The document discusses the implementation of a stormwater user fee program in the City of Lancaster. It outlines criteria for evaluating policy issues, including equity, clarity, transparency, efficiency, efficacy, legal considerations, and consistency with other city goals. It presents data on impervious surface areas by property type and preliminary annual cost estimates for different levels of stormwater management service. Case studies are provided comparing stormwater fees to property taxes and sewer fees for different property types.

1. Stormwater User Fee Implementation
in the City of Lancaster
June 5, 2012
Courtesy:

2. Criteria For Evaluating Policy Issues
 Equity/Fairness
 Clarity (Simplicity, ease of understanding)
 Transparency (clear link of program needs and fees)
 Efficiency/Ease of Implementation
 Efficacy (e.g., are more precise breakdowns of
property categories likely to result in noticeable
differences in charges?)
 Legal considerations
 Consistency with other goals/objectives of the City

3. Charging based on Impervious Area is Equitable
Number of Parcels Impervious Area
4%
11% 20%
14%
75%
76%
Residential Non-Residential
Residential Non-Residential
Multi-family NO CODE
Multi-family NO CODE

4. Preliminary Program Costs for Three Level-of-
Service Scenarios (updated for May 31 meeting)
Note: rate model factors in grants
and loans that the City is projecting Estimated Annual Costs
will reduce these costs early, and Low Medium High
increase debt service later
Operating and Maintenance
Green Infrastructure* n/a $162,000 $202,500
Dry and Wet Ponds (inspection) $2,300 $2,300 $2,300
Street Sweeping $168,800 $168,800 $234,100
Catch Basin $201,000 $201,000 $402,000
Storm Drainage n/a n/a n/a
MS4 Implementation $449,762 $449,762 $449,762
Program Administration $149,000 $226,000 $303,000
Capital Costs
Green Infrastructure $730,600 $1,909,100 $3,652,400
Storm Drainage n/a $1,444,000 $1,926,000
Catch Basin $164,000 $164,000 $164,000
Total $1,865,462 $4,726,962 $7,336,062

5. Number of properties by tier:
Option with 4 tiers, applied to all property types
Frequency Distribution: All Properties
Tier 1 Tier 2 Tier 3 Tier 4
10,000 100%
9,000 90%
8,000 80%
Cumulative Percent
Number of Parcels
7,000 6,358 70%
6,000 60%
5,000 4,259 50%
4,000 40%
3,000 2,591 30%
2,000 1,273 20%
643 573 750
1,000 238 210 128 10%
97 79 76 78
0 0%
Impervious Area (square feet)
Number Parcels Cumulative Percent 6

6. Rates for 3 Tiering Options, with Medium Level of
Service, Pay-as-you-Go
$200
$180 Annual (7 tiers)
Annual (4 tiers)
$160
Annual (no tiers)
Impervious Area Fee (Annual, per tier
$140
$120
$100
$80
$60
$40
$20
$0
<=500 sf >500 sf and >1,000 sf and >1,500 sf and >2,000 sf and >2,500 sf and >3,000 ($/3000 sf,
<=1,000 sf <=1,500 sf <=2,000 sf <=2,500 sf <=3,000 sf charge based on
total impervious
area)
Impervious Area (square feet)
Not including grants/loans, Penn Vest debt service, or Bond Financing
7

7. Rates for 3 Level of Service Scenarios, Pay-as-you-Go
($/1000 sf, actual rates vary by size tier)
$120
$108 $108 $108 $108 $108 $108
Reliance on grants $103
and loans$100
assumed to end
after Year 3
SWU Fee ($/1,000 sf)
$80
$74 $74 $74 $74 $74 $74
$60 Low
$53 $53 $53 $52 Medium
High
$40
$30 $30 $30
$20
$20 $20 $20 $20 $20 $20 $20 $20 $20 $20
$-
1 2 3 4 5 6 7 8 9 10
Year
with grants/loans, Penn Vest debt service, Pay/Go
8

