Options for Funding Stormwater
System Improvements
Tennessee Funding Options for
NPDES Phase I & Phase II
Designated MS4’s
STORMWATER
MANAGEMENT:
With Stormwater Management
there are two critical issues:
WATER QUANTITY
&
WATER QUALITY
Stormwater Management
The original concern,
and hence, the major
design consideration
of stormwater
management was to
remove water ASAP,
water quality was not
a consideration.
Storm Water Management
And here!
EPA’s
National Pollutant Discharge Elimination System
(NPDES) Phase II Program
6 MINIMUM CONTROLS
1.
2.
3.
4.
5.
6.
PUBLIC EDUCATION & OUTREACH
PUBLIC PARTICIPATION
ILLICIT DISCHARGE DETECTION AND
ELIMINATION
CONSTRUCTION SITE RUNOFF
POST CONSTRUCTION RUNOFF
POLLUTION PREVENTION & GOOD
HOUSEKEEPING
However, stormwater…
Can Still Lead to…
Drainage Failure…
Drainage Failure…
Drainage Failure…
Drainage Failure…
Funding Options
Your City is a designated MS4. Your Mayor signed
an NOI. So, basically, your city has contracted with
the State to implement an approved program.
How will you fund your City’s program?
Funding Options
Some of the possibilities:
1. Do nothing.
2. Use Grants and Loans.
3. Fund the program with existing General Fund
dollars.
4. Dedicate a property tax increase to your program
and fund from General Fund.
5. Let development fund your program.
6. Make your program user funded; set up a
Stormwater Utility.
Let’s discuss these possibilities…
1. Do Nothing
1.Do nothing.
“O.K., we got our permit, do what you can on the
program without spending any money. After all, I
don’t think they’ll really do anything. We’ll wait
and see before we spend a bunch of money.”
While this approach appears to be economical on
the face of it, let’s look at how the State may
respond:
1.Do nothing.
Your City has basically signed a contract with the
State, committing to accomplish certain program
elements in accordance with agreed milestones.
By failing to adequately fund the program, these
milestones are not achieved. Possible State
response:
These regulations are mandated by the
Environmental Protection Agency (EPA) and the
Tennessee Department of Environment and
Conservation (TDEC).
1. Do nothing.
Penalties for non-compliance with the regulations
could be as harsh as $10,000 per day in civil penalties.
A TDEC Director’s Order could also result in spot
fines of $1,000 or $2,000 for non-compliance and an
order to complete the program anyway.
Stormwater permit applications for new development
in an MS4 that is non-compliant can be held without
approval until the program is judged to be in
compliance; EFFECTIVELY PLACING A
MORITORIUM ON DEVELOPMENT.
Current Enforcement Climate
The following notes and table of
enforcement actions might be
enlightening for others in your
organization and/or your elected
officials.
For questions about specific case number,
such as the identity, violation details,
etc., contact TDEC.
Current Enforcement Climate
Mr. Mark McAdoo TDEC-Water Pollution Control sent the following to me:
Between November 1992 and April 2005, TDEC-WPC issued, at least, 670
formal enforcement actions that had either a construction and/or a stormwater
component. The civil penalties associated with these enforcement actions are
over 8 million dollars.
However, you should be aware that TDEC-WPC was not consistently using the
Enforcement Tracking Database until the year 1998. Therefore, you may want to
sift through the attached spreadsheet from the Enforcement Tracking Database
and re-calculate more representative numbers starting in 1998.
The statutory maximum for civil penalties is $10,000 per day per violation and we
have used the maximum calculation in some cases. A couple of the larger
enforcement actions were 1) TDOT & Vaughn Contractors, Inc. for $800,000 and
2) Chattanooga - MS4 Program for $635,500.
Mark told me that this year, TDEC is mainly:
Looking for programs to have their stormwater ordinances implemented.
Conducting on-site file audits to verify documentation for the information
supplied by MS4’s in their annual reports.
Conducting field inspections for construction permit violations and illicit
discharges.
All other aspects of the program, of course, are still actively being monitored.
