Joanne M. Throwe, Director of Environmental Finance Center, National Center for Smart Growth Research and Education About the Environmental Finance Center – The organization is made up of 10 regions that cover the US. South Central Pa., and is served by Region 3 which is based in the University of MD (all regions are based in universities). Their vision statement is to “provide innovative solutions to manage the costs of environmental protection and improvement”. They work with public and private sectors to promote a sustainable environment that addresses the “how to pay” issues. They currently are working as the selected consultant on planning services funded by the National Fish and Wildlife grants. Topic - As the keynote speaker Joanne will discuss her experience with assisting communities to plan and implement sustainable infrastructure. This will include a snapshot of the current condition and approach to the country’s infrastructure along with some suggestions toward improvement. She will specifically discuss how the drainage component to the infrastructure requires a new approach to match budget constraints and increased pressures. In outlining this new approach, she will discuss the specific needs for collaboration of municipality’s efforts, integration of all public works activities and planning, new and innovative funding possibilities and overall public awareness and support.

1. Understanding, Managing, and Paying for
Stormwater in Pennsylvania
Joanne Throwe
Environmental Finance Center
University of Maryland
York, PA
September 21, 2012

2. Environmental Finance Centers

3. The Environmental Finance Center located
at the University of Maryland
• Regional center that covers Pennsylvania
• Expertise in assisting communities:
Address internal capacity
Develop organizational capacity
Assess, recommend, and implement environmental finance
programs
Identify funding and financing opportunities

4. Our History
• Established by EPA 20 years ago
• In 2007, merged with the National Center for Smart
Growth Research and Education (NCSG)
• In 2011, established the Stormwater Financing and
Outreach Unit (SFOU)
• In 2012, Established an Agriculture Finance Unit

5. Our Work in Pennsylvania
Port of Philadelphia:
York, PA: Expanding Eastern Delaware
Emerging emissions
implementation of GI County: COG MS4 SW
reduction program (in
(working with American financing feasibility study
coordination with Clean
Rivers) (current) (2009)
Air Council) (ongoing)
PENNVEST: Assessment
of the feasibility of Schuylkill Action Network:
Template for financing
investing in GI (in Financing strategy for
SW in PA (2008)
coordination with PEC) priority programs (2007)
(2009)
Financing presentations:
Partnership for the Training for conservation
Villanova’s Annual SW
Delaware Estuary: district watershed
Conference, PA Land
Financing strategy for specialists (in
Trust Association, DE
capacity development, coordination with PA
River Basin Commission,
implementation (2006) DEP) (2005)
EPA Region 3

7. EFC Stormwater Projects

8. Traditional Approach to
Managing Stormwater
• Little to no maintenance
• Remove water as quickly as possible
• Repair and replace only when necessary
• Once built, out of sight, out of mind

9. New Approach to Stormwater
Management
• Treat stormwater like any other government service
• Slow water down; allow it to infiltrate on site
• Incorporate more Green Infrastructure into plans

10. Pennsylvania Stormwater Challenges
• Dealing with more aggressive enforcement from state
and federal pollutant discharge laws
• Trying to implement expensive practices with very
limited fiscal resources
• Dwindling state and federal resources available to
implement MS4 = costly unfunded mandate

11. Getting a Handle on the Problem
• Begin with a comprehensive analysis of your capacity to
manage and finance your stormwater program
• Develop a framework for effectively moving forward
• Provide officials with sustainable financing and
implementation strategies
• Identify all resources and technical services available to
your community
• Know your assets and manage them properly

12. Step 1: Cost Estimation
• Get an accurate estimation of costs associated with
managing your stormwater program
• Begin with your MCM’s and evaluate your level of
service
• Know what the fiscal, administrative, and political
capacity that is needed to get to the level of service you
desire

13. Step 2: Identify Key Tools and Resources
• What are the appropriate community taxes and fee-
based programs?
• What are the key regulations and laws?
• Identify all federal and state funding programs
• Coordinate with other community priorities and
programs.

