PROJ02027

• Contract/PO #: FS0044FX
• Contractor Name: Larimer County, Board of County Commissioners
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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Stormwater Utilities

The City and County both have authority to form utilities for the provision of water and sewer
service. Formation of a stormwater utility is a popular means of providing stormwater services
over a wide area. A stormwater utility is analogous to a water or sewer service utility in that a
periodic fee is charged for service.

The County statute that authorizes counties to operate water and sewer utilities is found at
Chapter 30, Article 20, Part 400 et seq, Colorado Revised Statutes. The definition of "sewerage"
in that statute is sufficiently broad as to include all types of storm drainage, both surface and
subsurface as well as sanitary. Larimer County does not currently operate any utilities for the
provision of water supply or sanitary sewer service. The County formed a stormwater utility for
the West Vine Basin in May 1997. The legal basis for utilities is that they provide a service,
such as the service of providing stormwater conveyance facilities. Usually the amount paid by
each respective property in a water utility reflects the amount of water used, or the amount and
strength of sewage treated. Correspondingly, in the case of stormwater utilities, the amount of
stormwater theoretically generated by the property is used as a basis for the amount paid by the
property. For example, fees are often based on the area and amount of impervious surface within
a given property. The statute authorizing utilities in Colorado counties provides that in the event
of non-payment of fees, the amount due and payable may be certified to the County Treasurer
who then collects it as part of the property taxes.

System Investment Fees

A system investment fee is usually considered to be the prorated part of the total cost ofthe
capital improvements needed to serve a new structure or dwelling. Authority for assessment of
system investment fees within Colorado counties is found at two places within the statutes.
Stormwater fees are expressly authorized within the statute providing for planning and zoning
with reference to subdivisions. That statute provides that counties may collect fees in connection
with subdivision approvals for those basins that have a plan which identifies the total cost of
needed improvements. Also, the statute authorizing utilities provides that a utility may enact
"rates, fees, tolls, and charges" in connection with services.

Larimer County assesses system investment fees which are payable at time of building permit
issuance within those basins which have master plans, including the Dry Creek Basin. The fees
are referred to as system investment fees, and they represent the investment which is needed in a
stormwater system to support the new development that is represented by the building permit.

As stated above, there are about 115 acres of unincorporated vacant land within the Local Basin.
It is estimated that the land will be developed into about six single family equivalent lots per acre
on average, and over 30 years an average of23 building permits will be issued per year. Sanitary
sewer is available everywhere within the Local Basin, and the recently adopted City of Fort
Collins Structure Plan supports development. As land is developed, additional improved lots will
be available to repay costs for the stormwater system which allowed the development to occur.

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