Agenda 10/14/2025 Item #11D (Presentation - Funding Strategies for a Stormwater Capital Operations and Maintenance Program)10/14/2025
Item # 11.D
ID# 2025-3727
Executive Summary
Recommendation to hear a presentation on Funding Strategies for a Stormwater Capital, Operations and Maintenance
Program.
OBJECTIVE: To obtain direction by the Board on preferred funding strategies for a Stormwater Capital Operations, and
Maintenance program (the “Program”).
CONSIDERATIONS: Current stormwater capital, operations, maintenance, and planning activities for the secondary
and tertiary systems are funded by the General Fund and Unincorporated Area General Fund. Current funding levels
cannot adequately support the rehabilitation of existing aging infrastructure and enhancements needed to improve flood
control and water quality. The current five-year Stormwater capital program has an estimated $305 million deficit.
At the June 19, 2025, BCC Budget Workshop, several potential funding options were discussed for the Program:
1. Bonds: Bonds provide a powerful financing mechanism for large-scale stormwater infrastructure projects.
Bonds are secured by dedicated revenue streams rather than the County's general taxing power, making them an
attractive option for funding substantial capital improvements while preserving debt capacity and avoiding voter
approval requirements. This option was last utilized in 2020 with the issuance of the Series 2020A Special
Obligation Revenue Bonds, which included $60 million for stormwater capital projects.
2. Dedicated Millage: Dedicated millage provides a stable, broad-based funding mechanism that leverages
existing administrative infrastructure and established legal authority. A funding policy of .15 mills ad valorem
dedicated solely for the Stormwater Management Capital Improvement program was approved June 22, 2004,
Item 10 G. This policy is no longer being used to fund the Stormwater program.
3. Municipal Services Taxing Unit (MSTU): A MSTU is a special taxing district that levies additional property
taxes on specific geographic areas to fund enhanced municipal services or infrastructure improvements that
benefit those areas. The implementation of an MSTU offers a geographically targeted approach to stormwater
funding, particularly beneficial for areas with specific drainage infrastructure needs or enhanced service
requirements.
4. Sales Surtax Implementation: Sales surtax implementation is the process of enacting and administering an
additional local sales tax in addition to state and other existing sales taxes to fund specific projects or services. A
dedicated sales surtax provides broad-based revenue generation with minimal administrative burden.
5. Stormwater Utility: A utility is a local government financing mechanism that charges property owners fees to
fund the management, maintenance, and improvement of stormwater infrastructure and water quality programs.
This approach provides direct correlation between service provision and cost allocation, ensuring predictable
revenue streams while maintaining regulatory compliance with federal and state mandates.
6. Electric Franchise Fee Enhancement: An electric franchise fee enhancement is the increase of fees charged to
electric utility companies for the right to use public rights-of-way and infrastructure, which are then passed on to
consumers through their electric bills to generate additional municipal revenue. Utilization of electric franchise
fee revenues presents an existing administrative framework for stormwater program funding.
This item is consistent with the Infrastructure and Asset Management Element of Collier County’s Strategic Plan by
planning and building public infrastructure and facilities to effectively, efficiently and sustainably meet the needs of our
community.
FISCAL IMPACT: The source of funding for a study is Stormwater Capital Fund (3050).
GROWTH MANAGEMENT IMPACT: This project is in accordance with the goals and objectives of the Stormwater
Element of the Growth Management Plan.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board
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10/14/2025
Item # 11.D
ID# 2025-3727
approval. —SRT
RECOMMENDATIONS: Provide direction to staff on preferred funding for a Stormwater Capital, Operations, and
Maintenance program.
PREPARED BY: Peter S. Hayden, PE, Supervisor PM (Lic) Stormwater, Transportation Engineering
ATTACHMENTS:
None
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