Stormwater Utility Bill Stormwater Utility Bill StatusStatus

MWEA Watershed SeminarMWEA Watershed SeminarDecember 9, 2009December 9, 2009

PurposesPurposes

• Why is stormwater utility legislation neededWhy is stormwater utility legislation needed• History of the Bolt decisionHistory of the Bolt decision• Status of the stormwater utility billStatus of the stormwater utility bill

Why is a Why is a Stormwater Utility Bill Stormwater Utility Bill

Needed?Needed?• How do local governments pay for How do local governments pay for

services?services?– TaxesTaxes– Special assessmentsSpecial assessments– Grants and loansGrants and loans– FeesFees

Revised Total Revised Total EmploymentEmployment

Southeast Michigan, 2000-2035Southeast Michigan, 2000-2035

Source: SEMCOG, U.S. Bureau of Economic Analysis

2009

Yearly Percent Change in Home Yearly Percent Change in Home Price, SEV, and Taxable ValuePrice, SEV, and Taxable Value

Southeast MichiganSoutheast Michigan

Source: SEMCOG

Forecast

Home Price SEV Taxable Value

Percent Change in Taxable Percent Change in Taxable ValueValue

Southeast Michigan, 2008-2009Southeast Michigan, 2008-2009

Large loss, -5% to -16.5%

Loss, -2% to -4.9%

Small loss, down to -1.9%

Gain, up to 6.1%

Michigan Communities Michigan Communities with Stormwater with Stormwater

UtilitiesUtilities• Adrian Adrian • Ann Arbor Ann Arbor • Berkley Berkley • Brighton Brighton (on hold 07-01-04) (on hold 07-01-04)

• ChelseaChelsea• Harper WoodsHarper Woods• Marquette Marquette • New Baltimore New Baltimore • St. Clair ShoresSt. Clair Shores

Bolt HistoryBolt History

• 1998 Michigan Supreme Court Decision1998 Michigan Supreme Court Decision• Characteristics of fee v. taxCharacteristics of fee v. tax

– RegulatoryRegulatory– ProportionalProportional– VoluntaryVoluntary

Dealing with BoltDealing with Bolt

• Consternation on broad implications of Consternation on broad implications of BoltBolt

• SEMCOG’s report on financing SEMCOG’s report on financing stormwater activitiesstormwater activities

• MWEA endorsed reportMWEA endorsed report• Engaged and educated legislatorsEngaged and educated legislators

Regulatory PurposeRegulatory Purpose

• Embedded in findingsEmbedded in findings

Stormwater UtilityStormwater UtilityDraft BillDraft Bill

ProportionateProportionate• Volume of runoffVolume of runoff• Formulas establishedFormulas established

Stormwater Utility Stormwater Utility Draft BillDraft Bill

VoluntaryVoluntary• Initially, no one is inInitially, no one is in• Credit for ‘Good Behavior’ Credit for ‘Good Behavior’

Stormwater Utility Stormwater Utility Draft BillDraft Bill

• PlanPlan• OrdinanceOrdinance

Stormwater UtilityStormwater UtilityDraft Bill MechanicsDraft Bill Mechanics

• Bill introductionBill introduction– SB 1249, April 18, 2008SB 1249, April 18, 2008

» Referred to CommitteeReferred to Committee» Multiple workgroup sessionsMultiple workgroup sessions

– SB 256, February 18, 2009SB 256, February 18, 2009» Referred to CommitteeReferred to Committee» Multiple workgroup sessions Multiple workgroup sessions

Stormwater Utility Stormwater Utility StatusStatus

Stormwater Utility Stormwater Utility StatusStatus

Legislative Priorities Legislative Priorities • Great Lakes CompactGreat Lakes Compact

– SB 1249, Introduced April 18, 2008SB 1249, Introduced April 18, 2008» Referred to CommitteeReferred to Committee» Multiple workgroup sessionsMultiple workgroup sessions

– SB 256, Introduced February 18, 2009SB 256, Introduced February 18, 2009» Referred to CommitteeReferred to Committee» Multiple workgroup sessions Multiple workgroup sessions

• Wetlands ProtectionWetlands Protection• Budget, budget, budgetBudget, budget, budget

Questions?Questions?

Contact: Contact: Angela RiessAngela Riess riess@semcog.orgriess@semcog.org 313-324-3348313-324-3348