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Pequot Lakes,Storm Drainage Utility <br /> Following is an explanation of Pequot Lakes' Storm Drainage Utility that was presented <br /> at an April 21, 1998 Public Meeting on the Storm Drainage Utility(proposed at that time). <br /> From feedback we have received since then, I have added and deleted a few statements <br /> to the handout and repeated it below. <br /> REMEMBER, this is for the"old"City boundaries back in 1998 and does not include <br /> updates to the"old" City areas nor the new"rural taxing district". <br /> Previous to the Storm Drainage Utility, the City paid for storm drainage improvements <br /> from their General Fund. <br /> The General Fund was from monies generated from the City's tax levy, which was based <br /> on property values. <br /> Property values do not necessarily relate to storm drainage runoff, so there was <br /> discussion on whether there is a better way to link the cost of paying for storm drainage <br /> to something other than property values and the General Fund. <br /> ****************** <br /> A. Since 1983, Minnesota State Law has allowed the establishment of storm drainage <br /> utilities_ <br /> B. A storm drainage utility is similar to other utilities(electric, water, sanitary sewer, <br /> natural gas, etc.)that serve City residents-a service is provided for a fee_ <br /> C. Through the storm drainage utility, the City can set aside funds that will, hopefully, <br /> help them in being proactive in addressing storm drainage needs(this is the service <br /> provided). <br /> Besides benefiting those in the area of a specific storm drainage improvement, <br /> improved storm drainage around the City will benefit the City residents and <br /> businesses in decreased maintenance costs as well as showing visitors and possible <br /> future residents/business owners that the City tends to its infrastructure. <br /> Residents may expect a storm sewer inlet in their front yard if they are paying into <br /> the storm drainage utility every month. Not everyone will get(or need)storm sewer in <br /> his or her front yard. However, these same residents will most likely drive,walk,or <br /> shop in areas of town that have a storm sewer paid for via this utility. <br /> D. For the above service, a fee needs to be charged. <br /> Many other Cities in Minnesota have set up storm drainage utilities. <br /> They all basically use a similar approach for determining the utility fee. <br /> Page 1 of 4 <br /> J_ 130PQLAK\0000-General\CORR\Storm Drainage Utility Explanation-Aug 4,2005.doc <br />