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<br />Feasibility Study 112316 <br />City of Lino Lakes, Minnesota <br />Simple and Flexible <br /> <br />Uses current billing <br />system <br />Y <br />E <br />S <br /> <br />YES YES MAYBE NA MAYBE YES <br /> Includes a credit, <br />exemptions and <br />appeals process <br />N <br />O NO MAYBE MAYBE NA MAYBE YES <br /> Cost effective to bill Y <br />E YES YES YES NA YES YES <br /> Legally defendable Y <br />E YES YES YES NA NO YES <br /> <br />The Proposed Methodology: A Storm Water Utility <br />As the previous chart demonstrates, the Storm Water Utility is the optimal choice as the funding mechanism <br />for Lino Lakes Storm Water Management program. The Storm Water Utility is a proven methodology that is <br />fair, dependable, and acceptable and is relatively simple to implement and flexible enough to incorporate the <br />needed credits and exemptions to support the storm water program goals and objectives. <br />What is a Storm Water Utility? <br />Let’s start with what the utility is not. The utility is not a new level of government, nor is the utility a new tax. <br />The utility is simply a method of financing the baseline costs such as administration, planning, <br />implementation, and maintenance of storm water management programs (surface water plan) and NPDES <br />program costs. <br />The utility is a service charge or fee. A utility fee is typically charged against all developed parcels based on <br />the premise of “contributors pay”. Where land is in a natural state, most rain soaks into the ground or is <br />retained in small depressions. Where development has been prevalent, rooftops, driveways, and parking lots <br />prevent rainfall from soaking into the ground. The rain runs off into streets, ditches, ponds and lakes, creating <br />the need for drainage systems to protect the quality of our water resources. Therefore, the fee is based on how <br />much storm water runoff a particular land use contributes. <br />This consistent, dependable revenue source provides a dedicated fund to manage the drainage system and <br />water quality improvements without increasing property taxes or using assessments. A utility also provides <br />the means to handle the increasing costs through small adjustments in the utility charges. <br />Rate Structure <br />The utility approach is based on the concept “contributors pay”. The rate structure is based on land use type, <br />density, parcel size, and the amount of runoff and/or pollution load contributed by a particular parcel. The <br />general runoff equation is: <br /> <br /> <br />Q = Actual Runoff <br />P = Potential Maximum Runoff <br />S = Potential Maximum Retention <br />Q= (P - 0.2S)2 <br />P + 0.8S <br />S = (1000/CN) - 10