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Stormwater Utility Feasibility Study

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Stormwater Utility Feasibility Study STORMWATER UTILITY FEASIBILITY STUDY SUBMITTED TO City of Concord, New Hampshire February 2020 Table of Contents Tighe&Bond Section 1 Stormwater Utility Overview 1.1 What is a Stormwater Utility? ..........................................................1-2 1.2 Benefits of a Stormwater Utility .......................................................1-4 1.3 Typical Drivers for Creating a Stormwater Utility ................................1-4 1.4 Enabling Legislation ........................................................................1-5 1.5 Examples from New England ...........................................................1-5 1.5.1 City of Northampton, MA ....................................................... 1-8 1.5.2 Greater Augusta Utility District, ME ........................................ 1-8 1.5.3 City of Portland, ME .............................................................. 1-9 1.5.4 Town of Milton, MA ............................................................... 1-9 1.5.5 Conclusions ......................................................................... 1-9 Section 2 Concord's Stormwater Program 2.1 Concord's Current Stormwater Management Program .........................2-1 2.2 Stormwater Program Funding Approach and Costs .............................2-3 2.2.1 Current Program Costs .......................................................... 2-3 2.2.2 Anticipated Future Program Costs .......................................... 2-3 Section 3 Stormwater Funding Alternatives 3.1 General Fund .................................................................................3-1 3.2 Village Districts ..............................................................................3-1 3.3 Sewer Use Fees .............................................................................3-2 3.4 Stormwater Utility ..........................................................................3-2 3.5 Funding Alternatives Comparison .....................................................3-3 Section 4 Making the Case for a Dedicated Stormwater Fund 4.1 Sustainable Funding .......................................................................4-1 4.2 Equitable Distribution of Costs .........................................................4-1 4.3 Drainage System Operation and Maintenance ....................................4-2 4.4 Water Resources and Recreation ......................................................4-2 Section 5 Preliminary Rate Structure Assessment 5.1 Impervious Areas and ERUs .............................................................5-1 5.1.1 Source Data and Assumptions................................................ 5-1 5.1.2 Development of ERU Estimate ................................................ 5-2 5.1.3 Rate Base Estimate .............................................................. 5-2 5.2 Rate Structure Overview .................................................................5-3 5.2.1 Example: Flat Fee for SFR and Proportional Fee for NSFR .......... 5-4 5.3 Rate Structure Options ...................................................................5-6 5.3.1 Impervious Area Plus Gross Area ........................................... 5-6 5.3.2 Intensity of Development (ID) ............................................... 5-6 i Table of Contents Tighe&Bond 5.4 Other Considerations ......................................................................5-6 5.5 Fee Versus Tax Funding for Select Properties .....................................5-7 5.6 Billing Mechanisms .........................................................................5-8 5.7 Stormwater Credits ........................................................................5-9 Section 6 Public Education and Stakeholder Outreach 6.1 Overall Outreach Strategy ...............................................................6-1 6.1.1 Stormwater Fee Goals and Drivers ......................................... 6-1 6.1.2 Target Audiences and Stages of Outreach ............................... 6-2 6.2 Target Audiences and Messages .......................................................6-3 6.2.1 City Officials and Staff .......................................................... 6-3 6.2.2 Residents ............................................................................ 6-3 6.2.3 Tax-Exempt Property Owners ................................................ 6-3 6.2.4 Commercial Property Owners/Developers ................................ 6-4 6.3 Outreach Methods ..........................................................................6-4 6.3.1 City Council and City Department Meetings ............................. 6-4 6.3.2 Stormwater Utility Development Workshops ............................ 6-4 6.3.3 Newspaper Articles ............................................................... 6-5 6.3.4 Web Page ............................................................................ 6-5 6.3.5 Fact Sheet ........................................................................... 6-5 6.3.6 Mailings .............................................................................. 6-5 6.4 Schedule of Outreach .....................................................................6-6 Section 7 Conclusions and Recommendations ii Table of Contents Tighe&Bond List of Figures Figure 1-1 Stormwater Utilities in the U.S. ........................................................... 1-2 Figure 1-2 Center for Watershed Protection’s Impervious Cover Model ...................... 1-3 Figure 1-3 Stormwater Utilities in New England as of June 2019 .............................. 1-6 Figure 1-4 Timeline of Stormwater Utility Adoption in New England as of June 2019 ... 1-7 Figure 2-1 Location of Concord, New Hampshire .................................................... 2-1 Figure 2-2 Concord's Organizational Structure ....................................................... 2-2 Figure 5-1 Illustration of the ERU Concept ............................................................. 5-4 Figure 5-2 Estimated Revenue Range Example....................................................... 5-5 Figure 5-3 Revenue Distribution from Stormwater Fee ............................................ 5-7 Figure 5-4 Revenue Distribution from Property Taxes ............................................. 5-7 List of Tables Table 2-1 Stormwater Program Responsibilities by City Department ........................ 2-2 Table 2-2 Summary of Current and Projected Future Stormwater Expenditures ......... 2-4 Table 3-1 Stormwater Funding Alternatives Comparison ......................................... 3-3 Table 4-1 Pollutant Impacts on Water Quality ....................................................... 4-3 Table 5-1 Single Family Residential Property Types ............................................... 5-2 Table 5-2 Rate Base Estimate ............................................................................. 5-3 Table 5-3 Estimated Stormwater Utility Fees per ERU ............................................ 5-5 Table 6-1 Phases of Outreach for Internal and External Audiences ........................... 6-2 Table 6-2 Proposed Outreach and Education Schedule ........................................... 6-6 Appendices Appendix A New England Stormwater Utility Survey Appendix B Historic and Projected Stormwater Expenditures Appendix C Estimated Non-Single Family Residential ERUs by Land Use Appendix D Example Stormwater Fees for Properties in Concord Appendix E Public Education Outreach Materials J:\C\C1124 City of Concord, NH\006 Stormwater Assistance\Report\Stormwater Utility Feasibility Study.docx iii Tighe&Bond Section 1 Stormwater Utility Overview The intent of this Study is to provide local decision makers with relevant information pertaining to creating a Stormwater Utility as a funding mechanism for the current and future stormwater programs in the City of Concord, NH. A Stormwater Utility would provide the City with a sustainable long-term funding source to address existing and future costs related to maintaining and upgrading aging drainage infrastructure and flood protection, while more equitably distributing stormwater costs across all entities that benefit from the City’s stormwater infrastructure. Tighe & Bond, in coordination with the City of Concord and project partners Raftelis Financial Consultants (Raftelis), prepared this Stormwater Utility Feasibility Study to: • Provide general information on Stormwater Utilities and alternative available funding options; • Make a compelling case for the implementation of a Stormwater Utility; • Identify relevant state and federal laws pertaining to stormwater programs; • Summarize the City’s current and future stormwater program needs, priorities, and costs; • Present additional information necessary for the City to further assess the feasibility of a Stormwater Utility; • Describe the next steps and timelines for implementation. Part of this planning process included reviewing Concord’s current stormwater expenditures, estimating future stormwater-related costs, and summarizing the options for funding these costs. This assessment considers Concord’s current stormwater-related costs, as well as the anticipated costs associated with funding additional planned capital projects. The City formed a Working Group of municipal staff to discuss key aspects of funding the stormwater program. The Group is comprised of City staff from a broad cross-section of departments to provide technical, financial, and organizational information and guide the Stormwater Utility
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