The following is a spreadsheet reflecting the enforcement data referenced above:
Case Number
Order Type
Civil Penalty
Date Issued
Violation Type
05-003D
Director's Order
$9,150.00
21-Apr-05
ARAP
05-008D
Director's Order
$10,500.00
21-Apr-05
NPDES Stormwater
04-044D
Director's Order
$15,000.00
31-Mar-05
NPDES Stormwater
05-0038
Commissioner's
Order
$159,500.00
18-Mar-05
Multiple
05-010D
Director's Order
$12,150.00
11-Mar-05
ARAP
05-004D
Director's Order
$10,500.00
03-Mar-05
ARAP
04-015a
Formal Complaint
24-Jan-05
NPDES Stormwater
04-014a
Formal Complaint
06-Jan-05
ARAP
04-013a
Formal Complaint
06-Jan-05
NPDES Stormwater
04-019D
Director's Order
$11,500.00
29-Dec-04
NPDES Stormwater
04-042D
Director's Order
$10,500.00
16-Dec-04
ARAP
04-030D
Director's Order
$7,125.00
16-Dec-04
NPDES Stormwater
04-011a
Formal Complaint
09-Dec-04
NPDES Stormwater
04-051D
Director's Order
23-Nov-04
NPDES Stormwater
$3,000.00
04-010a
Formal Complaint
18-Nov-04
Multiple
04-038D
Director's Order
$2,600.00
02-Nov-04
ARAP
04-0302
Consent Order
$20,000.00
18-Oct-04
NPDES Stormwater
04-039D
Director's Order
$3,150.00
14-Oct-04
ARAP
04-0218
$78,000.00
05-Oct-04
NPDES Stormwater
04-027D
Commissioner's
Order
Director's Order
$5,000.00
22-Sep-04
ARAP
03-0215
Agreed Order
$11,000.00
21-Sep-04
Multiple
04-026D
Director's Order
$12,500.00
08-Sep-04
NPDES Stormwater, ARAP
04-007a
Formal Complaint
02-Sep-04
ARAP
04-032D
Director's Order
$15,000.00
31-Aug-04
Multiple
03-0061
Agreed Order
$4,750.00
21-Jul-04
NPDES Stormwater
04-0114
$114,500.00
06-Jul-04
NPDES Stormwater
03-0709
Commissioner's
Order
Agreed Order
$5,000.00
02-Jul-04
Multiple
03-0555
Agreed Order
$11,000.00
22-Jun-04
ARAP
03-0757
Agreed Order
$1,125.00
22-Jun-04
NPDES Stormwater
04-022D
Director's Order
$15,000.00
22-Jun-04
NPDES Stormwater
04-018
Director's Order
$1,650.00
16-Jun-04
ARAP
04-018D
Director's Order
$1,650.00
16-Jun-04
ARAP
04-0138
$71,000.00
14-Jun-04
NPDES Stormwater
04-021D
Commissioner's
Order
Director's Order
$3,000.00
14-Jun-04
NPDES Stormwater
04-023D
Director's Order
$1,000.00
14-Jun-04
NPDES Stormwater
04-020D
Director's Order
$15,000.00
12-Jun-04
ARAP
03-0218
Agreed Order
$3,750.00
03-Jun-04
ARAP
04-005D
Director's Order
$15,000.00
01-Jun-04
Multiple
03-087D
Director's Order
$4,500.00
01-Jun-04
NPDES Stormwater
04-011D
Director's Order
$3,050.00
24-May-04
ARAP
03-102D
Director's Order
$15,000.00
24-May-04
Multiple
03-0756
Agreed Order
$11,000.00
18-May-04
NPDES Stormwater
03-0800
Agreed Order
$2,300.00
18-May-04
NPDES Stormwater
04-002D
Director's Order
$12,000.00
17-May-04
Multiple
03-101D
Director's Order
$3,150.00
07-May-04
ARAP
03-0057
Agreed Order
$10,000.00
20-Apr-04
ARAP
03-0168
Agreed Order
$2,500.00
20-Apr-04
NPDES Stormwater
04-003a
Formal Complaint
15-Apr-04
Multiple
04-005a
Formal Complaint
07-Apr-04
ARAP
04-002a
Formal Complaint
07-Apr-04
Multiple
03-106D
Director's Order
06-Apr-04
ARAP
04-001a
Formal Complaint
06-Apr-04
Multiple
03-103D
Director's Order
$3,500.00
30-Mar-04
ARAP
03-0798
Commissioner's
Order
$104,000.00
18-Mar-04
Multiple
03094D
Director's Order
$7,500.00
17-Mar-04
Multiple
$12,000.00
03-0798
$104,000.00
18-Mar-04
Multiple
03094D
Commissioner's
Order
Director's Order
$7,500.00
17-Mar-04
Multiple
03-094D
Director's Order
$7,500.00
17-Mar-04
Multiple
02-0720
Consent Order
$800,000.00
10-Mar-04
NPDES Stormwater
03-0533
$178,271.00
02-Mar-04
Multiple
03-0534
Commissioner's
Order
Agreed Order
$7,375.00
13-Feb-04
Multiple
03-097D
Director's Order
$15,000.00
05-Feb-04
Multiple
03-092D
Director's Order
$15,000.00
29-Jan-04
ARAP
02-0651
Agreed Order
$400.00
20-Jan-04
ARAP
03-0217
Agreed Order
$3,150.00
20-Jan-04
ARAP
03-091D
Director's Order