14. The Differences between
Financing and Funding
FINANCING FUNDING
• Provides a revenue • Provides a revenue
• Often dedicated • Finite
• Sustainable • Volatile
• Can be invested • Unsustainable

15. Why Pay for Stormwater Now?
• Aging infrastructure in many communities
• Flooding issues
• Water pollution concerns
• Inadequate systems maintenance
• Water quality and quantity concerns
• Population growth
• Regulations
Pay now or pay twice as much later

16. Examples of Ways to Pay for Stormwater
• General Funds
• Revenue bonds
• Revolving loans
• Construction fees
• Tax allocation
• Impact fees
• Grants
• Stormwater Authority

17. Grants as a Revenue Source
• Grants will never fund entire program
• Good days may be over
• Good source for initiating a program
• Can help build momentum
• Can get technical assistance
• Helps develop educational and outreach program
• Helps to implement pilot projects
• Helps fosters support of community members

18. Develop a Stormwater Financing Strategy
• Make it comprehensive in scope
• Estimate annually but plan for the long term
• Consider Asset Management for stormwater
• Make program transparent and cost effective
• Engage public early and often

19. Taxes as a Revenue Source
• General Fund expenditures
• Can be great for building local capacity
• Has the best spending flexibility
• Less stable during tough times
• Competes with other services

20. Elements of a Comprehensive Stormwater
Program
1. Administration
2. GIS and other technology
3. Public Involvement/Outreach
4. Technical Support
5. Engineering and Planning
6. Operation and Maintenance
7. Capital Improvements
8. Regulation and Enforcement

21. Are you paying enough for stormwater
now?
• Prioritize spending both short term and long term
• Know your system above and below ground (it can’t just
be just in the Road Master’s head!)
• Coordinate responsibilities within your department for
managing stormwater
• Write everything down – records, accountability, and
written plans for everyone to follow
• Better tracking and reporting
• Engage organizations to help with MCM’s

22. Collaboration or Regionalization May be
Key to Success
• Create efficiencies
through partnerships
• Think beyond
municipal boundaries
• Explore innovative
technologies together
• Share resources and
combine local
priorities

23. Find and Create a Local Stormwater
Champion
• Elected officials need to be made into stormwater
superheroes
• Elected officials need to be armed with facts and be able
to answer tough questions

24. Learn from Others – The Good and Bad
Stormwater Utilities 2012
Case studies:
• Takoma Park, MD
• Rockville, MD
• Alexandria, VA
• Richmond, VA
• Lewes, DE
• Lynchburg, VA
• Washington, DC
Source: Western Kentucky University Stormwater Utility Survey
• Philadelphia, PA 2012; report surveys 1,314 stormwater utilities across 39 states
and DC
• Lancaster City, PA

25. Paying for Stormwater out of General
Funds – It may or may not be enough
• Consider that you just need a better understanding of
how to prioritize stormwater in your community
• Consider that you need to manage stormwater like you
do wastewater and drinking water
• Communicate regularly with elected officials about state
of stormwater in your community
• Know stormwater is a service you provide the
community - start to manage it that way

26. Define Level of Service, Gaps, and Costs
Where are you now and where do
you need to be in the future?
4 Levels
• Existing
• Essential
• Enhanced
• Optimal

27. Now that you know your Revenue needs…
• Develop a financing strategy and stormwater plan that
is comprehensive and one that can be shared and
followed by others
• Estimate annually but plan for the long term
• Address aging infrastructure before failure occurs
• Make costs transparent and cost effective
• Engage the public and elected officials

28. Components of a Good Financing Strategy
• Have a solid plan in place to educate and engage the
community – be diverse and inclusive
• Set your goals and objectives
• Gather as much data as you can
• Assess and prioritize your stormwater needs
• Know what’s already been done; what should be done;
and know where you need to be in 5-10 years down the
road – think long term
• Utilize existing resources
• Develop your stormwater goals and priorities

29. Get to Know Your Infrastructure
• What does your current system look like?
• What is the condition? When was it built and with what
material?
• When will it need to be replaced, repaired, Cleaned?
• Start with what you do know and work from there.

