A 2024 Homer Community Survey reveals that top priorities for our community include (in order of prioritization): 

1) Affordable Housing

2) Creation of year-round higher-wage jobs

3) Preserve open public spaces within the city from development 

4) Create a livable, walkable, vibrant downtown 

5) Renewable Energy Projects

6) Increase access to recreational opportunities for visitors and residents

7) Prepare for and address the effects of climate change on Homer

We don't currently have tools to meet these, goals and need to consider the best way to get there from here. KBCS will be exploring some possible policy pathway to improve and preserve quality of life in Homer, which seem so well summarized in the survey results. In our first article, we are looking at Stormwater Utilities. A Stormwater Utility is fee for the management of City stormwater--funds can be used to purchase land for green infrastructure, size up culverts, etc. Known variously as Green Infrastructure, Nature-Based Engineering, Nature-Based Flood Solutions, the utilization of nature to help manage stormwater is endorsed by FEMA, the US Army Corps of Engineers, and the EPA as the preferred path to effective stormwater management: it makes sense to purchase lands to manage stormwater and then allow people to recreate on those lands.

Pros of this Approach:

• There is consensus among public works officials that the utility approach is the best way to finance stormwater management systems : “The main reasons for their preference are obvious: utilities are a stable, equitable, secure source of funds. Also, funding through user charges based on their contribution to the problem is often thought to be fairer than funding through the use of property taxes" (Financing Stormwater Utilities, Revised and Updated by the American Public Works Association Water Resources Management Committee, 2020).
• Funds from a Stormwater Utility can be used to purchase land that can be accessed for public recreation.
• Conservation of lands in Homer is an old value that is well-grounded in community values: The 2018 Comp Plan says, “Identify environmentally sensitive sites and natural systems of regional importance and work towards collaborative management of these areas. Options include implementing Special  Use Districts to develop and pay for needed infrastructure and addressing drainage and trail issues on a regional or watershed approach.”
• Lands purchased with these funds in some instances could double as recreational sites and/or allow for some agricultural uses through leases, like low-impact farming, birch syrup, etc, see examples in California and Colorado and across the country.
• Despite challenges, stormwater utilities maintain sound legal standing. Court systems across the country have determined that the legal standard for stormwater program charges and rates “must be fair and reasonable and bear a substantial relationship to the cost of services and facilities.”
• COH Public Works has roughly calculated the cost of installing drain works to accommodate increased flows over the next 10 years at $47 million dollars. Loss of permeable green space and poor drainage management comes at a cost to the City: during intense rain storms, as much as 50 percent of the overall flows received at the sewer treatment plant may be attributed to inflow and infiltration. During major storms, over 1,000,000 gallons per day of flow may be attributed to infiltration and inflow (“Homer Comprehensive Plan, 2018”).
• Funds could be used to support the creation of a necessary Open Spaces/Green Infrastructure staff position

Cons of this Approach:

• Most people are generally unaware of the stormwater infrastructure that exists in their community. Thus, many will find it strange to be asked to pay user fees to a utility for the stormwater that runs off their property. Besides being a funding mechanism, the utility approach involves redefining the way in which people think about runoff and stormwater management.
• Care must be taken in the formation of utilities, particularly their rate structures, because utilities can be subject to controversy and may be legally challenged.
• Will require a City official to manage and/or a partnership with another organization to help manage.
• Lands purchased with funds would need to be managed by the City.

Fiscal Implications:

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The policy is intended to be a net positive, allowing the City to purchase lands critical for green infrastructure, such as forested lands, land above and below steep slopes, critical wetlands and drainage-ways. Funds should also be used to pay a staff person focused on management of stormwater and green infrastructure. 
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Relevant Data and Examples:

• There are an estimated 2,000+ stormwater utility programs in existence (Financing Stormwater Utilities, Revised and Updated by the American Public Works Association Water Resources Management Committee, 2020).

• The 2019 Western Kentucky Stormwater Utility Survey summarizes data from 1,716 stormwater utility programs across the country. Nationwide, the average monthly single-family residential fee was $5.85, the standard deviation was $4.50, and the median fee was $4.75. Fees range from zero up to $45 per month for a typical single-family home (Financing Stormwater Utilities, Revised and Updated by the American Public Works Association Water Resources Management Committee, 2020).
• Most stormwater utilities in the United States are based on a fixed, flat rate for a dwelling unit or residential home, while non-residential properties are charged in proportion to a typical home. This model is popular because it is straight forward and easy to administer.
• Another way of setting rates is by tying fees to the area of impermeable surface on a property. Tying the service fee to the area of impervious surface is the fairest system, which means that it reduces legal risk. Downsides of the model based on the area impervious surface include the front-end work of determining and tracking the area impervious surface for every parcel (the City of Homer Stormwater Management Pan, Code 21.74.010 and 21.75.0020, require information on acreage filled); administrative load and public confusion can result from the fact that each person will have a different fee, that fee may change over time, and property owners need a new bill each year. Cities can face legal exposure if they do not maintain good records of impervious area.
• Stakeholder involvement and outreach programs are necessary for implementation of a stormwater utility program. Elected officials as champions, key stakeholder input, and public involvement will ensure a successful and meaningful program implementation. Agencies that have tried implementation with minimal or no public information programs have been met with resistance from the community and, in many cases, have been unsuccessful in implementation attempts or have had the program rescinded after implementation.The EPA has a comprehensive list of Public Stormwater Campaigns, complete with resources like radio spots, pamphlets, logos, etc.

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