$7,650.00
16-Jan-04
ARAP
03-093D
Director's Order
$3,000.00
31-Dec-03
NPDES Stormwater
03-0492
Agreed Order
$3,200.00
23-Oct-03
Multiple
03-081D
Director's Order
$15,000.00
15-Oct-03
NPDES Stormwater
03-079D
Director's Order
$6,000.00
13-Oct-03
NPDES Stormwater
03-090D
Director's Order
$12,000.00
13-Oct-03
NPDES Stormwater
03-095D
Director's Order
$7,500.00
08-Oct-03
NPDES Stormwater
03-0062
Agreed Order
$2,000.00
25-Sep-03
Multiple
03-086D
Director's Order
$12,000.00
05-Sep-03
Multiple
03-085D
Director's Order
$4,500.00
05-Sep-03
NPDES Stormwater
02-0017
Agreed Order
$6,200.00
27-Aug-03
ARAP
03-005a
Formal Complaint
27-Aug-03
ARAP
1. Do nothing.
The field offices have been told that as this is now
the 4th year of the permit, hand-holding time is over.
The field offices have been directed to assume the
regulator role, rather than the helper role. Fines and
penalties are to be levied! AND REMEMBER:
Stormwater permit applications for new development
in an MS4 that is non-compliant can be held without
approval until the program is judged to be in
compliance; EFFECTIVELY PLACING A
MORITORIUM ON DEVELOPMENT.
1. Do nothing.
A new development this year, TDEC has received
approval to add 29 new field positions.
The understanding is that all of these positions are to
be enforcement personnel, and that Stormwater is
priority number one.
2. Grants and Loans
Grant- 319 (h) Non Point Source
The Tennessee Department of Agriculture
Nonpoint Source Program, TDA-NPS, can assist
with grants provided under section 319(h) of the
Clean Water Act.
Who Can Apply?
Local governments, interstate and intrastate
agencies, public and private nonprofit
organizations and institutions, and agencies of
state government are eligible to apply.
Grant- 319 (h) Non Point Source
TDA-NPS Priorities
The highest priority for funding are projects that
target waters of the state assessed as impaired from
nonpoint source (NPS) pollution and published in
the 303(d) List by the Tennessee Department of
Environment and Conservation
(http://www.state.tn.us/environment/wpc/publications/).
Grant- 319 (h) Non Point Source
The project’s objective should be to identify the
specific sources of NPS pollution and seek to
eliminate them so that the water fully supports its
designated uses. Preference is given to projects
targeting small watersheds, where measurable
water quality improvements are most likely after
the project is completed.
A high priority will be placed on projects aimed at
developing a watershed restoration plan for a
given watershed.
Grant- 319 (h) Non Point Source
The expectation would be that once
developed,the plan would be implemented
in a subsequent project. Beginning in FY
2005, no watershed restoration project can
be funded with 319 money unless it is based
on a watershed plan developed for that
particular watershed.
Grant- 319 (h) Non Point Source
NPS education is also a priority of the program
and all proposals are encouraged to have an
educational component. Educational projects that
seek to increase the awareness of the citizens of
Tennessee about the sources of NPS will be
considered.
Grant- 319 (h) Non Point Source
Projects that involve training programs
targeted at a specific group that have as a
goal to raise the level of expertise about
NPS solutions, or to affect management
decisions to reduce NPS impacts will be
considered.
Grant- 319 (h) Non Point Source
The Town of Jonesborough was funded by 319
for a Watershed Restoration Project in their
town.
In their plan they installed retention ponds and
developed wetlands to reduce sediment and
nutrient runoff.
Grant- 319 (h) Non Point Source
TDA, Nonpoint Source Program
Holeman Bldg.