8. Typical Annual Stormwater Bill
Typical Residential Annual Stormwater Charge
Portland, OR $237.00
Philadelphia, PA $161.76
Virginia Beach, VA $115.34
Norfolk, VA $99.96
Mt. Lebanon, PA $96.00
Portsmouth, VA $84.00
Washington, DC $73.44
Gaithersburg, MD $70.00
Montgomery County, MD $70.00
Newport News, VA $65.40
Suffolk, VA $62.88
Rockville, MD $62.48
Hampton, VA $55.20
Chesapeake, VA $53.40
Takoma Park, MD $48.00
Richmond, VA $45.00
Prince William County, VA $26.36
$0 $50 $100 $150 $200 $250
9

9. Single Family Residential Case Studies
Comparing IA Fee ($/1000 sf), Dedicated Property
Tax ($/mil), and Sewer Fee ($/1000 gal)
Frequency Distribution: Residential
6,000 5,624
5,000
4,068
Number of Parcels
4,000
3,000
1,884
2,000
861
1,000
186 384
173 99 32 96
0
Impervious Area (square feet)
10

10. Case Study – Single Family #1 - Attached Rowhouse
600 block Ocean Ave
Typical Small Residential Property
$50
$45.39
$45
Small Single Family
$40
$35 $33.93
Quarterly Charge
$30
$25
$20 Impervious area fee options
$15.25
$15
$10.69
$10
$7.13
$5
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component
(no tiers, (4 tiers Option, (7 tiers option, per mil) to Sewer Charge
$15.25/qtr/property) $7.13/qtr/property for $10.69/qtr/property ($3.13/Kgal)
Tier 1) for Tier 2)
Estimated
Estimated
Assessed 2011 Water
Impervious
Value Consumption
Area (sf)
(1000 gal) Rates and charges assume medium LOS
$55,200 668 58 ($4,800,000 annual program)
11

11. Case Study – Single Family #2 – Detached Residential @ 500 Poplar St
Medium Sized Residential Property
$70 $66.51
Medium Single Family
$60
$50
Quarterly Charge
$40 $36.58
Impervious area fee options
$30
$21.38
$20 $17.81
$15.25
$10
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 per Additional Component to
(no tiers, (4 tiers Option, (7 tiers option, mil) Sewer Charge ($3.13/Kgal)
$15.25/qtr/property) $21.38/qtr/property for $17.81/qtr/property for
Tier 2) Tier 3)
Estimated
Estimated
Assessed 2011 Water
Impervious
Value
Area (sf)
Consumption Rates and charges assume medium LOS
(1000 gal) ($4,800,000 annual program)
$59,500 1,155 85
12

12. Case Study – Single Family #3 – Single Family Residential @ 900 Block Lehigh Ave
Large sized Residential Property
$120
Large Single Family
$100.14
$100
$80
Quarterly Charge
$60 Impervious area fee options
$48.07 $48.07
$40
$20.35
$20 $15.25
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component
(no tiers, (4 tiers Option, (7 tiers option, per mil) to Sewer Charge
$15.25/qtr/property) $14.25/qtr/1000sf for $14.25/qtr/1000sf for ($3.13/Kgal)
Tier 4) Tier 7)
Estimated
Estimated
Assessed 2011 Water
Impervious
Value Consumption
Area (sf)
(1000 gal) Rates and charges assume medium LOS
$162,900 3,373 26 ($4,800,000 annual program)
13

13. Multi-Family Case Studies Comparing IA Fee
($/1000 sf), Dedicated Property Tax ($/mil), and
Sewer Fee ($/1000 gal)
Frequency Distribution: MULTIFAM
600 550 547
500
Number of Parcels
400
300 278
200 166 176
96
100 76 62
25
0
0
Impervious Area (square feet)
14

