FUNDING STRATEGIES REPORT - Alachua · PDF fileStormwater Funding Strategies Report ......

Alachua County Stormwater Funding Strategies Report

NOVEMBER 2016

Prepared by:

Government Services Group, Inc.

1500 Mahan Drive, Suite 250

Tallahassee, Florida 32308

(850) 681-3717

Fax (850) 224-7206

Government Services Group, Inc. │ i

Table of Contents

Section 1 — Introduction ....................................................................................................................................... 1

Section 2 — Stormwater Management Program ................................................................................................. 4

Section 3 — Funding Requirements ..................................................................................................................... 6

Section 4 — Proposed Apportionment Methodology ........................................................................................... 9

Section 5 – Proforma Funding Scenarios............................................................................................................ 15

Section 6 – Implementation Schedule ................................................................................................................ 19

Government Services Group, Inc. │ ii

List of Figures and Tables

Figure 1—Alachua County Public Works Department, Engineering & Operations ............................................ 4

Table 1 — Alachua County Stormwater Five-Year Proforma Assessable Budget .............................................. 8

(Fiscal Years 2017-18 – 2021-22)

Table 2 — Summary of Parcels by Rate Class ..................................................................................................... 12

Table 3 — Total Number of ERUs by Rate Class .................................................................................................. 14

Table 4 — Preliminary Rates Fiscal Year 2017-18 (100% of Assessable Costs = $6,826,193) ..................... 15

Table 5 — Five Year Average Preliminary Rates (100% of Assessable Costs = $6,569,282) ......................... 15

Table 6 — Preliminary Rates Fiscal Years 2017-18 through 2021-22 (100% of Assessable Costs) .............. 15

Table 7 — Status Quo Rates ................................................................................................................................. 16

Table 8 — Expanded LOS Rates ........................................................................................................................... 16

Table 9 — Optimal LOS Rates ............................................................................................................................... 16

List of Appendices

Appendix A — Alachua County DOR Codes

Appendix B — Planning Unit And Special Benefit Area Updated Rate Scenarios

Government Services Group, Inc. │ 1

Section 1 — Introduction

Alachua County (County) has entered into a professional services agreement with Government Services

Group, Inc. (GSG) to provide specialized services in the development of a funding program for

stormwater management services within the unincorporated area of the County (Stormwater Funding

Strategies Project). The County entered into a separate professional services agreement with AECOM

Technical Services, Inc. (AECOM) to obtain the necessary impervious area calculations for parcels in the

unincorporated area of the County.

The objective of the Stormwater Funding Strategies Project is to develop a program to fund the County's

provision of stormwater services commencing Fiscal Year 2017-18. This document is the Stormwater

Funding Strategies Report (Report), which is one of the project deliverables specified in the scope of

services that is incorporated in the professional services agreement between the County and GSG.

In 2006, the County entered into a professional services agreement with GSG, Inwood Consulting

(Inwood) and Nabors, Giblin & Nickerson, P.A. (NGN) to provide specialized services in the development

and implementation of a stormwater assessment program within the unincorporated area of the County.

An original Funding Report was delivered to the County in June 2006 and an Amended Funding Report

was delivered in August 2006. The County Commission moved forward with implementation of the

stormwater assessment program in 2006 by adopting a stormwater assessment ordinance and initial

assessment resolution; however, the County Commission did not approve the stormwater assessment

program at the final public hearing after providing first class mailed notices to the property owners.

In 2010, the County entered into a professional services agreement with GSG, Inwood and NG&N to

provide specialized services in the development of an updated assessment program to fund stormwater

services in the unincorporated area of the County. The Funding Strategies Report was delivered to the

County; however, at that time the County decided not to go forward with implementation.

The work effort, documented by this Report, focused on identifying the revenue requirements to fully

fund the provision of stormwater services within the unincorporated area of the County for a five-year

period beginning with Fiscal Year 2017-18 and developing a methodology to fairly allocate the costs to

properties that specifically benefit from the provision of stormwater services or demand stormwater

services from the County. However, the County has the choice of funding all or only a portion of these

costs based on policy direction.

The goals of this study were as follows:

To use the County’s proposed budget for Fiscal Year 2017-18 and future compliance and regulatory

requirement expenditures identified by County staff to determine the assessable costs for

stormwater services for Fiscal Years 2017-18 through 21-22.

To recommend a fair and reasonable methodology to apportion the costs of stormwater services

among all parcels that are benefited.

To determine a consistent, feasible and legally sufficient charge to recover the cost of stormwater

services provided to property within the unincorporated area of the County.

To apply the apportionment methodology and develop preliminary rates.


OBJECTIVES

The work effort documented by this Report, focused on the following objectives:

Provide an inventory of the stormwater services that the County currently provides.

Review and work with County staff to identify enhanced stormwater services for future compliance

and regulatory requirements.

Determine the full costs of providing stormwater services within the unincorporated area of the

County.

Review such final cost determination with the County to determine which elements provide the

requisite special benefit to the properties.

Determine relative benefit anticipated to be derived by properties within the County from the delivery

of stormwater services.

Recommend a fair and reasonable apportionment of costs among parcels that are benefited.

Calculate a multi-year fee schedule based on the proposed five-year cost calculations utilizing the

Fiscal Year 2017-18 cost calculations and budget and the increased level of services costs.

Ensure that the recommended rates and parcel classifications conform to the statutory

requirements.

STUDY METHODOLOGY

GSG performed the following tasks in accomplishing the project objectives of the project:

Evaluated the current stormwater operations and the current funding of stormwater services within

the County.

