Georgia Stormwater Utility Handbook

1. Georgia Stormwater Utility Handbook Tim Carter, Ph.D., University of Georgia River Basin Center Courtney Reich, AICP Ecological Planning Group, Inc. Ron Feldner, P.E. In partnership with: Center for Watershed Protection Chatham County-Savannah Metropolitan Planning Commission Georgia Department of Natural Resources Environmental Protection Division

2. Georgia Stormwater Utility HandbookHandbook Outline • Section I: Introduction & Background • Section II: Stormwater Management Program (SWMP) Assessment & Funding Analysis • Section III: Six Steps to Setting Up a Stormwater Utility • Section IV: Conclusions and Additional Resources

3. Drivers for Local Stormwater Management Programs (SWMPs) • Recurring Flooding Problems • Land Development Pressures • Aging Infrastructure and O&M • Streambank Erosion • Capital Project Implementation • Ecosystem Preservation & Restoration • Regulatory Compliance • Citizen Lawsuits • Water Quality Management • Environmental Stewardship • Preservation of Property Values

4. Obstacles to Local SWMP Implementation • Understanding of Watershed Impacts • Program Needs & Priorities • Program Organization & Responsibilities • Inadequate Funding • Poorly Defined Extent of Service Policy & Level of Service Policy • Stakeholder & Elected Official Education • Other

5. Drivers for Local SWMPs • The State of Georgia’s State Water Plan recommends that local governments set up and implement Stormwater Utilities to address non-point source pollution (i.e. stormwater runoff). The State Water Plan states that Stormwater Utilities should be utilized as a mechanism for funding the administration, operations and maintenance, and capital costs of local stormwater management programs and non-point source pollution controls. Plan compliance will assist with EPD permitting efforts. • The Coastal Comprehensive Plan recommends that local governments “develop stormwater utility programs across the region” to meet specific watershed management goals outlined in the Plan. In addition, the Plan outlines performance standards for local governments to achieve “excellence standards” and one of those standards includes implementing a stormwater utility. Plan compliance also will support maintaining Qualified Local Government Status with DCA.

6. Georgia Stormwater Utility Handbook Section I: Introduction and Background

7. A Stormwater Utility Provides a Vehicle for: • Consolidation of Program Responsibilities Among Several Departments • Generation of Funding that is Stable, Adequate, Fair and Equitable (SAFE) An Organizational Entity • Implementation of a Program that is Comprehensive, Cohesive and Consistent Year to Year Pg ES-4, Guidance for Municipal Stormwater Funding, EPA

8. Stormwater Utility Overview • Formal Organizational and Financial Entity • Stand Alone Stormwater Enterprise Fund • Separate Budget Under Existing Water & Sewer • Consistent and Stable Revenue Stream • Assigns Costs to Parcels in a Fair and Equitable Manner • Functions as a User Fee based System Similar to other Public Utilities (water, sewer, sanitation, etc.)

9. Stormwater User Fee Overview • Stormwater User Fee: A charge assigned to a parcel for Stormwater Management Services provided by the local government • The user fee charge is the amount paid by the customer for the stormwater runoff demand that the parcel imposes on the City (or County) Drainage System and the Program • The user fees paid by the customers fund the Stormwater Program

10. Stormwater Utilities in Georgia • In 1998, the City of Griffin set up the first Stormwater Utility in Georgia. • In 2004, less than ten Stormwater Utilities were established in Georgia, but many communities were considering the option. • In 2008, approximately 35 Stormater Utilities are established in Georgia with over 90% in metro Atlanta. • By 2015, the total number of Stormwater Utilities in Georgia could approach 100!