30. Don’t Panic about the Costs –
Start Planning Now
Year 10
Year 9 Year 1
Year 8 Total Exp
Year 7 e nditure Year 2
Year 6
Ye ar 5 $399,750 s $2,500 Year 3 EXPEND
Year 4 $399,750 ,455 $2
Year 2
Year 3 ,750 ,847,399 Ye ar 4 ITURES
Year 1 $399 ,750 $399 $2,298,0 Year 5
0 $399,750 ,456,3 82 84 $1,7
0 $399,75 ,456,382 $2 74,208 Year 6
$399,75 $2,456,382
$2
Original Year 7
Re venues $399,750 $2,456,382
$4,062,0
$399,750 $2,456,382 ,856,132 Recom 56 $2,9 Year 8
Re sidentia
l $399,750 $2,456,382 ,856,132 $2 me ndat 63,293
6,382 $2 ,856,132 $2 ion: $2,728,4 Year 9
es $2,45 6,382 $2,45 6,132 $2,856,132 13 $2,7 Year 10
Prope rti $2,456,382 6,132 $2,85 Re si de n Ye ar 1 48,192
Commercial
$2,456,382 6,132 $2,85 ti al Year 2 REVENU $2,766,5 ALL Ye ar
6,132 $2,85 ,947 Prope rt ES 34 $2,8 s
$2,85 6,132 $2,85 $108 ,241 $110 ie s Year 3 02,042
Properties $2,856,132 $105,601 $6 2,476 $399,750 $27,490,
nues 2 $103,02
5 Commer Year 4
Total Reve $100,51 $59,466
$60,952 ci al $399,750 676
$98,061 $58,0 15 $7,997 $399,750 Year 5
Expenditure
s $95,669 $56,600 $7,802 Properti Ye ar 6
$93,336 $55,220 $7,611 $7,055 es $2,456,3 $399,750
Costs $91,059 $53,873 $7,426 $6,883 Year 7
Personnel 38 $7,245 $6,715 $79,966 Total Re 82 $2,4 $399,750
ager $88,8 $52,559 $7,068 $6,551 56,382 Ye ar 8
SW Utility Man 26 $51,277 $6,895 $6,392 $76,1 13 $78,016 venues $2,456,3 $399,750
tive $50,0 $6,727 $6,236 $74,257 $10,376 Surplus $2,856,1 82 $2,4 $399,750 Year 9
Admi nistra $6,403
$6,563 $6,084 $72,445 $9,876
$10,123 (deficit) 32 $2,8 56,382 Year 10
Finance $5 ,935 $70,678 $9,635 $1 59,932 Reside n $355,677 56,132 $2,456,3 $399,750
,649 $5,790 $6 8,955 $9,40 0 ,226 $156,032 tial Flat $2,856,1 82 $2,4 ALL Year
rator $5 $67,273 $9,171 ,513 $152 9 $111,10
9 Rate, N $8,733 32 $2,8 56,382 $399,750 s
CAD Ope $65,632 $8,947 $148 08,39 on‐Resid 56,132
GIS $6 4,031 $8,72 9 ,357 $144,891 6 $1 05,755 $1 ential T $558,048 $2,856,1 $2,456,3 $399,750
$8,516 $137 ,909 $141 $100,66 0 $103,17 $5 5,555 Re si den Ye ar 1 iere d Sys $1,081,9 32 $2,8 82 $2,4
56,382 $3,997,5
Surve y $8,309 $134,546 $9 8,204 $52,878
$54,200 ti al Year 2 tem, Ye 24 ‐$1, 56,132 $2,456,3 00
$131,264 $95,809 $51,588 Prope rt ars 1 & 2 205,924 $2,856,1 82 $2,4
$128,062 $93,472 $68,213 Year 3 ‐$107,16 32 $2,8
Inspe ctor $91,193 $49,102
$50,330 $66,549 ie s $399,750 : 1 $127 56 56,382
ici an 1 $8
8,968 $47,905 $63,342
$64,926
$94,742
$97,110 C o mme
rcial $399,750 Ye ar 4 ,719 $1 ,132 $2,856,132 $24,563,
820
Ut ility Techn $45,596
$46,736 $61,7 97 $92,431 Year 5** 07,940 $2,856,1
me nt $44,484 $60,290 $9 0,176 6 Prope rtie $399,750 Ye ar 6 $89,598 32 $28,
Motor Equip 85 $58,820 $87,977 51,938 $7
70,73 s $279,300 $399,750 561,320
Operator $55,985
$57,3 38 $85,831 $733,598
$7
$439,725 Year 7 $54,090
20 $83,7 $715,705 Total Re $279,300 Year 8** $1,070,6
ager $54,6 $81,695 $698,249 venues $2,456,3 $439,725 44
Project Man $79,703 $681,219 $679,050 Year 9
$1,770,833 Su rplus (def
59 82 $2,4
ee r $77,7 $664,603 $439,725
Proje ct Engin $632,579
$648,394
$1,770,833
$1,770,833 Re
90,537 side ntial
icit) ‐$1, $679,050 56,382
$2,702,0 $479,700 Year 10
nnel $617,150 0,833 $1 821,405 $2,856,1 ALL Ye ar
Total Perso nd inspection 0,000 $1,77 $185,889 Flat Rat ‐$2,168, 32 $2,8 20 $2,7 $479,700 s
nstallation
, a 00 $2,05 $181,355 $1,561 e, Non‐ 349 $5 56,132 02,020
Costs quipment, i 0 $3,160,0 $176,932 $0 Re siden 58,048 $2,702,0 $479,700
‐ includes e 00 $885,00 $172,617 $0 $624 e si tial Flat $3,141,7 20 $2,9 $439,725
provements 00 $1,450,0 $168,407 $1,450 R de n Year 1 Rate (ap $1,081,9 45 $3,1 47,658
Capital Im 00 $2,020,0 $164,299 $0 $0 ti al 24 ‐$92 41,745 $2,947,6