Evaluated the Stormwater Master Plan prepared by Inwood to identify the proposed future

stormwater operations and stormwater facilities within the County.

Conducted interviews with County staff to identify all stormwater services and costs in the County

Public Works and Environmental Protection Departments.

Identified all maintenance services and costs associated with the delivery of stormwater

management services.

Analyzed the proposed expenditures for Fiscal Years 2017-18 through 2021-22 (5 years).

Compared the expenditure requirements with anticipated revenues to develop a funding

requirement line item for Fiscal Years 2017-18 through 2021-22 budgets.

Developed an apportionment methodology for a potential stormwater special assessment that meets

the case law criteria for a valid special assessment.

Develop the preliminary stormwater assessment roll and identified the stormwater billing database

requirements and determined the actual base billing units based on the impervious area

calculations provided by AECOM.


STUDY ASSUMPTIONS

The stormwater management program costs and expenditure assumptions made in this Report were

provided by County staff.

GSG utilized the basin files provided by Inwood in 2010 to identifying the parcels within each planning

unit area and special benefit areas.

GSG utilized the capital flooding cost analysis from the Stormwater Funding Strategies Report dated

June 2010 (2010 Funding Report) and the basin files to develop the planning unit area and special

benefit area assessment rates.


Section 2 — Stormwater Management Program

OVERVIEW OF COUNTY’S CURRENT STORMWATER SERVICES

The stormwater services currently being provided by the County are being provided under the Public

Works Department by Public Works staff. The stormwater program has no dedicated staff at this time.

Figure 1 illustrates the County’s organizational structure for the Public Works Department.

Figure 1

Animal Services

Engineering and

Operations

Fleet Management

Parks and

Recreation

Waste Management

Administration

County Engineer

Staff Assistant

Staff Assistant

Public Works

Special Projects

Coordinator

Intern

Vacant

Development

Program Manager

Construction

Inspection

Superintendent

Road

Superintendent

Civil Engineer III

Senior Engineering

Tech

Hoticulturist

Tree Planting

Workers

Alachua County Public Works

Engineering & Operations

Currently the County provides a marginal level of regular services for maintenance of stormwater

facilities primarily associated with roadways. Other drainage related services are being provided on a

reactive basis. Public Works estimates that the cost of the current stormwater services is approximately

$616,000 annually and is funded primarily from fuel tax revenue.

ENHANCED LEVEL OF STORMWATER SERVICES

The County desires to enhance the level of services provided in its stormwater program and engaged the

services of Inwood to conduct a study to determine the resources necessary to accomplish the County’s

goal of developing a comprehensive Stormwater Management Program. A Final Stormwater


Management Needs Assessment, Program Recommendations, & Cost Analysis Summary Report was

prepared by Inwood dated January 2010 (Needs Assessment Report). The Needs Assessment Report

made recommendations to the County on elements that should be included in the County’s Stormwater

Management Program. These elements include:

Staffing dedicated to the operation and maintenance of stormwater facilities

Equipment dedicated to the operation and maintenance of stormwater facilities

Program administration

Regulation and code development support

Inspection and enforcement support

Public education support

Environmental Protection Department staffing

National Pollutant Discharge Elimination System (NPDES) administration

Basin Management Action Plan (BMAP) support

Street sweeping

Master Plan reimbursement

Stormwater Master Plan and Program updates

Program setup and maintenance

Identification of priority capital flooding projects

Identification of priority water quality projects

Identification of priority watershed studies

Utilizing the recommendations from the 2010 Needs Assessment Report and newly identified areas of

concern, County staff identified and prioritized stormwater services that would benefit all parcels in the

unincorporated area of the County. These services were broken out into two categories (1) drainage

operation and maintenance, and (2) water quality.

The County’s desire to maintain a proactive stormwater maintenance program will require additional

staff and equipment resources dedicated to providing regular stormwater services throughout the

unincorporated area of the County. This increased level of services cannot be obtained without a

dedicated funding source for the County’s Stormwater Management Program.


Section 3 — Funding Requirements1

The stormwater services currently being provided by the County are being provided by Public Works staff.

Public Works estimates that the cost of the current stormwater services is approximately $616,000

annually and is funded primarily from fuel tax revenue.

The County desires to enhance the level of services provided in its stormwater program and has

identified the resources necessary to accomplish its goals. County staff provided documentation

regarding the costs associated with the various levels of enhanced stormwater services for Fiscal Year

2017-18. The County’s stormwater management projected program costs for Fiscal Year 2017-18

included the following:

Stormwater Drainage Operation and Maintenance costs

Current level of services -- $466,369

reactive to requests for maintenance

limited inspections

limited maintenance of basins

Expanded level of services -- $157,197

Proactive maintenance

Routine inspections

Thorough maintenance of property, substandard interval

Optimum level of services -- $2,315,833

Optimum inspection intervals

Optimum maintenance intervals

Road drainage improvements (sediment reduction)

Stormwater Water Quality

Current level of services -- $150,000

MS4 Permit requirements (GUA)

Street sweeping

Expanded level of services -- $473,566

MS4 Permit requirements expanded

Increased street sweeping

Stormwater database

Orange Creek BMAP cost-share

Santa Fe River BMAP cost-share

Optimum level of services -- $2,915,833

MS4 Permit requirements expanded

Increased street sweeping

Orange Creek BMAP cost-share

Santa Fe River BMAP cost-share

Watershed Management plans and retrofits (Santa Fe BMAP and Orange Creek

BMAP)

Road drainage improvement (sediment reduction)

1 The funding requirements in this section pertain to the stormwater operation and maintenance costs that

provide a benefit to all parcels in the unincorporated area of the County. Funding requirements that pertain to planning units and special benefit areas are provided in Appendix B.


