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Redwood City Stormwater Roadmap Funding Program September 2025 7-5 Schaaf & Wheeler The statutory limit in imposing these fees is that they may not exceed the estimated reasonable cost of service. Data used to justify fee amounts must be prepared and made available to the public in advance of the public hearing. Since the City already charges a deposit-based fee for plan review and inspection accounts, further fees may be difficult to impose. The chief benefit of examining the viability of regulatory fees is that they may be approved by consensus of the City after proper public notice and public hearing processes. Grants There are grant opportunities for stormwater, flood control, and climate adaptation projects in California. These grants are competitive and require a good deal of effort to secure. The City currently has an active contract with RPPG for grant writing and identification which can help the City provide project specific funding for stormwater projects. While the City will need to decide which grants are most applicable for its needs, the Sea-Level Rise Vulnerability and Adaption Planning Study recommends the Hazard Mitigation Grant Program or Proposition 1 Climate Ready Grants as potential options the City may explore (ESA, 2024). 7.2 Financial Recommendations As capital and operational funding needs become clearer, the City must evaluate available funding options to determine the most appropriate mechanism(s). This evaluation may include identifying grant opportunities, assessing existing funding sources, conducting preliminary modeling of potential charges under various funding mechanisms, and polling property owners or voters to gauge support. The information gathered through this process will provide essential data to guide the selection of a funding mechanism and shape the City’s approach to public engagement and community outreach. NBS recommends a special tax, such as a parcel tax or Community Facilities District (CFD), as the most flexible funding tool, as it can support both capital improvements and ongoing operations and maintenance. However, due to the two-thirds voter approval requirement, this option may not be viable without strong community support. Community engagement and polling will be essential to assess whether this threshold can be met. Alternatively, a property-related fee, while less flexible due to the requirement for a cost nexus, may offer a more attainable approval threshold, requiring only majority support from property owners. The City of San Mateo, for example, successfully implemented a stormwater fee, with a medium-sized parcel (0.11 to 0.17 acres) charged approximately $8 per month. Stormwater Master Plans are often funded through general funds or other sources for municipalities without a long-term funding strategy. However, implementing a special tax or property-related fee would provide sustainable funding for the Capital Improvement Program (CIP) identified in the Stormwater Master Plan and future master planning efforts. Given the distinct stakeholder groups associated with each funding mechanism, conducting a funding feasibility study, including preliminary rate modeling and impact analysis, can help inform targeted polling and support the selection of the most viable funding strategy. 11.A. - Page 36 of 53 467