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2017 CONFERENCE TECHNICAL SESSION  TENNESSEE                                                                                            By David Mason P.E., D.WRE
                                   Funding Your Stormwater Program:
                                   When is a Stormwater Utility Right for You?

                                     Throughout the past decade, the                        and in the future?” and “what benefits      Public stakeholder meetings are an excellent
                                   attention paid to stormwater and water                   will meeting these needs provide our        method for gauging public support for your program.
                                   quality issues has dramatically increased.               customer base?” If you can’t answer
                                   Ever-expanding regulations such as the                   those questions, it is very difficult to    such as through public meetings, public
                                   National Pollutant Discharge Elimination                 sell the concept of a new fee to your       opinion surveys, or a facilitated public
                                   System requirements as well as Total                     administration, to elected officials and    stakeholder process. While it may take
                                   Maximum Daily Loads have significantly                   ultimately to the public.                   longer to execute, experience has shown
                                   expanded the scope of local stormwater                                                               that the public stakeholder process is
                                   management programs. In addition,                          Therefore, the first step in the process  the most effective approach for gaining
                                   aging infrastructure continues to be                     of evaluating your readiness for a          support for the program. The process
                                   a drain on local governments’ capital                    stormwater utility should be determining    offers several benefits, including:
                                   improvement budgets. In parallel, the                    the true cost and level of service of your  •	 Feedback is immediate.
                                   economic downturn of the past several                    program. Many smaller communities           •	 The message is tested in a small group
                                   years has increased the competition                      without a stormwater utility likely do
                                   within cities for limited general fund                   not have a line item in the annual budget     before distribution at large.
                                   dollars. As a result, the option of                      that summarizes the cost of service,        •	 Once consensus is reached,
                                   implementing a sustainable, stormwater                   as stormwater services are typically
                                   utility funding mechanism continues to                   provided across numerous departments          stakeholders can become advocates/
                                   grow in popularity. According to annual                  and by staff that have multiple roles in      champions.
                                   studies performed by Western Kentucky                    the organization. Thus, some legwork          If a stakeholder process is your chosen
                                   University 1, the number of stormwater                   is required to understand where the         approach, there are several things you
                                   utilities nationally has grown from                      various stormwater costs reside in the      should consider. First, make sure the
                                   approximately 800 in 2007 to nearly                      budget. This effort can be performed by     group you invite includes both your
                                   2,000 in 2013. So, the question becomes:                 internal staff with support from their      friends and your “enemies.” While your
                                   “When is a Stormwater Utility right for                  finance department or through outside       friends will provide a lot of positive
                                   you?”                                                    consulting services.                        feedback and support for your program,
                                                                                                                                        your “enemies” can reveal important
                                   Assessing the Need                                         Once the cost of the program is           program deficiencies or concerns
                                                                                            determined, the next step is to perform     that should be addressed within your
                                     Many communities make the mistake                      a pragmatic assessment of the level of      plan going forward. Also, gaining an
                                   of jumping into the stormwater utility                   service being provided to customers for     understanding of your opponents’ issues
                                   discussion by talking about potential                    that cost. The level of service assessment  will let you know whether the political
                                   fees and revenues. You may hear                          should include the identification of what   will exists to move forward with a fee
                                   statements such as “it’s only $3” or “we                 services you are providing today and the    proposal.
                                   can generate X amount of money with                      benefits (or lack thereof) to customers.
                                   it.” However, what a community really                    Next, the community should consider         Understanding the Hurdles to
                                   needs to be discussing first is the needs                how they might increase that level of       Implementation
                                   of the community, asking questions                       service to meet customer expectations,
                                   such as “what are our needs, both today                  the cost of those new or expanded             One of the last things you’ll want
                                                                                            services and additional benefits            to do in assessing the feasibility
                                   Like this old shoe, even if the price is “only $3,”      customers might receive from the            of a stormwater utility program
                                   you can’t sell it to the public if they don’t like what  program. It is only after these steps that  is an evaluation of the steps for
                                   they’re getting. Assess your program and under-          the potential funding by a stormwater       implementation. It would be a shame
                                   stand its benefits (or lack thereof) before trying to    utility should be considered. In general,   to proceed to a point where you
                                   pursue a stormwater utility.                             customers will embrace the fee only if      have proposed a program without
                                   14	 TPW November/December 2017                           they want the service it will provide.

                                                                                            Engaging the Public in the
                                                                                            Conversation

                                                                                              Once your level of service and cost of
                                                                                            service is clearly understood, the next
                                                                                            thing you should consider is how much
                                                                                            support you can garner from the public
                                                                                            for a new fee program. Public input
                                                                                            can be gathered in a variety of ways,
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