GSG utilized the Fiscal Year 2017-18 expenditures to develop a five-year average (Fiscal Year 2017-18

through Fiscal Year 2021-22) proforma assessable budget for stormwater services provided county-

wide.2

Expenditures

Began with the Fiscal Year 2017-18 projected stormwater budget.

o Provided annual increases for future year projections as follows:

Annually increased most operation and maintenance expenses by 3%. “Inmate

Squad” and “Road Drainage Improvements” remained constant.

Annually increased water quality line items such as “Current LOS”, “MS4 Permit

Requirements” and “Street Sweeping” by 3%. All other line items remained constant.

Revenues

The County has no recurring revenues.

Miscellaneous Assessment Expenditures

The Miscellaneous Assessment Expenditures portion of the budget includes costs associated with

implementation and annual program maintenance. These costs are reimbursable through the

assessment program.

The line item “Statutory Discount” under “Miscellaneous Assessment Expenditures” reflects a 95%

collection of the Stormwater Assessment to cover the 4% statutory discount allowed by the Uniform

Method and 1% reserve for under collection. Accordingly, the statutory discount is budgeted at 5% of

the total assessable costs.

Pursuant to section 197.3632, Florida Statutes, the tax collector and property appraiser may each

enter into an agreement with the local government for reimbursement of necessary administrative

costs incurred from the collection of the non-ad valorem assessment. Accordingly, if any such fee(s)

is charged, the fee may be recouped as an add-on to the total assessable costs for the year.

The line item “Collection Costs (@2%)” reflects reimbursement for the collection costs associated

with the non-ad valorem assessment incurred by the Tax Collector. Pursuant to section 197.3632,

Florida Statues, a municipal government shall only compensate the tax collector for the actual costs

of collecting the non-ad valorem assessment, not to exceed 2%, on the amount of special

assessments collected and remitted. We have assumed a 2% collection cost.

2 GSG did not include stormwater expenditures that did not provide a countywide benefit.


Table 1 contains the County’s five-year stormwater assessable budget.

Table 1

Alachua County Stormwater Five-Year Proforma Assessable Budget (Fiscal Years 2017-18 – 2021-22)

FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5-Year Average

Expenditures

Detailed O&M Budget

Current Reactive O & M 466,369 480,360 494,771 509,614 524,902 495,203

Inmate squad 40,000 40,000 40,000 40,000 40,000 40,000

Additional staff/equipment for proactive

maintenance 117,197 120,713 124,334 128,064 131,906 124,443

Second crew for proactive maintenance 356,650 367,350 378,370 389,721 401,413 378,701

Purchase trackhoe 300,000 0 0 0 0 60,000

Second Inmate squad 40,000 40,000 40,000 40,000 40,000 40,000

Additional materials 23,764 24,477 25,211 25,968 26,747 25,233

Third crew for proactive maintenance 356,650 367,350 378,370 389,721 401,413 378,701

Third Inmate squad 40,000 40,000 40,000 40,000 40,000 40,000

Additional materials 100,000 103,000 106,090 109,273 112,551 106,183

Road Drainage Improvements

(volume/sediment attenuation) 879,331 879,331 879,331 879,331 879,331 879,331

Total O&M $2,719,961 $2,462,580 $2,506,477 $2,551,692 $2,598,263 $2,567,795

Detailed Water Quality Budget

Current LOS 150,000 154,500 159,135 163,909 168,826 159,274

Stormwater Database 75,000 0 0 0 0 15,000

MS4 Permit Requirements (Expanded) 40,000 41,200 42,436 43,709 45,020 42,473

Street Sweeping (Expanded) 40,000 41,200 42,436 43,709 45,020 42,473

Orange Creek BMAP 410,000 410,000 410,000 410,000 410,000 410,000

Santa Fe River BMAP 308,699 308,699 308,699 308,699 308,699 308,699

Stormwater Treatment Facilities retrofits

(East) 665,000 665,000 665,000 665,000 665,000 665,000

Stormwater Treatment Facilities retrofits

(West) 665,000 665,000 665,000 665,000 665,000 665,000

Road Drainage Improvements (Sediment

Reduction) 1,185,700 1,185,700 1,185,700 1,185,700 1,185,700 1,185,700

Total Water Quality $3,539,399 $3,471,299 $3,478,406 $3,485,726 $3,493,266 $3,493,619

Total Stormwater Expenditures $6,259,360 $5,933,879 $5,984,883 $6,037,418 $6,091,529 $6,061,414

Miscellaneous Assessment

Expenditures

Statutory Discount (@ 5%) 359,273 337,940 340,836 343,819 346,891 345,752

Collection Costs (@2%) 139,310 131,038 132,161 133,317 134,509 134,067

Annual Assessment Administration 17,500 17,500 17,500 17,500 17,500 17,500

Notice Costs 50,750 500 500 500 500 10,550

Total Miscellaneous Assessment

Expenditures $566,833 $486,978 $490,997 $495,136 $499,400 $507,869

Net Assessable Expenditures $6,826,193 $6,420,857 $6,475,880 $6,532,554 $6,590,928 $6,569,282


Section 4 — Proposed Apportionment Methodology

The stormwater services special assessments must meet the Florida case law requirements for a valid

special assessment. These requirements are:

1. The service provided must confer a special benefit to the property being assessed; and

2. The costs assessed must be fairly and reasonably apportioned among the properties that receive the

special benefit.

