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Other factors to consider in the use of special assessments include: • State law contains a specific process for making public improvements and levying special assessments. • Lino Lakes can issue general obligation bonds to finance the improvements. • Special assessments are not required to finance the entire project. Lino Lakes can use other available sources of revenue, including general property taxes, to finance the improvement and pay debt service on bonds. • Use of special assessments are further regulated by the City's charter provisions 2.3 Storm Drainage System Development Charge As land is developed or built upon, surface water runoff and pollution loading increases. Administrative and capital costs can be recovered at the time of building permit issuance or land development approval. Lino Lakes can require dedication of land for ponding or drainage purposes. The land, however, must be from the parcel being developed. System Development Charges (SDCs) or trunk charges are one -time charges paid by new development to finance the construction of public facilities. SDCs are generally used for several basic reasons (Nelson, 1995): • To shift the burdens from existing development to new development; ■ To synchronize the construction of new or expanded facility cap with the arrival of new development; • To subject new development decisions to pricing discipline; and • To respond to anti -tax sentiments. According to Nelson (1995), there are seven factors to determine the proportionate share of costs to be borne by new development: ■ The cost of existing facilities. • The means by which existing facilities have been financed. • The extent to which new development has already contributed to the cost of providing excess capacity. • The extent to which existing development will, in the future, contribute to the cost of providing existing facilities used community wide or by non - occupants of new development. • The extent to which new development should receive credit for providing at its cost facilities the community has provided in the past without charge to other development in the service area. • Extraordinary cost incurred in serving new development. • The time -price differential inherent in fair comparisons of amounts of money paid at different times. Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota Page 8