07/06/2010 Council Packet - Laserfiche WebLink

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Financing Maplewood's Storm Water Management with a Environmental Utility The Financing Dilemma The cost el constructing, operating, and maintaining Maplewood% storm water facilities continues to increase along with other municipal coatis. 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 mprrn rents have become more complex in recent years. Faced with increasing costs and continuous pressure to minimize prope ty taxes, cities may lade the financial resources to undertake multi -year storm water management proram. City general funds and special assessments have typically financed most of the necessary improvements in the past Howevw, special assessments are often successfully challenged in court.. Consequently, many communities lack the proper funding to address the increasing costs related to storm water drainage, water quality management, and wetland protection. Service charges, which have teen used by communities to finance sanitary sewer and water systems, are now being applied to storm water management. The utility approach is gaining recognition as the most equitable way to finance soon water management activities while allowing far development. An eri irc mental utility has been the answer to the financial needs of the equation for many communities What is an Environmental Utility? lea`s start with what the utility is not. The utility is not a new level of government, nor is the utility a new tax. An environmental utility is simply a method of financing the administration, planning, implementatia and maintenance of storm water best management practices (BMPs ). This utility does not replace existing funding sources — it complements therm. The utility is northing more than a service charge or fee. The utility fee is typica lly gainst all develcped parcels within a city based on the premise of 'contributors Foy." Where and Is In a natural state, most rain soaks into the ground or is retained in small depressicns. Nlhere development has beea prevalent, rooftops, driveways, and parking lots prevent rainfall from soaking into the around The rain tuns off into streets, ditches, ponds and lakes, creating the need for drainage systems and to protect the quality of our water resou rces. Therefore, the fee is based on how much water runoff andor pollutant load is contributed by a particular parcel 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 Bans to handle the increasing costs through small adjustments in the utility +urges. "The utility fee is typically charged against all developed parcels within a city based on the premise of "contributors pay.° Feasibility Study 112316 City of Lino Lakes, Minnesota D -1