green 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/a MS4 Implementation $449,762 $449,762 $449,762 Program Administration $149,000 $226,000 $303,000Capital Costs Green 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 $164,000Total $1,865,462 $4,726,962 $7,336,062
  5. 5. Number of properties by tier:Option with 4 tiers, applied to all property types Frequency Distribution: All Properties Tier 1 Tier 2 Tier 3 Tier 4 10,000 100% 9,000 90% 8,000 80% Cumulative Percent Number of Parcels 7,000 6,358 70% 6,000 60% 5,000 4,259 50% 4,000 40% 3,000 2,591 30% 2,000 1,273 20% 643 573 750 1,000 238 210 128 10% 97 79 76 78 0 0% Impervious Area (square feet) Number Parcels Cumulative Percent 6
  6. 6. Rates for 3 Tiering Options, with Medium Level ofService, Pay-as-you-Go $200 $180 Annual (7 tiers) Annual (4 tiers) $160 Annual (no tiers) Impervious Area Fee (Annual, per tier $140 $120 $100 $80 $60 $40 $20 $0 <=500 sf >500 sf and >1,000 sf and >1,500 sf and >2,000 sf and >2,500 sf and >3,000 ($/3000 sf, <=1,000 sf <=1,500 sf <=2,000 sf <=2,500 sf <=3,000 sf charge based on total impervious area) Impervious Area (square feet) Not including grants/loans, Penn Vest debt service, or Bond Financing 7
  7. 7. Rates for 3 Level of Service Scenarios, Pay-as-you-Go($/1000 sf, actual rates vary by size tier) $120 $108 $108 $108 $108 $108 $108 Reliance on grants $103 and loans$100 assumed to end after Year 3 SWU Fee ($/1,000 sf) $80 $74 $74 $74 $74 $74 $74 $60 Low $53 $53 $53 $52 Medium High $40 $30 $30 $30 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $- 1 2 3 4 5 6 7 8 9 10 Year with grants/loans, Penn Vest debt service, Pay/Go 8
  8. 8. Typical Annual Stormwater Bill Typical Residential Annual Stormwater Charge Portland, OR $237.00 Philadelphia, PA $161.76 Virginia Beach, VA $115.34 Norfolk, VA $99.96 Mt. Lebanon, PA $96.00 Portsmouth, VA $84.00 Washington, DC $73.44 Gaithersburg, MD $70.00 Montgomery County, MD $70.00 Newport News, VA $65.40 Suffolk, VA $62.88 Rockville, MD $62.48 Hampton, VA $55.20 Chesapeake, VA $53.40 Takoma Park, MD $48.00 Richmond, VA $45.00Prince William County, VA $26.36 $0 $50 $100 $150 $200 $250 9
  9. 9. Single Family Residential Case StudiesComparing IA Fee ($/1000 sf), Dedicated PropertyTax ($/mil), and Sewer Fee ($/1000 gal) Frequency Distribution: Residential 6,000 5,624 5,000 4,068 Number of Parcels 4,000 3,000 1,884 2,000 861 1,000 186 384 173 99 32 96 0 Impervious Area (square feet) 10
  10. 10. Case Study – Single Family #1 - Attached Rowhouse 600 block Ocean Ave Typical Small Residential Property $50 $45.39 $45 Small Single Family $40 $35 $33.93 Quarterly Charge $30 $25 $20 Impervious area fee options $15.25 $15 $10.69 $10 $7.13 $5 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component (no tiers, (4 tiers Option, (7 tiers option, per mil) to Sewer Charge $15.25/qtr/property) $7.13/qtr/property for $10.69/qtr/property ($3.13/Kgal) Tier 1) for Tier 2) Estimated EstimatedAssessed 2011 Water Impervious Value Consumption Area (sf) (1000 gal) Rates and charges assume medium LOS$55,200 668 58 ($4,800,000 annual program) 11
  11. 11. Case Study – Single Family #2 – Detached Residential @ 500 Poplar St Medium Sized Residential Property $70 $66.51 Medium Single Family $60 $50 Quarterly Charge $40 $36.58 Impervious area fee options $30 $21.38 $20 $17.81 $15.25 $10 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 per Additional Component to (no tiers, (4 tiers Option, (7 tiers option, mil) Sewer Charge ($3.13/Kgal) $15.25/qtr/property) $21.38/qtr/property for $17.81/qtr/property for Tier 2) Tier 3) Estimated EstimatedAssessed 2011 Water Impervious Value Area (sf) Consumption Rates and charges assume medium LOS (1000 gal) ($4,800,000 annual program)$59,500 1,155 85 12