CIP Co sts $1,060,0 56,382 $160,292 $0 $580
$0
$9,747
$0
Prope rt Ye ar 2 artme n
ts calcu 0,311 $3,141,7 58 $2,9
52,568 $1 $1,346 $0 $0 $0 ie s Year 3 late d sa $178,452 45 $3,4 47,658
Facili ty $1 $0
$0
$538
$0 $0 $2,437 Comme $523,150 Ye ar 4 me as c $413,332 27,358 $2,702,0
$1,250 $0 $0 $0 rcial $523,150 ommerc $3,427,3 20
Came ra $0 $0 $8,831 $0 Year 5** ial), Ye ar $679,166 58 $3,4
$500 $0 $0 Prope rt
$762 $399,750 Year 6 s 1 & 2: $660,824 27,358
Pr oje ctor $0 $0 $2,208 $743 ie s $399,750 $26,777,
$8,000 $0 $725 ‐‐ Year 7 $625,316 673
Laptop $0 $707 Total Re ‐‐ $439,725 Year 8** ‐$713,00
$2,000 $673
$690 $1,561 ve nue s $2,456,3 $439,725 3
De sktop $1,523 Su $523,150 82 $2,4 Ye ar 9
$175rplus (def icit
$657 $1,486 $439,725
25 $641 $1,450 $171 Re side ) ‐$1,97 $523,150 56,382 $479,700 Year 10
IS, $5,347 $6 $1,414 $0 ntial Fla $2,702,0 ALL Ye ar
Software (G $1,38 0 $162
$166
$0 t Rate, N
7,305 ‐$
2,324,24
$2,856,1
32 $2,8 20 $2,7 $479,700 s
e, Adobe) $1,346 $158 $0 on‐Re si 9 $558 56,132 02,020 $479,700
Office Suit $1,313 $155 $0 $2,186 de ntial $3,141,7 $2,702,0
,250 $1,281 $151 $0 $0
Re si de n Flat Rat ,048 $1 20 $2,9 $439,725
$0 Year 1 45 $3,1
Tools $1 $144
$147
$0
$0
$0 $2,029 $0
$0
ti al Ye ar 2 e (apartm ,081,924 ‐$92 41,745 47,658
$2,947,6
$140 $0 ents cal 0,311 $3,141,7
$0 Prope rtie s
$0 $0 $0 58 $2,9
Uniform $0 $1,885 $0
$0 Year 3 culated $178,452 45 $3,4 47,658
65,000 $0 will b $630,050 per unit 27,358
Trucks $5 $0
$0
$0
$0 $0 l costs that
dditionaCommerci al $630,050 Year 4 ), Ye ars $413,332 $3,427,3 $2,702,0
20
$0
$1,750 $0 $0 represent a Year 5** 1 & 2: $679,166 58 $3,4
Ce ll phone $0 $0 ted; howev
er, they Prope rt $399,750 Year 6 $660,824 27,358
5,000 ma ie s 38 $26,465,
Joh n boat $1 $0
$0
ou ld not be esti 8,2 ‐‐ $399,750 Ye ar 7 $625,316 873
$20,000 d W IP activities c 4,566 $1 Tota,96 e
,971,343 $1 l R $439,725 ‐$1,024,
Ve hicle with GI an 4,143 $1,95 ve nue s ‐‐ $439,725 Year 8** 803
associated 4,879 $1,95 $630,050 $2,456,3 Ye ar 9
me nts Costs 1,652 $2,22
Surplus 82 $2,4 $439,725
GI Improve 5,222 $3,34 (deficit) $630,050 56,382 Year 10
P Acti vities 2,393 $1,05 2,480 ‐$1,870, $2,856,1 $2,702,0 $479,700 ALL Ye ar
WI
$2,178,432
$1,61
$21,931
$2 405 ‐$2, 32 $2,8 20 $2,7 $479,700 s
al
Total Capit $1,832,805 $21,396 217,349 56,132 02,020 $479,700
ents $20,874 $9,991 $558,048 $3,141,7 $2,702,0
Improvem $20,365 $9,747 $1,081,9 45 $3,1 20 $2,9 $439,725
ance 84 $19,869 $9,509 $2 ,498 24 ‐$92 41,745 47,658
& Mainten $19,3 $9,278 $2,437 $2,947,6
Operations $18,911 $9,051 $2,377 0,311 $3,141,7 58 $2,9
Ve hicle $18,000 $18,450 $8,831 $2,319 $178,452 45 $3,4 47,658
$8,615 $2,263 $413,332 27,358 $2,702,0
$8,405 $2,208 $9,366 $3,427,3
ma intenance $8,200 $2,15 4 $9,138 $679,166 58 $3,4 20
ce $8,00
0 $2,101 8 $8,915 27,358
Boat maint
enan
0 $2,050 $8,486
$8,69 $660,824 $26,679,
$2,00 $8,279 $625,316 673
Te sti ng m ate rials $8,077 $18,7 33
$7,880 $0 ‐$811,00
lve me nt $7,688 $17,830 3
Publi c invo ,50 0 $1 7,395 that will b
lated $7 $0 ional costs
program‐re $0 esent addit
costs $16,153 er, they repr
$0 ted; howev
Traini ng fu
nd $15,000 $0
ould no t be estima
IP activities c $63,068
staff ith GI and W $43,253
avail able to sociated w $60,029
ents Costs as $58,565 $2,802,042
$40,165 $2,766,534
GI Improvem $3 9,185
$2,748,192
s $54,383 $2,728,413 $54,090
WIP Activitie $37,297 $2,963,293 ,940 $89,5
98
ions & $50,500 $36,388 $4,062,056 ,719 $107
Total Ope rat $1,774,208 ,161 $127
Maintenan
ce
,847,399 $2,298,084 ‐$1,20 5,924 ‐$107
,500,455 $2 $1,081,924
nditures $2 $558,048
Total Expe 7 $8,733
) $355,67
Su rplus (deficit

