Federalsburg Charrette

Federalsburg, Caroline County
Maryland

Town Background

The Town of Federalsburg is an eastern shore community located at the southern end of Caroline County, close to Delaware and to Maryland's Dorchester County. The town is situated on the Marshyhope Creek, a tributary of the Nanticoke River, which has been designated as a nutrient-sensitive river. At certain points in its history, Federalsburg was a shipbuilding community and a mill town. Today, two industrial parks supplement the primarily agricultural economic base.

The downtown area of Federalsburg is a pleasant mix of turn-of-the-century brick structures and modern shops. Together with the two industrial parks, Federalsburg's business district employs approximately 1,000 people.

The Issue

Although there are 1,000 workers employed in Federalsburg, most do not live within the town's corporate limits, denying the town of needed income tax revenues and a broader base over which to spread infrastructure costs. Federalsburg is facing needed infrastructure renovations of some $2,000,000 and may already be at their debt limit of 15% of assessable base. Their newly renovated 750,000 gpd waste water treatment facility utilizes less than 50% of its capacity, but sewage lines must be repaired before Federalsburg can attract commercial and residential growth. If taxes must be increased to cover needed infrastructure expenditures, businesses may be inclined to move to tax-free Delaware, only 10 miles away. How can Federalsburg pay for needed infrastructure renovations of $2,000,000 while keeping per capita debt competitive with surrounding jurisdictions?

Environmental Context

The town's most urgent environmental need is separation of storm water and sanitary sewage lines, especially along Central Avenue, a main thoroughfare. These lines were found to be from 50 to 65 years old. Studies found that the sewer lines were cracked, and were between 1/2 and 3/4 filled with silt. Storm surges upset the manhole covers, flooding the street and the nearby Marshyhope Creek with diluted sewage. Additionally, the road bed beneath Central Avenue has been weakened by high traffic volume. Harmful vibrations caused by everyday usage are threatening to collapse the road. In addition to being an environmental hazard, Central Avenue poses public health and safety risks .

There are three other waste/storm water separation projects identified by Federalsburg: Maple Ave., Railroad Ave., and Old Denton Rd. Together with Central Ave., these separation projects could reduce infiltration problems by 25-30%, and eliminate outfalls of diluted sewage into the Creek and River.

In addition to its storm water separation projects, Federalsburg is planning to extend sewer and water services to several previously unserved areas. One of those areas is Bloomingdale Ave. Because it lies at the intersection of roads leading to Easton, MD. and Dover, DE., Bloomingdale Ave. has become the preferred business location in Federalsburg. A strip shopping mall, including a major grocery chain, is being considered for this area, which increases the need for improved infrastructure.

Because of its proximity to the proposed Bloomingdale Ave. project, the extension of water and sewer services to Brown Road is being considered. Brown Rd. is the location of four residences whose occupants are described as elderly and low income. They are served by on-site septic systems that are over 20 years old.

Sixty residents of a mobile home park in the northwest area of town are another low income population in need of water and sewer service. The Tilghman Brothers Trailer Park contains 24 mobile homes which share an old and now failing septic system. This problem is severe enough to pose a public health risk if it is not ameliorated.

Finally, Federalsburg is proposing to renovate and expand a drainage ditch along the Marshyhope Creek to assist in storm water management.

Project Financing

Central Avenue: Total cost: $565,000. Status: Final application has been made to the Farmer's Home Administration (now known as the Rural Development Administration).

Bloomingdale Avenue: Total cost: $225,000. Status: Rural Development Administration has approved a $125,000 loan; the $100,000 balance is being sought through a Community Facilities loan or a private bank.

Brown Road: Total Cost: $198,000. Status: A Community Development Block Grant (CDBG) in an amount of $198,000 was denied because of overwhelming demand for CDBG funds. Federalsburg plans to reapply for these funds during the next funding cycle.

Tilghman Brothers Trailer Park: Total cost: $ 399,000. Status: $116,000 CDBG funding approved; $215,000 private bank loan approved; $68,000 balance was requested from CDBG, awaiting notification.

Future Projects: Total cost: $1,062,500 (includes: Maple Ave., $425,000; Railroad Ave., $450,000; Old Denton Rd., $50,000; Drainage ditch, $137,500). Status: No funding.

Recommendations and Observations

• A use-dependent fee system was recommended for Federalsburg. Tap-in fees for water and sewer are currently $1,000 each, which applies to both residential and commercial users. It was suggested that the town adjust the fee system to reflect the larger volume usage by business.

• Federalsburg has a significant resource in the excess capacity at its sewage treatment facility. It was suggested that the town use this asset to attract residential and commercial development. Maryland's Department of Housing and Community Development's Division of Historical and Cultural Programs may be tapped to assist in the downtown area's development.

• A separate storm water utility could be established with local authority to issue debt and manage storm water issues. Maryland's Department of the Environment can assist in this effort.

• Self-help programs, where local residents and other volunteers assume certain project responsibilities, were suggested. By using self-help for such jobs as staffing the construction trailer, running laterals out to houses for sewer hook-up, and assuming the responsibility of obtaining easement signatures, towns across the country can save up to 10% of a project's total costs, while bringing the community together.

• Coordinate a grass-roots effort among small communities to notify federal officials about the burdens placed on small communities by the Davis-Bacon wage rates contained in the Clean Water Act.