Ellington Agricultural Center
440 Hogan Road
Nashville, TN 37220
The email address is:
Carole.Swann@state.tn.us
sam.marshall@state.tn.us
If help is needed, or there are questions, please call
Carole Swann at (615) 837-5489
Sam Marshall at 615-837-5306 or
by fax at 615-837-5025.
Stormwater Revenue Bonds
Municipalities are authorized to issue both revenue bonds (and
presumably general obligation bonds) under the Stormwater
Management Act [See Tennessee Code Annotated, § 68-221-1108],
which expressly gives municipalities the authority to issue bonds for
stormwater facilities under Tennessee Code Annotated, title 9, chapter
21. [Even in the absence of the former statute, municipalities would
still have the authority to issue both revenue and general obligation
bonds for stormwater facilities under the latter statute]. The same Act
also provides that municipalities are authorized to pay for such facilities
by using the procedures contained in Tennessee Code Annotated, §§
68-221-208 and 68-221-209. Those statutes respectively authorize
municipalities to establish and collect sewer user fees, and to require
the owners or tenants of property to connect to the public sewers.
Presumably, such charges would support the payment of revenue
bonds.
State Revolving Loan Fund
State Revolving Loan Fund (SRF) Money is
available for designated MS4’s for stormwater
program:




Planning
Mapping
Construction
Equipment (integral and dedicated to stormwater
program)
State Revolving Loan Fund
Eligibility: To be determined on a case by
case basis.
Application deadline: Open cycle.
Loan Amount: Loans from $100,000 into
the millions.
Interest rate: Below market, on a sliding
scale based on ability to pay index.
State Revolving Loan Fund
Loan period:

Construction and/or Equipment: 20 years

Planning and/or Mapping: 5 years
State Revolving Loan Fund
For additional information or a consultation
without obligation, please contact:
Mr. Jim Poff
Tennessee Department of
Environment and Conservation
Division of Community Assistance
(615) 532-0199
Jim.Poff@state.tn.us
3. Existing General Fund
3. Existing General Fund
Existing General Fund
$10 Million Annual Budget
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
Fire
Police
Administration
Parks & Rec
Public Works
3. Existing General Fund
Existing General Fund
$10 Million Annual Budget
1,666,667
1,666,667
1,666,667
1,666,667
1,666,667
1,666,667
Fire
Police
Administration
Parks & Rec
Public Works
Stormwater
3. Existing General Fund
Existing General Fund
$10 Million Annual Budget
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
Existing General Fund
$10 Million Annual Budget
Fire
Police
Administration
Parks & Rec
Public Works
Stormwater
1,666,667
1,666,667
1,666,667
1,666,667
1,666,667
1,666,667
4. General Fund
with a Tax Increase
General Fund
with a Tax Increase
Existing General Fund
$10 Million Annual Budget
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
General Fund with Tax Increase
$12 Million Annual Budget
Fire
Police
Administration
Parks & Rec
Public Works
Stormwater
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
General Fund
with a Tax Increase
Special Purpose Local Option Sales Tax
Although there is no special purpose sales tax law in
Tennessee, presumably municipalities have the authority
under the local option sales tax law [See Tennessee
Code Annotated, § 67-6-701 et seq.] to vote on a local
option sales tax that would be directed solely to the
payment for stormwater facilities. Several municipalities
have held referenda in which the local option sales tax
increase is devoted to specific municipal purposes.
Thus far nobody has challenged those referenda.
5. Funding Program
with Development
Funding Program
with Development
Florida communities are examining a variety of
secondary funding methods, not directly related
to the service charges, as a means of generating
additional charges to certain customers who
receive special services and applying special
charges to equalize financial participation
among properties over time. These secondary
funding methods would be incorporated directly
into a service charge rate structure rather than
established separately.
Funding Program
with Development
Examples of secondary funding methods include:
System Development Charges to equalize the
financial participation in capital investments
among ratepayers served by the systems at
different points in time.
Plan Review and Inspection Fees to recover a
portion of the costs that the community expends
to review development plans and inspect projects
under construction to assure compliance with
standards.
Funding Program
with Development
Special Service Fees designed to recover the
costs of services performed for specific clients,
as opposed to the entire rate base, which may
include annual inspections of onsite detention
systems to verify compliance with design and
operating standards, industrial stormwater
discharge monitoring, water quality enforcement
investigations against polluters and similar
specialized activities which have evolved with the
recent expansion of Federal, State and Regional
regulatory programs.
