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2/90 <br />Building Permits, Land Development Fees & Land Exaction <br />As land is developed or built upon, surface water runoff and <br />pollution loading increases. Administrative and capital costs <br />can be recovered at the time of building permit issuance or land <br />development approval. The City can require dedication of land <br />for ponding or drainage purposes. The land, however, must be <br />from the parcel being developed. <br />User Charges (M.S. 444.075) <br />User charges, such as a storm water utility, is a mechanism by <br />which a City can generate funds through billings similar to <br />water and sewer billings. The principle in this method is to <br />charge for services rendered to properties generating runoff, as <br />well as the service to properties being protected from the <br />effects of runoff, without consideration to an increase in market <br />value of the property. <br />The utility approach is further detailed in a supplemental <br />report, "Financing Storm Water Projects Using a Storm Water <br />Utility," under a separate cover. <br />Grants <br />State grants are available for surface water management and <br />nonpoint source pollution. It is generally not a good financial <br />practice to rely on grants for a service program because this <br />source of revenue is not dependable and requires constant <br />speculation as to its availability. Grants are useful but they <br />should be used only to supplement a planned local revenue source. <br />A. Minnesota Pollution Control Agency (MPCA) <br />Previously the MPCA had Federal matching funds for <br />preserving and protecting lakes and for enhancing their <br />public use and enjoyment, under the Federal Clean Lakes <br />Program. MPCA is optimistic that funding will continue to <br />be available. Currently, MPCA is involved in the State <br />Clean Water Partnership Program. This program will provide <br />3.5-2 <br />