SP10

State & Local Capital Spending as a % of GSP

(2014)


The Michigan Legislature should adopt legislation authorizing stormwater utilities

that is consistent with the Bolt v. City of Lansing decision, establishes the requirements
for structuring and charging a fee, and provides a streamlined process for local
adoption. This legislation should establish the requirement for all users of stormwater
services to pay for sustainable service delivery on a proportionate basis and provide
incentives for alternate approaches to stormwater management.
Assume: 80-year lifetime of pipes and manholes
40-year lifetime of catch basins and inlets

Annual asset recovery cost: $3.0+ million

 Billions

$100
$120
$140
$160
$180
$200
$220
$240
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016


 Stormwater Utilities: Rate Factor vs. Population

Comparison of 53 Midwest Communities
$150

Rate Factor: Annual Revenue Per Capita

$130

$110

$90

$70
Median = $45 / Ave = $54
$50

$30

$10

Population
 Stormwater Expenditures as Percent of City Budget
for Cities with a Stormwater Utility (Midwest U.S.)
10%
9%
8%

Percent of Total Budget

7%

6%
5%
4%
3%
Median = 2.4% / Average = 2.8%
2%
1%
0%
0 50 100 150 200 250 300
Population (1000s)


 Stormwater Property Tax

Utility (Millage)
Revenue Generated $1,600,000 $1,600,000
Typical Monthly Fee * / **
R-1b parcel (typical property) $6 $16
R-1a parcel (larger property) $12 $20
Median Taxable Income Property $6 $16
Newly-purchased median home ($265k) $6 $23
Approximate Revenue from Single-Family Residential 20% 64%
Approximate Revenue from COM/IND/INST/MULI*** 80% 36%