Funding Program
with Development
Development funding mechanisms are o.k.
as a secondary funding source for
dedicated program expenses…
But it is short sighted to use development
fees to fund the total O&M budget for a
program.
Sooner or later, development won’t fund
the program, and/or development will be
negatively impacted.
6. User Funding:
A Stormwater Utility
Stormwater Utility
Tennessee Code Annotated, § 68-221-1101, provides
that the purpose of the stormwater management
statute is to facilitate municipal compliance with the
Water Quality Act of 1977, and applicable EPA
regulations, particularly those arising from § 405 of
the Water Quality Act of 1987, and § 402(p) of the
Clean Water Act of 1977, and to enable
municipalities to regulate stormwater discharges,
establish a system of drainage facilities, construct
and operate a system of stormwater management
and flood control facilities, and to “fix and require
payment of fees for the privilege of discharging
stormwater
Model Ordinance
Model Storm Water Utility
Ordinance
TABLE OF CONTENTS
PAGE
Section 1. Legislative findings and policy
2
Section 2. Creation of stormwater utility
3
Section 3. Definitions
4
Section 4. Funding of stormwater utility
7
Section 5. Stormwater fund
8
Model Storm Water Utility
Ordinance
TABLE OF CONTENTS
Section 6.Operating budget
PAGE
8
Section 7.Stormwater user=s fees established
8
Section 8.Equivalent residential unit (ERU)
8
Section 9.Property classification for stormwater user=s fee
9
Section 10.Base rate
10
Model Storm Water Utility
Ordinance
TABLE OF CONTENTS
Section 11.Adjustments to stormwater user=s fees
PAGE
10
Section 12.Property owners to pay charges
11
Section 13.Billing procedures and penalties for late payment
11
Section 14.Appeals of fees
12
APPENDIX A
APPENDIX B
14
18
APPENDIX A
Calculating Stormwater User Fees
Calculating Stormwater User Fees can be done in a simple, equitable manner. The annual
budget of the Stormwater Utility is divided by the total number of Equivalent Residential Units
(ERU’s) in the Stormwater System limits. Division of the result by 12 would yield the monthly
fee per ERU. An Equivalent Residential Unit is based on the average square footage of a
detached single residential family property. This average can be obtained from a variety of
sources. If the average is not available through your tax assessor or another internal
department, averages may be obtained from the U.S. Census Bureau, your local Area
Association of Realtors, or some other credible source. Each detached single residential family
property would be one (1) ERU. Other developed proposer users would divide their total
amount of impervious surface area (in square feet) by the number of square feet in an ERU,
to get the number of ERU’s for that property. The sum of all other developed property ERU’s
and single family residential ERU’s would be the total number of ERU’s.
Annual Budget. The annual costs for the storm drainage system includes permitting,
maintaining, planning, designing, reconstructing, constructing, environmentally restoring,
regulating, testing, inspection of the system, management and administration, and the
establishment of a reserve balance.
Equivalent Residential Unit (ERU). The average square footage of a single family
residential property is equivalent to one ERU.*
Total ERU’s. The Total ERU’s within the limits of the stormwater utility is calculated
according to the following formula:
Total ERU’s =
Other Developed Property ERU’s + Single Family Residential ERU’s
Single Family Residential User Fee. The fee that residential users within the limits of the
stormwater utility pay for their share of the annual budget. The fee is calculated according to
the following formula:
Single Family Residential User Fee =
Annual Budget ÷ Total ERU’s within Stormwater Utility limits
This number should be divided by 12 to establish the monthly User Fee:
Single Family Residential User Fee ÷ 12 =
Monthly Single Family Residential UserFee
Other Developed Property User Fee. The fee that other developed property users within
the limits of the stormwater utility pay for their share of the annual budget. The fee is
calculated according to the following formula:
Other Developed Property ERU’s =
Impervious Surface Area square feet ÷ ERU square feet
Other Developed Property User Fee =
Single Family Residential User Fee x Other Developed Property ERU’s
Other Developed Property User Fee ÷ 12 =
Monthly Other Developed Property User Fee
Example: VolVegas Stormwater Utility Department has an annual budget of $350,000. There
are 10,000 homes in VolVegas, an apartment complex, Maxwell House Apartments, with a total
impervious surface area of 5 acres, or 217,800 square feet (sq. ft.), a motel, Red Lite Inn, with
a total impervious surface area of 2 acres, or 87,120 square feet, GoodDay Tire and Rubber
Company with a total impervious surface area of 15 acres, or 653,400 square feet, and a
SuperWallyWorld with a total impervious surface area of 10 acres, or 435,600 square feet. Per
the VolVegas Area Association of Realtors, the average detached single family residential
property has 1,800 square feet.