31. Sample Budget
Cost Comments
Revenues
Total Revenues $461,846
Expenditures
Personnel Costs
Cleaning (inlets, ditches, drains) staff $90,000 2 FTE @ $30,000 plus $15,000 fringe benefits
Comprehensive trash collection staff $0 No staff needed, will utilize volunteers and electric company
Green Infrastructure Plan staff $0 No staff needed
IDD&E staff $0 No staff needed
Public outreach & education staff $0 No staff needed, will utilize NGO's and volunteer groups
GIS management intern $0 Will utilize current staff and 1 intern
Total Personnel Costs $90,000
Capital Improvements ‐ includes design, equipment, and installation
Engineering study indicates that Area 2 and 3 should be completed first; will take 12 months to
Area 2 and 3 upgrades $1,414,199 design Area 2 and 18 months for Area 3; both are estimated to take 3 months of construction
work; cost includes design and planning and 30% contingency
Funds will be set aside each year towards the purchase of a new truck at the end of a 10 year
WWTP Truck $30,000
period; calculated at 10% of $300,000 truck purchase price
Total Capital Improvements $1,444,199
Operations & Maintenance
Cleaning (inlets, ditches, drains) $5,000 Gas, insurance, routine maintenance of existing WWTP truck
Comprehensive trash collection $500 Promotional materials for waste collection events
Green Infrastructure Plan $100,000 BMP erosion control measures (includes design services)
IDD&E $3,000 Equipment and analysis expenses
General Fund budgets $10,000 for environmental projects. These funds will be put toward
Public outreach & education $10,000
outreach and education as needed.
Redevelopment projects $45,000 Annual operating expenses
Total Operations & Maintenance $163,500
Total Expenditures $1,697,699

32. Evaluate Fiscal Need but Remember to
Engage the Community
• Stormwater Work
Groups
• Public Meetings
• Messaging
• Outreach Events

33. Get Feedback via Public Meetings

34. Spread the Word about Stormwater
Financing

35. Educate and Inform the Public –
Develop a Marketing Campaign

36. Communities will “Buy In” to
Managing and Paying for Stormwater

37. Take Away Points
• Change public perception of stormwater
• Have regular communication with public
• Have a well thought out plan for public buy-in
• Understand your current stormwater system
• Talk to one another – consider collaboration
• Engage partners to help – strength in numbers
• Find or create your stormwater champions

38. Key points to building a successful
program
• Build an optimal program for your community
• Prioritize projects and bundle community priorities
together
• Involve many sectors of your community
• Base your stormwater, however it gets funded, on real
estimates
• Look to other communities for examples but make a
program reflect your community
• Resolve obstacles, don’t ignore them

39. Thank You!
Joanne Throwe
University of Maryland
Environmental Finance Center
www.efc.umd.edu
jthrowe@umd.edu
301-405-5036