Local Government Commission FINANCING WATER CONSERVATION Community-Based Water Conservation Programs

Local Government Commission – Leaders for Livable Communities Financing Water Conservation Program Development: Fee-for-Service Consultants Technical Assistance Services (SWB) Prop 1 Funds – High Efficiency Toilet Rebates – Landscape Rebates – CalConserve Revolvin Fund IRWM Funds EIFDs Existing Revenue State Loans & Other Grant Programs Federal Loans & Grants

Local Government Commission – Leaders for Livable Communities Fee-for-Service Consultants What others are using it for – Community water use analyses – Stakeholder engagement & facilitation – Marketing & Branding – Writing funding proposals How to cover costs – Joint funding proposal – General Fund – Operating Budget

Local Government Commission – Leaders for Livable Communities SWB Technical Assistance Multidisciplinary Small DACs Office of Sustainable Water Solutions – Funding applications – Budgets – Financial management – Rate setting – Compliance audits – Troubleshooting to improve operations: Apply: grants_loans/ proposition1/tech_asst_funding.shtml

Local Government Commission – Leaders for Livable Communities Prop 1; Ch 7 – Regional Water Security, Climate, & Drought Preparedness $810 million Allocated – $288 million Committed $521 million Remaining

Local Government Commission – Leaders for Livable Communities Prop 1: High Efficiency Toilet (HET) Retrofit Program “... provide monetary incentives for the replacement of legacy toilets that use a lot of water SaveOurWaterRebates.com $100 customer rebates $6 million program budget Roughly 60,000 inefficient toilets One rebate per toilet One toilet per household

Local Government Commission – Leaders for Livable Communities Prop 1: Turf Replacement Rebate Program “... provide monetary incentives for the replacement of legacy toilets that use a lot of water SaveOurWaterRebates.com $2/ft 2 customer rebates $24 million program budget Roughly 10 million ft 2 One rebate per home Max $2000; layered per home

Local Government Commission – Leaders for Livable Communities Prop 1: CalConserve Revolving Fund “CalConserve Water Use Efficiency Revolving Fund is intended to be a sustainable funding source for water use efficiency projects. One of the purposes of this fund is to provide measurable reductions in urban per capita potable water use.” $10 million total Project Types: Water efficiency upgrades to residents at no upfront cost. Local agency low-interest loans to finance onsite improvements, to repair or replace cracked or leaking water pipes Who can apply: City, County, City & County Municipal Utility District Community Service District Sanitary/ Sanitation District Water District Public Water System Private Water Company (under PUC)

Local Government Commission – Leaders for Livable Communities Integrated Regional Water Management (IRWM) 48 Regions Across the State $993 million public investment since 2002 Leveraged $4 billion match 700 projects Fosters collaboration across sectors; bridging water & land use But, little authority

Local Government Commission – Leaders for Livable Communities Draft Guidelines, PSP, & DAC Involvement Public comment 1/22 – 3/18/2016 Final 4/2016 Due ~7/2016? Awards ~10-12/2016? 50% local cost share $5 M Planning $51 M DAC $418 M Implementation + ($36 M internal costs) $510 M TOTAL

Local Government Commission Prop 1 IRWM Funds Purpose/ Goal: “…encourage integrated regional strategies for management of water resources by providing funding for projects and programs that support integrated water management.” CA Water Action Plan Priority #1: “Make Conservation a California Way of Life” - Expand Agricultural and Urban Water Conservation and Efficiency to Exceed SBX7 7 Targets Eligibility: Consistent w/ IRWMP recognized RWMG Project proponents must adopt the IRWMP Must comply w/ other water regulations Who can apply: Public agencies Non-profits Public utilities Federally recognized tribes State Indian tribes Mutual water companies Who can apply: Public agencies Non-profits Public utilities Federally recognized tribes State Indian tribes Mutual water companies

Local Government Commission – Leaders for Livable Communities IRWM Funds Salinas: Central Coast Funding Area $43 Million 6 Regional Water Management Groups Salinas: #11; Greater Monterey County