14. Case Study – Multi-family Residential / P-84
Apartments at Mulberry Court
$700 Impervious area fee options
$651.27 Apts at Mulberry Ct
$608.56 $608.56
$600
$500
Quarterly Charge
$400
$300
$202.87
$200
$100
$58.69
$0
Estimated SWU Charge
(no tiers, $15.25 per Qtr
SWU Charge
(4 tiers option,
SWU Charge
(7 tiers option,
Dedicated Tax ($2.459 Additional Component to
per mil) Sewer Charge
Estimated per 1000 sf) $14.25/qtr/1,000sf for $14.25/qtr/1,000sf for ($3.13/Kgal)
Assessed 2011 Water Tier 4) Tier 7)
Impervious
Value Consumption
Area (sf)
(1000 gal)
$330,000 28,578 819 Rates and charges assume medium LOS
($4,800,000 annual program)
15

15. Commercial Case Studies Comparing IA Fee
($/1000 sf), Dedicated Property Tax ($/mil),
and Sewer Fee ($/1000 gal)
Frequency Distribution: COMM
800 742
700
600
Number of Parcels
500
400
300
178
200 156
112 121
82 71 61
100 49 54
0
Impervious Area (square feet)
16

16. Case Study - Commercial Two Dudes Painting
Commercial
$350 Impervious area fee options
Two Dudes Painting
$300
$295.68
$276.29 $276.29
$250
Quarterly Charge
$200
$148.59
$150
$100
$50
$21.13
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component to
(no tiers, $15.25 per Qtr (4 tiers option, (7 tiers option, per mil) Sewer Charge
Estimated per 1000 sf) $14.25/qtr/1,000sf for
Tier 4)
$14.25/qtr/1,000sf for
Tier 7)
($3.13/Kgal)
Estimated
Assessed 2011 Water
Impervious
Value Consumption
Area (sf) Rates and charges assume medium LOS
(1000 gal)
$241,700 19,389 27 ($4,800,000 annual program)
17

17. Case Study – Parking Lot (Public) P-51 Water St
$1,000 Impervious area fee options
$897.60 Private Parking Lot
$900
$838.74 $838.74
$800
$700
Quarterly Charge
$600
$500
$400
$300
$200 $176.68
$100
$0.00
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 Additional Component to
(no tiers, $15.25 per Qtr (4 tiers option, (7 tiers option, per mil) Sewer Charge
per 1000 sf) $14.25/qtr/1,000sf for $14.25/qtr/1,000sf for ($3.13/Kgal)
Tier 4) Tier 7)
Estimated
Estimated
Assessed 2011 Water
Impervious
Value Consumption
Area (sf) Rates and charges assume medium LOS
(1000 gal)
$287,400 58,859 0 ($4,800,000 annual program)
18

18. Industrial Case Studies Comparing IA Fee
($/1000 sf), Dedicated Property Tax
($/mil), and Sewer Fee ($/1000 gal)
Frequency Distribution: INDUS
120
100
100
Number of Parcels
80
60
40
20
0 1 0 0 3 2 1 3 1
0
Impervious Area (square feet)
19

19. Case Study – Industrial (Ace Rents)
$6,000 Impervious area fee options
Ace Rents
$5,223
$5,000 $4,880 $4,880
$4,000
Quarterly Charge
$3,000
$2,000
$1,289
$1,000
$231
$0
SWU Charge SWU Charge SWU Charge Dedicated Tax ($2.459 per mil) Additional Component to
(no tiers, $15.25 per Qtr per (4 tiers option, (7 tiers option, Sewer Charge ($3.13/Kgal)
1000 sf) $14.25/qtr/1,000sf for Tier 4) $14.25/qtr/1,000sf for Tier 7)
Estimated
Estimated
Assessed 2011 Water
Impervious
Value Consumption
Area (sf) Rates and charges assume medium LOS
(1000 gal)
$20,96,900 342,482 295 ($4,800,000 annual program)
20

20. Debt Financing
 GO Bonds
– full faith and credit of the City
– pledge stormwater utility revenues
 Debt assumed to not count against debt cap
 5.5% interest rate (subject to change based on market
conditions)
 20 year term (subject to change based on average
useful life of projects)
 next likely bond issue is 2015/16
21