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1 <br />CITY OF <br />INO LAKES <br />10/24/94 <br />Administration <br />Financing <br />Paying for storm water management projects has become more <br />complex in recent years. In the past, special assessments against <br />benefited properties financed most of the necessary <br />However, with recent legislation, the financial options v' <br />broadened considerably. The question is, which method(s) best <br />suit the needs of the City. <br />The major categories of funding sources are (1) Ad Valorem Taxes; <br />(2) Special Assessments; (3) Building Permits, Land Development, <br />Fees and Land Exaction; (4) User charges; and (5) Grants. <br />Following is a description and financing principles used with each <br />of these financing mechanisms. <br />Ad Valorem <br />A. General Taxes <br />General taxation is the most common revenue source used <br />to finance government services including minor mainte- <br />nance measures for drainage and water quality facilities. <br />Using property tax has the effect of spreading the cost over <br />the entire tax base of a community. <br />B. Special Tax District (MS. 103B.245) <br />The tax district is similar to the administrative structure <br />under general taxation except that all or part of the com- <br />munity may be placed in the tax district. The principle is <br />to better correlate improvement costs to benefited or <br />contributing properties. <br />Special Assessment (M.S. 429) <br />Municipalities are familiar with the use of special assessments to <br />finance special services from maintenance to construction of capital <br />improvements. The assessments are levied against properties <br />benefiting from the special services. The philosophy of this <br />method is that the benefited properties pay in relation to benefits <br />received. The benefit is the increase in the market value of the <br />properties. <br />Local Water Management Plan <br />Policy Document <br />SEH NO: LINOL9402.00 <br />Page 39 <br />