03/01/2010 Council Packet - Laserfiche WebLink

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Executive Summary As the City of Lino Lakes continues to develop and grow, the impact of urbanization on the City's surface water resources continues to increase. In an effort to maintain and improve the existing drainage system, mitigate the impacts of past and future development and meet the anticipated needs of the National Pollutant Discharge Elimination System (NPDES) storm water regulatory program, Lino Lakes realizes the need to continue to develop and implement a comprehensive surface water management program to meet their goals. The surface water management planning process typically involves four steps. 1. Assessment of the current situation; 2. Analysis of existing and proposed management strategies; 3. Development of program goals and policies, and 4. Identification and Implementation of Capital Improvements. In order to finance this program the City has requested this study of a Storm Water Management Utility. The purpose of this study is to identify how the city might utilize the utility to finance their Storm Water Management Program. For this study, we have evaluated six (6) alternative methods of funding the Lino Lakes Storm Water Management Program: 1. General Funds/ Ad Valorem Taxes 2. Special Assessments 3. Impact Fees 4. Grants 5. Special Tax Districts 6. Storm Water Utility Program Implementation Through an integrated, comprehensive planning approach, Lino Lakes can effectively manage existing and new development without degrading the valuable water resources. Without proper funding, the program can become vulnerable when competing against other general fund items or budget constraints. The Financing Dilemma The cost of constructing, operating, and maintaining storm water facilities continues to increase along with other municipal costs. In fact, the storm drainage system is often the last and most expensive public utility for cities to develop. Traditional methods of financing storm water improvements have become more complex in recent years. Faced with increasing costs and continuous pressure to minimize property taxes, cities may lack the financial resources to undertake a multi -year storm water management program. In Lino Lakes, general funds, special assessments and the City's Storm Water Management Fund have typically financed most of the necessary improvements in the past. Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota