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Mounds View City Council Page Six ~egular Meeting July 26, 1993 Mr. Keene explained that to generate $114,000 annually, which projected over five years is $575,000, a formula based on total volume of run off from certain land uses was calculated. Mr. Keene described the formula and how the user charge is calculated. Based on this formula and calculations, each residential property owner would be billed $3.99 per quarter with a total annual. cost of $15.96. Orduno stated that to raise the same amount of money for storm water related projects through taxes, based on the current tax rate,-the cost for a home valued at $75,000 would be $20.30, the owner of a home with a $100,000 value would be $33.31. The costs are less for the utility fee per household because it is spread out among all users. The tax rate could increase which would increase the cost to the property owners. With a flat fee the cost could remain consistent. Orduno stated that it could, however, go up in the future. Orduno stated that the utility ordinance could be introduced on August 9, 1993 with approval of the ordinance on August 23, 1993, publication of the ordinance on September 1, 1993, ordinance could become effective October 1, 1993, approval of Surface Water Management Utility Budget as part of the 1994 Budget in December of 1993 and implementation on January 1, 1994 with first billing in April of 1994. ~7ulie Trude, 8391 Knollwood Drive, asked if Public Works will continue to ~gund the projects that are presently taking place until the utility is fully funded. Mayor Linke stated that the projects are not funded by Public Works, but are funded by the Surface Water Management Fund, however, that fund is down to approximately $180,000 which will not last long and that the City is looking at major projects in the future, This utility would allow the City to look at major projects and still maintain $100,000 in the fund. Trude asked if the City intended to rip up roads and install storm drainage systems. Mayor Linke used Long Lake Road as an example of a project that the City knew needed storm drainage work and this project was undertaken in conjunction with the Long Lake Road Project. Mayor Linke stated that work' will need to be undertaken on Ardan Avenue in 5 to 6 years. These are projects that would make use of the Surface Water Utility Fund. Julie Trude asked if those businesses that had created natural drainage ponds would receive a break in their portion of the fee. Mr. Keene stated that some communities credit certain criteria, but this would be brought forth in the. ordinance that created the Surface Water Utility Mr. Keene stated that even though the businesses have natural drainage ponds, the volume of run off would be the same only it will run ~nto the system over a longer period of time.