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2.6 Other Sources of Funding 2.6.1 U.S. Army Corps of Engineers: Sect. 22 Planning Asst. to State Programs Funds are a 50/50 cost share. The program is administered through state planning. Eligible projects are given to COE to prepare a cost estimate for preliminary design. The estimate is negotiated with the "customer ". The "customer" provides 50 percent cost share in the form of cash. The COE then completes the preliminary design or study. 2.6.2 DNR's Flood Hazard Mitigation Program (Federal program administered through the State DNR and Counties). Up to 50 percent cost sharing is available through the bonding program. This alternative best applies to a phased construction scenario, since the state funding is on the biennium. Additionally, the DNR suggests the assistance of your state representative to lobby on behalf of Lino Lakes for funds that are pursued by a number of entities. Funding through this program is very unreliable and there is considerable competition for a limited budget. 2.6.3 Special Tax District (Fifield, 1997) MN Statute 444.16 and 444.17 -18 -19 & 20 Cities can create storm water improvement districts to finance these improvements. In effect, a storm water improvement district is a new taxing district. Lino Lakes would adopt an ordinance that defines the area of the district. Lino Lakes can undertake storm water improvements within the district. To finance the improvements, Lino Lakes can levy a property tax on property within the district. This financing mechanism offers advantages and disadvantages over special assessments. The chief benefit is no need to prove benefit from the improvements. All property in the district pays to finance improvements. Costs are spread according to the taxable value of property. This may also be a disadvantage. There is no flexibility in tailoring the application of the tax. Some key factors in the establishment and use of a storm water improvement district include: ■ The ordinance establishing the district must be adopted by a two- thirds vote of the Council. A public hearing must be held prior to adopting the ordinance. • Lino Lakes must hold a public hearing before awarding a contract for an improvement within the district. State law prescribes the requirements for notice of hearing and items to be considered in ordering the improvement. • Lino Lakes can issue general obligation bonds to finance improvements in the district. The bonds do not require an election and do not count against any debt limit. • State law requires that the bonds be supported "primarily out of the proceeds of the tax levied" on property in the district. This provision allows other revenues to be used to pay debt service on the bonds. Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota Page 11