Storm-Water Utility User Fee Credits

Abstract

Urban storm-water utilities are an important funding method for storm-water programs. The rate structure is the basis on which the utility forms its fees and other secondary funding methods and rate modifiers. One rate modifier is the use of crediting mechanisms. Credits are often granted to provide incentives to implement or carry out an overall community storm-water management plan or to advance some other social or environmental objective. Bases for credits range from a classification of ratepayers, the class of property, location within the watershed or service area, certain activities that improve the system beyond normal expectations, certain ongoing activities on the property that reduce impact, and certain ongoing activities on the property reduce the city's cost of service. This paper explores the use of these different bases discussing the pros and cons for each, and details an approach that accounts for the expected impacts of development in terms of flow peak, flow volume and pollution discharge.