To this end, GSG has been charged to fully cost the services to be provided by the County, develop a fair and

reasonable apportionment methodology for such assessable costs, and determine assessment rates and

parcel classifications that are accurate, fair and reasonable.

SPECIAL BENEFIT ASSUMPTIONS

The following assumptions support a finding that the stormwater services provided by the County provide a

special benefit to the assessed parcels.

The provision of stormwater management services and the availability and use of facilities or

improvements by owners and occupants of such property to properly and safely detain, retain, convey or

treat stormwater discharged from such property;

Stabilization of or the increase of property values;

Increased safety and better access to property;

Improved appearance;

Rendering property more adaptable to a current or reasonably foreseeable new and higher use;

Alleviation of the burdens caused by stormwater runoff and accumulation attendant with the present or

projected use of property; and

Fostering the enhancement of environmentally responsible use and enjoyment of the natural resources

within the County.


APPORTIONMENT METHODOLOGY

The apportionment methodology for stormwater services includes two separate components. The first

component is the determination of the specific geographic areas that receive a special benefit from each

element of the stormwater management services (Cost Apportionment). The Cost Apportionment exercise

addresses two fundamental questions:

Who pays?

For what services?

The second component is a comprehensive analysis of all property uses to identify a fair and reasonable

method of apportioning the assessable costs among all benefited parcels within each property use category

(Parcel Apportionment). Parcel Apportionment focuses on the question:

How is each parcel’s share of recoverable costs to be determined?

The recommended stormwater services apportionment methodology allocates costs on the basis of the

anticipated demand for stormwater services by categories of real property use as identified on the real

property assessment roll prepared for the levy of ad valorem taxes. The stormwater costs are allocated

among real property use categories based upon the impervious area of the properties.

Accumulating runoff from property must be managed in an organized manner if owners are to enjoy the full

use of their property. The burden of managing this stormwater falls to the community. Stormwater facilities

must be maintained, replaced or constructed to reduce the impact of runoff. Each developed or altered

parcel that is connected to the stormwater system benefits from this investment. The group of parcels

receiving a benefit, or having an expectation of receiving a benefit from the County’s stormwater program

comprise the County’s stormwater service area. A special assessment is a charge placed on non-government

property in the stormwater service area to recover the cost to the community of treating the stormwater

runoff generated by that parcel.

The amount of runoff generated by a parcel and sent to the stormwater system represents that parcel’s

proportionate share of the burden of creating and maintaining the stormwater system. The amount of runoff

from a parcel is largely determined by the amount of impervious area (hard surfaces through which water

does not easily pass) contained on a parcel – the more the impervious area, the more the runoff, the more

the cost of treatment, and the more charged to the parcel.

COST APPORTIONMENT

Defining the benefit or service area is a geographically precise process. Using the hydrologic connection test,

the County staff and GSG evaluated a map of the unincorporated area of the County and determined, at the

parcel level of detail, which parcels are served by stormwater management services and which are not.

Based on the evaluation, it was determined that the entire geographic area of the unincorporated area of

the County benefits from the stormwater management services.


PARCEL APPORTIONMENT ASSUMPTIONS

The following assumptions support findings that the recommended parcel apportionment is fair, reasonable,

and equitable.

The amount of runoff generated by a parcel and sent to the stormwater system represents that parcel’s

proportionate share of the burden of creating and maintaining the stormwater system. The amount of

runoff from a parcel is largely determined by the amount of impervious area (hard surfaces through

which water does not easily pass) contained on a parcel – the more the impervious area, the more the

runoff, the more the cost of treatment and the more the charge to the parcel.

The value of the parcel does not determine the scope of the required stormwater management

services. The potential demand for stormwater services by developed property is driven by the

amount of impervious area located on the parcel.

Apportioning the assessed costs for stormwater services attributable to the single family

residential property use category on a per Equivalent Residential Unit (ERU) basis within tiers is

required to avoid cost inefficiency and unnecessary administration and is a fair and reasonable

method of parcel apportionment based upon statistical data.

The building footprint of each single-family parcel constitutes a reasonable proxy for impervious

area. It has been determined that the average single-family residence in the County has a

building footprint of 2,235 square feet and a total impervious area of 4,011 square feet. The

median single-family residence in the County is equal to one ERU.

PARCEL APPORTIONMENT METHODOLOGY

A base-billing unit, called an Equivalent Residential Unit (ERU), is used to determine the stormwater charges.

An ERU is the amount of impervious area associated with the typical single-family residence. The ad valorem

tax roll information and data collection efforts by AECOM indicated that the ERU value is 4,011 square feet.

The apportionment methodology for the stormwater assessment recommended by GSG includes the

following components:

The use of impervious area in the calculation of relative runoff;

The incorporation of the following rate classes:

Single Family Residential Within the single family residential rate class, the incorporation of rate

tiers to be assigned to single family residential properties based on the impervious area located

on the property (i.e., small, medium, large and very large residential parcels);

Condominium For condominium parcels, the impervious area of the condominium complex will

be divided by the equivalent residential unit value and then further divided by the total number

of residential condominium parcels and the proportionate share of non-residential condominium

parcels.

General Parcels For general parcels (all other parcels not classified above), the impervious area

of the parcel will be divided by the equivalent residential unit value.


PRELIMINARY ASSESSMENT ROLL DEVELOPMENT AND IMPERVIOUS AREA DATA

ANALYSIS

There are 48,291 parcels in the unincorporated area of the County. Attached as Appendix A is a count of

parcels using the Department of Revenue (DOR) use code assigned by the County Property Appraiser. Table

2 provides a summary of the preliminary number of parcels for each rate class.

