05/01/2006 Council Packet - Laserfiche WebLink

Home Search

"Will there be a sales tax on the Storm Water Utility charges ?" No sales tax is considered with the utility charge. "What are the benefits of a Storm Water Utility ?" This question will be addressed in two parts. First, the benefits of the storm water management program will be discussed, and second, the advantages of the storm water utility as a financing method will be addressed. Many of the benefits and services to be provided through Lino Lakes' water management program have already been described. Lino Lakes' storm water management program will address wetland protection through regulation (ordinances) and through capital improvements. Such efforts will help to protect the natural amenities that are so important to residents of Lino Lakes. Second, flooding problems can be reduced significantly by planning for proper ponding areas and storm water conveyance systems addressing the increase in runoff from continuing development in Lino Lakes, in a cost effective manner. The benefits of using a Storm Water Utility to finance storm water management programs are numerous. First of all, a utility is funded by a service charge on all developed parcels. Charges are based on the amount of water that drains away or runs off from a particular parcel. Second, since there is a direct correlation between water runoff and the impact it creates, the greater the runoff the greater the impact on storm waters and, therefore, the greater the charge. Charges are not based on property value, as are property taxes. Third, tax - exempt properties pay their fair share under the utility plan. The utility is favored because (1) it is considered fair; charges are based on runoff rather than property value as is the case with general taxes, (2) it is dependable; the utility is self - financing it does not compete with other governmental services for revenues and it provides consistent funding which is kept in separate dedicated funds, (3) it is simple and flexible; utility charges are similar to water and sewer charges the fee system is adaptable to local situations and credits and exemptions can be built in, and (4) it is acceptable; no increase in property tax is required and a regular small service charge is typically more acceptable to residents than a large one -time assessment. Feasibility Study A- LINOL0602.00 City of Lino Lakes, Minnesota B -3