Funding and Financing
- Overviews
- Council drainage, water supply and sewerage budgets
- Developer contributions: s94 contributions
- Environmental levies and special Council rates
- Stormwater Management Services Charge
- Partnerships
- Grant funds and Sponsorships
- Fundraising
Developing a financial strategy
Sources of funds
Overviews
NSW Department of Local Government - Council Rating and Revenue Raising Manual (NSW Dept. of Local Government)
Stormwater Management Services Charge (NSW Dept. of Local Government, Circular No.06-47)
Infrastructure Financing Study Options (WSROC)
Environmental incentives: Australian experience with environmental incentives for economic management (Cwlth DEH)
Financing Watershed Organizations (e-book)
Council drainage, water supply and sewerage budgets
Very creative approaches are possible. Some we particularly recommend are:
- Positioning water quality management, and aspects of in stream ecology, as core business for any Council drainage groups. See:
- Leveraging funds committed to projects to achieve multiple objectives. For example:
- At Albury, a sewage treatment system has been built which waters timber plantations and agistment pasture in summer (generating an income for Council), and has transformed farmland into ephemeral wetlands by providing water in winter. See the Urban Water Management Marketing Video for more details.
- Taking a whole system performance approach to drainage asset management.
If, for example, a Council is investing a portion of its drainage budget in water quality management to protect a water body downstream (e.g. a river, lake or estuary), then it should manage 'natural infrastructure', like natural wetlands, alongside the built infrastructure, on a least cost basis (if there are no funds for managing these 'natural places' for their own sakes). For example, early weed management in a natural wetland may prevent major decline in its 'performance' (its contributions to nutrient cycle and sedimentation). So to manage the whole system on a least cost basis, drainage funds would be spent on maintenance of the natural wetland - managing inflows, wetland weeding, etc - as well as maintenance of the built infrastructure (swales, constructed wetlands, detention basins, etc).
see Natural Wetlands
Constructed Wetlands
Developer contributions: s94 contributions
Urban land developer contributions play a major role in funding stormwater infrastructure in and downstream of new urban areas in NSW. See:
- Stormwater in s94 contribution plans (tailored Google search)
- Legislation and regulations for the legal background
- Funding Local Infrastructure (DIPNR)
Report of a taskforce reviewing s94 contribution funds
see Land Use Plan Making for an overview of proposed changes in NSW
Environmental levies and special Council rates
Environmental levies and specific rate rises directed to improved environmental management play a major role in Council urban water management in many LGAs.
- NSW Department of Local Government - Council Rating and Revenue Raising Manual
Outlines the legal options available to Councils for raising funds, and provides detailed guidance on the mechanisms for implementing rate rises.
Case studies:
- Manly Council
- Penrith Council
- Waverley Council
- Stormwater Utility Charge (Yelm, USA)
Flat fees for residential properties, and a sliding scale for commercial and industrial properties based on surface area and the percentage of the site that is impervious. "Fees pay for a variety of services, including on-going operation and maintenance of publicly-owned stormwater facilities, drainage basin planning, education and outreach, water quality programs, monitoring, and capital improvement projects."
Stormwater Management Services Charge
Under the Local Government Act, NSW Councils may impose an annual “Stormwater Management Services Charge” (SMS charge) on non-vacant, rateable residential or business premises in urban areas to manage the quantity and/or quality of stormwater that flows off that land, and includes a service to manage the re-use of stormwater for any purpose. The charge can be applied to both capital projects and recurrent expenditure, relating to new or additional stormwater management services to eligible land.
In all cases, the services must be additional to, or provide a higher level of stormwater management service to eligible land. Where the primary purpose does not relate to stormwater management from eligible land, the charge can not be applied.
Charges per rateable residential parcel are restricted to $25 (or 50% of this for residential strata lots, i.e. $12.50) or the actual cost of providing the service, which ever is the lesser. Rateable business parcels may be charged $25 per 350m² (or part thereof) or the actual cost of providing the service, which ever is the lesser. Individual business strata lots should be charged a pro-rata rate based on the same formula.