Table 2

Summary of Parcels by Rate Class

Number of

Parcels

Single Family Residential 32,976

Condominiums 1,769

General Parcels 2,725

Not Assessed 10,821

Total 48,291

Source: 2016 Ad Valorem Tax Roll

DETERMINATION OF ERU VALUE

To determine the ERU value, GSG calculated the average building footprint for all single family residential

parcels. GSG then created a listing of parcels that represented a statistical sample of all single family

residential parcels for impervious field work analysis by AECOM. Based on the results of the field work, GSG

determined that the average single-family residence in the County has a building footprint of 2,235 square

feet and a total impervious area of 4,011 square feet; this value equates to one ERU.

SINGLE FAMILY RESIDENTIAL CATEGORY ANALYSIS

Single-family residential parcels were categorized into one of four residential billing tiers based on the

estimated amount of impervious area associated with each parcel (imputed by using the building footprint of

the parcel). To determine the four residential billing tiers, GSG created a listing of all single family residential

parcels sorted by their building footprint area and plotted them on graphs. By examining the slope and

distribution curve of the building footprint area, GSG determined the appropriate residential tier ranges.

CONDOMINIUM CATEGORY ANALYSIS

For condominium parcels, GSG generated a listing of parcels with the DOR codes representing

condominiums. Then GSG grouped the condominium parcels using codes from the Subdivision Table

maintained by the Property Appraiser to create the field work to be performed by AECOM.

GENERAL PARCELS CATEGORY ANALYSIS

For General Parcels, GSG generated a listing of parcels with the DOR codes representing General Parcels to

create the field work to be performed by AECOM.


RATE CLASSES APPORTIONMENT METHODOLOGY

Using the data from the most recent working files on the real property tax roll, there are approximately

48,291 parcels within the unincorporated area of Alachua County on the real property ad valorem tax roll

with approximately 38,688 parcels potentially containing impervious area.

Each property use within the County on the ad valorem tax roll was assigned to a rate class based on its

assignment of use by the Alachua County Property Appraiser or verification of use obtained through field

research. The number used by the Property Appraiser assigns four digits based on the Florida Department of

Revenue (DOR) property use codes reflected in Rule 12D-8.008, Florida Administrative Code. A listing of

DOR codes and associated property use categories is provided as Appendix A.

Using the DOR codes, the specific methodology for the parcel apportionment within each category of

property use is generally described below.

Single Family Residential Parcels – Single-family residential parcels are parcels to which the Property

Appraiser has assigned a DOR code with the first two digits equal to 01 or 02. The County has computed the

ERU value of 4,011 as the impervious area for the median single-family parcel within the County. However,

since it is impracticable to measure all of the single-family parcels within the County, the County has

determined that an average single-family parcel with 4,011 square feet of impervious area typically has a

building footprint of 2,235 square feet. Accordingly, the number of ERUs attributable to each Medium Single

Family Residential Parcel is one (1) ERU.

Single-family residential parcels can be categorized into one of four residential billing tiers based on the

estimated amount of impervious area associated with each parcel (imputed by using the building footprint of

the parcel).

Small Single Family Residential Parcel – means a single-family parcel with a building footprint between

100 and 1,500 square feet (inclusive). The County has computed an average building footprint of 1,100

square feet for the typical small single-family parcel within the County. The number of ERUs attributable

to each Small Single Family Residential Parcel is computed by dividing the average impervious area of a

typical small single-family parcel (2,030 square feet) by the average impervious area of all single-family

parcels (4,011 square feet). Therefore, the number of ERUs attributable to each Small Single Family

Residential Parcel is 0.51 ERUs.

Medium Single Family Residential Parcel – means a single-family parcel with a building footprint area

between 1,501 and 3,000 square feet (inclusive). The number of ERUs attributable to each Medium

Single Family Residential Parcel is 1.0 ERU.

Large Single Family Residential Parcel – means a single-family parcel with a building footprint between

3,001 and 6,000 square feet (inclusive). The County has computed an average building footprint of

3,799 square feet for the typical large single-family parcel within the County. The number of ERUs

attributable to each Large Single Family Residential Parcel is computed by dividing the average

impervious area of a typical large single-family parcel (6,654 square feet) by the average impervious

area of all single-family parcels (4,011 square feet). Therefore, the number of ERUs attributable to each

Large Single Family Residential Parcel is 1.66 ERUs.

Very Large Single Family Residential Parcel – means a single-family parcel with a building footprint

area greater than 6,000 square feet. The number of ERUs attributable to each Very Large Single Family

Residential Parcel is determined by dividing the actual impervious area of the very large single family

residential parcel by the ERU value (treated as General Parcel).

Condominium Parcels – Condominium Parcels are parcels that have been created by a declaration of

condominium pursuant to Chapter 718, Florida Statutes. Condominium Parcels are parcels to which the

Property Appraiser has assigned a DOR code with the first two digits equal to 04 or 05. The number of ERUs


attributable to each Residential Condominium Parcel was determined by dividing the impervious area of the

condominium complex by the ERU value and dividing the result by the total number of Residential

Condominium Parcels. The number of ERUs attributable to each Non-Residential Condominium Parcel was

determined by dividing the impervious area of the condominium complex by the ERU value and prorating the

result to each Non-Residential Condominium Parcel based on the building area for each Non-Residential

Condominium Parcel.

General Parcels - General Parcels are all other parcels not classified as (1) single family residential, or (2)

condominium parcels. General Parcels include all other properties not previously described. The number of

ERUs attributable to each General Parcel is determined by dividing the impervious area of the General Parcel

by the ERU value.

