Page 487 - FY 2020-21 Blue Book Volume II

STORMWATER PROGRAM FUNDS

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget includes the Stormwater Pollution Abatement (SPA) Fund and the Measure W Local
Return Fund and relates to current year funding as follows:

Amount % Change

2019-20 Adopted Budget $ 77,830,177

2020-21 Proposed Budget $ 68,798,695

Change from 2018-19 Budget $ (9,031,482) (11.6%)

Adopted in August 1990, the SPA charge imposes a fee on all properties in the City based on stormwater runoff and
pollutant loading associated with property size and land use. The charge is collected by the Los Angeles County
Assessor on the annual property tax bill and annual receipts are approximately $28.4 million. SPA funds are used to
treat and abate stormwater under the guidelines and regulations set forth by the United States Environmental
Protection Agency (U.S. EPA) for stormwater discharges from large municipal storm drain systems. The SPA Fund
supports the cost of stormwater-related activities in various City departments and also funds the construction of flood
control and pollution abatement projects.

The State of California, Regional Water Quality Control Board, Los Angeles Region (Regional Board) regulates the
treatment and abatement of stormwater through a National Pollutant Discharge Elimination System (NPDES) Municipal
Separate Storm Sewer System (MS4) Permit. This Permit is issued to the County of Los Angeles, the Los Angeles
County Flood Control District (LACFCD), the City of Los Angeles, and 83 other cities in the County that operate their
municipal storm drain systems. The latest Permit was adopted on November 8, 2012, and became effective on
December 28, 2012.

The MS4 Permit is one of the regulatory tools the Regional Board uses to enforce oversight of Total Maximum Daily
Loads (TMDLs), which limit the maximum amount of a pollutant that a water body can receive and still meet water
quality standards. The City is currently subject to 22 TMDLs, but more TMDLs will be issued to the City by the Regional
Board and the U.S. EPA in the next five years. The MS4 Permit also provides for the development and implementation
of Enhanced Watershed Management Programs (EWMPs) that outline strategies, watershed control measures, and
implementation schedules to ensure compliance with the MS4 Permit and all TMDLs.

On November 6, 2018, County of Los Angeles voters approved Measure W – The Los Angeles Region Safe, Clean
Water Program (Measure W), a parcel tax of 2.5 cents per square foot of impermeable surface to support the costs of
stormwater-related projects and activities. Revenues are allocated to three sub-programs: municipal, regional, and
administrative. Forty percent of revenues are allocated to municipalities in the same proportion as the amount of
revenues collected within each municipality. Fifty percent is allocated for region-wide projects and is awarded on a
competitive basis. The remaining ten percent is allocated to the LACFCD for implementation and administration of the
Measure W Program. Eligible uses for revenues include projects that provide a water supply and/or quality benefit and
a community investment benefit. Measure W can be used to fund EWMP projects and the operation and maintenance
of completed water quality improvement projects. The LACFCD projects revenues of nearly $300 million per year
county-wide. Of the $37 million originally projected to be allocated to the City of Los Angeles as part of the municipal
program, only $32 million is expected to be received due to the County’s credit program and anticipated revenue
losses resulting from the impacts of COVID-19.

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