The charge can not be levied on vacant land (i.e. one without buildings or other large impervious surfaces), or where council has already charged a special rate or charge for the primary purpose of stormwater management (or has been restricted by the Minister from doing so under section 508 or 508A of the Act).
For more information, refer to the Department of Local Government's Circulars to Councils No.s 06-24, 06-47 & 06-65.
Partnerships
Catchment Management Authorities (tailored Google search)
The CMAs manage substantial budgets for regional natural resource management in NSW. Local Council programs that are aligned with CMA objectives are candidates for substantial CMA funding. Many CMAs also run regional grants programs (check their websites).
RTA Stormwater Environment Improvement Program (NSW RTA)
The Roads and Traffic Authority partners local governments on specific stormwater projects.
Sydney Catchment Authority's partnering program
Grant funds and Sponsorships
General
Communitybuilders.nsw - Directory of Funding Sources
An excellent directory to grant funding available in NSW.
Commonwealth environment and heritage grant programs and funding
NSW Environmental Trust (NSW DEC)
Sustainable Regions Programme (Cwlth)
Has provided some very large grants for environmental projects.
NSW regions:
- Campbelltown-Camden
- Far North-east NSW
The Myer Foundation
Water and Environment is one of their areas of focus.
The Ian Potter Foundation
Environment is one of their areas of interest.
Butt Littering Trust
Provides grants which focus on "changing the littering behaviour of smokers".
For community groups
Australian Government Envirofund
"The Australian Government Envirofund is the local action component of the Australian Government's $3 billion Natural Heritage Trust. It helps communities undertake local projects aimed at conserving biodiversity and promoting sustainable resource use. Community groups and individuals can apply for grants of up to $30 000 to carry out on-ground and other actions to target local problems."
WWF Threatened Species Network - Community Grants Program
"More than 230 on-ground conservation projects have been funded through the Threatened Species Network Community Grants Program, enabling community groups right across Australia to help save threatened species."
Bundaberg Rum Bush Fund (in partnership with Landcare)
The fund has provided many small grants to community projects and a few larger ones.
Sydney Water Community Events Sponsorship
Writing grant applications
Submission writing (Communitybuilders.nsw)
Guidelines for community Landcare projects (Queensland Landcare Foundation)
Hints and tips for securing grants, funding and support (Queensland Landcare Foundation)
Grant writing tutorial (US EPA)
Fundraising
Fundraising Ideas
Many ideas for products that can be sold at fundraisers.
The Australian Fundraising Magazine
Various articles from Issue 1 are available online.
Developing a financial strategy
Methods
US EPA Environmental Finance Program
This site covers "traditional means of raising revenue, borrowing capital, enhancing credit, creating public-private partnerships, ways of lowering the costs of compliance, encouraging pollution prevention, paying for community-based environmental protection, financing brownfields redevelopment, and improving access to capital for small businesses, local governments, and the environmental goods and services industry". (LGEAN)
Environmental Finance Centre (University of Maryland, US)
- Water quality financing
- Community charrettes as a process for developing financing plans (includes many case studies)
An Internet Guide to Financing Stormwater Management (US)
The art of financial management (River Network, US)
An issue of River Voices (Vol 11, Number 3, 2001) devoted to financing catchment management. Its oriented towards non-profits but many points have wider relevance. It includes articles on:
- The Art of Financial Management
- Budgeting
- Reporting for Program, Fundraising and Administrative Expenses
- Handling Your Funds
- Charting Your Financial Health
- Financial Management Assessment Tool
Calculating cost-efficient stormwater interventions
Background
How are America's older municipalities coping with infrastructure demands—and how are they paying for them? (US journal)
State Revolving Fund: Training Manual (US Council of Infrastructure Financing Authorities and US EPA).
