Presentation for session on paying for stormwater infrastructure.

1. Stormwater Utility: An Evolving Funding Paradigm
2018 Redevelopment Forum - New Brunswick, New Jersey
Prabha Kumar
Director

2. Discussion
2
• The Utility Concept
• Stormwater User Fee is Not a Tax
• National Trends At-a-Glance
• Funding Considerations
• User Fee Development Framework
• New Localism: A Plausible Approach?

3. Stormwater Utility Encompasses Three Facets
3
Organization
1. Operations Resiliency
2. Regulatory Compliance
Program
FundingOrganization
Stormwater
Utility
5. Organizational Capacity
6. Technology
8. Dedicated User Fee & Other
Sources
9. Enabling Legislation
3. Infrastructure Integrity
4. Community Expectations

4. Types of Stormwater Systems in New Jersey
Downspout
Runoff
Surface
Runoff
Surface
Runoff
Stormwater
Outfall
Combined Sewer System Separate Sewer Systems
CSO
Outfall
(Examples: Newark; Perth Amboy; Gloucester) (Examples: New Brunswick; Princeton)
4Source: Philadelphia Water Department Advisory Committee Meeting Presentation
Downspout
Runoff

5. Why is Stormwater “User Fee” Not a “Tax?”
Services Provided
5
Services Received
Annual Costs
Incurred
Costs Recovered
through User Fees
Fee is assessed to address a regulatory purpose?
Fee is in exchange for benefits received by the general public?
Fee is voluntary?
Fee is a fair approximation of costs incurred in providing services?
Key Tests of a User Fee
5

6. Stormwater Management & Funding: National Trends
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Source: Western Kentucky University Survey - 2016
1,600+ Stormwater Utilities in the US Jurisdictional Responsibility for
Stormwater Management
Enforcement of a user fee is administratively
easier within a municipality rather
than across multiple jurisdictions
Source: 2016 Stormwater Utility Survey: A Black & Veatch Report

7. Stormwater Management & Funding: National Trends
7
Source: 2016 Stormwater Utility Survey: A Black & Veatch Report
Four Priority Issues for the Utilities
#1 Availability of adequate funding
#2 Enhancing public awareness and
support
#3 Management of expanding
regulations
#4 Water quality – Nutrient/TMDLs

8. Stormwater Funding Considerations
8
Flexibility to
Incentivize
Stronger Cost-
Revenue Nexus
Revenue Stability
Equitable Cost
Recovery
Stormwater
User Fees
Sales Tax
Property TaxSewer Charges
Local Benefit
Assessments
Surcharge
Rate Structure
Considerations

9. Six Key Components in Stormwater User Fee Development
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 Stakeholder Engagement
 Financial Plan & Rate Structure
 Program and Costs
 Customer Credits & Incentives Program
 Parcel Data Management & Billing Mechanism
 Stormwater Policy Development
9

10. A Stormwater User Fee is analogous to a water user fee
but with some distinct differences
10
STORMWATER USER FEE
Basis of Fee
• Impervious Area
Unit of Measure
• Square Feet
• ERU: Equivalent Residential Unit
Rate Structure
• Rates by customer classes
• Tiered Rates
WATER USER FEE
Basis of Fee
• Water Usage
Unit of Measure
• Hundred Cubic Feet (HCF)
• 1,000 Gallons
Rate Structure
• Rates by customer classes
• Tiered Rates
Impervious Area
(Sq. Ft.) ERUs
Quarterly
Fee
0 to 799 1.00 $8.14
800 to 1,299 1.45 $11.80
1,300 to 2,399 2.48 $20.19
2,400 and over 4.40 $35.82
Example: Residential Rate StructureEquity in Cost Recovery: Users Pay According to What They Use!!!

11. 11
Peer Utility Collaboration: A New
Plausible Paradigm in New Jersey?
Potential
Areas of
Collaboration
 Enabling Legislation
 Collaborative Resourcing
 Concurrent Execution
 Similar Methodologies
 Sharing of Resources
 Stakeholder Engagement &
Public Education

12. The Road Ahead ……
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Leadership
Commitment
Support for the
Stormwater
Utility Concept
Embrace the Change
Collaborative and Cohesive Development &
Implementation
Enabling Legislation
Provide a Defensible
Authority to
Municipalities

13. Prabha KumarBlack & Veatch Management Consulting, LLC
Phone: 302-660-9465 Email: Kumarpn@bv.com
Thank You!