Stormwater Utility Feasibility Study

The Municipality of Princeton is studying the formation of a Stormwater Utility to provide a dedicated funding source through user fees, similar to a Sanitary Sewer Utility, to operate, maintain, and improve the municipal storm sewer system. In 2019, the New Jersey Clean Stormwater and Flood Reduction Act was enacted to allow local governments to create stormwater utilities. Contributors of stormwater runoff, as related to the amount of impervious surface on a property, would be charged a fee for the operation, maintenance, and improvement of the municipal stormwater system.

Princeton’s stormwater system includes over 3,000 inlets and connected piping within municipal roadways and easements, over 300 outfalls to waterbodies, rain gardens, and detention facilities. The discharge of the stormwater to waterbodies is governed by a New Jersey Department of Environmental Protection annual MS4 – municipal separate storm sewer system – permit. The current permit is available here.

The Phase I Stormwater Utility Feasibility Study conclusions and recommendations include the following:
• Princeton has a backlog of stormwater improvement projects due to underfunding
• The responsibilities for constructing, maintaining and operating the system is spread over many departments
• There is a looming need for an increased level of service due to the MS4 permit requirements over the next 5 years
• An increase in revenue will be needed to meet these needs
• A Stormwater Utility can more equitably spread the cost of a stormwater system to the users, as tax exempt entities like schools and churches are not exempt from paying a user fee

Phase II of the study focuses on the following:
• Creation of a draft plan for the organization and program to efficiently deliver the service
• Identifying and guiding development of funding options analysis and rate structures
• Identifying and refining key policies in credits, appeals and incentives that support the overall stormwater management goals
• Public Outreach / Education / Involvement

At the end of Phase II, Princeton Council will make a decision whether to move to Phase III of the Study, pause, or discontinue the Study.

Phase III, if undertaken, builds off the work from Phases I and II with a focus on refinement of policies, cost and rate analysis, billing file completion in preparation for the ultimate decision to adopt the funding strategy. Phase III will culminate with the adoption of an ordinance by Princeton Council to establish a Stormwater Utility.

Phase IV, if undertaken, includes the finalization of data analysis and integration of the Utility into Princeton’s billing system, training manual development and customer service education, and final documentation of the Utility formulation documents. These include cost models, rate analysis and master account file maintenance procedures.

References:
https://stormwaterutilities.njfuture.org/