Funding Stormwater Services

Transcription

1 Funding Stormwater Services Public Works Officers Institute March 10, 2016 By Mitch Avalon Consultant, County Engineers Association of California Pine Creek Flooding, Concord 1958 Overview Ballot Measure Definitions How stormwater services are funded Stormwater Problem Stormwater Solution Nature s Water Cycle

2 Anatomy of California Water Portfolio Water Portfolio Drinking Water Sector Stormwater Sector Sanitary Sewer Sector Quality Groundwater Drainage Flood Stormwater is Groundwater Supply Regional Flood Protection Community Drainage Stormwater Quality

3 Funding Stormwater Services Flood Control District Services: Funded with tax revenue frozen in 1978 (Prop 13, 38 years ago) Flood Control District Services: Funded with benefit assessments frozen in 1996 (Prop 218, 20 years ago) Community Drainage Services: Typically funded from the General Fund (no dedicated funding source) Stormwater Quality Services: Typically funded from the General Fund (no dedicated funding source) Federal Investment EPA invested Billions in California to upgrade sewer treatment plants to reduce point source pollution. The Corps of Engineers have invested Billions in California, and continue to do so, to improve flood protection There has been no equivalent level of federal investment to improve stormwater quality 6

4 Contra Costa County Flood Protection Services 79 miles channels, 29 basins $1 B Asset Value (2010) $25 B property protected 33% over 50 years old $2.4 B replacement cost $20 M annual budget need $4 M current annual budget <$16 Million> Annual Shortfall/Disinvestment Source: County Flood Control District 2014 Annual Report, Failed Drop Structure Contra Costa County Stormwater Quality Services NPDES/MS4 permits (RWQCB) $37 Million current permit costs for 19 cities and County $14 Million annual revenue <$23 Million> covered by General Funds, Road Funds, Park Funds New November 2015 permit requires Green Infrastructure Planning that will result in increased program costs Trash is a Pollutant Source: Contra Costa Clean Water Program

5 LA County Stormwater Services (Stormwater Quality: 2012 MS4 Permit Compliance) 20 year estimated costs for Watershed and Enhanced Watershed Management Program requirements for LA County MS4 permit: Los Angeles City: $8 billion LA unincorporated County: $2.6 billion LA County and all cities: $20 billion Of the 86 permittees, 84 have no dedicated funding source for these costs Source: LA County Department of Public Works 9 Consequences of Non Compliance Up to $10,000 per day per violation (RWQCB) Up to $37,500 per day per violation (EPA) Each outfall may be a separate violation Local government subject to third party lawsuits $29.6M settlement costs from 21 citizen lawsuits (2003 to 2013) in LA region LARWQCB between 2003 and 2013: $8.2M in fines to private parties 23 Notices of Violation to local govt.; all resolved Source: Stormwater Funding Options, October 14, 2014 (CA Contract Cities Association and League of Cities, LA County Division) 10

6 How CCC Stormwater is Funded Bay Area Air Quality: $10 = 0.16% CCC Mosquito Abatement Dist.: $13= 0.21% Property Tax Allocation County Clean Water: $35 = 0.57% County Flood Control: $46 = 0.75% BART: $55 = 0.88% EBMUD Water: $78 = 1.3% East Bay Regional Parks: $188 = 3.0% CCCSD Sewer: $472 = 7.6% City of Walnut Creek: $536 = 8.7% Fire/Emergency: $670 = 11% County General Fund: $779 = 13% Schools: $3305 = 53% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Percent of Entire Tax Bill - Based on $500,000 home in Walnut Creek Society s Investment in Stormwater $2,400 $1,440 $1,800 $81 $360 $472 $750 Stormwater Garbage Sewer Water Cab/Ph/Net PG&E Cell Phone Annual Costs Based on $500,000 home/family in Walnut Creek

7 Contra Costa County Example (Stormwater Quality Services) 2012 Clean Water Funding Initiative Property related fee Ballot sent to all County property owners Process time: 1 ½ years Cost: $1.5 million Outcome: 60% No votes Adopt a higher rate for heavy water users to encourage water conservation Important tool to address drought required reductions Very difficult under Proposition 218 Conservation Rates

8 Stormwater Funding Solution.. Goal: Provide utility status for stormwater with a process to raise revenue similar to water districts and wastewater districts Need a Constitutional Amendment approved by the legislature (67% vote) to establish a ballot measure California voters will decide whether stormwater should have utility status (50% vote) Local Control: Each local government agency/area, if desired, goes through a public process to establish a Stormwater Utility and adopt a stormwater fee Proposed Ballot Measure Amend Article 10 Water Provide for conservation rates to encourage water conservation and prevent waste Provide for life-line rates to assist qualified low income households Provide optional funding mechanism for water, sewer, flood control, and stormwater services

9 The Ballot Measure Will NOT Modify Proposition 218 Create instant funding Change current funding process Change current process protections Funds can only be used for proposed services Written notice mailed to each property owner Public hearing required after 45 days Rejected if majority of property owners protest The Ballot Measure WILL.. Build on the provisions in Proposition 218 Independent annual audit Initiative power available to repeal/reduce service fee Burden of proof on local agency that fee amount is no more than necessary for cost of service Provide comprehensive approach to financing water management Provide local control (voluntary, determined by local community)

10 Ballot measure Title and Summary completed Initiative on Attorney General website Aiming for November 2016 election Ballot measure includes: Stormwater Services Flood Control Services Conservation Rates Lifeline Rates Current Status Likely Impact on Society if Measure Doesn t Pass Reduced ability to increase groundwater recharge Increased flood risk to lives and property Increased risk to economic tax base in floodplain Penalties/Litigation for non compliance with MS4 permit Reduced municipal services (funding stormwater instead) Difficult to adopt conservation rates Difficult to adopt lifeline rates More property owners having to pay flood insurance

11 Likely Benefits to Natural Resources if Measure Passes, Improved fish health Improved fisheries health Improved BMI indicators Improved watershed health Increased restoration funding Increased support funding for NGOs Current Water Portfolio Consumptive Uses Protective Activities Objective: Collect, retain, treat, and convey water for human use and economic and social benefit USES Drinking Residential Commerce Industry Agriculture Recreation Fire Fighting Objective: Protect aquatic ecosystems (water supply sources, fish and wildlife habitat, recreation opportunities), and lives, property and infrastructure ACTIVITIES Collect and treat wastewater Manage flood waters Manage and treat polluted stormwater Manage and treat urban runoff

12 Next Steps? Track the Constitutional Amendment when it is introduced (Spring 2016). How could your community organize to provide stormwater services. Opportunity to fund services and improve the Environment. Questions? For more information visit G: fldcntl/mitch/pp Stormwater Presentations/CEAC-PWOI Conf