DATABASE ANALYSIS RESULTS

Based on the preliminary database analysis and the proposed apportionment methodology, Table 3 provides

the total number of ERUs by rate class.

Table 3

Total Number of ERUs by Rate Class

Parcel Count Total Number

of ERUs

Residential 32,974 31,243.0

Condominiums 1,769 515.7

General 2,725 16,363.3

Total 37,468 48,122

Source: Ad Valorem Tax Roll 2016


Section 5 – Proforma Funding Scenarios

Based on the cost of providing stormwater services and the number of ERUs, Table 4 summarizes the

recommended stormwater rates after application of the stormwater methodology for Fiscal Year 2017-18 at

100% of the assessable costs.

Table 4

Preliminary Rates Fiscal Year 2017-18

100% of Assessable Costs = $6,826,193

Total Assessable Costs $6,826,193

Total Number of ERUs 48,122

Rate Per ERU $141.85

Government Buy-down $550,985

Net Assessment Revenue $6,275,208

Source: Alachua County Preliminary Assessment Roll

Table 5 reflects the annual rates at 100% of the five-year average assessable costs.

Table 5

Five Year Average Preliminary Rates

100% of Assessable Costs = $6,569,282



Rate Per ERU $136.51




Table 6 reflects the annual rates at 100% of Fiscal Years 2017-18 through 2021-22 assessable costs.

Table 6

Preliminary Rates Fiscal Years 2017-18 through 2021-22

100% of Assessable Costs

FY 17-18

Proforma

Budget

FY 18-19

Proforma

Budget

FY 19-20

Proforma

Budget

FY 20-21

Proforma

Budget

FY 21-22

Proforma

Budget

5 Year

Average

Budget

TOTAL ASSESSABLE COSTS $6,826,193 $6,420,857 $6,475,880 $6,532,554 $6,590,928 $6,569,282

TOTAL ERUs 48,122 48,122 48,122 48,122 48,122 48,122

RATE PER ERU $141.85 $133.43 $134.57 $135.75 $136.96 $136.51

Government Buy-down $550,985 $518,268 $522,709 $527,284 $531,995 $530,248

Net Assessment Revenue $6,275,208 $5,902,589 $5,953,171 $6,005,270 $6,058,933 $6,039,034



Table 7 reflects the annual rates for Fiscal Year 2017-18 based on the current level of stormwater services

being provided by the County.

Table 7

Status Quo Rates

Total Assessable Costs $721,830


Rate Per ERU $15.00


Net Assessment Revenue $663,567

Table 8 reflects the annual rates for Fiscal Year 2017-18 based on an expanded level of stormwater services

to be provided by the County.

Table 8

Expanded LOS Rates



Rate Per ERU $30.00



Table 9 reflects the annual rates for Fiscal Year 2017-18 based on varying levels of optimal stormwater

services to be provided by the County.

Table 9

Optimal LOS Rates

Scenario 1 Scenario 2

Total Assessable Costs $2,887,320 $4,330,980

Total Number of ERUs 48,122 48,122

Rate Per ERU $60.00 $90.00

Government Buy-down $233,054 $349,581

Net Assessment Revenue $2,654,266 $3,981,400

COMPUTATION OF STORMWATER CHARGES

Parcel charges are calculated on a two-step basis:

ERU - The amount of impervious area relative to the base-billing unit is calculated by dividing the

impervious area on a parcel by the ERU amount; and

Mitigation credits - This is necessary where simple impervious area does not adequately account for

relative runoff for a given parcel. It is applied as simple factors multiplied against the ERUs.


MITIGATION CREDITS

Mitigation credits apply to parcels that have provided on-site, man-made stormwater management facilities.

Mitigation credits reflect the fact that given two identically situated parcels with identical improvements, the

parcel with on-site private stormwater treatment facilities will generate less volume of runoff, will generate

runoff at a slower rate and/or less polluted runoff than the parcel without comparable facilities.

Where the jurisdiction incurs the cost of maintenance of the on-site facilities, the parcel owner is not entitled

to a credit. However, where the responsibility for maintenance and upkeep falls on the owner, the burden

incurred by the jurisdiction is substantially reduced. A credit is in order.

The mechanics of calculating a precise amount of credit due each eligible parcel lies within the expertise of

professional stormwater engineering. A credit process must be based on sound engineering principles and

must be so codified as to be consistently applied across time and by various qualified individuals. The

amount of credit granted must be founded on solid engineering concepts.

A complete description of the County’s mitigation policy will be provided in the implementing legal

documents.

REMAINING ISSUES

GSG has identified the following issues that require further consideration with respect to the preliminary

rates that have been developed and presented in this Report.

Issue 1: Funding of Additional Stormwater Services and Capital Projects. This Report includes

stormwater services and capital stormwater projects that provide a benefit to all parcels in

the unincorporated area of the County. Should the County decide to fund additional

stormwater services or capital projects through a stormwater assessment, an analysis would

have to be conducted to determine the parcels that benefit from the additional stormwater

services and/or capital projects and only assess those parcels that derive a benefit.

Attached as Appendix B are preliminary rates based on cost projections provided in the

2010.Funding Report Prior to implementation, the costs projections should be updated and

final rates recalculated.

Issue 2: Mitigation Credits and Net Revenue. Mitigation credits may apply to parcels that have

provided on-site, man-made stormwater management facilities that are well maintained and

functioning properly. Any mitigation credits granted by the County will result in a decrease in

the amount of the total revenue generated by the County. No estimate of the impact of the

mitigation credits has been included within this Report.

Issue 3: Collection of Assessments from Governmental Property. A special assessment can be

imposed against governmental property to pay for the benefits that such property receives.

