CHAPTER 6

BILLING, COLLECTION AND ENFORCEMENT

Executive Summary

This chapter focuses on a discussion of the billing, collection, and enforcement methods that can be used by a jurisdiction for the purpose of establishing a stormwater utility. Two methodologies used for the purpose of collecting revenues received from a jurisdiction with stormwater management services are presented herein. These two methods include user fees, commonly employed by cities, and non-ad valorem assessments that are typically used in county government. User fees are common within city governments due to the fact that most cities have an established utility (water or sewer) in place whereby the stormwater charge can be included as part of the existing utility bill. This means of billing provides the jurisdiction with a cost-effective mechanism for collecting revenues due to the fact that the existing billing system is already in place, a constant revenue stream, and flexibility with respect to a changing rate schedule. Other advantages and disadvantages with using the existing utility bill as a method for billing are discussed.

Non-ad valorem assessments (sometimes referred to as special assessments) are another mechanism by which a jurisdiction can collect revenues for providing stormwater management services. Special requirements that apply to the collection of revenues via this method are discussed herein. Three realistic options are available to a jurisdiction for the purpose of collecting revenues through the use of assessments. These options include: (1) the uniform collection method, (2) the uniform collection method with an option to receive individual bills, and (3) the lien and foreclosure method with collection of delinquencies under the uniform collection method. Each of these options and their requirements are presented in this chapter. The largest advantage for a jurisdiction lies with the use of the uniform method because of its very high collection rate. Typically, this rate exceeds 95%. Statutory requirements associated with using the uniform method of collection are also presented in this chapter. State statutes specifically require that jurisdictions adhere to three defined procedures and deadlines that include: (1) publishing a notice of intent, (2) adopting the initial and final rate resolutions, and (3) adopting the assessment roll. The requirements of each procedure and their associated deadlines are discussed. Enforcement methods that can be used for the purpose of collecting revenue where assessments are employed are also presented.

6.1 Comparing and Selecting Billing Methods
6.2 User Fees as a Collection Device
6.3 Special Assessments as a Collection Device