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Financing Sto rmwate r Management with a Stormvluater Utility The Financing Dilemma The cost of constructing, operating,. and maintaining stormwater facilities continues to increass along with other municipal costs. In fact, the storm drainage system is often the last and most expensive public utility for cities to develop. Traditional methods of financing stormwater improvements have become more complex in recent years. Faced with increasing costs and continuous. pressure to minimize property taxes, cities may,;; lack the financial resources to undertake a multi -year stormwater management program. , City general funds and special assessments have typically financed most of the necessary improverne7ts N in the past. Consequently, many communities lack the proper funding to address the increasing:_ costs related to stormwater drainage, water quality management; and wetland protection. Service charges, which have been used by communities to finance sanitary sewer and water systems;::. ;:; ` :x' .;,; •- are now being applied to stormwater management. The utility approach is gaining recognition as the most equitable way to finance stormwater management activities while allowing for de�elopmerit; ` ''` A stormwater utility has been the. answer to the financial needs of the equation for many cammuni#iesr What is a Stormwater Utility? Let's start with what the utility is not. The utility `is not a new'`lewl of government, nor is the utility a new tax. A stormwater utility is ;simply a method of financing the administration; planning, implementation; and maintenance of stormwater best management practices (6MPs}. This utility does not replace existing funding sources — it complements them. m The utility is nothing ore than a service charge or fee. The utility fee k 7is typically charged aganst all developed parcels within a city based on the: premise of "contributors pay.'' Where land is. in a, natural state, most �nta fhe. ground or is retained inn small depressions. Where t has• ` p" ps; ways, and.parking lots Q.. relent, ro.ofto drive �i�fallffrom soal91 into the ground. The rain runs off into ejrentiiallyzinto the river, or lake, creating the need `'. Idlr''systeiris aict` to protect the quality of our water resources. offprp� =tie:fee is used„on .how much water runoff and/or pollutant d .s can#nbined =i ji p pa : icuEar. parcel. ` ilrtyias a consistent, tlependable revenue source that provides:a e �f ind'to, cnariag? the drainage system and water quality � Fr emeiitsi A utility also provides the mans to handle increasing a #stttraughsrrnall adJJstments irl the utility charges, . L The utility fee is typically s, F cHarged against all developed parcels within a city based on the premise of "contributors pay."