1. Local Perspective on State led Funding & Finance Planning Efforts
Seth Wurzel, CGFM
CCVFCA Flood Forum
March 15, 2017

2. Current Funding Approach
Local Share (Represents Local Benefits / Interests)
Property Based
Annual Assessments & Taxes / One Time Fees
General Fund Based
Sales Taxes / General Fund Revenues
Enterprise Based Revenues
Storm Drain Fees / Reservoir & Water / Power Generation
State Share (Public Benefits / Interests)
General Fund (Subvention / Special Projects / GO Bonds to Finance)
Fee Based (Regulatory Fees)
Federal Share (Public Benefits / Interests)
USACE appropriations
FEMA Hazard Mitigation / Public Assistance Programs
NGO’s (Public Benefits / Interests)
Income Tax Subsidy
Provide broader overview of all mechanisms and couch them in a manner that demonstrates understanding of general public finance concepts
- Property based – Taxes and Assessments (either for general or special services) / One Time fees like connection or mitigation based fees (DIF, etc.)
- General fund comes in the form of any discretionary based revenues (Property Tax Allocations / Sales Tax based – discretion can vary based on threshold approval, could be in the form of Tax Increment as well)
- Enterprise Rev’s are a lot of time
- Regulatory

3. Current Shortfalls
Not generating enough to keep pace with needs & risk
Local / State / Federal Shares
Falls short in Several Areas
Assessment of Beneficiaries and Proportional Allocation
Alignment with Local / State / Federal Priorities & Interests
Alignment with Liabilities & Obligations
Explanation – identification and quantification of benefits (direct / indirect and general) and allocation of costs proportionately to each beneficiary

4. Plan Options CVFPP & DPC - Augmentation Based Approaches
Identified Sources:
CVFPP SPFC Facilities
General Beneficiaries
More public benefit funding from State General Fund / Federal Appropriations (Annual GF / GO Bonds / USACE appropriations)
Local Beneficiaries
More Local Assessments (RD’s / JPA’s / MA’s / etc.)
Resurrected SSJDD Assessment (New)
River Basin Assessment as part of Integrated Water Management (New)
State Flood Insurance Program (New)

5. Plan Options (cont.) Identified Sources: DPC Study
General Beneficiaries
Continued State General Fund funding / Future Bonds
(Annual GF appropriations via subvention program)
Local / Indirect Beneficiaries
Continued RD Funding (Assessments)
Conveyance Utility / Enterprise Payments (New Fees / Charges)
Water User Fee: Water in / out of Delta
Water Exporter Fee: Water through Delta
Flood Protection Fee (New Fees)
Property & facility direct beneficiaries

6. Items for Further Evaluation
Appropriate Use of Funding Mechanism (Matching Sources & Uses)
E.g.: Annual Assessment goes for O&M / Pay Go & Capital Financing
One time fees for Special Projects (e.g. mitigation type fee)
Geographic considerations
Equity Issues
Amount paid vs. amount of benefit
Direct Beneficiaries
How much Self Help is reasonable?
Economic justice
Need to recognize existing assessments (lack of consistent standardized rate structure / unique circumstances)
Indirect Beneficiaries – appropriate proportionality of contribution & benefits
Cost Effectiveness
Economic realities, variations over time, land use economics
Cost effectiveness issues as it relates to Small Communities. Addressing State Priorities and Growth over time.

7. Items for Further Evaluation
Legal Issues
Liabilities and Obligations
Annualized cost of risk and legal liability
Constitutional / Statutory Limitations
New legislation
Political Realities
Issue champions
Funding governance

8. Implementation All Beneficiaries of Flood Control System
Direct Beneficiaries
Indirect Beneficiaries
General Beneficiaries
Thoughtful Implementation
Pre-emption of Local Assessments
Layering issue
Efficient Governance / Administration
Funding Mechanism Reliability and Adaptability
Changing economics
Competing State Policies and Interests
Balance Flood Management with other State policies (e.g. Housing / Growth / Land Use & Employment - as they change overtime)
Factors to consider during Implementation
Layering (Issues addressing operations and maintenance vs. capital mitigation)

9. Implementation
Development of Detailed Work Plans for Evaluation and Implementation
Detailed analyses scoped to address each issue
Input and consideration on key policy issues that includes Local Involvement
Realities of Rural vs. Urban environment
Analyses will likely lead to differing approaches
Multiple mechanisms
Structured to address issues
Next steps for Implementation