Agenda - Council - 06/08/1999 - Laserfiche WebLink

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ADOPT ORDINANCE ESTABLISHING A STORM SEWER UTILITY SYSTEM By: James E. Norman, City Administrator Background: The City discussed, at various times throughout 1998, the possibility of establishing a storm sewer utility system under the authority of Minnesota Statutes, Sees. 444.075. A storm sewer utility system would allow financing "for the purposes of paying the cost of building, constructing, reconstructing, repairing, enlarging, improving, or in other manner obtaining the facilities or any portion of' items relating to storm sewer systems. In a storm sewer utilities system, the law authorizes collection of user fees, availability fees, and connection charges. There are a number of advantages to the creation and use of the storm sewer utility. These include: (a) It is not necessary to demonstrate special benefit or increase in fair market value to justify the charges; (b) The charges are not part of the City's ad valorem tax levy; (c) The charges may be based on any reasonable basis and are not limited to a formula or based on property value; (d) Utility funds may be used for certain items related to storm system maintenance which are currently a part of the City's ad valorem budget; (e) Utility fees may be used for maintenance and replacement of the system. City Attorney Goodrich has been asked to draft an ordinance establishing a storm sewer utility system for Council consideration and he is in the process of drafting the ordinance. Attached to this case is a memorandum from the City Attorney describing the establishment of a storm sewer utility system. Council Action: Motion to introduce Ordinance #99-XX to establish a storm sewer utility system. Reviewed by: ~~) City Administrator Director of Public Works City Engineer City Attorney CC: 06/08/99 [[RA_FSllVOLlluserslJThielingl~flOICOUNCIL&lCITYCOUNl1999Ltune~StormSwrUtil. doc 06/03/99