Drainage_and_Flooding_Report-dated_10_03_2008

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Mr. Ron Bottoms, City Manager October 1, 2008 Page 25 of 31 k I o t z associates of specifically recommended solutions will be addressed in the CW`DS final report. Cities across Texas have reported a variety of capital project funding methods, including using ad valorem taxes to purchase bonds (the most common method), fee programs, and similar revenue generation measures. While ad valorem taxes are the most common form of revenue generation for construction, such taxes do have limits and municipalities often seek alternative funding sources. Use of these alternative funding sources can be uncertain because of often high competition for available funds, the often very limited amount of funds for distribution, and the specific purposes and priorities of the funding entities or sources for the use of available funds. Some ftmding sources, such as royalties from oil and gas drilling, are unique to the community. Many cities seek creative fariding tools and, many instances, with success. The following summarizes some alternative funding sources that the City of La Porte could consider as a potential part of their capital improvement planning A possible source of revenue is the creation of special Storm Water Utility Divisions that allows for the collection of funds dedicated to storm water management and quality issues. When the U.S. Environmental Protection Agency (EPA) required cities to obtain National Pollutant Discharge Elimination System (NPDES) permits for discharge of storm waters, cities have found they often need additional ftmds to respond to the requirements of these permits. The NPDES storm water permit (as implemented by the Texas Commission on Environmental Quality) requires cities to take responsibility for quality of storm water discharges. Many cities have created Storm Water Utility Divisions as a way to establish a new funding source that could pay for floodplain management, drainage costs, and/or water quality control costs, the latter arising from NPDES permit requirements, rather than using money from the general fund. The utility establishes a utility fee rate at a level needed to meet the drainage needs of the community. The fees usually appear in the water bill, and are commonly about I% of the water bill. Dallas was among the first cities in Texas to establish a Storm Water Utility Division, providing an organizational and process model for other cities to follow. San Antonio, Laredo, Tyler and Arlington are among those cities which have successfully implemented their own storm water utilities. Some cities, on the other hand, have after review of storm water utilities issues declined to establish such a utility.