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The Storm Water Utility (also referred to in other communities as a Surface Water Utility) is a funding <br />source that can address the financing dilemma without increasing property taxes. Service charges, which have <br />been used by communities to finance sanitary sewer and water utilities, are now being applied to surface <br />water management (Jouseau, 1983). The storm water utility approach is gaining recognition as the most <br />equitable way to finance storm water management activities (Honchell, 1986). <br />Selecting the Best Option <br />In evaluating financing options, the following criteria were considered: <br />Fair <br />• Charges are based on the volume of storm water runoff, not property value. <br />• Land Use (Intensity of Development). <br />• Sound Engineering Basis. Utilizes commonly accepted engineering formulas for calculating runoff <br />utilizing runoff Curve Numbers (CN). This methodology is known as Equivalent Hydraulic Area. <br />• The fee should represent a "users pay" philosophy. The more runoff a user property contributes, the <br />more they should pay. <br />• Operation and Construction Maintenance costs increases yearly placing increased pressure on the <br />general levy (ad valorem) vs. a utility fee based on users pay and the actual budget based upon these <br />costs. <br />Dependable <br />• No competition with the general fund. <br />• Consistent source of revenue. <br />• Separate, dedicated fund. <br />• Helps increase the score in the finance section (matching funds) of grant applications. <br />Acceptable <br />• No increase in property tax. <br />• A "user fee ", the more you contribute...the more you pay. <br />• Small service charge vs. large, one time assessment. <br />• Understandable rational for the charge and engineering sound. <br />Simple and Flexible <br />• Use current billing system <br />• Includes credits, exemptions and appeals process <br />Feasibility Study A- LINOL0602.00 <br />City of Lino Lakes, Minnesota <br />