11. Georgia Stormwater Utility Handbook Section II: Stormwater Management Program (SWMP) Assessment & Funding Analysis

12. Program Components & Functional Areas Administration Billing & Financial Management Stormwater Planning & Engineering Capital Improvements Operations & Maintenance Regulation and Enforcement Pg 3-9, GA Stormwater Management Manual

13. Program Level of Service Matrix Pg 30, Stormwater Magazine, November/December 2005

14. Cost of Service (COS) Comparison Funding Gap = $450,000

15. There are numerous stormwater management program funding methods and variations for local governments • There is a big difference between “resources”, “money” and “revenue” Source: Andy Reese, Multi-Jurisdictional Stormwater Agency Presentation

16. Funding Strategies • Money (Taxes, SPLOST, Plan Review Fees) • Typically limited in amount • Not reliable • Revenue (Stormwater Payments/User Fees) • Stable, reliable and consistent • Income and cash flow • Resources (Grants, Volunteers) • Low cost to government – “OPM” Pg 2-1, Guidance for Municipal Stormwater Funding

17. Funding the Program….. • General Fund* • General Obligation Bonds • Revenue Bonds • Development Impact Fees • Special Assessments/Tax Districts • User Fees/Stormwater Utilities* • Development Review Fees • GEFA Loans • In-lieu of Construction Fees • SPLOST • Federal & State Grants

18. Georgia Stormwater Utility Handbook Section III: Six Step Process

19. Stormwater Utility Due Diligence • Five Key Areas of Focus: • Political • Financial • Legal • Informational • Technical Pg ES-4, Guidance for Municipal Stormwater Funding, EPA

20. Six Step Process • Step 1: Education & Outreach • Step 2: Define/Establish Structure • Step 3: Data Compilation • Step 4: Rate Structure & Analysis • Step 5: Billing & Database Systems • Step 6: Ordinance Adoption & Implementation

21. Step 1: Public Education & Outreach • A well thought out education and outreach plan can be the key to acceptance of the future program and the success of the future Stormwater Utility. • Successful public education and outreach plans engage key stakeholders early in the process and keep them involved throughout. • Public Education Strategies: • Plan Development • Message Delivery • Public Meetings • Web Based Surveys • Newsletters • Local Media/Cable TV • Phone Bank • Civic Organizations

22. Step 2: Define Structure/Organization

23. Step 3: Data Compilation • Parcel Specific Data • Parcel Identification • Land Use • Existing Utility Database Accounts • Parcel Ownership & Address • Impervious Surface Coverage

24. Step 3: Data Compilation • Data Sources & Repositories • Regional Development Centers • SAGIS (Savannah Area) • Georgia GIS Clearinghouse • State University Websites • Local Planning Department • United States Geologic Survey • Other government sources

25. Step 4: Rate Structure & Rate Study Analysis • Potential Rate Methodologies • Impervious Area* • Impervious Area + Gross Area • Gross Area/Intensity of Development/Land Use • Others • Common Rate Modifiers • Uniform/Flat Rate (with or w/o Tiers) • Water Quality Charge/Factor • Typical User Fee Credits • Detention Ponds & Structural Controls • Onsite Greenspace • Green Growth Guidelines/LID * Most Common Rate Methodology Used in Georgia and Nationwide

26. How a Fee is Calculated:Equivalent Residential Unit (ERU) = Billing Unit • ERU = single-family residential median impervious area • Example ERU: • Rooftop = 1,400 sqft • Driveway = 1,200 sqft • Sidewalk = 400 sqft • Total ERU = 3,000 sqft

27. How a Fee is Calculated:Non Single Family Residential ERU Calculation = Building Footprint = 10,000 sqft Parking Lot = 14,000 sqft Total Impervious Area = 24,000 sqft ERU = 3,000 sq ft Total ERUs = 24,000sqft/3,000sqft = 8 ERUs

28. How a Fee is Calculated:Credits Building Footprint = 10,000 sqft Parking Lot = 14,000 sqft Total Impervious Area = 24,000 sqft ERU = 3,000 sq ft Total ERUs = 24,000sqft/3,000sqft = 8 ERUs 1 ERU = $4.00/month 8 ERUs = 8 x $4.00 = $32.00/month Credit for Detention = 30% New Bill Amount $22.40/month

29. How a Fee is Calculated:Residential Tiering 0.66 ERU < 2,000 sqft 1.0 ERU = 3,000 sqft 1.33 ERU > 4,000 sqft 3 Residential Tiers

30. Step 5: Billing & Database Systems Three Billing System Options Billing Issues • Existing Public Utility Bill* • Tax Bill • Stand Alone Bill • What frequency? • Billing database source? • Who should receive the bill – the owner or the tenant? • Long term database management? • Delinquencies? • Appeals?