1 ERU = 1,800 square feet
Single Family Residential ERU’s = 10,000 ERU’s
Other Developed Property ERU’s = (217,800 + 87,120 + 653,400 + 435,600 sf) = 1,393,920 sf
1,800 sq ft
1,800 sq ft
= 774 ERU’s
Total ERU’s = 774 Other Developed Property ERU’s
+ 10,000 Single Family Residential ERU’s = 10,774 ERU’s
Single Family Residential User Fee = $350,000 annually ÷ 10,774 ERU’s
= $32.49 annually/ ERU
OR
($32.49 annually/ERU) ÷ (12 mo./year) = $2.71 monthly/ERU
= Monthly Single Family Residential User Fee
Maxwell House Apartments:
Maxwell House Apartment’s ERU’s: 217,800 sq ft ÷ 1,800 sq ft/ERU = 121 ERU’s
Maxwell House Apartment’s Monthly User Fee:
$2.71 monthly/ERU x 121 ERU’s = $327.91= Maxwell House Apartment’s Monthly
User Fee
Red Lite Inn:
Red Lite Inn’s ERU’s: 87,120 sq ft ÷ 1,800 sq ft/ERU = 48.4 ERU’s
Red Lite Inn’s Monthly User Fee:
$2.71 monthly/ERU x 48.4 ERU’s = $131.16 = Red Lite Inn’s Monthly User Fee
Super WallyWorld:
Super WallyWorld’s ERU’s: 435,600 sq ft ÷ 1,800 sq ft/ERU = 242 ERU’s
Super WallyWorld’s Monthly User Fee:
$2.71 monthly/ERU x 242 ERU’s = $655.82 = Super WallyWorld’s Monthly User Fee
GoodDay Tire and Rubber Company:
GoodDay Tire and Rubber Company’s ERU’s = 653,400 sq ft ÷ 1,800 sq ft/ERU = 363 ERU’s
GoodDay Tire and Rubber Company’s Monthly User Fee:
$2.71 monthly/ERU x 363 ERU’s = $983.73 = GoodDay Tire and Rubber Company’s
Monthly User Fee
* The average square footage of a single family residential property should be
determined by a recognized source.
For example:
The U.S. Census Bureau reports the median square footage in the South is 1,648
square feet.
Or:
In Jackson, Tennessee, the average square footage for all such properties sold in
2001 was 1,932 square feet, according to the Jackson Area Association of Realtors®.
A comparable source should be used for setting ERU square footage.
Stormwater Utility
Funding for Phase II Stormwater Management
A Telephone Survey Conducted by the MTAS Library
December 2004
(31 cities surveyed)
22 of 31 Cities surveyed funded with General Fund $$$
7 of 31 Cities surveyed funded with Stormwater Utility (either
already established or in process)
2 of 31 Cities surveyed use combination of General Fund $$$
and Development Fees.
Stormwater Utility
Funding for Phase II Stormwater Management
A Telephone Survey Conducted by the MTAS Library
October 2005
(63 cities surveyed)
43 of 63 Cities surveyed funded with General Fund $$$
14 of 63 Cities surveyed funded with Stormwater Utility
5 of 63 Cities surveyed establishing a Stormwater Utility
6 of 63 Cities surveyed use combination of General Fund $$$
and Development Fees.
Stormwater Utility
General Information
Residential Customers
Non-Residential Customers
Frequently Asked Questions
General Information
The City of Greenville began looking at its Storm Drainage Program in
1997. With impending environmental regulations on the horizon
initiated by the Federal Government and the State of North Carolina, it
was very clear the City needed a more proactive approach to manage
stormwater runoff. With the help of a Stormwater Advisory Committee
appointed by City Council, the City developed a Stormwater
Management program that will operate as a utility. City Council
adopted the regulations in December, 2002, which established the
Stormwater Utility.
In order to implement these federal and state mandates a fee is
charged, similar to other North Carolina cities our size. The stormwater
utility fee began appearing on your Greenville Utilities Commission
statement July 1, 2003. Through the utility, the City has increased our
level of maintenance on open channels, storm drain pipe systems, and
other storm drain related facilities. The City has also begun a more
active Capital Improvement Program to upgrade old and failing
drainage systems.
