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WIDSETH SMITH MEMO N LTIN Date: June 19, 2007 To: Honorable Mayor and City Council, City of Pequot Lakes From: Tim Houle and Mike Rude Cc: Sandy Peine, City of Pequot Lakes Mike Loven, City of Pequot Lakes Project Name: N/A Project No.: N/A Subject: Storm Water Management Fee A. History 1. Prior to 1998, the City paid for storm drainage improvements from their General Fund. The General Fund comes from monies generated from the City's tax levy, which is based on property values. Property values do not necessarily relate to storm drainage runoff. 2. One approach was to use special assessments. After a special assessment preliminary hearing, the folks on "top of the hill" could not see why they should be specially assessed to pay for improvements for the folks on the "bottom of the hill". 3. There was discussion on whether there was a better way to link the cost of paying for storm drainage around the City to something other than property values or special assessments. 4. The idea of a Storm Drainage Utility was presented and discussed. 5. On April 21, 1998, a public meeting was held on a proposed Storm Drainage Utility for the City- instead of using General Fund monies or doing special assessments. 6. Since 1983, Minnesota State Law has allowed for the establishment of storm drainage utilities. 7. A storm drainage utility is similar to other utilities - electric, water, sanitary sewer, natural gas, etc. -that serve City residents; a service is provided for a fee. 8. Through the storm drainage utility, the City can set aside funds that will, hopefully, help them in being proactive in addressing storm drainage needs. This is the service provided. 9. Besides benefiting those in the area of a specific storm drainage improvement, improved storm drainage around the City will benefit the City residents and businesses in decreased maintenance costs as well as showing visitors and possible future residents/business owners that the City tends to its infrastructure. 10. Residents may expect a storm sewer inlet in their front yard if they are paying into the storm drainage utility every month. Not everyone will get, or need, storm sewer in his or her front yard. However, these same residents will most likely drive, walk, or shop in areas of town that have a storm sewer or some kind of storm drainage improvement-a ditch or a culvert - paid for via this utility. C:\Documents and Settings\Sandy\Local Settings\Temporary Internet Files\OLK23\Storm Drainage Utility Information-061907.doc 7804 Industrial Park Road■PO Box 2720- Baxter,MN 56425-2720■TEL:218.829.5117■FAX:218.829.2517■WEB:www.wsn-mn.com ENGINEERING ARCHITECTURE LAND SURVEYING ENVIRONMENTAL SERVICES AA/EEO