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3. Current stormwater system - ASCE 2012 report card CapacityD- Operations & MaintenanceD+ ConditionF Drainage Basin PlanningF Program & Funding Public SafetyD- ResilienceD Overall D- 3

4. The price of deferral (capital only) Current estimate of necessary capital improvements: $706.679 Million An equivalent annuity over 25 years at 4.5 % -25 -20 -15 -10 -5 0 5 10 15 20 25 Years from today $15.85 million per year for 25 years $47.66 million per year for 25 years 4 Zwirlein & Crowley, 2014

5. Funding needs (2013 dollars) Capital - El Paso County within Fountain Creek Watershed, does not include post-fire or flooding needs: Non-Capital - annual drainage operations and maintenance, permit (MS4), water quality, planning studies and corrugated metal pipe replacement needs: $13.9M/year 5 HighMediumLowTOTAL $ 186,955,000 $372,912,000 $ 63,565,000 $ 623,432,000 CH2MHill, 2014

6. How we got here Decades of neglect 2009: Stormwater Enterprise dissolved 2011-2012: Summit Economics study 2012 – present: Pikes Peak Regional Stormwater Task Force 6

7. Stormwater Task Force Formed in 2012 by Co. Springs City Council, El Paso County Commissioners, Springs Utilities Comprised of engineers, business people, citizens Goal: assess the community’s stormwater needs and propose a solution Methodical approach Professional engineering firm study of project list Statistically-valid, scientific public opinion polls 7

8. Research results: Economic impact of a solution Increase in jobs, income, GMP, output and sales taxes 360 new, well-paying local jobs per year $50 million increase in gross metropolitan product Lower insurance rates Improved critical community infrastructure Stable funding and well-maintained infrastructure to attract new businesses 8 Zwirlein & Crowley, 2014

9. Research results: best practices Colorado Springs is the only major Front Range city without a stormwater management program Most communities use an authority structure that charges a fee based on impervious surface Fee for average residence ranges from $2-14 per month Many programs in place for decades Two highly-successful regional collaborations studied: Denver Urban Drainage Southeast Metropolitan Stormwater Authority 9 Zwirlein & Crowley, 2014

10. Community benefits Public safety Protection of public and private property Protection of water quality Enhanced neighborhoods Waterways as community amenities Economic development Higher property values Lower insurance rates 10 Zwirlein & Crowley, 2014

11. Draft proposal Structure: Regional authority Governed by a board of elected representatives from each participant Colorado Springs majority Super-majority vote required for budget decisions Intergovernmental agreements will form the authority and guide its operations Funds to be spent within area collected based on a 5- year rolling average Exceptions: Regional projects and emergency allocations 11

12. Draft proposal Funding: Fee based on impervious surface Taxable and non-taxable organizations included Commercial, nonprofit and government caps Funds dedicated to stormwater capital, O&M, emergency, planning and administration Funds collected on county property tax bill Continue authority members’ current stormwater funding CH2M Hill rate study to be completed end of June City’s Stormwater Enterprise rate schedule serves as estimate Governments a new rate category Fee for average single-family residence: less than $10/month 12

13. Draft proposal Scope: Fountain Creek Watershed within El Paso County Project list will include high-priority projects; criteria for determining future projects Master planning process Minimal staff and overhead; admin capped at 1% Use private, local contractors to maximize economic impacts Hybrid governance structure (see graphic) 13

14. Board Administrator Billing Administration (1%) Planning/studies Contract services Funding Co. Springs El Paso County Manitou Springs Fountain Green Mtn. Falls Monument Palmer Lake V o t e r s Technical committee Citizens committee Planning Capital projects Admin (1%) EmergencyO&M CityCounty COS EPC ManitouMonumentGrn Mtn Falls FtnP.Lake

15. Next steps Negotiate intergovernmental agreement Ballot language Project list Continue to engage public Formalize business community support Measure on November ballot 15

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