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from which revenues will be derived subject to the provisions of this Chapter and Minnesota Statutes. (2) The storm water system consists of lift stations, catch basins and manholes, collection piping, forcemain, storage tanks and ponds, structural and non-structural BMP’s (Best Management Practices), and associated appurtenances located within public right-of-way and/or dedicated easements. (3) The Storm Water Utility shall fund the operation, maintenance, repair, and replacement of the storm water system. (4) The Storm Water Utility shall not be used to fund expansion of the system to accommodate new development. (5) The city shall, as part of its annual budget process, adopt an operating budget for the Storm Water Utility for the next fiscal year. The operating budget shall be prepared in conformance with the state budget law, city policy, and generally accepted accounting practices. § 404.03 DEFINITIONS Best Management Practice (BMP). A storm water practice used to provide water quality treatment or manage storm water runoff. Examples include storm ponds, infiltration basins, rain gardens, etc. Impervious Surface. A compacted surface or a surface covered with material (i.e., gravel, asphalt, concrete, Class 5, etc.) that increases the depth of runoff compared to natural soils and land cover. Including but not limited to roads, driveways, parking areas, sidewalks and trails, patios, tennis courts, basketball courts, swimming pools, building roofs, covered decks, and other structures Storm Water Utility Fee. The charge developed for each parcel of land pursuant to this chapter, charged quarterly. Annual Utility Revenue. The revenue amount equal to the estimated annual expenditures for planning and inventories, capital expenditures, personnel and equipment and operation of the storm water utility, in accordance with established City of Lino Lakes policy. § 404.04 STORM WATER UTILITY FEES (1) Storm Water Utility Fees shall be established for a period of time as set by City Council Ordinance. The City Administrator shall annually review rates and make recommendations to the Council for adjustments in the rates and other charges. Such recommendations to the council regarding rate adjustment shall be based upon annual report of the operations of the utility, including an account of all monies or revenue received and disbursed, together with a working budget estimate of the needs of the utility. (2) Determination. The storm water utility fee shall be determined based on the total impervious surface coverage throughout the City. Exempt land uses shall be excluded from the computations. The proportion of residential and non-residential impervious coverages shall be