Local Government Commission – Leaders for Livable Communities IRWM Funds West Sacramento: Sacramento River Funding Area: $37 Million 6 Regional Water Management Groups Westside Sacramento IRWM (Yolo, Solano, Napa, Lake, Colusa)

Local Government Commission Prop 1 IRWM funds Can be used for: Water reuse & recycling Water use efficiency & conservation Surface & groundwater storage Regional conveyance Stormwater Conjunctive use (storage) Desal Decision Support Water quality Can’t be used for: Adverse impacts to wild & scenic rivers Eminent Domain Delta conveyance Water acquisition (except for additional env. flows) Legal or regulatory obligations

Local Government Commission – Leaders for Livable Communities Enhanced Infrastructure Financing Districts (EIFDs) SB 628 (2015) City &/or County Specific purpose or project – New construction – Rehabilitation – Utility-related infrastructure Special Districts (not schools) can participate Collect tax-increment revenues Recruit private investment

Local Government Commission – Leaders for Livable Communities EIFDs: Benefits & Limitations Can be used for: Can’t be used for: Sewage treatment, water reclamation plants and interceptor pipes. Facilities to collect and treat water for urban uses. Flood control levees and dams, retention basins and drainage channels. Parks, recreational facilities and open space. Projects that implement a sustainable communities strategy. Routine O & M Schools

Local Government Commission – Leaders for Livable Communities EIFDs: Benefits & Limitations Benefits Only 55% voter approval needed to establish No public vote required for projects (only tax increment bonds; 55%) Can fund large projects Multiplier effect for future tax revenue Expanded financing authority More flexible institutional collaboration Limitations Reserve needed prior to bond issuance Limited ability to repay short- term debt service Formation process can be lengthy & costly Need cities & counties for success Must establish proportionality nexus between payer & beneficiary (to satisfy Prop 218 & 26)

Local Government Commission – Leaders for Livable Communities How to Create an EIFD 1.Identify what needs to be done (desired outcomes) 2.Locate available funding streams – Assessment revenues – Fee revenues – Public Debt 3.Establish link between payer & beneficiary

Local Government Commission – Leaders for Livable Communities EIFD Examples & Resources 12 Funding strategies Guidelines Case studies California Economic Summit,“A How-To Guide for Using New EIFDs.” p8re0h7s6vkhm1st2uwq League of California Cities, Analysis of SB 628 (EIFD) es/GetFile.aspx?nodeguid=d8e42 eca f12-98d4- e93383abc48c&lang=en-US EIFDistricts.com

Local Government Commission

Local Government Commission Existing Revenue ILG

Local Government Commission Existing Revenue ILG

Local Government Commission Existing Revenue Sources General Fund Not restricted to specific purpose Public services & salaries Flexible Competition for other priorities Usually limited & allocated in advance Specific Fund Special public services Dedicated funding stream Funds restricted to specific purpose Capital Fund Long-term investments Planned in advance All infrastructure & facilities costs Cannot be used for other purposes

Local Government Commission Existing Revenue for Water Conservation General Fund Research Studies Marketing Consultants Education & Outreach Planning Activities Policy & Program Development Specific Fund Impact fees to fund conservation- related efforts Stormwater, Water supply, Wastewater funds may be applicable to water conservation efforts Parcel tax for conservation efforts Capital Fund Water conveyance &/or storage retrofits (leak loss detection & prevention) Water meters Stormwater capture & treatment

Local Government Commission – Leaders for Livable Communities Other State & Federal Programs GHGRF/ California Climate Investment Strategic Growth Council/ Sustainable Community Strategies State Infrastructure Loans – CalConserve Revolving Fund 2015 Loan Program. Federal Grants & Loans

Local Government Commission – Leaders for Livable Communities Next Steps 1.Turn in your ETP forms! 2.Complete LGC’s online evaluation survey. 3.Determine your organization’s water conservation priority. 4.Make a plan for your Community-Based Water Conservation Program 5.Come to our next round of trainings!

We are a nonprofit organization that fosters innovation in local environmental sustainability, economic prosperity and social equity. Many Thanks for your attention today – we hope this was beneficial for you! Danielle V. Dolan Water Program Manager (916) x311