However, as to each level of government, differing concepts of immunity and other statutory

provisions or case law may prevent collection or frustrate special assessment imposition. In

addition, Florida case law is clear that the payment of such assessments cannot be enforced

by a lien against the public property. Rather, the enforcement remedy would be a judicial

action to compel payment. A collateral issue in enforcing payment is the legislative

authorization of the public agency to pay the charge or special assessment imposed. Thus,

the law establishing the expenditure authority of the specific governmental or public agency

or its appropriation discretion must be examined to determine whether the governmental


unit has the authority to pay a charge or assessment for stormwater services provided by the

County.

From a collection standpoint, since the County does not have a utility billing system, there is

only one method to bill governmental property. Each governmental unit should be sent a

separate bill and no attempt should be made to collect the special assessment using the

Uniform Method.

If the stormwater charge is to be collected by a separate billing mechanism, it may be

structured as a fee and the stormwater demand for all governmental property and for each

owner will need to be analyzed. The proportionate share of the billable costs for each owner

of governmental property will then be applied to the total billable costs attributed to the

government property classification to determine the stormwater fee for each owner.

Issue 4: Implementation Process. The tax bill collection method has been recommended as the most

appropriate collection method for the stormwater assessment. The steps for implementation

of the stormwater assessment using this method is provided within the Implementation

Schedule section of this Report. To use this method, every affected property owner must

receive a notice of the proposed assessment rates and the total assessment amount for

their property. The notice can either be a separate notice sent by the County or the Truth-in-

Millage (TRIM) notice mailed by the Property Appraiser (with consent). Both the separate

notice and the TRIM notice must contain information and statements required by the Florida

Statutes.

Issue 5: Agricultural Exclusion from Stormwater Assessments. Pursuant to Section 163.3162,

Florida Statutes, special exclusions have been provided to the imposition of a stormwater

assessments on parcels with a bona fide agricultural operation who meet specific

compliance requirements. GSG has attempted to identify agricultural parcels that may qualify

for exclusion from the stormwater assessment; however, the actual impact to the total

revenue is unknown at this time.

Issue 6: Customer Service Phone Bank. During the first year of implementation of the stormwater

assessment program, GSG recommends that the County designate a telephone number that

automatically rolls over to other phone lines specifically dedicated to answering property

owner’s questions. The customer service phone line(s) should be appropriately manned

during regular office hours throughout the time period between mailing of the notices and

the final public hearing. We would also recommend that phone logs be maintained by the

customer service representatives to document the number of phone calls received and the

purpose of the phone calls. GSG is available to assist the County with training of customer

service representatives.


Section 6 – Implementation Schedule

To implement the stormwater assessment program presented in this Report, the County must complete a

series of steps outlined below. This schedule assumes that the County will use the tax bill collection method

and will implement beginning Fiscal Year 2017-18.

