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A <br /> 2/90 <br /> • <br /> 3. 5 FINANCING <br /> Paying for storm water management projects has become more <br /> complex in recent years. In the past, special assessments <br /> against benefited properties financed most of the necessary <br /> improvements. However, with recent legislation, the financial <br /> options have broadened considerably. <br /> The major categories of funding sources are Ad Valorem Taxes, <br /> - - " • - - , = - - - • -ssments, Use , nd Grants. <br /> Following is a description and financing principles used with <br /> each of these financing mechanisms. Table 3.4 identifies the <br /> advantages and disadvantages of each method. <br /> Ad Valorem <br /> A. General Taxes <br /> This is the most common method of generating revenues to <br /> finance general government services including minor <br /> maintenance measures for drainage and water quality <br /> facilities. Using property tax has the effect of spreading <br /> the cost over the entire tax base of a community. <br /> B. Special Tax District (M.S. 473.875 to 473. 883 ) <br /> This is similar to administrative structure under general <br /> taxation except that all or part of the community may be <br /> placed in the tax district. The principle is to better <br /> correlate improvement costs to benefited or contributing <br /> properties. <br /> Special Assessment •(M.S. 429) <br /> The City is familiar with the use of special assessments to <br /> finance special services from maintenance of sidewalks to <br /> construction of capital improvements. The assessments are levied <br /> against properties benefiting from the special services. The <br /> • philosophy of this method is that the benefited properties pay in <br /> relation to benefits received (increase in the market value of <br /> the property) . <br /> 3. 5 - 1 <br />