Residential Customers
All residential customers will be charged a fee. The fee is $2.85 for
Frequently Asked Questions
Q.How does stormwater runoff impact our lives?
A.Stormwater is the primary source from which our natural
watercourses are replenished. The water one sees in the rivers,
lakes, and streams generally comes from stormwater runoff. The
water you drink in Greenville comes from the Tar River and is
treated and prepared for drinking by Greenville Utilities
Commission. The condition of the stormwater runoff has a direct
impact on the water quality in our streams, rivers, and lakes. As
experienced in 1999, the quantity of stormwater runoff can also
be of critical importance as too much stormwater runoff will
result in flooding.
Frequently Asked Questions
Q.Why do we need to manage our stormwater
runoff?
A.Stormwater runoff needs to be managed just as
any other natural resource. First, it is needed to
maintain the quality of our natural watercourses as
drinking water supplies and for recreational activities
such as swimming, fishing, water skiing,
etc. Secondly, stormwater also needs to be managed
to minimize damages that may occur when
stormwater runoff exceeds the capacity of the pipes
and open channels used to carry stormwater to our
rivers and streams.
Frequently Asked Questions
Q.How does Greenville propose to manage stormwater
runoff?
A.The City of Greenville began looking at our Storm Drainage
Program in 1997. With impending environmental regulations on
the horizon initiated by the Federal Government and the state of
North Carolina, it was very clear we needed a more proactive
approach to manage stormwater runoff. With the help of a
Stormwater Advisory Committee appointed by City Council, we
developed a Stormwater Management Program that will operate
as a Utility. City Council adopted the regulations in late 2002,
which established the Stormwater Utility. Through this Utility,
the City will increase our level of maintenance of open channels,
storm drain pipe systems, and other storm drain related
facilities. We will also begin a more active Capital Improvement
Program to upgrade old and failing drainage systems.
Frequently Asked Questions
Q.How will the new Stormwater Management Program be
funded?
A.As part of City Council's decision to establish a Stormwater Utility, the
decision was also made to create a new fee solely to fund the
Utility. The fee is dependent upon the amount of impervious cover
(hard surface) one has on their property. Impervious cover is anything
that covers the ground preventing it from absorbing water. Impervious
cover may include such things as the rooftop of your house and other
buildings, driveways, sidewalks, etc. The fee will be charged to all
those owning or renting property with some form of impervious cover
exceeding 200 square feet. The fee will be charged to all City
property owners or renters to include residential properties, commercial
properties, schools, churches, universities, hospitals, etc. In addition,
governments (i.e., City, County, State) will be charged this fee. No one
will be exempt from the fee.
Frequently Asked Questions
Q.How much is the fee?
A.The fee is $2.85 for every 2,000 square feet (sf) of
impervious cover you may have on your
property. Residential properties (single-family and
duplexes) fall in one of four tiers:
Tier I 200 sf - 2,000 sf $2.85 per month
Tier II 2001 sf - 4,000 sf $5.70 per month
Tier III 4001 sf - 6,000 sf $8.55 per month
Tier IV 6,001 sf or greater $11.40 per month
All non-residential properties (all properties other
than single-family and duplexes) will be charged
$2.85 per 2,000 square feet of impervious cover
actually existing on their property per month.
Frequently Asked Questions
Q.Why do I have to pay a stormwater fee?
A.The City is responsible for compliance with new
Federal and State regulations on water quality as well
as providing stormwater management facilities and
services. This includes installation and maintenance
of storm drains, inlets, and ditches as well as
ensuring State programs such as erosion and
sediment control are provided on construction
sites. All of these services are done to protect
personal and public property as well as provide for a
healthy environment. Funding is not provided by
Federal or State government for these services.
Frequently Asked Questions
Q.How will revenues be used?
A.All revenues will be used to support the
stormwater program, which includes compliance with
the Tar-Pamlico Nutrient Management State
Regulations and the Federal National Pollutant
Discharge Elimination System (NPDES) Regulations
for water quality. It also includes maintenance of the
drainage system such as pipes and ditches,
protecting properties from flooding, protecting our
streams and wetlands from erosion and pollution,
and major capital investments for the drainage
system as it ages.
Frequently Asked Questions
Q.Will revenues be spent
throughout the City?
A.Yes. The Stormwater Management
Program is Citywide, and services will
be provided throughout the City.