31. Step 6: Ordinance Adoption & Stormwater Utility Implementation • Ordinance Adoption • Review Available Legal Information • Codify Utility Rate Structure Details • Technical & Legal Assistance • Commence Billing • Customer Service Program • Credit Applications • Implement “Business Plan” • Public Outreach Follow Up

32. Georgia Stormwater Utility Handbook Section IV: Conclusions and Additional Resources

33. Information & Resources • Existing Local Government Stormwater Utility Contacts • Additional Web-based Resources • Guidance for Municipal Stormwater Funding • Stormwater Magazine • Georgia Stormwater Management Manual • Stormwater Utility Handbook References

34. Now its your turn… • Step 1: Program overview: Review Garden City Example: • Program Drivers: • Future Program COS: • Funding Gap:

35. Now its your turn… • Step 2: Community Information • Population • Number of Households • Developed Acreage • Land Use/Parcels • Garden City Example: • Population: 11,289 • Number of Households: 3,981 • Developed Acreage: 14.6 (95%) • Land Use/Parcels • Single Family Residential = 2953 • NSFR = 738 • Vacant = 636

36. Now its your turn… • Step 3: Estimate the potential revenue based on population. • Population • Population* $8-$12 = Revenue per $1 of billing unit • Garden City Example: • Population = 11,289 • 11,289 * $12 = $135,468 • $135,468 * $4.15 = $562,492

37. Now its your turn… • Step 3: Estimate the revenue based on the number of households. • Households • Households * 3 = monthly revenue per 1$ of billing unit • Monthly Revenue * 12 = annual revenue per 1$ of billing unit Garden City Example: • Households = 3,981 • 3,981* 3 = $ 11,943 • $ 11,943* 12 = $ 143,316 • $143,316 * $4.15 = $594,761

38. Now its your turn… • Step 3: Estimate the revenue based on the amount of developed acreage. • Developed Acreage • Square miles *640 = total acreage • Total Acreage * percentage of developed acreage = developed acreage • Developed Acreage * $25 to $35 = Revenue per $1 of billing unit. Garden City Example: • Acreage = 14.6 sq miles (85% developed) • 14.6*640 = 9,344 • 9,344* 85%= 7942.4 • 8876.8 * $30 = $266,304 • $277,984 * $4.15 = $1,105,162

39. Now its your turn… • Step 3: Estimate the revenue based on parcel land use. • Parcel Land Use • SFR * 1 + • NSFR * 3 - 10 for Rural Counties or * 10 – 20 for heavily urbanized cities = • Monthly revenue per $1 of billing rate Garden City Example: • Parcel Land Use • SFR = 2953 * 1 = 2953 • NSFR = 738 * 20 = 14,760 • 2,953 + 14,760 = 17,731 • 17,731 * 12 = $212,556 • $212,556 * 4.15 = $882,107

40. Now its your turn… • Revenue Method Comparison • Population = $562,492 • Household = $594,761 • Developed Acreage = $1,105,162* • Land Use/Parcel = $882,107* • Revenue Estimate Variables • Garden City Considerations: • Heavily urbanized • Significantly more commercial and industrial development • Small residential base • Rate Structure Variations • Public Roads and Properties

41. A Few Things to Take With You • Set Up & implementation of a Stormwater Utility takes 15 to 24 months – Bet on it! • Timing & schedule can be everything • Fiscal Year Start • Election “Season” • Stakeholder involvement = best chance @ success • Bad News on set up cost: 2 to 4 months revenue • $80,000 to $350,000 • Existing data is cheaper than new data • Good News on set up cost: Payback potential

42. Where do we go from here to build on what we learned today? • Discuss this information with your local government and gauge interest. • Perform detailed SWMP Assessment, Quick Concept Study, and/or Funding Feasibility Study. • Go forth, and fund your program, but call if you need help!