  12. 12. Case Study – Single Family #3 – Single Family Residential @ 900 Block Lehigh Ave Large sized Residential Property $120 Large Single Family $100.14 $100 $80 Quarterly Charge $60 Impervious area fee options $48.07 $48.07 $40 $20.35 $20 $15.25 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component (no tiers, (4 tiers Option, (7 tiers option, per mil) to Sewer Charge $15.25/qtr/property) $14.25/qtr/1000sf for $14.25/qtr/1000sf for ($3.13/Kgal) Tier 4) Tier 7) Estimated Estimated Assessed 2011 Water Impervious Value Consumption Area (sf) (1000 gal) Rates and charges assume medium LOS $162,900 3,373 26 ($4,800,000 annual program) 13
  13. 13. Multi-Family Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax ($/mil), andSewer Fee ($/1000 gal) Frequency Distribution: MULTIFAM 600 550 547 500 Number of Parcels 400 300 278 200 166 176 96 100 76 62 25 0 0 Impervious Area (square feet) 14
  14. 14. Case Study – Multi-family Residential / P-84 Apartments at Mulberry Court $700 Impervious area fee options $651.27 Apts at Mulberry Ct $608.56 $608.56 $600 $500 Quarterly Charge $400 $300 $202.87 $200 $100 $58.69 $0 Estimated SWU Charge (no tiers, $15.25 per Qtr SWU Charge (4 tiers option, SWU Charge (7 tiers option, Dedicated Tax ($2.459 Additional Component to per mil) Sewer Charge Estimated per 1000 sf) $14.25/qtr/1,000sf for $14.25/qtr/1,000sf for ($3.13/Kgal)Assessed 2011 Water Tier 4) Tier 7) Impervious Value Consumption Area (sf) (1000 gal)$330,000 28,578 819 Rates and charges assume medium LOS ($4,800,000 annual program) 15
  15. 15. Commercial Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax ($/mil),and Sewer Fee ($/1000 gal) Frequency Distribution: COMM 800 742 700 600 Number of Parcels 500 400 300 178 200 156 112 121 82 71 61 100 49 54 0 Impervious Area (square feet) 16
  16. 16. Case Study - Commercial Two Dudes PaintingCommercial $350 Impervious area fee options Two Dudes Painting $300 $295.68 $276.29 $276.29 $250 Quarterly Charge $200 $148.59 $150 $100 $50 $21.13 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component to (no tiers, $15.25 per Qtr (4 tiers option, (7 tiers option, per mil) Sewer Charge Estimated per 1000 sf) $14.25/qtr/1,000sf for Tier 4) $14.25/qtr/1,000sf for Tier 7) ($3.13/Kgal) EstimatedAssessed 2011 Water Impervious Value Consumption Area (sf) Rates and charges assume medium LOS (1000 gal)$241,700 19,389 27 ($4,800,000 annual program) 17
  17. 17. Case Study – Parking Lot (Public) P-51 Water St $1,000 Impervious area fee options $897.60 Private Parking Lot $900 $838.74 $838.74 $800 $700 Quarterly Charge $600 $500 $400 $300 $200 $176.68 $100 $0.00 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component to (no tiers, $15.25 per Qtr (4 tiers option, (7 tiers option, per mil) Sewer Charge per 1000 sf) $14.25/qtr/1,000sf for $14.25/qtr/1,000sf for ($3.13/Kgal) Tier 4) Tier 7) Estimated EstimatedAssessed 2011 Water Impervious Value Consumption Area (sf) Rates and charges assume medium LOS (1000 gal)$287,400 58,859 0 ($4,800,000 annual program) 18
  18. 18. Industrial Case Studies Comparing IA Fee($/1000 sf), Dedicated Property Tax($/mil), and Sewer Fee ($/1000 gal) Frequency Distribution: INDUS 120 100 100 Number of Parcels 80 60 40 20 0 1 0 0 3 2 1 3 1 0 Impervious Area (square feet) 19
  19. 19. Case Study – Industrial (Ace Rents) $6,000 Impervious area fee options Ace Rents $5,223 $5,000 $4,880 $4,880 $4,000 Quarterly Charge $3,000 $2,000 $1,289 $1,000 $231 $0 SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 per mil) Additional Component to (no tiers, $15.25 per Qtr per (4 tiers option, (7 tiers option, Sewer Charge ($3.13/Kgal) 1000 sf) $14.25/qtr/1,000sf for Tier 4) $14.25/qtr/1,000sf for Tier 7) Estimated Estimated Assessed 2011 Water Impervious Value Consumption Area (sf) Rates and charges assume medium LOS (1000 gal) $20,96,900 342,482 295 ($4,800,000 annual program) 20
  20. 20. 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 21
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