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NJ Redevelopment Forum 2020 - Giannikopoulos

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Eleni Giannikopoulos presentation.

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NJ Redevelopment Forum 2020 - Giannikopoulos

  1. 1. Fun Fact  There are over 1,700 Stormwater Utilities operating in 40 states and DC.  The smallest Stormwater Utility serves a population of 88 people and the largest is the city of Los Angeles, serving over 3 million people. Western Kentucky University Stormwater Utility Survey 2019 Stormwater Utilities in the US
  2. 2.  New Department, Operation of Existing Department or Departments.  Service Contract with Participants.  Shared Services Agreement. Municipality remains responsible for Stormwater Permit Compliance  Governing Body of one or more municipalities or county pass ordinance(s) to establish Stormwater Utility or to request that Sewerage Authority create a Stormwater Utility.  Send Adopted Resolution or Ordinance(s) and Service Agreements or Shared Service Agreements to DCA/DLGS and NJDEP. Mechanics of a Stormwater Utility Creation 2
  3. 3. What will your SWU Provide ?  Capital Expenditures, including planning, design, engineering, acquisition, construction, and improvement of a stormwater management system;  Operation and maintenance expenditures;  Development and implementation of an asset management program;  Development and implementation of a stormwater management plan and stormwater control ordinances; 3
  4. 4. What will your SWU Provide ?  Actions required by NJPDES Permit;  Development and implementation of any long-term control plan to mitigate CSOs;  Monitoring, inspection, and enforcement activities;  Public education and outreach;  Other purposes related to stormwater  Provides a Dedicated Funding Source with the Ability to Contract with others for expenditures related to Stormwater Management. 4
  5. 5.  Public/Public Partnership Regional MUAs with Counties / Municipalities or Municipal to Municipal Interlocal Agreements  Mapping assistance  Flow meters  Licensed personnel  Jet vac/CCTV/street sweeping trucks and other equipment  Stormwater cleaning/inspection services  Easement Maintenance  Education and Outreach  Public/Private Partnership Municipalities able to better Financially Support Redevelopment (as applicable)  Allocation of Costs  Low Interest Financing Programs  Creation of Ratables Stormwater Utility Partnerships 5
  6. 6. Utility  No hard hats required, typically minimal staffing outside of bookkeeping.  Many municipalities have beach, pool, water or sewer utilities.  Budget line item.  If the utility is self-liquidating there are additional benefits in financing. Utilities Authority  County or municipal level.  Created under the Municipal and County Utilities Authorities Law, N.J.S.A. 40:14B- 1 et seq.  Often includes a subsidy or service agreement with one or more municipalities.  Can issue revenue-backed debt. Utility vs. Utilities Authority 6
  7. 7.  A Method for Municipalities to Recapture Costs for Obligations that Currently Exist User Fee NOT a Tax Tax: A charge usually of money imposed by authority on persons or property for public purposes. User Fee: An excise tax often in the form of a license or supplemental charge levied to fund a public service.  Stormwater Context – User Fee and Service provided is control of stormwater runoff per user are of impervious area.  Property lien could be a result of failure to pay Fees or Taxes! User Fee vs. Tax 7
  8. 8. OPTIONS: I. EQUIVALENT RESIDENTIAL UNIT(ERU) – (Most Popular) -52% II. TIERED USER FEE STRUCTURE – (ERU) – 16% III. FLAT FEE– Annual Fixed Costs – 15% IV. RESIDENTAL EQUIVALENT FACTOR – 9% V. DUAL FEE SYSTEM – 7% How to Establish a Fee 8
  9. 9. Q: How does one assign a “fair and equitable approximation of the proportionate contribution of stormwater runoff from any property”? a. Equivalent Residential Unit (ERU) b. Residential Equivalent Factor (REF) c. Fixed Rate by Zoning Designation d. Fixed Rate for Residential & Non-Residential Properties e. (a) and (d) How to Establish a Fee 9
  10. 10. Non-Residential Impervious Area (30,000 sq. ft.) Residential Median Impervious Area (2,902 sq. ft.) Example: Commercial Complex with 730,000 SF impervious ERU established for 2,902 SF impervious at $5/month/ERU Office monthly = (730,000/2,902) x 5 = $1,258/month An Equivalent Residential Unit (ERU) is usually the average impervious area on a single-family residential parcel, although some communities define it as the average of all residential parcels. This is the most widely used method. Fee = ERU x Rate ($ per ERI per month) How is the Fee Calculated? 10
  11. 11. Western Kentucky University Stormwater Utility Survey 2019 SWU STATISTICS  Monthly Fees Range from  $1 - $250 per month  Average monthly family residential fee:  2013 - $4.57  2019 - $5.85  Median fee:  2013 - $3.75  2019 - $4.75 Stormwater Utilities in the US SWU are reflecting consumer price index (CPI) increase. 11
