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Stormwater Management and Finance Trends and Emerging Issues
Charlotte Elected Officials Stormwater WorkshopFebruary 28, 2019
Erin RiggsEvan Kirk
Environmental Finance CenterSchool of Government
University of North Carolina (919) 843-4956
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How you pay for it matters
Supporting the fair, effective, and financially sustainable delivery of environmental programs through:• Applied Research
– Fees and finance– Regulatory approaches– Nutrient Rules Study
• Teaching and Outreach– Stormwater Listserv– Stormwater finance
• Program Design and Evaluation– Dashboard– Implementation advising– Capital planning tools
Topics
• Stormwater costs• Stormwater management challenges• Opportunities in stormwater finance• NC Stormwater fees update
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Map of NC Stormwater Utilities
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www.efc.unc.edu
Stormwater Costs
Present and Future
Capital Improvement Needs
• $17 to $26 billion in water and wastewater capital needs over the next 20 years (Source: DWI Master Plan)
• Stormwater capital needs are largely unquantified
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Funding Stormwater Infrastructure
• Current…– Cash financing – Grant funding
• Grant funding often doesn’t lineup with project deadlines or project opportunities
• Future…– Debt financing with low-interest loans and
bonds
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Challenges for Funding Stormwater Management
Stormwater utilities largely cannot quantify…• Asset depreciation• Asset age and location• Future capital
improvement needs
Rates may not cover…• Asset depreciation• Total stormwater needs
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Costs are increasing in the future…
…but innovative solutions exist
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Difficulty with public perception of stormwater services and their costs…
February 11, 2019
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February 12, 2019
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NC Stormwater Fees (January 2018)• 9 out of 10 largest cities have utilities
– 36 of 50 largest cities
• 66 out of 97 MS4 Permit holders – All 6 Phase I municipalities– 60 of 91 Phase II municipalities– 19 utilities with no MS4 permit
• Total revenue reported for 64 municipal utilities in 2017 was $208,009,005– Total revenue reported for 56 municipal utilities in 2010 was
$138,949,938• Total revenue reported by 3 county utilities in 2017 was
$17,269,729
Source: Analysis prepared by the EFC using self reported information submitted to the Local Government Commission
Stormwater fee revenue vs. other revenue sources for 64 municipalities reporting utility fees in 2017
Source: Analysis prepared by the EFC using self reported information submitted to the Local Government Commission
$1,959,977,347
$1,554,901,370
$208,009,005 $161,185,266
Total Property Tax TotalWater/Wastewater
Fees
Total StormwaterFees
Total Solid WasteFees
Leveraging Fees In Order to Debt Finance Capital Improvements
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18-19 19-20 20-21 21-22 22-23Administrative Costs 36% 24% 18% 15% 15%Infrastructure Costs 35% 42% 51% 60% 57%Planning Services 14% 12% 10% 8% 9%
Community Services 8% 11% 13% 11% 12%Field Services 7% 10% 8% 6% 7%
*The infrastructure cost estimates cover routine stormwater system maintenance, repairs, retrofits, street sweeping, green infrastructure, capital stormwater and stream restoration projects, and Public Works facility expenses.
If capital costs are 10 to 35 percent of expenses statewide (likely over-estimate), $20.8 to $72.8 million in fee revenue can be used for debt servicing..
Future Debt Financing Opportunities
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• Up to $30 million• Low-interest loans (1/2 market rates)• Counties, cities, towns, sanitary districts are
eligible• Stormwater BMPs and stream restoration
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2019 North Carolina Stormwater Fees Survey
By the numbers
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80
$6.68
88
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Fee Structures
Municipalities
Counties
Waited average residential bill at 3,000 sq. ft. of impervious surface
Fee Structures
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Num
ber o
f Fee
Str
uctu
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Data Source: 2018-19 NC Stomwater Fees Survey: Environmental Finance Center at the University of North Carolina (n = 88)
Monthly Residential Fee at 3,000 Square Feet of Impervious Surface Area
By Regulatory Mandate
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Stormwater Fee Trends(Residential fees at 3,000 feet of impervious surface)
• Two new utilities• 13 utilities raised fees since last year
– 1 lowered fees but raised fees on non-residential customers
• Standard deviation has increased since 2010 from $1.4 to $2.6
Stormwater Fee Trends
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0
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No Change 1-15.2% 15.3-25% 26-50% 51-75% 75-100% 101%+
Num
ber o
f Fee
Str
uctu
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Percent Change in Rates
Inflation Since 2010 of 15.2%
Data Source: 2018-19 NC Stomwater Fees Survey: Environmental Finance Center at the University of North Carolina (n = 44)
Webinar: 2019 North Carolina Stormwater Fees Update
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Monday, March 11, 20191 pm – 2 pm
Register Here:
https://attendee.gotowebinar.com/register/8771567712856897027
Continue the Discussion
efc.web.unc.edu
Follow us on Twitter: @EFCatUNC
http://www.efc.sog.unc.edu/programs/stormwater-wetlands-and-watersheds
Subscribe to our Environmental Finance Blog:Efc.web.unc.edu
EFC Tools and Resources
• Dashboards• Capital Planning• Blogs• Stormwater Listserv
– https://efc.sog.unc.edu/content/stormwater-listserv-stormwater
2019 North Carolina Stormwater Dashboard…
Coming Soon!
…Will include usability testing by stormwater stakeholders to ensure our dashboard features meet your interests and needs
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Other Dashboard models