CRITICAL EVENTS SCHEDULE

Deliverable Schedule

Stormwater Funding Strategies Report November 2016

County Adopts Resolution of Intent December 2016

Public Education January – June 2017

Adoptions of Initial Assessment Resolution April – June 2017

County Mails First Class Notices May – June 2017

County Advertises Notice of Public Hearing May – June 2017

Public Hearing to Adopt Final Assessment Resolution June – July 2017

Certify Non-Ad Valorem Assessment Roll to Tax Collector By September 15, 2017

Tax Bills Mailed November 2017

Appendix A

ALACHUA COUNTY DOR CODES

Government Services Group, Inc. │ A-1

DOR Code/Description Category Parcel Count

0000 - VACANT General Parcel 4,375

0100 - SINGLE-FAMILY Single Family 28,731

0200 - MOBILE HOME Single Family 4,479

0300 - MULTI-FAMILY General Parcel 36

0400 - CONDOMINIUM Condo 1,769

0500 - COOPERATIVE Condo 1

0700 - MISC. RESIDENCE General Parcel 1,074

0800 - MULTI-FAM <10 UNITS General Parcel 375

0900 - COMMON AREA Not Used 435

1000 - VACANT COMM General Parcel 201

1100 - STORES General Parcel 96

1200 - STORE/OFF/RES General Parcel 54

1400 - SUPERMARKET General Parcel 5

1600 - SHOP CTR COMMUNITY General Parcel 21

1601 - SHOP CTR COMMUNITY General Parcel 3

1700 - OFFICE 1 STORY General Parcel 173

1701 - POST OFFICE General Parcel 1

1800 - OFF MULTISTORY General Parcel 10

1900 - PROF OFFICES General Parcel 145

2000 - AIRPORT General Parcel 1

2100 - RESTAURANT General Parcel 21

2200 - REST, DRIVE-IN General Parcel 8

2300 - FINANCIAL General Parcel 15

2400 - INSURANCE General Parcel 6

2500 - SERVICE SHOPS General Parcel 16

2600 - SERV STATIONS General Parcel 5

2700 - AUTO SALES General Parcel 11

2800 - PKG LOT (COMM) General Parcel 17

2900 - WHOLESALER General Parcel 2

3000 - FLORIST General Parcel 1

3300 - NIGHT CLUBS General Parcel 9

3400 - BOWLING ALLEY General Parcel 2

3600 - CAMPS General Parcel 5

3700 - RACETRACK General Parcel 2

3800 - GOLF COURSE General Parcel 10

3900 - MOTEL General Parcel 17

4000 - VACANT INDUSTRIAL General Parcel 17

4100 - LIGHT MFG General Parcel 5

4800 - WAREH/DIST TERM General Parcel 108

4900 - OPEN STORAGE General Parcel 5

5000 - IMPROVED AGRI General Parcel 5

5100 - CROPSOIL CLASS1 General Parcel 159



5400 - TMBR SI 90+ General Parcel 300

5500 - TMBR SI 80-89 General Parcel 1,530

5600 - TMBR SI 70-79 General Parcel 27



5900 - TMBR NOT CLSSFD General Parcel 175

6000 - GRZGSOIL CLASS1 General Parcel 187




Government Services Group, Inc. │ A-2

DOR Code/Description Category Parcel Count


6600 - ORCHARD GROVES General Parcel 107

6700 - POUL/BEES/FISH General Parcel 1

6800 - DAIRIES/FEEDLTS General Parcel 132

6900 - ORN/MISC AGRI General Parcel 43

7000 - VACANT INSTITUTIONAL General Parcel 32

7100 - CHURCHES General Parcel 229

7200 - PRV SCHL/COLL General Parcel 27

7300 - PRV HOSPITAL General Parcel 4

7400 - NURSING HOME General Parcel 5

7500 - ORPHNG/NON-PROF General Parcel 8

7600 - MORT/CEMETERY General Parcel 60

7700 - CLB/LDG/UN HALL General Parcel 15

8000 - WATER MGT DIST General Parcel 86

8010 - County Vacant/Xfeatures General Parcel 172

8011 - County-Sch Brd Vacant/Xf General Parcel 11

8020 - State(Not TIITF)Vac/Xf General Parcel 26

8030 - State(TIITF) Vacant/Xf General Parcel 189

8040 - Federal Vacant/Xfeatures General Parcel 2

8050 - Municipal Vacant/Xfeature General Parcel 61

8090 - Other Public Vac/Xfeature General Parcel 1

8200 - FOREST/PK/REC General Parcel 22

8300 - PUB CTY SCHOOL General Parcel 11

8400 - COLLEGE General Parcel 9

8500 - HOSPITAL General Parcel 3

8600 - CTY INC NONMUNI General Parcel 37

8700 - STATE General Parcel 21

8701 - State Of Fla - TIITF General Parcel 2

8710 - Water Management Dist General Parcel 1

8900 - MUNICIPAL General Parcel 27

9100 - UTILITY General Parcel 35

9110 - Railroad Owned-Local Assd General Parcel 20

9200 - MING/PET/GASLND General Parcel 6

9300 - SUBSURF RIGHTS Not Used 386

9400 - RIGHT-OF-WAY Not Used 231

9500 - RIVERS/LAKES Not Used 63

9600 - SEWG/WASTE LAND Not Used 19

9700 - OUTDR REC/PK LD General Parcel 21

9900 - ACRG NOT ZND AG Not Used 246

9999 - EXEMPT Not Used 0

Appendix B

PLANNING UNIT AND SPECIAL BENEFIT AREA UPDATED RATE SCENARIOS

Government Services Group, Inc. │ B-1

Planning Unit And Special Benefit Area

Updated Rate Scenarios

PLANNING UNIT

A Planning Unit is identified as the boundary where stormwater flows to a single water body or group of

interrelated water bodies of interest. The County has five Planning Units:

Santa Fe River

Waccasassa River

Florida Ridge

Orange Creek

Etonia Creek

A map of the Planning Units in the County is provided below.

Watershed Assessments are recommended to develop a detailed Watershed Management Plan which would

address specific areas of the County in detail in order to evaluate drainage infrastructure deficiencies, water

quality deficiencies and floodplain impacts. These Watershed Assessments provide a Planning Unit Benefit.

Based on the planning unit costs provided in Tables 5 and 25 of the 2010 Funding Report, the updated

apportionment methodology and the total number of ERUs assigned to each planning unit, the updated

planning unit assessment rates are as follows:

Planning Unit 5-Year Average Costs Total Number of ERUs Rate Per ERU

Florida Ridge Unit $152,303 10,405.34 $14.64

Orange Creek $319,243 31,471.14 $10.14

Santa Fe River $101,226 5,972.96 $16.95


CAPITAL FLOODING PROJECT SPECIAL BENEFIT AREAS

The 2010 Funding Report identified five key capital flooding projects that needed to be addressed. Special

benefit areas were developed based on the parcels that would benefit from the capital flooding projects.

These special benefit areas include:

North Florida Regional/Doctors Park

Robin Lane

Meadowbrook/Hills of Santa Fe


Oak Crest/Eagle Point

NW/SW 91st Street

Based on the costs associated with the Capital Flooding Projects identified in Tables 6, 27, and 29 of the

2010 Funding Report, the updated apportionment methodology and the total number of ERUs assigned to

each special benefit area, updated assessment rates were calculated.

Benefit Area Pay-As-You-Go Costs Total Number of ERUs Rate Per ERU

North Florida Regional/Doctors Park $1,512,191 1,893.57 $798.59

Robin Lane $174,267 216.44 $805.15

Meadowbrook/Hills of Santa Fe $261,291 1,691.32 $154.49

Oak Crest/Eagle Point $149,010 2,055.68 $72.49

NW/SW 91st Street $14,959 11.68 $1,280.74

Benefit Area 10-Year Amortization Costs Total Number of ERUs Rate Per ERU

North Florida Regional/Doctors Park $1,285,445 1,893.57 $678.85

Robin Lane $148,136 216.44 $684.42

Meadowbrook/Hills of Santa Fe $659,003 1,691.32 $389.64

Oak Crest/Eagle Point $534,333 2,055.68 $259.93

NW/SW 91st Street $60,237 11.68 $5,157.28

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