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1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />Table 1 <br />Advantages and Disadvantages of Funding Alternatives <br />Funding Method <br />Advantages <br />Disadvantages <br />• <br />No incentive to reduce runoff <br />or pollution. <br />• <br />Administrative Structure for <br />collection in place. <br />• <br />No relationship to level of <br />benefits received. <br />• <br />Simple and accepted source of <br />• <br />Discontinuous source of <br />Ad Valorem Tax <br />revenue. <br />revenue. <br />• <br />Allows for a larger revenue base. <br />• <br />Limitations on amount of <br />• <br />Through tax districts contributors <br />pay. <br />expenditures due to budget <br />constraints. <br />• <br />Competition with other <br />services (i.e., police, fire). <br />• <br />Only benefited properties pay. <br />• <br />Rigid procedural <br />• <br />Revenues from assessment are <br />requirements. <br />applied to a specific project cost. <br />• <br />Runoff contributions cannot <br />Special <br />No competition with general <br />be assessed. <br />Assessments <br />services. <br />• <br />Difficult to determine and <br />• <br />Benefits directly related to cost for <br />prove benefit. <br />service. <br />• <br />May place an unfair burden on <br />• <br />Assessment can be deferred in <br />hardship cases. <br />some segments of the <br />population. <br />System <br />Development <br />P <br />• <br />• <br />New development generating <br />runoff pays for runoff <br />management. <br />Administrative structure for <br />reviewing plans and collecting <br />fees is in place. <br />• <br />• <br />Only addresses problems <br />within the vicinity of the new <br />development, not usually <br />existing developments. <br />Only addresses prevention not <br />Charges <br />• <br />Systems can be tailored to the <br />specific needs through regulatory <br />correction of existing <br />problems. <br />changes. <br />• <br />Limited usefulness as a <br />• <br />Revenues are applied to water <br />management. No competition with <br />general services. <br />financing mechanism. <br />• <br />Properties causing or contributing <br />to the need for runoff management <br />pay relative to their contribution to <br />the problem. <br />• <br />Self - financing system not in <br />competition with general services <br />funds. <br />• <br />Some initial costs in <br />development of rate formula <br />User Charges <br />• <br />Existing and new developments <br />and philosophy. <br />both pay. <br />• <br />May require an expanded <br />• <br />Flexibility in the system. <br />administrative structure. <br />• <br />Continuous source of revenues. <br />• <br />Specific dedicated fund. <br />• <br />Administrative structure for <br />collection already in place. <br />Feasibility Study <br />City of Lino Lakes, Minnesota <br />A -LI N OL0602.00 <br />Page 6 <br />