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Simple and Flexible Uses current billing system YES YES MAYBE NA MAYBE YES Includes a credit, exemptions and appeals process NO MAYBE MAYBE NA MAYBE YES Cost effective to bill YES YES YES NA YES YES Legally defendable YES YES YES NA NO YES The Proposed Methodology: A Storm Water Utility As the previous chart demonstrates, the Storm Water Utility is the optimal choice as the funding mechanism for Lino Lakes Storm Water Management program. The Storm Water Utility is a proven methodology that is fair, dependable, and acceptable and is relatively simple to implement and flexible enough to incorporate the needed credits and exemptions to support the storm water program goals and objectives. What is a Storm Water Utility? 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. The utility is simply a method of financing the administration, planning, implementation, and maintenance of storm water management programs (surface water plan) and NPDES program costs. This utility does not replace existing funding sources —it complements them. The utility is a service charge or fee. A utility fee is typically charged against all developed parcels based on the premise of "contributors pay ". Where land is in a natural state, most rain soaks into the ground or is retained in small depressions. Where development has been prevalent, rooftops, driveways, and parking lots prevent rainfall from soaking into the ground. The rain runs off into streets, ditches, ponds and lakes, creating the need for drainage systems to protect the quality of our water resources. Therefore, the fee is based on how much storm water runoff a particular land use contributes. This consistent, dependable revenue source provides a dedicated fund to manage the drainage system and water quality improvements without increasing property taxes or using assessments. A utility also provides the means to handle the increasing costs through small adjustments in the utility charges. Rate Structure The utility approach is based on the concept "contributors pay ". The rate structure is based on land use type, density, parcel size, and the amount of runoff and/or pollution load contributed by a particular parcel. The general runoff equation is: Q= (P - 0.2S)2 P + 0.8S Q = Actual P = Potential Maximum Runoff S = Potential Maximum Retention Runoff S = (1000 /CN) - 10 Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota