Curbing the Effects of Storm Water Runoff with Public Funding

By Kathleen Hauser and Shomari Benton
 Lathrop & Gage LC
Kansas City, MO.

As development grows, so, too, does the amount of paved and otherwise impermeable land. This growth has created problems with storm water runoff in our cities and counties. The problem exists for both new subdivisions and older areas undergoing redevelopment. It is a problem that has generated legislative action at the federal, state and local levels.

It is clear that storm water runoff is a problem in cities across Missouri, but the recognition of the problem does not help to solve it. The cost for a local government to upgrade storm sewers may be far in excess of what those individual governments can do. How does a city (or county) help improve the capture of storm water while at the same time supporting a policy of dense development or redevelopment?

One answer lies in public funding that many developers seek to help finance new projects and fund the long-term maintenance of those projects once they are completed. These same funding programs could be used for storm water runoff projects.

In Missouri, there are many public funding programs through which developers may redistribute tax dollars captured by the funding plan to offset certain development costs. Programs such as tax increment financing (TIF), the Missouri Downtown Economic Stimulus Act (MoDESA), urban redevelopment districts (URDs), and community improvement districts (CIDs), are just a few of the programs a developer may use.

Each of these programs affords certain tools to help facilitate development. One example of how these programs could be used to mitigate storm water runoff is the use of a community improvement district to fund the detachment of rainspouts from individual sewer lines.

CID legislation provides a means by which individuals may assess themselves for the purpose of carrying out the improvements within a specified area. In this example, the district also might provide the financial wherewithal for home associations to assume responsibility for rain gardens. The mandatory assessments collected by the municipality ensures the availability of funds and avoids reliance on private collection efforts.

Applying funds from these programs to curb the damage created by storm water runoff is widely recognized as an appropriate use of these programs. Take CID funding for example: How may a city or county use the funds captured by this program to help implement rain gardens and provide for the building and maintaining of detached rainspouts from individual sewer lines?

The state already provides for the creation of a county-wide sales tax of not more than one-tenth of one percent for the purpose of funding storm water control. However, this tax may not be enough. Thus, a city or county also may use funding from the CID collected revenues to help implement the projects meant to curb or alleviate storm water runoff.

As established in the CID act, the governing body of any municipality or county may establish one or more districts. To establish a CID, a petition must be filed, and the local governing body must hold a public hearing and adopt an ordinance creating the district.

Each ordinance must specify the term for the existence of the district. If the district is a political subdivision, a board must govern the district in accordance to the CID statute. The board acts on behalf of the district and all official acts of the board must be by written resolution approved by the board.

The CID statute empowers the district to levy and collect special assessments and taxes, including sales taxes if the district is a political subdivision, in order to provide assistance to construct, reconstruct, install, repair, maintain, and equip water, storm and sewer systems. This language allows the district to levy and collect taxes and use that money for the specific purpose of implementing and maintaining rain gardens and detached rainspouts from individual sewer lines.

In this example, it is easy to see how this program can be a “win-win” for all interested parties. Not only will this district benefit the city and county but also the developers, residents and businesses within the district by providing a safe and efficient way to protect them against flooding – while at the same time promoting the growth of development within that district.