Chehalis River Basin Flood District Formation February 17, 2010

 Compile known costs for flood district  Identify unknown costs for flood district  Propose methodology for allocating costs ◦ Among participating jurisdictions ◦ Between the floodplain and the remaining basin  Calculate planning level rates / taxes for consideration 2 Chehalis River Basin Flood District Formation

3 Description Estimated Cost External Share Local Share Early Warning System$? District Staff / Management$645,000? 1 Hydraulic Analysis$400,000? 1 Fish Study$275,000$275,000 2 $0 Twin Cities Project$130 million $0 Basinwide GI Study$6 million$3.5 million 3 $2.5 million 3 Potential Projects (2010 Plan) ? 4 1 Request for State funds pending. 2 Re-appropriation of existing State funds. 3 Assumes $1 million already funded; remainder 50/50 split. 4 No available cost estimates.

 Public Information: Education materials – flood proofing guidance  Regulation: Improve floodplain regulations, develop conservation easement programs  Planning and data collection: Improve hydraulic modeling, study woody debris and stream gravels  Reduce damage to existing structures: Develop home elevation and buyout programs  Emergency response and preparedness: Develop early warning systems  Natural resources protection projects: Protect and restore riparian areas 4Chehalis River Basin Flood District Formation

 Floodplain protection ◦ Culvert improvements, tributary drainage improvements  Bank protection ◦ Bank stabilization and protection  Conveyance capacity ◦ Open channel migration zone 5Chehalis River Basin Flood District Formation

 What is the best basis for allocating costs between the floodplain and the remaining basin? Recommendation: Allocate costs to floodplain by direct economic value added in floodplain / total economic benefit of floodplain improvements in the basin Chehalis River Basin Flood District Formation 6

 What is the best basis for allocating costs among participating jurisdictions? Recommendation: Allocate floodplain costs from previous slide to each jurisdiction 50/50 by floodplain economic value added / floodplain assessed valuation Allocate remaining basin costs by total economic benefit / value of floodplain to basin Chehalis River Basin Flood District Formation 7

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9 Does activity provide unique benefit to specific geographic location(s)? Negotiate cost sharing Allocate cost between floodplain & remaining basin by economic value added in floodplain Allocate among participants 50/50 by floodplain AV & floodplain direct economic value Allocate among participants by total floodplain economic benefit (direct & indirect) Lewis County Grays Harbor County Thurston County Chehalis Tribe Lewis County floodplain Grays Harbor County floodplain Thurston County floodplain Chehalis Tribe floodplain Allocate individual costs shares back to floodplain and remaining basin by economic value added in floodplain Remain- ing basin Remain- ing area Yes No Floodplain costs Remaining basin Basis of rate to be applied in floodplain only Basis of tax or rate to be applied throughout basin Chehalis River Basin Flood District Formation

RCW Excess levies, assessments, regular levies, and charges — Local improvement districts. For the purposes of this chapter the supervisors may authorize: …(4) A charge, under RCW , for the furnishing of service to those who are receiving or will receive benefits from storm water control facilities and who are contributing to an increase in surface water runoff… 10Chehalis River Basin Flood District Formation

1. State Assistance – funds all  revenue requirement (to District): $0 2. No State Assistance, District funds nothing  revenue requirement (to District): $0 3. No State Assistance, District funds only District staff / management; awaits State funding for major capital projects  first year revenue requirement: $645,000  7/1-12/31/2011 District staff through member contributions 4. No State Assistance, District funds staff / management & hydraulic analysis; awaits State funding for major capital projects  first year revenue requirement $1,045,000  7/1-12/31/2011 District staff through member contributions 11Chehalis River Basin Flood District Formation

12 Scenario 3: District funds only District staff / management; awaits State funding for other needs  1st year revenue requirement: $645,000 Chehalis River Basin Flood District Formation

13Chehalis River Basin Flood District Formation Scenario 4: District funds staff / management & hydraulic analysis; awaits State funding for other needs  1st year revenue requirement: $1,045,000

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Description Equitable Revenue Sufficiency Reliability Ease of Admin Taxes  Charges  Assessments   Chehalis River Basin Flood District Formation 16

 Maintain an appropriate working capital balance as a cushion against fluctuating expenditures, taking into account the size of the program and other factors  Fund capital repair and replacement over time  Maintain an appropriate level of capital contingency funding for emergency needs  Develop a capital funding strategy once a project list and associated costs are developed Chehalis River Basin Flood District Formation 17

 Revenue Requirement: Scenario 3 - fund only District staff / management ($645,000)  Cost Allocation: ◦ Between floodplain and remaining basin – allocate costs to floodplain by direct economic value added in floodplain / total economic benefit of floodplain improvements in the basin ◦ Among jurisdictions – allocate remaining basin costs by total economic benefit / value of floodplain to basin 18 Chehalis River Basin Flood District Formation

 Cost Recovery ◦ Recover floodplain costs in a rate to developed property ◦ Recover remaining basin costs in a property tax  Rate Credits ◦ Provide credits against floodplain rate for properties that develop to recommended standards 19 Chehalis River Basin Flood District Formation

 Results of direction today will be incorporated into the DRAFT ILA  DRAFT ILA will be the subject of the March Flood Authority meeting  We anticipate continued review in April  We suggest the ILA be calendared now for necessary public process and action in May/June by each signator to the Agreement  Presumes that the FCZDs of each jurisdiction will be formed by May/June action on the ILA 20 Chehalis River Basin Flood District Formation