Understanding, Managing and Paying for Stormwater in Pennsylvania

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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.

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Understanding, Managing and Paying for Stormwater in Pennsylvania

  1. 1. Understanding, Managing, and Paying for Stormwater in Pennsylvania Joanne Throwe Environmental Finance Center University of Maryland York, PA September 21, 2012
  2. 2. Environmental Finance Centers
  3. 3. The Environmental Finance Center locatedat 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. 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. 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
  6. 6. EFC Stormwater Projects
  7. 7. 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
  8. 8. New Approach to StormwaterManagement• Treat stormwater like any other government service• Slow water down; allow it to infiltrate on site• Incorporate more Green Infrastructure into plans
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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.
  13. 13. The Differences between Financing and Funding FINANCING FUNDING• Provides a revenue • Provides a revenue• Often dedicated • Finite• Sustainable • Volatile• Can be invested • Unsustainable
  14. 14. 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
  15. 15. Examples of Ways to Pay for Stormwater• General Funds• Revenue bonds• Revolving loans• Construction fees• Tax allocation• Impact fees• Grants• Stormwater Authority
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. Elements of a Comprehensive Stormwater Program1. Administration2. GIS and other technology3. Public Involvement/Outreach4. Technical Support5. Engineering and Planning6. Operation and Maintenance7. Capital Improvements8. Regulation and Enforcement
  20. 20. Are you paying enough for stormwaternow?• 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
  21. 21. Collaboration or Regionalization May beKey to Success • Create efficiencies through partnerships • Think beyond municipal boundaries • Explore innovative technologies together • Share resources and combine local priorities
  22. 22. 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
  23. 23. 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
  24. 24. Paying for Stormwater out of GeneralFunds – 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
  25. 25. Define Level of Service, Gaps, and CostsWhere are you now and where doyou need to be in the future? 4 Levels • Existing • Essential • Enhanced • Optimal
  26. 26. 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
  27. 27. 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
  28. 28. 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.
  29. 29. 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
  30. 30. Sample Budget Cost CommentsRevenues Total Revenues $461,846ExpendituresPersonnel CostsCleaning (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 companyGreen Infrastructure Plan staff $0 No staff needed IDD&E staff $0 No staff neededPublic outreach & education staff $0 No staff needed, will utilize NGOs and volunteer groupsGIS management intern $0 Will utilize current staff and 1 intern Total Personnel Costs $90,000Capital 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  $1,444,199Operations & Maintenance Cleaning (inlets, ditches, drains)  $5,000 Gas, insurance, routine maintenance of existing WWTP truckComprehensive trash collection  $500 Promotional materials for waste collection eventsGreen 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
  31. 31. Evaluate Fiscal Need but Remember toEngage the Community • Stormwater Work Groups • Public Meetings • Messaging • Outreach Events
  32. 32. Get Feedback via Public Meetings
  33. 33. Spread the Word about StormwaterFinancing
  34. 34. Educate and Inform the Public –Develop a Marketing Campaign
  35. 35. Communities will “Buy In” toManaging and Paying for Stormwater
  36. 36. 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
  37. 37. 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
  38. 38. Thank You!Joanne ThroweUniversity of MarylandEnvironmental Finance Centerwww.efc.umd.edujthrowe@umd.edu301-405-5036

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