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Available funding Sources
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<br />Storm Water Utility
<br />(Minnesota Statutes
<br />Chapter 444.075)
<br />Sprinasted
<br />A portion of the reconstruction costs identified in the PMR include costs related
<br />to storm water facilities. These are estimated to be approximately $4,200,000
<br />of the $17,500,000 in reconstruction costs as shown in the table below.
<br />Total Projected Storm Water Street Related
<br />Year Reconstruction Costs Related Costs Costs
<br />2005 $0 $0 $0
<br />2006 0 0 0
<br />2007 1,435,000 344,400 1,090,000
<br />2008 2,750,000 660,000 2,090,000
<br />2009 3,035,000 728,400 2,305,000
<br />2010 3,485,000 836,400 2,650,000
<br />2011 1,577,500 378,600 1,200,000
<br />2012 1,655,000 397,200 1,260,000
<br />2013 1,737,500 417,000 1,320,000
<br />2014 1,825,000 438,000 1,385,000
<br />Totals $17,500,000 $4,200,000 $13,300,000
<br />The cost related to the storm water facilities could be paid for through a storm
<br />water utility established under Minnesota Statutes 444.075. A storm water
<br />utility would be similar to the City's current Water Utility and Wastewater
<br />Utility. All the costs associated with the construction and operation of the
<br />storm water utility would be paid for through a user fee charged to customers.
<br />The user fee system can be established in a number of ways and is generally
<br />dependent on the level of information about each parcel readily available. The
<br />City would pay for the cost of the storm water improvements either with funds
<br />accumulated in the utility or through the issuance of general obligation revenue
<br />bonds that would be repaid with user fees.
<br />There are a number of advantages to a storm water utility for the City to
<br />consider. The utility would provide a dedicated source of funding for both the
<br />operational and capital costs of the City's storm water system. A storm water
<br />utility could reduce the current expenditures in the general fund by transferring
<br />those current operating expenditures for storm sewers like cleaning pipes and
<br />catch basins, street sweeping, and leaf collection to the utility. In addition, the
<br />utility could share in some of the general fund administrative costs like
<br />engineering, accounting, and the supervision of staff. The utility could also
<br />share the cost of equipment purchases with the general fund and the sewer funs
<br />A storm water utility would reduce the property tax impacts and the amount of
<br />special assessments needed to fund the PMR by providing a funding source for
<br />the storm water related costs.
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<br />City of Lino Lakes - Pavement Management Plan Financing Re
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