13.E.24) Establish fee-based stormwater utilities

Municipal stormwater systems epitomize the concept of “stranded infrastructure.”  Unlike water and sewer systems, there is no dedicated funding stream to ensure adequate maintenance of stormwater systems.  Capital funding (grants, bonds, or developer mitigation) pays for new infrastructure, but constrained tax revenues and competing priorities mean that public works departments are under resourced.  Municipal staff are unable to conduct routine maintenance such as cleaning catch basins, repairing pipe, or removing blockages, resulting in lower pollutant removal and increased flooding.  As years of deferred maintenance result in deterioration requiring complete reconstruction; the shortage of operating funds eventually results in higher capital costs.  

A stormwater utility provides user fee funding similar to water and sewer utilities, but creates an enterprise fund with revenue to pay for operating and maintenance expenses, project or capital-related expenditures, staffing, engineering, permitting, inspection, and program management costs. A stormwater utility is leveraged as a fee charged in exchange for a service, such as stormwater management system operation and maintenance, or construction of new infrastructure.  This charge is a consistent, dedicated, and equitable source of funding.  Stormwater utilities are based on factors that influence stormwater runoff, such as impervious area or land use, which can be used in the rate setting methodology.  Property owners can receive abatements from the fees by implementing best management practices that reduce stormwater runoff.  

Higher-density development may have more significant stormwater impacts, however, in order to encourage appropriate density in urban and town center locations, any stormwater fees should be structured so they do not discourage redevelopment or high-density growth. 

24.a    Municipalities should establish stormwater utilities

24.b    MAPC and allied organizations should disseminate models and provide technical assistance to communities for developing dedicated stormwater utilities

24.c    The Commonwealth should provide technical assistance and/or capacity building for Regional Planning Agencies to assist communities in developing stormwater utilities

24.d    MAPC should evaluate the potential use of Environmental Joint Powers Agreement for the creation of multi-municipal stormwater districts

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