  12. 12. 12  CREDITS OFFERED can influence stormwater management practices on property that was not otherwise subject to zoning or building code requirements (i.e., existing development not planned for renovation). They therefore can be a critical tool for highly-developed municipalities to spur change on private property.  Green infrastructure incentives can be incorporated into processes and plans such as street design standards governing road construction. Stormwater Utility Credits – (GREEN) 12
  13. 13. CREDITS/ EXEMPTIONS 13 1. Partial Fee Reduction in the form of a credit for any property that maintains and operates a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved and that effectively reduces, retains or treats stormwater onsite.
  14. 14. CREDITS/ EXEMPTIONS 14 2. An additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining current stormwater best management practices that reduce, retain or treat stormwater onsite and which are approved by the county, municipality or authority.
  15. 15. CREDITS/ EXEMPTIONS 15 3. An additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining GREEN INFRASTUCTURE that reduce, retain or treat stormwater onsite and which exceeds any requirements for green infrastructure that may be applicable to that property under any rule or regulation adopted by the NJDEP or the local stormwater control ordinance Swales Rain Gardens Permeable Paving Passive Irrigation Green Roof
  16. 16. CREDITS/ EXEMPTIONS 16 4. Land actively devoted to agriculture or horticulture would be exempt from any fee or other charge
  17. 17. 17 Protects, restores or mimics the natural water cycle; it is effective, economical and manages stormwater volumes at the source!  Swales  Rain Gardens  Permeable Paving  Passive Irrigation  Green Roof Stormwater Management Possible Credits – (GREEN) 17
  18. 18.  Acquire by gift, grant, purchase, condemnation, dedication.  If payment is required for assuming ownership, cannot exceed the costs attributable to ownership, operation, or maintenance of that system.  Private owners may retain ownership and responsibility. Access and Control 18
  19. 19. • NJ has 21 Urban Municipalities that Have Combined Sewer Systems. • Ridgefield Park • Fort Lee • Hackensack • Camden • Gloucester City • Elizabeth • Perth Amboy • North Bergen • Guttenberg • West New York • Hoboken • Union City • Weehawken • Bayonne • Paterson • Jersey City • Newark • Harrison • North Bergen • Kearny • Trenton New Jersey Edition 19
  20. 20. 20 FINANCING OPTIONS $$ Stormwater Management 20
  21. 21. ...currently municipalities cover the following stormwater related costs through property taxes...  MS4 Permit Requirements Pursuant to NJ Pollutant Discharge Elimination System (NJPDES) +/- $300,000/yr  Operation and maintenance expenditures +/- $350,000/yr.  Capital expenditures / Debt Service +/- $500,000/yr. Cost Considerations When Forming a Utility 21
  22. 22. ...what about PILOT and Tax Exempt Properties? ... How would these properties contribute in a “fair and equitable approximation of the proportionate contribution to stormwater runoff”? Cost Considerations When Forming a Utility 22
  23. 23. Costs that will not be recovered until Stormwater Utility is formed...  Establishing of a Rate Structure +/- $100,000  Development/Implementation of an Asset Management Plan +/- $100,000  Stormwater Control Ordinances +/- $25,000 Concept –> PublicOutreach-> Feasibility Studies –> PublicOutreach-> PublicOutreach-> Rate Structure -> PublicOutreach-> Forming Utility -> PublicOutreach = Revenue Cost Considerations When Forming a Utility 23
  24. 24. Eligible projects  Stormwater runoff controls  Treatment systems  Stormwater detention and Conveyance  Green Infrastructure Stormwater Management 24
  25. 25. Water Quality Improvement  Wastewater Infrastructure  Stormwater Management  Site Remediation  Equipment Purchases  Planning Califon Storm Water Improvements North Wildwood Sewer, Storm and Street Restoration Hoboken City Green Infrastructure Passaic Valley Sewerage Commission Electrical Substation Camden County MUA Phoenix Park Clean Water – Eligible Projects – NJIB/NJDEP 25
  26. 26. Principal Forgiveness Principal Forgiveness Cap Zero- Interest I-Bank Market Rate Asset Management – Small Systems < 10K 100% $100K 0% 0% Costal Community Water Quality Restoration 50% $2.5M 25% 25% CSO-Green 50% $3M 25% 25% Barnegat Bay 50% $2M 25% 25% Base Funding 0% 50% 50% CSO Abatement * 50% $1M 25% 25% Conduit Redevelopment 0% 25% 75% * Costs in excess of $10 million will receive Base Funding Clean Water Funding Packages – SFY 2020 26
  27. 27. 27 * CSO Principal Forgiveness funds dedicated to Grey/Green Infrastructure project components Clean Water Funding Packages – SFY 2021 Principal Forgiveness Principal Forgiveness Cap Zero- Interest I-Bank Market Rate Asset Management – Small Systems < 10k 100% 100K 0% 0% Water Quality Restoration $0 - $4M 50% $2M 25% 25% $4m-$10M 0% 75% 25% >$10M 0% 50% 50% CSO – Abatement and Grey/Green Infrastructur e $0 - $4M* 50% $2M 25% 25% $4m-$10M 0% 75% 25% >$10M 0% 50% 50% Conduit Redevelopment 0% 25% 75%

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