Frequently Asked Questions
Q.Why is the Stormwater Management
Program not funded by tax revenues?
A.The Stormwater Management Utility fee is fairer
than a tax based on the assessed value of the
property because of the following:The fee is based
on each property's actual demand for stormwater
service as measured by how much hard surface is on
the property (i.e., building, parking lot, garages, and
similar surfaces).Each property, including tax-exempt
properties, will pay this fee, which contributes a fair
and equitable share towards the overall cost of the
Stormwater Management Program.
Frequently Asked Questions
Q.Why do I have to pay when I do not have
any drainage problems?
A.Everyone in the City benefits from the Stormwater
Management Program. If stormwater runs off your
property, the City must have a program and funding
to manage the increase in runoff and
pollutants. Direct benefits may include complying
with Federal and State mandates, protecting your
property from upstream runoff, protecting property
downstream from your runoff, providing safe
roadways, educating our children about pollution,
and improving water quality.
Dyersburg FAQ
Q: Why am I charged a storm water utility fee?
A: To meet regulatory requirements from an unfunded mandate
from the Federal and State governments. (Phase II MS4 Permit)
The state is requiring certain jurisdictions to better control
storm water. Dyersburg fell into this jurisdiction and elected to
create a storm water utility to be in compliance, and fund it by a
utility fee that must be used for storm water activity.
Q: What is the fee based on?
A: The residential fee is the same for all residences. We used
1500 sq ft as the impervious area (or area that will not let water
infiltrate) per ERU, which means Equivalent Residential Unit.
This is the average size of a detached residential unit, based on
the last city census, and all residences are charged the same
one dollar fee.
Dyersburg FAQ
Q: What started this?
A: The Clean Water Act of 1972, or to further that the amendments to
it in 1987. This started Phase I MS4 permitting for metropolitan areas
with a population of 100,000 people or more. The government saw
that they were making progress, so they expanded the mandate in
1999 to include smaller cities. Dyersburg was one of the cities that this
affected.
Q: What will this fee be used for?
A: The fee will be used exclusively to maintain numerous storm water
activities, some of which are: public outreach programs aimed at
educating the public and cleaning up our streams and rivers. It will be
used for early detection and the elimination of illicit discharges.
Inspection and enforcement of erosion control in the construction
industry and new developments, and pollution prevention through
education and good housekeeping in all government facilities.
Dyersburg Fee Calculation
APPENDIX A
Calculating Storm water User Fees
Single-Family Residential User Fee. The fee that residential users
within the City limits will pay will be a flat charge of $1.00 per
month. The average square footage of a single-family residential
property is equivalent to one “ERU” and is determined to be
1500 square feet from recent U.S. Census Bureau reports.
Developed Property Fee. The fee that developed property users
within the City limits will pay will be determined from the
following formula:
Developed Property Fee/Month =
Impervious Area x $1.00 x 50% (correction factor)
1500 sq. ft.
La Vergne Rate Resolution
La Vergne Rate Resolution Authority
Funding Options
We discussed these possibilities…
• Do nothing- not a viable solution.
• Use Grants and Loans- grants unpredictable and loans (includes
bonds) must be repaid, neither good for O&M.
• Fund the program with existing General Fund dollars-do your
existing budgets have that much “fat” in them?
• Dedicate a tax increase to your program and fund from General
Fund-a good solution if the political will exists.
• Let development fund your program-not a reliable long term
solution for total program budget.
• Make your program user funded; set up a Stormwater Utilityequitable and dependable, a dedicated revenue stream with no
general fund budget battles.
Funding Options
General Fund
-Not a new concept
-Can be implemented
comparatively quickly
-Negligible overhead
involved in tax
increase/collectionmore of each dollar
collected goes to
program costs.
Stormwater Utility Fee
-New idea, citizen
education required
-Fast-track would be 18
months
-Significant new overhead
associated with
implementing and
administering utility fee
-Dedicated revenue
stream-no competing
for general fund $$$
Storm Water Management
And here!
Or even here!
THANK YOU
PLEASE CONTACT THE PUBLIC WORKS
CONSULTANTS AT MTAS IF YOU HAVE
QUESTIONS
Sharon Rollins, P.E. 423-282-0416
sharon.rollins@tennessee.edu
John C. Chlarson, P.E. 731-423-3710
john.chlarson@tennessee.edu
MTAS website
http://www.mtas.utk.edu